Bitcoin Price Report for January 13, 2017

Jan 13, 2017 --- (ARCHIVED) Free Reports

Market Commentary:

Look what 24 hours without FUD can do for the market!  At this time yesterday morning price was at the tail end of a free fall out of the 800's $, reaching a local low of 751 $, prior to stabilizing and rallying slowly back to the upside throughout the afternoon.  Now price is sitting just above 800 $ as we head into the weekend, a weekend that I think most bitcoin traders will welcome with open arms if it can bring some semblance of stability (at least for a few days).  While there is still not much to report on from the fundamental front considering SegWit activation looks to be quite aways off, there are some interesting developments taking shape via the shorter term technicals that we think warrant some discussion.

We once again show two charts today, a 6-hour and a daily, for a more complete short to medium term outlook as we head into the weekend.  We can see on the 6-hour chart below that despite some conflicting signals in the form of [members-only text] SCMR candles, we now have two intact [members-only text], as well as a [members-only text] candle, both of which tell us that [members-only text] meaning a transition into a consolidative market could very well have already begun.  With that said, notice that we now have new dynamic resistance around the [members-only text] level in addition to demand area support around [members-only text], so we would not be at all surprised to see the market range between these two levels over the coming days.  

With that said, momentum and volume are both currently indicating that the bulls could be taking back control given Willy and the Stochastic remain pinned in officially oversold territory, RSI and MACD are both showing beautiful bullish divergences, and PPO is still flashing strong buy signals. Throw in an A/D line that looks to be finding a bottom while price remains just outside of the volume profile value area, and we think the stage is set for a period of rangy consolidation prior to a [members-only text] next week.

Moving on to the daily chart, we can see that not much has changed since yesterday other than the fact that price has now moved above the intermediate term demand area, and is testing the top of the [members-only text].  Also note that despite what are still [members-only text] candles we still don't have any new dynamic resistance, although on that note there is no new support either. Regardless, the main things we want to focus on here are momentum and volume considering Willy and the Stochastic are oversold, RSI and MACD are attempting to find bottoms, and PPO is finally back to flashing buy signals (albeit weak ones). Add to all of that the fact that the A/D line has been able to stay elevated, as well as a nice big volume divergence on total exchange volume, and we think the market is ready to settle into a range, perhaps a large range between [members-only text], for the foreseeable future as a new base is built upon which to launch the next ATH attempt from.  

Even if the consolidation extends for months, the market should still be in good shape.  As they say, "the longer the base, the higher in space".
Posted ProTrade Ideas:

1a.) **Bitcoin ProTrade - Very Short Term [ISSUED on 1/9/2017]**:  We will consider a [members-only text] position in the [members-only text] area with a stop around [members-only text] and a target of [members-only text].

2.) **Bitcoin ProTrade - Short Term [UPDATED on 1/9/2017]**:  We closed our [members-only text] position off of the [members-only text] level at breakeven for no gain or loss.

3.) **Bitcoin ProTrade - Medium Term [UPDATED on 1/9/2017]**:  We will consider a [members-only text] on a move to the [members-only text] area with a stop around [members-only text] and a target of [members-only text].

4.) **Bitcoin ProTrade - Long Term [ACTIVE; UPDATED on 1/9/2017]**:  We will stay [members-only text] off of the [members-only text] level with a stop around [members-only text] and a target of [members-only text].  We will add to the position in the [members-only text] area.
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