Bitcoin on the Rise, New Weekly High

Bitcoin on the Rise, New Weekly High

Within the last 72 hours, bitcoin has managed an upward move of more than $300, securing a new Bitstamp daily high of $2,788.89. Current sentiment is somewhat bullish and most medium, small, and micro-cap altcoins seem to be suffering.

Volume is picking up nicely despite the increase in price. Premiums have also stabilized accordingly across the board between Bitfinex, Bitstamp, BTC-e, Huobi and Kraken. LakeBTC has a premium that is $100 above the previously mentioned five exchanges while OKCoin is even higher, more than $200 above the majority of competing exchanges.

Since Monday’s Bitstamp low of $2,460.51, there has been a rise of more than 13% in price. This is slightly less than the preceding leg up, which was an impressive 26.08% during a similar period of 48 hours. It may be a sign of momentum slowing down, but once again volume appears to holding regardless.

Intersecting trend lines show $2,480.21 as a focal point that may require additional attention. Any dips below this level are in all likelihood going to be a strong signal for the end of the ensuing upward trend. This would of course require a prior shattering of the $2,578.41 price point with a subsequent plunge below $2,421.14, $2,398.32, $2,195.63 support levels and the weekly low of $2,120.

The market has seen a steady push past most of the Gann Fan angles and only a breach of the diagonal line at 8/1 is needed for a final drive to the all-time high of $2,980.

Fibonacci levels for the current trading range are not lining up exactly with the formerly mentioned support levels. However, the $2,578.41 support seems to be the closest to the Fibonacci 0.382 line. Interestingly, the 1.618 Fibonacci level is just slightly above the $2,980 all-time high.

RSI is neutral at the moment with the MACD noticeably tightening movement without appearing overbought or oversold. Substantial divergence is present with the Williams %R indicator, which is rather low at present. OBV is descending steadily with today’s stable trading volume and price movement.

Bitcoin started trading on June 18th, at $2,651.37 (GMT 00:00 – Bitstamp) and has since moved in an upward trading range from the Monday daily low of $2,460.51 (GMT 20:00) to today’s new weekly high of $2,801 (GMT 04:00).

Market Wrap Up

Market Wrap Up

Highlighted Market Movers
WFM +29% AMZN to acquire WFM for $42 per share
HOS +34% From yesterday, announced new credit facility
BAH -18% Investigation by DOJ, d/g to Market Perform at RJ, d/g to Hold @ Vertical
UNFI -10% Volatility impacted by AMZN / WFM deal


Options Activity

PVG.. JUL 8 CALL Activity .. 8750 block @$1.10 on OFFER.. Expire JUL 21

CLR.. JUL 38 CALL Activity .. 2958 @$0.35 on OFFER .. Expire JUL 21

FINL .. AUG 14 PUT Activity on BID SIDE .. 2200+ @$1.45 ON BID .,. Expire AUG 18

SNAP .. AUG 26 CALL Activity .. 4k block @$0.20 on OFFER.. Expire AUG 18

KR..OCT 25 Calls @ 0.70 on the offer..9k+..Expires OCT 20

Highlighted Intraday Noteworthy Headlines

JNJ– DARZALEX® (daratumumab) Approved by the U.S. FDA in Combination with Pomalidomide and Dexamethasone for Patients with Multiple Myeloma Who Have Received At Least Two Prior Therapies

EFX– ID Watchdog Signs Definitive Agreement to be Acquired by Equifax Inc.

KEN– Kenon Announces Agreement with a New Investor for Investment in Qoros

MT– ArcelorMittal led consortium reaches agreement regarding Ilva lease and purchase agreement

NVCN– Neovasc Announces German Court Ruling

MDVX– Medovex Corporation Receives First Three Commercial Orders for DenerveX(TM) System

XXII– 22nd Century Meets with FDA on Modified Risk Tobacco Product Application for World’s Lowest Nicotine Tobacco Cigarettes

Social Media and Desk Chatter Information

Trump: “Effective immediately, I am canceling the last administration’s completely 1-sided deal with Cuba” – CNBC

Fear $AMZN.  Today reinforces why $W Wayfair shareholders should be concerned. Citron pressing short tgt$50  Multi chan/valuat/supply chain – CITRON

