Daily Report – Bitcoin and Market Update (June 03 2020)
HTF 12H:
Middaily closed as a bearish candle adding to the bearish momentum in quite a significance. Technically its local downtrend for making lower high and lower low, which is visible in the oscillator outlook. Saved and held bullish HTF uptrend so far, Mas were saved as well. Although MA50 broke down, we saw a strong local demand and buyers seeing 9.1-9.5k as the zone worth the risk and defend. As long as we keep closing above MA50 and 9.1k bulls are still safe. Move itself was definitely bearish while as you already know, it’s not only bitcoin that reacted like this, but entire commodity market including silver, gold reacted with a heavier drop. The move unquestionably was not technical, but news-driven fundamental coming from China commenting on Trump’s trade war with Chinese economy. All in all, it confirms change in the market structure. It means there are common institutional money silver, gold AND bitcoin, which react exactly the same across these markets. IMO it adds to fundamental value of bitcoin here and is confirmation that market has gained on maturity at least a bit. Having said that, technically if we close below the HTF trendline, there are high chances we retest low 8000s. On a larger timeframe, we made Higher High at 10.4k but rejected key 10.5k resistance. The moment we close above both levels, would likely bring 11k+ and open doors towards 14k+ and ATH in next months. Weekly bullishness is still on and depending where the week closes, it might either add confirmation that it’s just larger consolidation before further upsides, OR its in fact distribution with 6-7k on the table.
LTF 1H:
Hourly price action reminds me perfectly of PTSD condition for bitcoin after March 13th. Especially if you remember charts and video reports I was doing back then for you, there is 9.1-9.45k LTF demand zone established, which technically is a scalp buy opportunity with “safer” buys around 9250. Mid-range zone 9.45-9.72k should be likely including majority of price movement with wicks to above and below. LTF supply zone is clearly 9720-10000k, which only if closed through to the upside, would bring intraday/short-term pullback and recovery back the the full bullishness. Untill that happens, I don’t suggest opening too many positions. Market is not trending right now and clearly after 170M+ liquidation on recent move, capital is waiting for the market to unfold the directions. I am not a fan of trading this choppy price action, full of traps and peaking uncertainty. If you like to have more answers, I suggest you visit 12h chart on March 13th and compare the looks. They are very similar and may provide you with additional conclusions on the nature of these movements. More details in #video-report channel and exclusive video prepared by me. Also, our NESTLETTER has already been distributed. If still haven’t signed up go to the free link below and enjoy additional HQ education with a few gifts you don’t want to miss. Stay safe and trade safe.
Overall, we are intraday sideways – no direction, just like we saw on March 13th dump from 8k to 3.8k and from 9.5k to 8k. These moves have very similar mechanism going on. And if that’s the case, the violent move was more of a shakeout before further highs. Definitely suggested to protect your capital, take at least part of profits off the table and enjoy them. Apply 2% risk per trade always and use stop loss. In here, MTF traders should flip bearish for real ONLY after closing daily/weekly session below SMA50 (1W) 8750. Worth having partial stops at least 8987.
More details for premium subscribers of our Discord Trading Community in the exclusive #video-report channel.
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