Trading Crypto: **Saturday Morning: BTC Price Action Consolidates, Settles In 7k Range

Bitcoin has managed to stay in consolidation mode for the past twenty-four hours and continues to do so. Staying between 7200 support and 7600 resistance, BTC has managed to keep the losses at a minimum for the last 12 hours by trending higher on the minor scale(15 minutes or less) and has attempted to keep steady with the moving average line. Now, a new opportunity for upside is present.

BTC has formed a flag which would generally be considered bearish but is teetering with upside breakout and therefore may bring some bullish momentum to the table, at least shorter-term. This can also be seen with declining leg lengths on the hourly scale that drove the price into this consolidation. Now nearing a breakout point, the two options on the table are clear-cut:
-A break to the upside which will break the 7600 resistance barrier as price meets the MA line hourly. This will be followed up with a support test of 7600 as well.
-A downside break at 7350. This will seek out support at 7200 and continue the downtrend in full swing. Statistically far less likely with the current bullish momentum shorter-term.
This may also be upheld by the fact that the daily chart seeks some sort of upside movement with overselling occurring now for the last several days with no giveback.
The tech specs also indicate a couple of noteworthy items.
Stochastic readings seek out overbought levels once again across the board.
Daily stochastic has been oversold for quite some time and looks for some sort of upside momentum with a possible cross to the upside nearing.
MACD now positive hourly, with the 4-hour scale cross signal bullish, however, there has been no breakout occurring since this cross.
BTC is currently a Watch. Upside play with high risk can be planned above resistance in conjunction with downside protection right below to cut losses due to uncertainty.
Trend change has not been confirmed – high and higher low needed

Ethereum Dumps More Than 25% This Week – Is It Poised For A Snap Back?

ETH has been in a major downtrend over the past few days plummeting by 25% in 4 days.

There were obvious reasons to short from that point 4 days ago as we broke under a major uptrend line and were rejected by a major downtrend line from March at the same time.

Target would have either been the next uptrend line or a 1:1 ratio of the previous downward wave. Ethereum gave us yet another short set up as we broke under and was rejected by the trend line.

Ethereum has given us no reason to go long as we still cannot get over the red downtrend line.

 

 

So with that, if you have not already entered a short position or a long position from the 1:1 ext there is no reason to enter any trade. What we will look for instead is ETH to break out of this downtrend and over the horizontal green support in order to go long, or for a risky long you could enter on the first retest of broken trendline(red).
If you have entered a short as I have (my targets are in red circles) use a trailing stop and move as we go. If and when we break out my long targets are in green circles.

Trading Crypto: **Friday Morning: Bitcoin Struggles To Hold 7,600; Downtrend Technicals Remain Dominant

Bitcoin has struggled to maintain the 7600 level and continues to do so. At the moment, support lies at 7200, the overnight (US CST) trading session allowed the 7300 region to be hit. However, this is NOT true support. BTC continues to hold this level by showing candle closes above. The hourly, 4-hour chart and daily are all attempting bullish movement on a small scale, and therefore 7600 resistance should be tested over the course of the next several hours. However, the official trend is still down, and mid-term looks to be sideways.

BTC is a confirmed short with lower highs and sustained lower lows. It is considered a higher low (as of this writing) and may see, at the least, some upside movement on the short term. This is also seen by looking at the trend leg lengths that are declining. These are displayed as the hard white lines. Declining leg lengths give the indication of momentum slowing down, and in conjunction with a higher low, upside play is at hand. Risk Level for this type of play is Medium.
In order to capture gains throughout the day with BTC on the brink of breaking lower or potentially giving a pivot, it is advisable in my opinion to look at the alt-coin market to play short burst gains from BTC. Additionally, there is no trend change confirmation yet, and therefore a mid-term or long-term buy is not qualified and comes with extremely high risk.
Be the Smart Money
BTC is currently a No Play; Medium-Risk Short-Term play at hand by playing alt-coins.
Futures Traders – trade the trend. With a higher low currently, the trend is changed from down to neutral. No Play; capital conservation. Look for a break below previous low to continue shorts or trend change.

