Bitcoin Price Update for September 7, 2016
Market Commentary (BTC):
The bulls have so far been able to successfully defend the 600 $ level, rather surprisingly, although price is now in an area in which it will be tough to continue higher without some sort of a recharge of the technicals. We are starting to think that what has been a nice little 5% rally off of the 565 $ double bottom is just the beginning of a much larger move to the upside, perhaps to test the top of the current trading range between 450 - 700 $, however we also think that the indicators need a near term pullback in order to sync up with the higher timeframe charts.
Speaking of charts, let's take a look at the 6-hour for an overview of the shorter term setup. We can see that SCMR is still painting bright green bullish candles and is building strong dynamic support between 565 - 570 $, also where volume profile PoC sits, as well as around the 590 $ level (which is new). We also have upside stacking in the EMA's in addition to a break and hold of a flattening 200-period SMA which now sits around the top of the pivot area at 600 $. Lastly on the bullish side of things, the A/D line is confirming the move to the upside and exchange volumes are finally picking up, both of which tell us to continue buying dips.
On the other hand, we are currently running up against heavy resistance which makes a pullback around current levels more probable. Notice that price is well within the OTE short zone, well outside of the volume profile value area, and is getting awfully close to the triangle downtrend line which now resides around 620 $. Additionally, Willy is now officially overbought, RSI is as well and is painting a bearish divergence, MACD is rolling over back to the zeroline, and PPO is heavily overbought too.
Considering the near term technicals in the context of the longer term bull market we think we are getting closer to the upside resolution we have been calling for for months. That said we also think that a pullback is due in order to recharge the technicals, washout late longs, and give investors another chance to pick up coins sub-600 $. We would be small buyers in in the 590 - 600 $ range, and would come in with more size in the 575 - 580 $ area.
GLGT!
https://www.bullbearanalytics.com/
Topic: Bitcoin Price Update for September 7, 2016 (Read 342 times)
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