Bitcoin Price Report for February 22, 2017
Feb 22, 2017 --- (ARCHIVED) Free Reports
Market Commentary:
Well ladies and gentlemen, it certainly looks like the bitcoin markets are on the verge if breaking both the regional highs of 1140 $ from early this year, as well as the ATH of 1163 $ from November of 2013. Currently price is sitting around 1125 $ as it continues to creep slowly higher on low volume and overbought technicals, which has been the case for almost the entirety of the medium term rally. While traditionally these would be signals indicating that the market is stretched and due for a pullback or consolidation, when we get this close to major breakout levels they tend to act as magnets for price. That said, we are not guaranteeing a move to new highs as imminent by any means, but the odds continue to increase as time passes. Despite the fact that we remain [members-only text], we are unsure as to whether we will actually get a shot prior to a breakout to new highs. If not, we will remain in the LT ProTrade for substantially higher prices.
Back to the 6-hour chart as it has presented the most salient view of the short term technical setup throughout the course of this week. We can see that price continues to press up into the final historical resistance zone via the upper supply area, and yet the bulls have yet to really be challenged on the downside. SCMR remains [members-only text], we have another are of dynamic support forming at [members-only text], market structure remains bullish, and the A/D line is accelerating. On the other hand, as has been the case for most of the month of February, the momentum oscillators are officially overbought, MACD remains anemic, and PPO has just started flashing weak sell signals. While we cannot rule out a move lower to surprise the bulls one last time prior to breaking out to a new historical trading range, we think it will be quickly bought much like the minor dips we have seen over the past few days.
Now on to the daily chart where we can see the story remains much the same as it is on the 6-hour chart above. A move up into the final supply area has not stopped the bulls' run to the upside in spite of what are still very extended medium term momentum indications. As far as price action goes, SCMR remains [members-only text] while dynamic support continues to build around [members-only text], and we also have a textbook hammer candle trying to paint following a breakdown rejection around the 1100 $ level overnight. Additionally, the A/D line has picked up the slack from the past few days, volume is ticking up slightly, and MACD has room to run. On the other hand, Willy and the Stochastic are still officially overbought, RSI is getting very close, and PPO is still flashing weak sell signals. While we don't see anything currently that is an imminent danger to the rally, we must always be vigilant for washouts to the downside both in terms of risk management on current trades as well as [members-only text].
For the time being it appears as though traders are taking a breather and allowing some consolidation in the mid-1120's $, a healthy thing for the market in our opinion. In fact, it would be even better for the market if we could see a somewhat bigger and longer range consolidation over the next few days to few weeks in order to recharge momentum and allow for another period of accumulation prior to the FOMO that we know will be a result of new ATH's. While we are fairly confident that [members-only text], how and when we actually get there remains up to the market.
Posted ProTrade Ideas:
1a.) **Bitcoin ProTrade - Very Short Term [UPDATED on 2/22/2017]**: 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].
1b.) **Bitcoin ProTrade - Very Short Term [UPDATED on 2/22/2017]**: We will consider a [members-only text] position on a move to the [members-only text] area with a stop around [members-only text] and a target of [members-only text].
1c.) **Bitcoin ProTrade - Very Short Term [ISSUED on 2/22/2017]**: We will consider a [members-only text] position on a move to the [members-only text] area with a stop around [members-only text] and a target of [members-only text].
2.) **Bitcoin ProTrade - Short Term [ACTIVE; UPDATED on 2/22/2017]**: 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].
3.) **Bitcoin ProTrade - Medium Term [UPDATED on 2/22/2017]**: 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 [ACTIVE; UPDATED on 2/22/2017]**: 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].
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