Bitcoin Market Trading Update for June 11th, 2019 (BTC/USD)

Market Commentary

No surprises in the bitcoin markets over the past 24 hours given that price has continued to chop around in trendless fashion on either side of the 8000 $ mark as expected, thus creating a near-term range between [members-only content] $ that appears to be strengthing for the time being. The mixed and uncertain technicals are confirming the idea that price will continue to consolidate within set ranges until the longer-term charts are recharged and ready for more upside, and while this could happen sooner than expected we think [members-only content]. 

12-Hour Chart

First we'll take a look at the 12-hour chart for a broad view of the shorter-term setup where we can see that the bounce out of the new upper demand area yesterday sparked a [members-only content] signal and a [members-only content] immediately thereafter, although the selloff earlier today turned [members-only content] which is not great news for the bulls moving forward. Neither is the fact that price is back below the 50 SMA, the EMA's continue to fall, and supply area resistance is now building overhead, all of which should keep a lid on price, although the longer-term SMA's continue to rise and the double bottom remains intact so downside is likely limited as well. 

Moving on to momentum and volume, notice that Willy is getting very close to fully recharged, RSI and the Stochastic have shown some strength recently, MACD is very close to crossing back above its zero line, and PPO is flashing strong buy signals, all of which should help the bulls play defense moving forward hence we think the 7432 $ regional lows hold even if [members-only content] does not. The still strong A/D line and the slowly improving upper half of the volume profile setup confirm this view, although exchange volumes continue to dwindle so more spikey volatility is likely moving forward. 

3-Day Chart

Next up is the 3-day chart for a view of the medium to long-term technical setup where we can see that despite the recent downdraft off of the 9096 $ highs SCMR is still printing [members-only content] signals on [members-only content] candle formations while market structure remains intact, all good signs for the bulls, as are the rising and supportive moving averages and the still-active dynamic support dots below the market. The bullish Ichimoku Cloud should also help the bulls moving forward, however price action over the past few weeks has formed a bit of a Head & Shoulders topping pattern that would be confirmed on a breakdown below [members-only content] $ so the bulls need to play defense if sellers begin to get truly active again soon. 

As far as momentum and volume are concerned, notice that RSI continues to make slow and steady progress to the downside but still has a lot of room to run before being recharged, Willy and the Stochastic are just now coming down out of overbought territory, MACD is about to cross below its zero line, and PPO continues to flash strong sell signals, all pointing to more consolidation, or even more corrective action, so [members-only content] over the short-term. That said, the still generally bullish exchange volumes, a strong A/D line, and a decent volume profile node in the [members-only content]'s $ should help the bulls moving forward as dips continue to be bought.

Market Summary

As the bitcoin markets truly settle into consolidation mode now that both short and medium-term support and resistance areas have been established above and below the market, we think it best to remain in capital preservation mode until better opportunities present themselves further away from the [members-only content] $ level. While this may take a while given the recent price action we've seen, we think patience will eventually pay off with higher probability, higher r/r setups than what the market is currently giving us so on the sidelines we remain for now.