Bitcoin Price Report for February 27, 2017
Feb 27, 2017 --- (ARCHIVED) Free Reports
Market Commentary:
As expected, the market went into a rangy consolidation mode over the weekend testing both the upper levels of the range above 1200 $, as well as the lower end of the range around 1130 $. Despite the fact that price came short of hitting our previous 1115 - 1125 $ VST ProTrade entry area, we are ok with this given we think the bias currently remains in the [members-only text] camp over the near term. From a longer term perspective the market remains healthy despite overbought momentum indications, which reinforces our hypothesis that we are in a relatively brief yet broad consolidation period between 1090 and 1220 $ until further notice. Having said that, there are some interesting developments emerging on the charts so let's take a look to see if we can glean some insight into what the action may bring as we head into March.
First up is the 6-hour chart once again as it remains our preferred view of the short term technicals. We can see below that price is indeed stuck between the upper supply area and the upper demand/pivot area on what remains [members-only text], while SCMR tries to transition back into [members-only text] candles as we speak. Also note that price currently seems to be forming a textbook bullish pennant, or what could also be seen as a small ascending triangle, both of which are signs of an eventual resolution to the upside following this consolidation period. Additionally, the EMA's remain supportive, the SMA's are still confirming the bull market, and the Ichimoku Cloud remains [members-only text] (as does the T/K cross).
Conversely, momentum could use some additional recharging given the Stochastic is already almost back to overbought, RSI and Willy have flatlined in the upper half, MACD is back to testing the zeroline, and PPO is still neutral. Throw in the fact that price remains above the volume profile value area, below which could use some filling in, and again we think the technicals are telling us that the market needs more time for price discovery around [members-only text]. On that note, we think the market could use a bit more [members-only text], and perhaps even another [members-only text], prior to moving above the new 1220 $ ATH.
Moving on to the daily chart and things get a bit more confusing considering we have what looks like a small ascending triangle here as well on what are still [members-only text] SCMR candles. Additionally, market structure remains bullish, all uptrend lines are still intact, the moving averages and Ichimoku Cloud are all still positive, and the A/D line continues to push to the upside. On the other hand, all of the momentum oscillators are still officially overbought, MACD continues to roll over, and PPO is back to flashing strong sell signals. Not only that, but price is well above the volume profile value area on what remains a rather porous volume profile setup, and actual exchanges volumes recently have been more bearish than bullish. Again, all of this seems to be pointing to an extension of the trading range as the market continues to try to [members-only text]while traders consolidate gains off of the newly minted ATH.
All things considered, we are expecting the [members-only text] that we saw over the weekend to continue through the better part of this week as momentum recharges and new dynamic levels try to build. With that in mind, we still think that a "buy the dips, sell the rips" type of strategy works well in this environment, especially for nimble scalp traders, although for the longer term setups we will remain patient for [members-only text] before re-entering on the buy side.
Posted ProTrade Ideas:
1a.) **Bitcoin ProTrade - Very Short Term [UPDATED on 2/27/2017]**: 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 [ISSUED on 2/27/2017]**: 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 [UPDATED on 2/27/2017]**: We will consider a [members-only text] position 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 2/24/2017]**: 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 [ACTIVE; UPDATED on 2/24/2017]**: 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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