Topic: Bitcoin Price Update for August 24, 2016 (Read 273 times)

Bitcoin Price Update for August 24, 2016 

Market Commentary (BTC): 

As the tight, sideways chop persists through the majority of this week due to mixed technicals and relatively boring fundamentals, we want to take a closer look at what the market is doing within the multiple consolidation patterns price is stuck in on multiple timeframes.  It has been tough to get a good gauge on the market following the Finex bottom and subsequent bounce, and it still is, however more encouraging signs continue to emerge as we press on in this still contracting 570 - 590 $ range.  With that in mind let's move on to the updated 4-hour chart below for a look at the short term technicals.

We can see that price was able to breakout of this specific symmetrical triangle, although price remained heavy and the apex was quickly tested.  Now the market is riding the triangle uptrend line despite neutral SCMR candles and new dynamic support around 570 $, however there remains significant resistance overhead in the form of the medium term OTE short zone and the minor supply area which has already rejected price at 585 $ a couple of times.  Throw in the fact that the 9/18 EMA cross has flatlined and the 200-period SMA remains bearish and falling around 600 $, and we still have a thoroughly confusing market on our hands for the time being.

Having said that, notice that Willy and RSI are recharging nicely down at the centerline despite a stagnation in price, as is the Stochastic, however the CM PPO is still showing slightly more overbought conditions than we would prefer.  Finally, volume profile looks healthy around current levels although work still needs to be done below the market while trendline and OTE support still sits between 500 - 530 $, but we still have a rising A/D line and low trading volumes so perhaps price remains elevated for now. 

Generally speaking we are still in the camp that a bullish resolution is coming in the next month or two. This is particularly true considering that it seems we are now in the middle of the traditional pre-bitcoin rally altcoin pump, which still gives the charts some time to align themselves prior to that upside move. Despite some early positive signals on the shorter term 4-hour timeframe, the longer term charts are still not there yet.  While we think a move up to test 600 $ and maybe even 630 $ over the next 5 days remains a possibility, we are not betting on it just yet as you can see by the ProTrade levels below.


GLGT!