Bitcoin Continues Bear Market Slide; Flirting With Another Leg Down

Bitcoin has broken all bounds and continues downward with the break of 8k support, and now 7600 support. So far, there has been almost no giveback, with the hourly scale struggling to even break upward against the MA(moving average) line. As candle close* is important here, clearly BTC has struggled to maintain 7600 as support as well, which currently acts as resistance instead. The next level down for support is 7200, which was briefly tested with a wick but not closed upon quite yet. Support and Resistance Levels continue to stand at 8k/7600/7200/6800.

Looking at the Rogue* Wave system, this leg down has now matched the previous trend leg down. As far as retracement points go, look for 7680/8k to be tested if BTC can manage the retrace over the next several hours.
The tech specs show exactly this.
Stochastic reading on the 4-hour scale is oversold (<20) and seek to exit, meaning there should be an attempt to retrace. Hourly has stayed in this lower region, a sign of volatility to come, and daily continues down, however looking to pivot.
MACD readings are negative across the board, with only hourly currently looking to cross to the upside with very low momentum. Watch this.
BTC is currently a No Play. Support needed:::
Futures Traders – trade the trend. The current short-term trend(futures only) is sideways as consolidation continues – No Trade.

Bitcoin Downtrend Confirmed; Support And Resistance Predicted/Executed

Bitcoin has been trending down and continues to do so in a systematic manner. After travelling down to the 8250 mark after testing 8400 resistance, the hard bounce led BTC to break below the belt and seek out its current resting place at 7800. This is an important mid-to-long-term mark as well and held solid during the last couple of hours. So far, the 4-hour scale clearly shows the downside break as a continuance of the trend over the last several days as BTC still struggles in its quest to find support.

As candle close is important, the 8500 area can be marked as the previous high, and now there is a registered lower low with the candle close at 7800. Hourly, 4-hour mid-term, and daily charts are all bearish at the moment. With MACD momentum showing continued downside, buying the dip is not an option until there is a confirmation of support that can be clearly identified in conjunction with a trend change. This means a high followed by a registered higher low(above the current 7800 mark). However, keep in mind that a break below the belt at 7800 will cause BTC to seek out 7600 again, and ultimately the 7200 area if the downtrend persists. The additional cause for concern comes from the fact that this will officially also be more than 1/2 retracement of the previous leg up.
The tech specs show exactly this picture.
MACD is again in full swing down with histogram(little verticle lines) showing sustained growth on the downside. Daily shows the same.
Stochastic readings are bottomed in oversold territory(<20) on the 4-hour scale as shown and daily seeks to take a short dip under as well. Hourly shows how these lows are sustained with chaotic movement in the lower region. This is dangerous as well considering high volatility moved tend to happen within these areas.
Support and Resistance numbers are 6800/7200/7600/8k
BTC is currently a No Play.
Futures Traders- trade the trend. The short-term trend is short.

Bitcoin Downtrend Continues: Watch For A Break Below 8,200 To GTFO!

Bitcoin has struggled in the last couple of days as it tries to maintain a higher low from the previous week of trading. BTC in US(CST) overnight trading has broken down hourly to take back more than 1/2 of the previous leg up, a cancellation of trend considering this is viewed as the pivot point of the downtrend. Hence, downtrend still active until we confirm that higher low with candle close* and stochastic pivot firm.

Hourly, the MA(moving average) line has been pushing BTC lower, but the 4-hour and daily scales look to challenge price with the MA at about 8400 each – meaning there needs to be a close above this area quickly to maintain a proper uptrend.
Watch for a break below 8200 as this seems to be a critical price level for BTC at the moment.
The tech specs also point to a struggle for BTC.
Stochastic on the 4-hour scale still bearish and the Daily reading looks to pivot the downside – a move that could send BTC spiraling down.
MACD is still negative daily, but it is the 4-hour chart that is concerning(shown) that recently crossed to the downside – watch for neutralizing and slowing down.
BTC is currently a No Play – support needed
Futures Traders- trade the trend. The short-term trend is short.

Ethereum Reaches Short Targets After Breakdown, But What Now?

Ethereum ended up breaking down since the last chart was posted. We called for us to short if the most recent up trend was broke and rejected which was clearly seen. ETH actually ended up reaching both short targets.

