Good morning, traders. The Proof of Keys event is scheduled for today but so far we don't see any issues from the exchanges. As I have been suggesting was likely, there seems to have been a lack of participation, at least on a large enough scale to be meaningful. Granted the U.S. is just coming online this morning, but we have seen no follow through with the East so far and their day has been ongoing for a while now. Traders utilizing EW should continue to remain cautious as price lows are not aligning between the various exchanges. This leaves one exchange showing a higher low while another shows a lower low. Be sure you're looking for other indications of price movement such as volume and price action, patterns, and/or momentum indicators such as RSI or MACD.
H4 chart (Bitstamp):
Price continued up into the local TR's resistance, peaked over the pivot and descending purple channel/bull flag's resistance, and then retraced about $60. It appears that price may be readying itself via this retracement for the push through that flag resistance as it targets the yellow supply zone on the next leg up and then $4200 at the R1 pivot. Ultimately, that should bring price into the $5200-$5500 range, as I have been talking about for the past month or so. What happens after that will most likely be the most telling in relation to where price is probably headed. For now, the next two legs up are looking to target that yellow supply zone and then the R1 pivot.
D1 chart (Bitfinex):
Nothing has changed on this TF. Price has been correcting overnight before it makes its way through the bull flag's resistance. This gives us a target of around $5000 on this exchange, which is about $4860 on Bitstamp, based on the height of the flagpole. One final leg up afterward should have price targeting about $500-$600 higher than that as mentioned above. We can see that volume has increased over the past couple of days and we should expect to see that continue as price moves up. As I am keen on reminding everyone, this current bullish momentum does not guarantee that price will not notch a lower low. However, the possibility that a low price may have been found continues to increase. We haven't seen overly-exuberant buying which is a good sign. Buying that is initially excessive after a move down tends to be corrective in nature due to the overly excessive selling that usually precedes it. Buying that takes a more measured approach is what we want to see because that is the one that is full of disbelief. It is the one that shows us ever-expanding volume and widening candle spreads on the rallies and contracting volume and diminishing candles spreads on the reactions all while the bearish among us continue to call it a sucker's rally. As such, it is never identifiable immediately.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
H4 chart (Bitstamp):
Price continued up into the local TR's resistance, peaked over the pivot and descending purple channel/bull flag's resistance, and then retraced about $60. It appears that price may be readying itself via this retracement for the push through that flag resistance as it targets the yellow supply zone on the next leg up and then $4200 at the R1 pivot. Ultimately, that should bring price into the $5200-$5500 range, as I have been talking about for the past month or so. What happens after that will most likely be the most telling in relation to where price is probably headed. For now, the next two legs up are looking to target that yellow supply zone and then the R1 pivot.
D1 chart (Bitfinex):
Nothing has changed on this TF. Price has been correcting overnight before it makes its way through the bull flag's resistance. This gives us a target of around $5000 on this exchange, which is about $4860 on Bitstamp, based on the height of the flagpole. One final leg up afterward should have price targeting about $500-$600 higher than that as mentioned above. We can see that volume has increased over the past couple of days and we should expect to see that continue as price moves up. As I am keen on reminding everyone, this current bullish momentum does not guarantee that price will not notch a lower low. However, the possibility that a low price may have been found continues to increase. We haven't seen overly-exuberant buying which is a good sign. Buying that is initially excessive after a move down tends to be corrective in nature due to the overly excessive selling that usually precedes it. Buying that takes a more measured approach is what we want to see because that is the one that is full of disbelief. It is the one that shows us ever-expanding volume and widening candle spreads on the rallies and contracting volume and diminishing candles spreads on the reactions all while the bearish among us continue to call it a sucker's rally. As such, it is never identifiable immediately.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.