Bitcoin Price Update for August 26, 2016
Market Commentary (BTC):
As we head into the final weekend of August, the market remains stagnant around the 575 $ level. Despite a few pops up to resistance at 580 $ and a few dumps down to test the bottom of the range at 570 $, for the most part the market has been steadily trading sideways for pretty much the entire week. We think this period of extreme inactivity will give way to more volume and volatility within the next several weeks, which is likely not what traders want to hear, but the market just does not seem ready to resolve out of this area yet. Until it is ready, price will remain trapped in a series of ranges, the most relevant of which now sits between 570 - 580 $.
Before signing off for the weekend we want to take a look at the daily chart for a a view of what the market has done throughout the summer. First of all, we can see that price is still right in the middle of a symmetrical triangle consolidation off of the June highs, and is also stuck between a large demand area and a pivot zone from the June lows. Also note that SCMR is still painting neutral candles and dynamic resistance continues to build at 630 $, although the flattening EMA's and still bullish 200 SMA are signaling that this indeed remains an extended sideways consolidation within a bull market.
Moving on to momentum and volume, notice that Willy and RSI are still chopping around in no man's land while MACD tries to break the zeroline following a substantial bullish divergence on the recent low's below 500 $. Additionally, PPO is still showing bottoming conditions, although not as strong as a week or two ago, and the A/D line remains in an uptrend despite a small roll over the past few days. Finally, exchange volumes continue to wane and multiple volume profile notches still exist both above and below the market. This is telling us that we may have more time within this consolidation while price discovery continues, with the short to medium term volume bias being to the downside considering the large gap between 480 - 550 $.
Generally speaking we remains neutral and patient while price flatlines around 575 $. As was the case last weekend, we are not expecting a significant move above or below the current trading range, although spikes are possible, however we would continue to play the near term by buying the dips and selling the rips while we wait for the market to come back down into our buy zones.
Have a great weekend! GLGT!
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