Bitcoin has made some upside moves over the last 24 hours. Beginning with break 8400 to the upside, BTC solidified 8400 as support thereafter while seeking out 8800 next. Mid-Day(US CST) trading yesterday through today’s trading has brought quite a challenge to BTC to break and hold the 8800 level. As the struggle continues, we can take a step back and look at what has happened in the last several days to get a better picture.
https://theicojournal.com/wp-content/uploads/shutterstock_497337487.jpg 710 1070 Rogue Trader /wp-content/uploads/logo-header.png Rogue Trader2018-05-15 12:11:182018-05-15 12:11:18Bitcoin Price Movement Is Maddening: "When Consensus Moon, Sir?"
BTC started at 9400, breaking down to just below 8400. However, as you can see on the 4-hour scale shown, 8400 was only briefly broken before holding as solid support. This has not officially been broken to the downside yet, as a break below 8400 will likely seek out the Rogue* downside projection at 7800. For now, at least, BTC continues to stay within the small channel shown. Trending a bit sideways, be sure to watch Stochastic and MACD movement to try and gauge momentum on an hourly basis.
As BTC comes close to breaking and holding that 8880 level, this would also be considered more than 1/2 of the previous leg down, which would give the most credibility to a trend change. Additionally, the daily chart is now attempting to turn bullish.
However, this comes with a warning as the struggle continues to even break up again. In the case that it does, higher risk can be played to the upside as a buy just above the 8800 level as BTC 4-hour shows price is preparing to meet the Moving Average(MA) line at about 8700. This could give another sharp leg up.
The case for caution is also shown in the tech specs.
Hourly stochastic readings are headed down at the moment, potentially seeking oversold(<20) levels once again.
As the 4-hour chart shows, stochastic readings may stay in the volatile extreme zone of the overbought(>80) region where I have mentioned price tends to move when meeting a challenge.
MACD is still positive on the 4-hour scale, enough for some bullish movement.
However, the hourly MACD is neutral. A move in the 4-hour will carry this side.
BTC is currently a watch. The high-risk entry above resistance (8800). Current holders, downside protection below 8400 support.
Futures Traders- trade the trend. The short-term trend is currently neutral. No trade until pattern and trend confirmation.