Bitcoin Price Report for June 12th, 2017

Jun 12, 2017 --- (ARCHIVED) Free Reports

 

Market Commentary

Volatility made a return overnight last night following what was a slow and steady march to the upside for most of the weekend. While things ended up materializing slightly differently than we had expected, although not much, the effect on the market will ultimately be the same as if price had corrected at the beginning of the weekend rather than the end. Seeing as though price action and market structure remain [members-only text], as do the longer term technicals, we think the current selloff will be yet another opportunity [members-only text].  We are still watching the [members-only text] region very closely, particularly the [members-only text] zone, for signs of a reversal back to the upside.
6-Hour Chart

We return to the 6-hour chart below for a look at the short to medium term setup.  We can see that a [members-only text] candle painted early this morning which is [members-only text], however we are already getting a [members-only text] bar trying to paint despite being rejected by the the bottom of the new ATH supply area. Also note that dynamic resistance is now building for the first time since April at the [members-only text] while the EMA's start to roll over to the downside. On the other hand, market structure remains intact (higher lows, higher highs), the Ichimoku Cloud is still bullish and rising, the [members-only text] zone and 50 SMA are currently acting as support just below the market, and even stronger dynamic support continues to build around the [members-only text] level. The 2612 $ regional low should also act as support, but ultimately it is that [members-only text] area that needs to hold to maintain the near term bullish bias.

Moving on to momentum and volume, notice that Willy and the Stochastic are finally coming down out of overbought territory while RSI and MACD confirm small bearish divergences, however PPO is still neutral and the SMA's are supportive of the [members-only text] market. Regarding volume, the A/D line remains relatively steady at elevated levels despite some heavy sell volumes overnight, however volume profile is more porous than it has been in awhile so perhaps a few days of chop are in order to fill in some of the upper notches. All things considered, we think the market is experiencing a [members-only text] following what was a very bullish week last week that included a legitimate attempt to get above 3000 $.
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Daily Chart

Throughout the morning the daily chart has been trying to paint a [members-only text] candle, but keeps popping back to [members-only text] in short order as dynamic support continues to build around the [members-only text] and [members-only text] levels. We have seen this type of price action before during other periods of consolidation as the rally has progressed throughout 2017, and while it could mean that more [members-only text] is possible before a bottom and subsequent sustainable break above 3000 $, the medium to long term bull market should [members-only text]. Notice that price is also trying to hold above the previous major ATH at 2760 $, which is around where the top of the upper demand area now sits as well, while the EMA's try to act as support given they remain bullish for the time being. 

As fas as momentum and volume are concerned, RSI has started its recharge desent however Willy and the Stochastic still have alot of wood to chop, RSI and MACD have both confirmed bearish divergences on the new ATH, and PPO continues to flash [members-only text] signals. Additionally, the A/D line appears to be rolling over slightly as sell volume picks up a bit, however neither is sending any significant warning signs (at least not for the time being). Overall we think the market has some work to do in terms of recharging and finding a new [members-only text], although in the context of the bull market this is perfectly healthy price action which should help the [members-only text] for the foreseeable future.
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Market Summary

This week should be interesting if for no other reason that to watch the dynamics between the current state of the BTCUSD market compared to that of the ETHUSD or ETHBTC markets, both of which are in an unsustainable parabolic move higher (read: bubble) driven almost exclusively by ICO demand.  Ultimately, the higher ETH goes and the longer BTC consolidates, the more brutal it will be for latecomers when the reversal back to BTC materializes.  

​That said, it very well could be the case that the market makers (MM's) want to catalyze "the flippening" for a day or two in order to trigger massive FOMO from BTC into ETH before flipping the switch again thus burning all the chasers. The implication is that bitcoin could
[members-only text]for a bit while ether rallies to even greater heights, but also that once the blowoff top for ETH is in the reversal will be epic (and the bitcoin rally impressive).  We will continue to watch them both with baited breath...
Posted ProTrade Ideas:

1.) **Bitcoin ProTrade - Very Short Term [UPDATED on 6/12/2017]**:  We will consider a [members-only text] off of 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 6/9/2017]**:  We will consider a [members-only text] off of the [members-only text] level with a stop around [members-only text] and a target of [members-only text].

3a.) **Bitcoin ProTrade - Medium Term [UPDATED on 6/6/2017]**:  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].

3b.) **Bitcoin ProTrade - Medium Term [UPDATED on 6/6/2017]**:  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].

4a.) **Bitcoin ProTrade - Long Term [UPDATED on 6/6/2017]**:  We will consider a [members-only text] off of the [members-only text] level with a stop around [members-only text] and a target of [members-only text].

4b.) **Bitcoin ProTrade - Long Term [UPDATED on 6/6/2017]**:  We will consider a [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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