Bitcoin Price Report for May 12, 2017

May 12, 2017 --- (ARCHIVED) Free Reports

Market Commentary:

Bitcoin is finally getting a much needed "pause that refreshes" following a series of new all time highs throughout the course of this week.  Now as we head into a rather unremarkable May weekend, we think it appropriate that the market continue to take a breather in order to find new near term support, and to recharge some still overbought momentum conditions.  While we are not yet sure if the bottom of this particular consolidation range is in yet at the 1733 $ local low, if the bears can manage to break that level then the [members-only text] that we have been patiently waiting on for over a week will be squarely in our sights.  Even if we are unable to [members-only text], we have issued some new ProTrades that should allow us to [members-only text]. Regardless, it looks to us like overall the bias remains with the bulls for the time being so we continue to [members-only text].


4-hour Chart:

We zoom back into the 4-hour chart to finish off the week as it remains the most informative from a near term perspective.  We can see that SCMR is [members-only text] despite the recent weakness down into the mid-1700's $ while market structure continues to come in bullish, and notice the textbook hammer candle bounce out of the upper demand area, OTE long zone, and EMA congestion zone which is a good sign going forward. Also note that the longer term SMA's remain [members-only text] for now, as does dynamic support, all while volume profile builds out fairly nicely above 1500 $.  While there very well could be a relatively extended stagnant period over the weekend, overall things appear to [members-only text] from a price action perspective. 

As far as momentum and volume are concerned, we can see that the oscillators are finally coming down out of officially overbought territory following days of being pinned up there, although Willy has been slow to move, MACD is below its zeroline, and PPO is still flashing weak sell signals. Additionally, exchange volumes have been mixed recently, although there is nothing to be too worried about, and the A/D line continues to move higher so in fact volume is also in favor of a general continuation of the bullish uptrend at some point.  While we cannot rule out 
[members-only text] given the magnitude of the rally we have seen this week in conjunction with technical indicators that still need some recharging, we are going to be [members-only text] barring some fundamentally negative exogenous event.
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Daily Chart:

We'll close the week out in term of analysis with our trusty daily chart which continues to lean bullish, but with some fairly major caveats.  Notice that SCMR is [members-only text] while dynamic support continues to [members-only text], although the nearest dynamic level we currently have present is below [members-only text] so perhaps a bit more work to the downside this weekend could help fortify this area.  If not, then hopefully we can put in even newer and higher levels in the [members-only text] (although that will take some additional downside testing from here). Additionally, market structure is still bullish, all moving averages continue to stack to the upside, and the Ichimoku Cloud remains positive and is moving higher as well.

Moving on to momentum and volume we can see that Willy, RSI, and the Stochastic are all still pinned in overbought territory, MACD is looking a bit heavy, and PPO continues to flash strong sell signals.  However, exchange volumes and the A/D line both still indicate that buying is occurring even at these elevated levels, so overbought momentum might still be indicating strength rather than exhaustion.  Throw in a 
[members-only text] candle today that has yet to paint, in addition to having room to run up to the next Fibonacci extension level above [members-only text], and we think the bias remains to the upside until further notice.  That said, we also still think a consolidation is in order so we will assume new ATH's are postponed until [members-only text].
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Market Summary:

While we are hopeful that the market can continue to tread water around current levels, or even slightly lower, in order to more fully recharge the momentum indicators on the longer timeframe charts, given the price action we have seen over the past 24 hours in addition to the fact that MSM hasn't really even picked up this story yet makes us think that pullbacks will continue to be shallow and brief.  With that in mind we have issued new shorter term ProTrades in order to try to take advantage of [members-only text] opportunities the market might give us over the weekend. Have a good one!
Posted ProTrade Ideas:

1a.) **Bitcoin ProTrade - Very Short Term [UPDATED on 5/12/2017]**:  We will consider a [members-only text] off of the [members-only text] level with a stop around [members-only text] and a target of [members-only text].

1b.) **Bitcoin ProTrade - Very Short Term [NEW; ISSUED on 5/12/2017]**:  We will consider a [members-only text] off of the [members-only text] level with a stop around [members-only text] and a target of [members-only text].

2a.) **Bitcoin ProTrade - Short Term [UPDATED on 5/12/2017]**:  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].

2b.) **Bitcoin ProTrade - Short Term [UPDATED on 5/12/2017]**:  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 5/12/2017]**:  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 [UPDATED on 5/12/2017]**:  We will consider a [members-only text] off of the [members-only text] level with a stop around [members-only text] and a target of [members-only text].

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