Bitcoin Price Report for March 31, 2017
Mar 31, 2017 --- (ARCHIVED) Free Reports
Bitcoin continues to behave well from a technical perspective, likely aided by the decrease in caustic rhetoric throughout the week regarding the "scaling" issue. For now, we see no reason why this can't persist into the weekend, which is a positive sign for the bulls considering the technicals we will discuss on the charts below. While we are not expecting a FOMO driven rally to new regional, or even local highs, however we do think the bias will stay with the bulls seeing as though the bears have had ample opportunity to push price back below 1000 $ over the past 24 hours and have yet to do so.
More generally speaking, as we move into what will be the first week of April next week we think that the broader triangle consolidation will continue to develop despite what could be a more [members-only text] from a fundamental perspective. Given these potential conditions, we are even more adamant about [members-only text] so as to not miss what could be a [members-only text] in the not too distant future.
We want to finish off this week returning to the trusty 6-hour chart, a recent favorite. We can see how well the market is responding to the technicals on this timeframe given price continues to hug the 50 SMA, as well as the shorter term EMA's now. Also note that recent bullish market structure and price action has led to a persistence of [members-only text], although we still don't have any new [members-only text] building so price remains more susceptible to a selloff than it would be otherwise. Additionally, price is now trying to break through the volume profile PoC, which would be a bullish indication if it can do so, and the A/D line continues to show buyers are still overwhelming sellers during this consolidation.
As far as momentum is concerned, things looks better than they did yesterday but are still not in prime position for a true breakout rally. Notice that while the Stochastic is now out of overbought territory and MACD is holding its zeroline, Willy remains extended and RSI is still treading water in no man's land. Throw in a 200 SMA that continues to flatten out above the market around areas of strong technical confluence in terms of resistance, and we think that while the [members-only text]into the low [members-only text] at some point relatively soon, a true [members-only text] is still some ways off.
The recent near term range contraction has kept the daily chart from evolving too much in terms of the technicals, although there are a few things that bear mentioning today. We can see that SCMR is [members-only text] despite the [members-only text] a few days ago, as well as price breaking back into the still bullish Ichimoku Cloud. Speaking of which, the Cloud signal lines have crossed back to bearish ("bearish T/K cross), however price has failed to react much so far which tells us that this very well could be a temporary situation. Additionally, price is now pinned between the 9 and 18 EMA's, as well as the lower supply area and upper demand area, so all things considered it appears as though indecision remains the dominant force in the market for the time being (generally speaking).
On the other hand, the momentum oscillators remain supportive of more upside over the short term considering Willy and RSI still have plenty of room to run higher, the Stochastic is confirming recent relative strength, MACD has crossed back above the zeroline, and PPO is still flashing strong buy signals. We think that if price can continue to hold the [members-only text] that was painted [members-only text], then there is a good chance of testing the [members-only text] resistance area, if not slightly higher, in the not too distant future (despite still being in a broader consolidative phase).
As this week has progressed, we have slowly but surely become more positive on the market due purely to the technicals that have been emerging. This being the case, it seems to us as though the path of least resistance, at least over the course of this weekend, is for price to [members-only text]the market. That being said, the market also still remains in a longer term consolidation period until further notice, so keeping hopes and emotions in check at this time is critical.
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Posted ProTrade Ideas:
1.) **Bitcoin ProTrade - Very Short Term [NEW; ISSUED on 3/31/2017]**: 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 3/31/2017]**: 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].
3.) **Bitcoin ProTrade - Medium Term [UPDATED on 3/29/2017]**: 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 [NEW;ISSUED on 3/28/2017]**: 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].