Bitcoin Price Report for December 12, 2016
Dec 12, 2016 --- (ARCHIVED) Free Reports
Market Commentary (BTC):
Bitcoin is finally moving to the upside once again following what was a rather stagnant weekend of price action, contrary to our near term outlook on Friday. Nevertheless, it looks like the scenario we laid out last week that the weekend trade could setup the market for a powerful move this week is indeed materializing despite a relatively lackluster rally today (esp. considering how pent up things are right now). While we think a continuation to the upside over the next week or two is likely, we are less sure about how quick and how powerful the move will be. Our hunch is that this breakout will be [members-only text] than many before it, mainly due to the strength of the historical resistance the market is currently dealing with.
Today we take a look at two charts for a more complete view of where we are in terms of both the short and medium term forecasts. We can see on the daily chart below just how strong the current resistance is that price is currently struggling with. We are at the very top of the upper supply area which sits just above the bottom of the long term OTE short zone, both of which are significant areas of interest for sellers. Additionally, Willy and the Stochastic are [members-only text], RSI continues to paint a bearish divergence, and MACD has yet to cross above its zeroline.
On the other hand, SCMR is still painting [members-only text] candles while new and strong dynamic support continues to build around [members-only text], which is also where the upper trendline of the still intact ascending triangle formation lies. Not only that, but trading volumes and the A/D line are confirming the rally while PPO continues to paint neutral signals. Despite the fact that another retracement down into the [members-only text] area remains a possibility, we would jump at the chance to get long from down there once again.
With that in mind, let's take a look at the 4-hour chart below for a closer look at the near term technicals. We can see that there was indeed a breakout this morning over local resistance in the form of the supply area off of the early December highs on what are still [members-only text] SCMR candles. Also notice that we now have even newer and stronger dynamic support building around [members-only text], coincidentally where the upper trendline sits too, while the Ichimoku Cloud remains bullish and supportive of these higher prices. Finally, momentum is not yet overbought despite the steady price action over the past few days, although Willy and the Stochastic are [members-only text].
Overall things look right on track in terms of a [members-only text] over the next month or two, however we still cannot rule out a final retracement back down into near term support prior to a sustainable move to the upside. Having said that, once it becomes clearer that higher prices are inevitable, we expect some FOMO to kick in which should eventually take prices above the psychologically significant [members-only text] level.
Posted ProTrade Ideas:
1.) **Bitcoin ProTrade - Very Short Term [ACTIVE; ENTERED @ [members-only text] on 12/10/2016]**: (a) 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].
b.) **[UPDATED on 12/12/2016]**: 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 12/12/2016]**: 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 [ACTIVE; UPDATED on 12/5/2016]**: 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 on a pullback to the a [members-only text] area.
4.) **Bitcoin ProTrade - Long Term [ACTIVE; UPDATED on 12/5/2016]**: 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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