Bitcoin | Page 3 | The Gold Forecast

Bitcoin futures trade up but off of the 50-day M.A.

Monday, September 28, 2020 - 17:48 by Joseph M. Wagner II

Today we saw Bitcoin futures (BTC) post their 3rd consecutive gain for the day, currently up $150 or 1.39% as of 4:30 PM EST. Usually, this would be signaling a further bullish trajectory, and although this could be the case here’s why I don’t believe it is as of yet.

First and foremost is the intra-day high achieved today at $11,080. This price point is exactly where the 50-day moving average lies. A bounce to the downside was observed after reaching this technical indicator and for that reason, we remain neutral. However, a break above $11,200 would turn us bullish on the asset.

One of the more bullish signs we have witnessed today and for the past three trading sessions is the growing volume occurring concurrently with higher pricing. Gleaming any meaning out of this can be tricky and we don’t have to look back too far to see one of the only other instances of growing volume for three days of price advances. The last time and possibly the only other time we had three days of rising volume amidst three days of the rising price is back on May 8th of this year. What followed the next day for BTC however was a steep decline over the weekend leading to BTC futures gapping down over $1,200 on the open for Monday, May 12th.

So, our forecast from Friday remains and it “Is likely that it will remain in its current band of approximately $9,900 - $11,100 for the foreseeable future. Looking back on a longer-term chart reveals this is indeed BTC’s favorite point of congestion and what is only starting to resemble consolidation.”

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Previous Reports:

Tuesday, September 8, 2020 - 19:14
Since September 2nd BTC most active futures contract has lost approximately $2,000 in value. What is worse is the last three trading days have had extended lows along with a massive spike in (double the daily average in August) daily volume. Also, the RSI has plummeted 20 points, and the bulls have given up three major support levels in these last four brutal trading sessions. However, on the... Read more
Thursday, September 3, 2020 - 18:42
Bitcoin took a beating today currently futures on the CME are pegged at $10,750 down 6.2% or $710 on the day. The trend of BTC leading gold and silver while moving in the same direction continued, so am I convinced a correction has started or that we have major chart damage? While I see the possibility of support coming in at the 50-day and .618% retracement from last year’s rally both at... Read more
Wednesday, September 2, 2020 - 18:53
BTC lost its grip on any continuation of the rally that took prices from approximately $9,500 - $11,500. There seems to be strong resistance at $12,300 that is putting a stop to any further upside movement. At the same time the low today was not only very interesting because it was within dollars of the lows that were hit seven times last month at approximately $11,200. With such strong... Read more