Bitcoin: USD/BTC (BTC=X) sees substantial increases, driven by fear

By January 27, 2020Bitcoin Business
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Bitcoin: USD/BTC (BTC=X) sees substantial increases, driven by fear

Bitcoin: USD/BTC (BTC=X) sees substantial increases, driven by fear

Futures for safe-haven assets spiked before the weekend closing and traders considered a host of factors. Gold, Bitcoin, and precious metals all saw substantial increases, driven by fear.

International news turned ugly, with increasing concern about the widespread coronavirus in Wuhan, China. Two cases have already been reported in the US, causing increased tension and evacuations from China.

In Europe, US President Donald Trump stirred the pot with international trade relations. Threats to increase tariffs on UK and EU products stirred anxiety about future relations. And the complete evacuation of the Russian government, led by Medvedev, has left many wondering what’s next.

As the market continues to unfold, news surrounding the political and social events will certainly make waves. Should the coronavirus outbreak continue, US-China economic ties will be strained. Already, US companies are moving employees out of the region, and the Chinese government has declared a state of emergency.

Bitcoin and its distance from international relations and trade protects it from these types of events. No wonder, then, that it is often referred to as ‘digital gold,’ and will often follow the gold futures market.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 8,174.98.

The projected upper bound is: 9,220.10.

The projected lower bound is: 8,052.53.

The projected closing price is: 8,636.31.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 61.6997. This is not an overbought or oversold reading. The last signal was a sell 8 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 58.96. 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 sell 8 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 -9. This is not a topping or bottoming area. The last signal was a sell 8 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 4 period(s) ago.

Rex Takasugi – TD Profile

FOREX BTC= closed up 35.630 at 8,613.410. Volume was 54% below average (consolidating) and Bollinger Bands were 18% narrower than normal.

Open     High      Low     Close     Volume___
8,550.7608,708.0008,417.7308,613.410 41,273
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 8,598.38 7,728.20 8,909.50
Volatility: 39 49 61
Volume: 94,341 95,416 86,674

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.

Summary

FOREX BTC= is currently 3.3% below its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into BTC= (mildly bullish). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 22 periods.

Futures for safe-haven assets spiked before the weekend closing and traders considered a host of factors. Gold, Bitcoin, and precious […]

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