Bitcoin Price Report for January 23, 2017
Jan 23, 2017 --- (ARCHIVED) Free Reports
Market Commentary:
The bitcoin markets continue to exhibit signs that price is indeed in a bull market consolidation phase, even in the face of what could have been a rather bearish weekend considering PBoC and exchange uncertainty. Quite the contrary actually materialized as the market rallied up to resistance around the 940 $ level prior to pulling back briefly below 900 $ on news that all major Chinese exchanges would begin charging trading fees starting today. The pullback was quickly bought up by bulls who correctly surmised that a reduction in "fake volume" will end up being a good thing for bitcoin's optics to the investment world. Not only that, but the technicals remain supportive of the idea that a resolution [members-only text] following the current digestion period is likely, although it could stretch out for another few weeks, or possibly months, so we should be ready for that.
Moving on to today's charts and we still don't want to deviate from the 4-hour and daily for the view of the short and medium term technicals. We can see on the 4-hour chart below that price remains well within the still bearishly biased Ichimoku Cloud as it follows the 200 SMA slowly to the upside. Also note that price is being squeezed by the short term EMA's while SCMR paints [members-only text] candles on no new [members-only text] to speak of.
Having said that, the weekend pullback was quickly rejected by historical dynamic support and the volume profile PoC on what are still rather mixed momentum oscillator indications, however the A/D line has continued its uptrend which means that buyers are still more plentiful than sellers at these levels. For now the market is in a flatline period suggesting that [members-only text], but directionality remains elusive for now so we will remain patient for the time being.
Next up is the daily chart which still looks pretty good, generally speaking, but given that the breakout from the bullish pennant we mentioned last week has been relatively anemic so far we are [members-only text] over the near term. Note that SCMR is [members-only text] as price has now officially stalled out in the intermediate term supply area, and it is especially interesting that yesterday's trading range spanned almost the entirety of said supply area which makes us think that perhaps the market has now set a near term trading range between [members-only text].
Also worth noting is the fact that the Stochastic is already moving back into overbought territory while Willy and RSI flatline, and MACD looks like its losing steam while PPO tries to get back to neutral. Conversely, the A/D line remains healthy despite a big drop-off in total trading volumes, likely a result of new exchange actions which will lead to a more accurate reflection of true market conditions going forward. Finally, we think [members-only text] considering there are multiple areas of strong support in myriad forms all the way down to the 700 $ level which should entice buyers if prices head lower.
All things considered, we were encouraged by the price action over the weekend, particularly in light of the news out of China, although we can't shake the feeling that the market is due for [members-only text] prior to another leg up to the still psychologically significant 1000 $ area for the second time this year. We would be [members-only text].
Posted ProTrade Ideas:
1.) **Bitcoin ProTrade - Very Short Term [UPDATED on 1/23/2017]**: 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].
2.) **Bitcoin ProTrade - Short Term [UPDATED on 1/23/2017]**: 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 1/23/2017]**: 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 1/10/2017]**: 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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