Bitcoin Price Report for November 23, 2016
Nov 23, 2016 --- (ARCHIVED) Free Reports
Market Commentary (BTC):
As expected, bitcoin has remained in a range over the course of the first half of this week as the Thanksgiving holiday in the US seems to be draining some liquidity, as well as volatility, from the market. Having said that, we would not be surprised to see the price action pick up as we move closer to the weekend considering bitcoin has historically been rather erratic during these year-end holidays.
Given price is currently in at least a medium term bull market we think that maintaining a bullish bias over the next four to five days is reasonable, however we also want to be ready to buy any potential spikes down into support. We continue to watch the key areas that have been discussed in the ProTrades for the past several weeks, additionally we are keeping the breakout PT intact in case price starts to gain some steam to the upside above [members-only text] over the next few days.
Seeing as though BBA market coverage will be limited over the next 48 hours due to the Thanksgiving holiday, we want to take a look at the daily chart for a view of the medium term technical setup. Notice that SCMR is still painting [members-only text] on what has been a series of bullish, hammer-like candles over the past week or so, while dynamic support continues to build between [members-only text].
We can also see that price is currently inside of two ascending triangles created by the 755 $ resistance line and the two upper trendlines that have formed. While we are reticent to buy dips into support at the[members-only text], we are more than willing to to get long in the confluence area around the [members-only text] area.
Moving on to momentum and volume we can see that Willy and the Stochastic remain pinned in overbought territory, RSI and MACD are still bearishly divergent, and PPO continues to paint weak sell signals. Typically this environment would be downright bearish for price, however remember that during recent rallies these conditions have been a confirmation of strength rather than a sign of exhaustion. Finally, volume remains bullish as the A/D line continues to move to the upside, trading volumes are confirming the uptrend, and volume profile looks better than it has in awhile.
Considering there are multiple attractive areas of support below the market going all the way down into the [members-only text], and given that heavy resistance remains in the [members-only text]range we think the odds are slightly in favor of a small pullback over the next few days as opposed to a breakout. Having said that, we also think downside is limited to the bottom of the current[members-only text] trading range, perhaps down to the [members-only text] level, so ultimately we think the market remains in a relatively broad range as the ascending triangles continue to develop.
Longer term there is no change to our forecast for substantially higher prices over the coming months which means that buy and hold remains a legitimate and effective strategy, which we can improve by buying opportunistically on selloffs.
Posted ProTrade Ideas:
1.) **Bitcoin ProTrade - Very Short Term [UPDATED on 11/23/2016]**: (a) 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].
(b) **[NEW TRADE UPDATED on 11/23/2016]**: We will consider a [members-only text] position on a breakout above 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 11/22/2016]**: 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 11/21/2016]**: 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 11/21/2016]**: 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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