BTC/USD Daily Analysis
Price Feed: Bitstamp
Daily Trend Mode: < V-Reversal Bounce, Bearish >
Bollinger Bands: Upper 2,741 / Middle 2,380 / Lower 2,019
(20 bars, 2 Standard Deviations, Simple)
Price Watch: 2,400 / 2,000
(Price watch commentary)
Summary
Severe V-Reversals like we have witnessed in the past 24 hours are pretty rare. You do see them in futures markets and Forex from time to time, however infrequently. As suggested in the past update, even if we got a bounce, it doesn't mean that we're out of the woods on the Daily chart.
I've kept the lower trendline from the prior Triangle to illustrate this point. Anything above 2,400 increases our chances of my indicator sets flipping back to longer-term Bull mode. Anything falling short of that simply means that we're more likely to fade here and possibly retrace into yet-another-triangle formation.
This is why the other pricewatch level is set at ~2,000. It wouldn't surprise me at all to have us fade back. For now, I'm still bearish in context of the Daily.
If you were aggressive and managed to jump in on the reversal, good for you -- just be aware that even in Bitcoin that kind of formation is pretty rare indeed. That is why I think optimism should be tempered by the price targets I've mentioned. It seems some of the anxiety of the Bitcoin scaling deadline in August is lessened somewhat.
All relief comes at a cost, and it seems to me right now that we're "rolling over" and will have to deal with some lower price action as a result. I'm not too optimistic about us breaching 2,400 at this time. If this changes, I'll let you know in the next update.
Stay cool and collected, volatility has spiked and could continue. Be careful, and good trading!
(c)2017 by TallTim - This information is provided for educational and informational purposes only. There is no implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The information contained in this post is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. You should not make any decision regarding finance, investments, or trading based on any of the information presented in this post without undertaking your own due diligence and consultation.