Bitcoin Price Report for November 2, 2016
Nov 2, 2016 --- (ARCHIVED) Free Reports
Market Commentary (BTC):
Despite a small pullback to the low 720's $ over the past 12 hours, the market remains in bullish form which indicates that this is simply a pause that refreshes. While we are not ready to claim that the bottom is in on this move just yet, we do think we are getting close considering market structure is coming in bullish and very short term support has already held on a test of the pivot area. In our opinion a big contributor to the steady strength of the bitcoin price recently is lack of supply, likely due to the halving, although demand remains a bigger question mark which will likely determine near term directionality. [members-only text].
Speaking of the short term outlook, today we take a look at the 6-hour chart for the first time in about a week for a view of where we stand in terms of the recent moves to the upside. We can see that price is oscillating between the medium term supply area shown in orange and the short term pivot area shown in light blue, a sign of indecision for the time being, however it does look as though the pivot area is holding as support for now while market structure tries to paint a rounded bottom. Also note that [members-only text], and we now have a steeper uptrend line that should also provide support in the [members-only text].
Moving on to momentum and volume, notice that Willy and the Stochastic remain in officially overbought territory but are close to rolling over, PPO is still flashing strong sell signals, and RSI has come down some but remains elevated As has been the case throughout the entire rally, [members-only text]. Regarding volume, exchange volumes are still pretty substantial and are showing a slight bullish bias plus the A/D line continues to trend higher, however volume profile remains unattractive with PoC sitting all the way back down below 640 $ on porous conditions.
Bitcoin is in an interesting spot right now in terms of price. For the time being it appears as though this short term soft patch is simply a sideways consolidation period prior to yet another leg higher, as has been the case over the past few weeks, although even in that scenario we think [members-only text]. Conversely, if the new local lows can hold while price puts in another market structure bottom, then we should see [members-only text] in relatively short order.
No matter which way the market decides to head over the near term we are staying bullishly biased, implying that we will continue to try to buy dips into support. Having said that, at current levels risk/reward profiles prohibit us from issuing any new ProTrades here, but we will be posting some unofficial scalp ideas on Slack as they present themselves over the next few days. We will also stay steadfast in our [members-only text] over the coming weeks and months. The shorter term trades are simply a supplement to this bigger, longer term play.
Posted ProTrade Ideas:
1.) Bitcoin ProTrade - Very Short Term **[UPDATED on 11/2/2016]**: (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].
2.) Bitcoin ProTrade - Short Term **[UPDATED on 11/2/2016]**: 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 11/2/2016]**: 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]**: 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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