Where is Bitcoin: USD/BTC (BTC=X) Heading Next?
After an extended period of sideways trading, Bitcoin (BTC) experienced a large downwards swing yesterday that caused the cryptocurrency to break below it previously established support level in the low-$3,500 region.
Although this drop seemed significant, BTC has found support in the $3,400 region, and it is still holding steady well above its 2018 lows that are likely to act as a strong level of support if they are visited in the near-future.
Bitcoin Holds Above Support Around $3,000
Last week, Bitcoin was caught in an incredibly tight trading range between $3,550 and $3,650. Although this range was confirmed on multiple occasions by Bitcoin’s price action, analysts previously noted that in the long-term BTC is caught in a significantly wider trading range between $3,000 and $5,000, which is still a valid theory following Bitcoin’s recent volatility.
Mati Greenspan, the senior market analyst at eToro, recently discussed the macro trading range BTC is currently caught in, saying:
“There’s no need for overreaction here. Bitcoin is continuing to trade within the core area of support between $3,000 and $3,500, within the broader range of $3,000 – $5,000…”
At the time of writing, Bitcoin is trading up marginally at its current price of $3,460. After dropping yesterday, BTC found support at $3,400, from which it has climbed slightly.
During the drop yesterday, analysts had speculated that a further drop into the low-$3,000 range was imminent, as this is where the cryptocurrency would see significant buying pressure. Despite this bearish sentiment, Bitcoin appears to have found support at $3,400, which may lead to a new trading range between $3,400 and $3,500.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 3,806.66.
The projected lower bound is: 3,021.57.
The projected closing price is: 3,414.11.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 22.8039. This is not an overbought or oversold reading. The last signal was a buy 14 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 37.91. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 44 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -143.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 2 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed up 11.250 at 3,413.300. Volume was 71% below average (consolidating) and Bollinger Bands were 75% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 3,510.53 3,669.52 5,589.15
Volatility: 26 68 66
Volume: 66,835 79,024 80,403
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX BTC= is currently 38.9% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on BTC= and have had this outlook for the last 15 periods.