Bitcoin Price Update for April 24, 2017
Apr 24, 2017 --- (ARCHIVED) Free Reports
As we had hoped would happen going into the weekend on Friday, the bears took a shot at bringing the market down which gave us an opportunity to activate the VST ProTrade at [members-only text](a bit higher than planned, but better than missing it altogether). The market recovered most of those losses almost immediately following the spike down to a local low of 1199 $ on Saturday, and since then the market has been treading water between 1230 - 1250 $ (still a key area of historical resistance). Seeing as though Finex continues to maintain close to a 100 $ premium over the other major Western exchanges, in conjunction with the fact that BU had yet another node-crashing bug earlier today, we think the fundamental bias remains with the bulls for the time being.
In terms of the technicals, there is no denying that things are still quite overbought on most timeframes, particularly the short to medium term. We will take a look at both via the 6-hour and daily charts below, but keep in mind that theme of 2017 has been that overbought conditions are more likely to signal strength than weakness (one of the hallmarks of a strong bull market).
We return to the 6-hour chart today to see what might be in store for traders this week. We can see that price is back inside the lower supply area following a brief stint below it over the weekend, and SCMR is back to painting [members-only text] candles after a few [members-only text] bars painted as well. Also note that market structure is now coming in more bullish than it has in awhile, all relevant moving averages remain supportive of further upside, the bullish Ichimoku Cloud continues to expand, and dynamic support is still building at [members-only text] and [members-only text]. Given that the spiky low from the weekend stopped on a dime at the 50 SMA, as well as a still healthy A/D line, we think demand remains strong below [members-only text].
Moving on, we can see that Willy and the Stochastic are back in overbought territory following a very shallow recharge over the past few days, RSI and MACD are still lagging, and PPO remains neutral. Considering that price is once again stabilizing in what should be a historically significant resistance area, we think that bias remains with the bulls despite volume profile leaving much to be desired (especially around the [members-only text] mark). As long as the new 1199 $ low can hold on moves lower, then [members-only text] looks likely over the course of this week.
We also want to return to the daily chart today as it looks like our consolidation formation has shifted once again. A secondary break above what was the symmetrical triangle/pennant late last week has increased the odds of an ascending triangle materializing, which is still longer term bullish but might be hinting at a [members-only text] in the not too distant future. Notice that price is now in the daily supply area and is pushing up against historical dynamic resistance around [members-only text], and just above that is the [members-only text] area which should provide extra resistance as well. That said, the EMA's are still stacking to the upside, the bullish Ichimoku Cloud is expanding once again, and dynamic support continues to build below the market.
On the other hand, momentum is getting stretched to a point that has precipitated pullbacks at times in the past. Willy and the Stochastic are officially overbought, RSI is close to the 80 line, MACD remains stagnant, and PPO is still neutral somehow. Additionally, trading volumes remain unimpressive, the A/D line is still pretty flat, and volume profile continues to look ok despite a few notches below the market. While we are glad that we were able to get in small short term position near the lows over the weekend, we are going to play it safe by moving stops into profit.
We get the feeling from both a technical and fundamental perspective that the market has a good chance of grinding [members-only text] over the course of this week as Finex arbitrage persists, and uncertainty regarding a hard fork continues to diminish (at least for the time being). While we would actually prefer the market tread water around current levels in order to give the oscillators a better opportunity to recharge, which would in turn make a [members-only text] more likely in the near future, for now it looks like there isn't much in the way of [members-only text] (who remain in charge).
Posted ProTrade Ideas:
1.) **Bitcoin ProTrade - Very Short Term [ACTIVE; ENTERED on 4/22/2017]**: 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].
2.) **Bitcoin ProTrade - Short Term [UPDATED on 4/24/2017]**: 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 4/24/2017]**: 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 4/24/2017]**: 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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