What can we expect from ETH next? Well we are not ones to make predictions all we do here is trade what the coin gives us. So we will dive into the H1 chart where we do not see any signs of divergence to help swing the tides back up, RSI is currently in trend with price which could mean we have further downward action since the trend is now bearish in the short term. What we will look for is a clear rejection of the uptrend line we sit on now which happens to be the trend line from the start of Ethereums bullish move over the past month. Closing under that trend line may pose disastrous for the bulls.
So what we will look for is Ethereum to have 2-4 H1 closes under the trend line to go short, shown as the red arrow. In order for us to go long we must close above two trend lines which is shown in the green arrow. Targets are listed as green for longs and reds for shorts.

Bitcoin ‘Head and Shoulders’ Pattern Could Push Market Higher

Bitcoin now trends a bit sideways when looking at the 4-hour scale, which gives a scope of mid-term price action. Trading in the past 12 hours has been very tight, with about a 200 point range, and a follow-along of the MA(moving average) line. Momentum is slightly skewed to the upside with BTC holding 8k support firm as of now. However, an upside break still has yet to be seen as BTC has been challenging 8400 resistance since the 16th of May. A true break means holding this area as support.

BTC additionally looks to be forming what looks like an inverse head-and-shoulders pattern. This pattern breakout looks to complete itself if BTC can again break the 8400 resistance level. A continuation to the upside would likely see 8800 sought out very quickly. Watch for an upside move, likely caused by pressure to the MA line.
The tech specs give more cause to see this happen.
Stochastic readings currently seek out overbought levels(>80) and will see some sort of challenge of 8400 soon at the very least.
Daily stochastic as well looks to pivot, but again the challenge will purely be resistance.
MACD is bullish here, moving upward and wide – so momentum is definitely bullish
All three timeframe – short/mid/long MACD readings are positive right now, a good sign for BTC Sunday so far.
Downside break for BTC is firmly a break of 8k once again, so downside protection is likely to be below this point.
BTC is currently a Hold. For those looking to enter the market, it is recommended entry be placed above resistance to avoid whiplash risk, however, a buy can be instituted with an increased risk level as the trend is not confirmed long yet – this is a pivot play.

Ethereum: Bulls Keep Strangle Hold On Technical Price Action

Ethereum just would not give up and we were able to successfully reach our initial May 17th target. ETH actually exceeded our target from two days ago.
In Yesterdays set up we had the bulls struggling to close over the resistance but what was important to note was the bears were also struggling to close under the most recent uptrend line. This may have caused conflict in trying to enter a trade long or short, but if you were already long you would have held for one key reason. The price of Ethereum FAILED to close under the most recent up-trend line with at least two H1 closes in a row. The bulls held strong and exhausted the bear’s efforts pushing us to our target zone.
If you went short immediately after reaching the target zone you would have closed right about now on the touch of the uptrend line.
What ETH gives us today is this. We see price reacting to the uptrend line but the key thing is will we hold? Again we will look for at least two H1 closes above the trend line, you could also take a look at the m15 chart to see if you can note any bullish divergence to help validate the trend. A safer long entry can be found higher with the green arrow, the targets will be the same for both entries long.
In order to short we just need the opposite, for a risky setup enter on break and retest of most recent uptrend line, you will target zone just above red arrow. For a safer short entry look to enter near red arrow upon closing under both trend lines.

Bitcoin Holds Above 8k; Bulls Point Towards Sideways Action

Bitcoin has been in a downtrend overall for the month of May but is attempting to make a turnaround. However, it seems to be stuck in between 8k support and 8400 resistance. US(CST) overnight trading showed just that, as yesterdays 8k support hold allowed BTC to seek out 8400 once again. The hourly candle close* did struggle at the previous test to hold this level, and the last several hours showed the same for BTC. The close just barely below 8400 gives an indication that the struggle continues.

Now trading at roughly 8300, the only chance BTC has of continuing the short-term trend and breaking resistance is with some help with the MA line, which intends to meet price around 8270 in the next few hours. The upside to the situation is that the 4-hour scale shows stochastic seeking overbought(>80) levels again. This could provide stability at the MA price meet.
Additionally, MACD is positive on both the hourly scale(currently), and the 4-hour scale shows a positive incline that is steady. Therefore, look for the 8400 test to continue, unless for a complete downside break. A downside break should be considered below the previous low and below support, or at 7900. For those of you holding, this is stoppage area. A break above 8400 resistance should also look to hold as support firmly. Market entries should be planned above previous highs for breakout(8480) and expected to seek 8800 next on the short-term. The trend is still down overall, so risk level is high.
BTC is currently a watch. Look for a breakout above resistance.