Bitcoin Price Report for June 7th, 2017

Jun 7, 2017 --- (ARCHIVED) Free Reports

Market Commentary
Yesterday was a very interesting day for bitcoin, although ultimately the effect on price and the charts was minimal.  The morning started off great with a breakout to new all time highs that saw price get very close to the psychologically significant 3000 $ level, but then took a rather nasty turn following a tweet by Mark Cuban calling bitcoin a bubble.  The fact that the technicals were overbought on a very near term basis also contributed to the 200 $ fall, but indications on the higher timeframes are what helped drive price almost immediately back up near the highs.  Good thing we issued a ProTrade in the [members-only text] range prior to the selloff yesterday as price indeed moved below 2700 $ on the Cuban mini-crash, although we were only able to [members-only text] just below there as the opportunity was fleeting.

Regardless, the charts are back on track, and in fact look better now than they would have otherwise given momentum is recharging nicely on the shorter term charts.  While the market may be stuck consolidating between [members-only text], at least until futures settlements in about 48 hours, after that things are looking pretty good going the weekend in terms of the technicals.
4-Hour Chart

We return to the 4-hour chart yet again as it remains the best view of the near term setup for the time being.  We can see that despite the spike lower into the resistance turned demand area shown in light blue, which also created new dynamic support at the [members-only text], SCMR has been able to [members-only text] market structure has stayed bullish.  Also note that the EMA's remain bullish too and are acting as support right now, the SMA's continue to confirm the longer term bull market, and the Ichimoku Cloud is expanding even further to the upside following yesterday's action.  Generally speaking, all of this is evidence of a [members-only text] period prior to [members-only text].

Turning to momentum and volume, we can see that while most of the momentum oscillators remain very close to overbought, they are beginning to recharge a bit while price moves sideways within a range (a very good sign).  Also notice that bullish trading volumes spiked yesterday as the market was correcting lower, a sign that [members-only text], which is being confirmed by the A/D line which still looks healthy.  Finally, despite some noticeable notches below the market volume profile looks relatively healthy compared to how it has looked in the recent past, and especially compared to the higher timeframe charts.  Overall we think the market is pausing to refresh prior to [members-only text] once we get closer to the weekend (again, likely after futures settlements on Friday morning).
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Daily Chart

The daily chart appears to be confirming what the 4-hour is saying given we still have [members-only text] bars being painted, in addition to still building [members-only text] and a bullish hammer candle trying to paint today.  Even if we don't get said hammer, which would likely portend higher prices in short order, price action and market structure are both suggesting that this is simply a sideways consolidation that [members-only text].  The EMA's, SMA's, and Ichimoku Cloud are all confirming this bullish bias as well, telling us that the longer term bull market remains fully intact.

Moving on to the momentum oscillators and volume indicators, we can see that Willy and the Stochastic are now in officially overbought territory while RSI rolls over just below there, and we do have a small [members-only text] divergence that could go either way at this point.  On the other hand, volume signals are still very bullish considering the A/D line continues to accelerate higher, and actual trading volumes continue to confirm the strength.  Again, at this point we must assume that [members-only text] are a good thing, which further reaffirms the notion that we are in a consolidation right now and not a topping process.
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Market Summary

Taking everything that has happened this week into consideration, we find it hard to see where the selling would come from that would take us all the way back down into the [members-only text]where stronger dynamic support sits (as well as other technical confluences).  If that did materialize then we would be buyers of the move, however we think we had our chance yesterday so we are glad we took at least a small shot on the long side.  

Now we will wait and see what the market brings over the rest of this week, although as has been presented thoughout this update we think that the [members-only text] can continue though Friday morning and thereafter price can [members-only text].
Posted ProTrade Ideas:

1.) **Bitcoin ProTrade - Very Short Term [UPDATED on 6/7/2017]**:  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 6/6/2017]**:  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].

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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