Bitcoin Price Report for December 5, 2016
Dec 5, 2016 --- (ARCHIVED) Free Reports
Market Commentary (BTC):
As expected, bitcoin has slowly crept to the downside over the past few days following our ProTrade exit above the 770 $ level. Now we are back below 750 $ as profit taking continues, however price is already finding some support in the near term [members-only text] area. While we are not expecting a rapid rebound off of these level just yet, the short to medium term technicals are indicating that [members-only text] remains an attractive spot for at least a countertrend bounce higher in the not too distant future.
In order to better catch our bearings going into the first full week of December, we take a look at the 12-hour chart below which remains one of our favorites. We can see that despite the breakout over resistance at 755 $ late last week, price was unable to move above what is still a significant historical supply area between 740 and 780 $. Also notice that the 750 - 755 $ area has become a bit of a pivot zone, which price is now below, however we are finding support at the top of the [members-only text] zone and the bottom of the previously mentioned supply area.
Additionally, SCMR is painting [members-only text], which is encouraging considering there has yet to be a [members-only text], and dynamic support continues to build around [members-only text](which is also where the [members-only text] now sits). Given these indications, we would be surprised to see a continuation much lower than we have already seen, although lets take a look at momentum and volume for more confirmation.
Notice that momentum looks better than it did at the beginning of the weekend given Willy is pulling back out of overbought territory, RSI is already testing support at the 40-line, the Stochastic is recharging nicely, and MACD is back at the zeroline. Additionally, exchange volumes remain bullish, the A/D line continues to press to the upside, and volume profile is still attractive above the [members-only text] level. On the other hand, the near term EMA's are slowly rolling over, or at least correcting, we are pretty extended above the 200-period SMA, and PPO continues to paint [members-only text] signals. Overall, still a pretty mixed near term picture in terms of momentum and volume.
Generally speaking, our medium term analysis today confirms our thinking from last week that the market would pullback from the 770 - 780 $ resistance area before finding new support in the [members-only text] range, where we could be buyers of the dip. Indeed, we have [members-only text], however we want to play it relatively safe from a stop level perspective given there remains a chance of a continuation down to the [members-only text] region prior to a resumption of the bull market. Either way, we are prepared to take advantage of the situation no matter what the market makers throw at us.
Posted ProTrade Ideas:
1.) **Bitcoin ProTrade - Very Short Term [NEW ENTERED @ [members-only text] on 12/5/2016]**: (a) We will stay LONG position off of [members-only text] with a stoploss around [members-only text] and a target of [members-only text].
2.) **Bitcoin ProTrade - Short Term [UPDATED on 12/5/2016]**: 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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