Bitcoin Price Update for August 29, 2016
Market Commentary (BTC):
Once again no surprises over the weekend as price remains locked in a tight consolidation, although we did get a small break from the 570 - 580 $ range when price dipped into the mid-560's over the weekend. With a new range in effect from 565 - 585 $ and considering we are going into a long holiday weekend, we think the price action will remain subdued over the course of this week. Having said that, there are some early technical indications emerging on the shorter term charts that are signaling a potential move to the upside to test resistance at the top of the range.
With that in mind, lets move to the 6-hour chart below for a look at the short to medium term outlook. First of all, notice that price is still within the symmetrical triangle, as well as the pivot area, as it has been for some time, and it now appears to be trapped between volume profile PoC and the near term EMA's. Speaking of volume profile, it continues to look relatively healthy compared to the longer term charts so perhaps a move up into OTE is not out of the question over the next few weeks, but for now this looks unlikely over the very short term.
Moving on, we can see that SCMR is painting neutral candles following a "confirmed reversal up" candle late in the weekend which has not yet been voided despite little progress to the upside. Additionally, Willy has reversed back to the upside, RSI is back in neutral territory following a bullish divergence, and MACD and PPO are both showing signs of at least a local bottom around 565 $. These are encouraging signs that could indicate a small upside bias this week, although we are still not buyers of coins at these levels.
Conversely, we have minor dynamic support sitting at the 554 $ low and resistance around 585 $, however major support is nowhere to be found while major resistance still hangs overhead at 600 $ and 630 $. Also note that the 200-period SMA remains in a downtrend signaling the short term correction is still not over, while the EMA's flatline around current prices telling us there remains indecision in this market.
While we are not expecting a significant move beyond the 565 - 585 $ range in either direction over the course of this week, we do think a move up to test that 580 - 585 $ area is a distinct possibility. Perhaps when we get back to business next Tuesday following the Labor Day holiday in the US we can breakout of this range to test our 545 - 555 $ buy zone or the 600 - 630 $ resistance area. Until then, we remains patient and neutral.
Remember, in a trendless and contracting market, which we are currently in, buying the dips and selling the rips remains the most relevant strategy for short term and more risk-seeking players. That said, we remain on the sidelines at current levels considering we want to add to long positions at more favorable risk/reward levels.
GLGT!
https://www.bullbearanalytics.com/free-reports/bitcoin-price-report-for-august-29-2016
