Bitcoin Price Report for May 3rd, 2017
May 3, 2017 --- (ARCHIVED) Free Reports
Market Commentary:
While the market failed to make another new ATH during the Asia and London sessions earlier today, price has maintained resilience in the face of more ardent sell pressure. Following the 1481 $ local high from yesterday morning, the market proceeded to take a bit of a tumble to the downside reaching a low of 1403 $ prior to bouncing quickly back up into the mid-1400's $. There was also another small selloff overnight which saw price move down to 1431 $, however this one was greeted with much less volume and created a yet another higher low without breaking medium term market structure. Seeing as though the market is currently in a near term consolidation between 1400 - 1500 $ with now even stronger support building below the market, we think the bias remains with the bulls for the time being.
4-Hour Chart:
We are flip-flopping back to the 4-hour chart today as we want to keep the short term views of the action as fresh as possible. Notice that SCMR is still painting [members-only text] candles, albeit the current one is [members-only text] for now, while dynamic support continues to build around the [members-only text] and [members-only text] levels. That said, it is rather discouraging that we didn't get new [members-only text] on the 1403 $ lows, but we suspect that if that area is retested and holds we will get what we want in that regard. Also, all of the relevant moving averages are still trending higher in support of the bull market, market structure remains healthy, and the Ichimoku Cloud continues to push to the upside.
Moving on to momentum and volume, we can see that the oscillators remain overbought (other than RSI which continues to lag), while MACD approaches its zeroline and PPO flashes strong sell signals. Additionally, volumes are beginning to dwindle a bit, the A/D line appears to be hitting some minor turbulence, and volume profile remains porous below the market. Typically this type of extension on the momentum and volume indicators would [members-only text], but for now price action is still supportive of the bull case.
Daily Chart:
So what is the bull case? We turn back to the daily chart for an answer to that question, and for now it still looks like the Fibonacci extension levels hold the key to where we are likely headed ([members-only text] and [members-only text]). Notice that price continues to accelerate to the upside, however is not yet vertical, and has not yet reached what should be the only reference levels for resistance we have left which are [members-only text]. This combined with still bullish market structure and price action, as well as the still intact supply/demand imbalance, will likely push price up to the [members-only text] level at some point over the coming days.
As far as momentum and volume are concerned, everything is now overbought, even RSI, and the moving averages are all extending even further apart. Additionally, volume remains anemic and volume profile is now thinning out below the market. On the other hand, SCMR candles are [members-only text], dynamic support continues to build at multiple levels between [members-only text], market structure remains healthy, and the Ichimoku Cloud is still bullish and expanding to the upside. While this may seem like a hodge-podge of mixed signals (because it is), in the context of the action over the course of 2017 the signal is fairly clear: [members-only text].
Market Summary:
For the time being we are not seeing much on the charts that can stop what is now a full blown bull market rally. In fact, the current pause in the mid-1400's $ reinforces this notion even more as it shows that there is still plenty of demand at these elevated levels. While we would love another shot at a pullback in order to re-engage the market on the long side, we realize that another [members-only text] play might be the most realistic setup given what we have seen over the past few weeks (which is a true reluctance to move low enough to get into [members-only text]).
Posted ProTrade Ideas:
1a.) **Bitcoin ProTrade - Very Short Term [UPDATED on 5/3/2017]**: 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 5/3/2017]**: 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 5/2/2017]**: 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 5/1/2017]**: 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 5/2/2017]**: 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 5/2/2017]**: 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].