NTIP inc. share buyback. Try finding a $100m market cap co. paying a nice dividend and buying more stock. #bullish. — SPRUCEPOINT Comments

APC .. unconfirmed chatter circulating on name, XOM mentioned

PF ..Talk Betaville out with comments that they are in takeover talks

Insider Transactions and Company Filings

RILY.. FORM 4 .. CEO P    28,000  A  $ 15.5504

GAIN .. FORM 4 .. CEO P    20,000  A  $ 9.25  P    4,000  A  $ 9.257

CDTX ..  FORM SC 13G Filed by Prosight Management, LP 5.2%

About the Author

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Bitcoin Price & Segregated Witness News

Bitcoin Price & Segregated Witness News

The bitcoin price has managed to recover above $2,500 on Bitstamp, a considerable increase in price from the prior weekly low of $2,120. This is a substantial gain of almost 20% in just the past 24 hours. The price has since oscillated around the $2,500 level and despite the relative quick price recovery, Bitstamp volume appears to be wavering.

The previous pitchfork has been completely invalidated and the passing day of market activity points to a dead cat bounce. Caution is advised seeing as the current rising trend may continue, especially if there is a larger bump in buying volume.

Present bitcoin price swings seem to be norm, especially when the ongoing scaling debate is taken into account. BIP148 & USAF are two propositions that have garnered the most media attention in addition to segwit opposition spearheaded by Bitmain and Chinese miners. Although there are two segwit proposals which are different in nature, there intent is the same, to activate segregated witness this summer.

A positive resolution of future bitcoin scaling is essential for further growth of crypto currencies in general but there is a still a risk of an eventual split of the community where even two or more separate bitcoin chains may emerge. This is quite similar to the now present division between ethereum and etherum classic, which also had its share of controversies as well as drama.

Although there are numerous intricacies to the whole debate, coin dance does seem to most actively track in detail supporters of the 4 main proposed solutions to ongoing scaling dispute.

Bitcoin started trading on June 16th at $2,304.87 (GMT 00:00 – Bitstamp) and rose at one point to a new daily high of $2,538.95 (GMT 20:05). Trading was fixed to a range between $2,398.93 and the previously mentioned daily high of $2,538.95 (GMT 20:05). The closing price on Bitstamp for the day was $2.481.71 (GMT 23:59).

The Stock Market Experts versus Trend Following

The Stock Market Experts versus Trend Following

Everywhere I read, this hedge fund guru or this expert are calling the end of the stock market. They point out to the VIX which is truly an outlier. However in the meantime, the stock market is “still” moving up.

As a long time trend follower, I am neither a bull or bear. Emotionally I have to admit slightly bearish…However I follow my system to the tee as should you.

The key take point should be have a trailing stop when trend following….follow a plan…Be open as anything can and will happen..

 

Metals’ reply to USD’s small rally

Metals’ reply to USD’s small rally

Gold, silver and mining stocks finally moved lower after several days of higher prices and one can say the opposite about the USD Index. Was this just a pause or a beginning of a bigger downtrend?

The latter is quite likely and the reasons come from the precious metals charts as well as from the one of the USD Index. In short, the points that we made in the previous alerts this week remain up-to-date, especially those that we discussed yesterday regarding the “when” factor. We will move to this issue in a few minutes and in the meantime, let’s start today’s discussion with gold’s short-term chart.

Gold

Source: http://stockcharts.com

Gold moved visibly below the April highs and also below the rising red support/resistance line based on the daily closing prices. The breakout above it was therefore invalidated.

The RSI moved lower after reaching 70 and the Stochastic indicator flashed a sell signal by moving below its moving average.

In other words, the technical picture for the short term deteriorated based on yesterday’s session. The long-term picture has been bearish and it remains bearish today – yesterday’s session doesn’t seem to have changed much in that regard.

Mining stocks also moved lower on increasing volume, which is a bearish sign on its own. Another sign comes from the closing price – the GDX closed back below the May high (in terms of the daily closing price). That’s important because that was the only breakout that we’ve seen in miners. They didn’t move above any long-term resistance and they didn’t even move above their declining resistance line that we marked in black on the above chart. With the only breakout being invalidated, the outlook is clearly bearish.

As far as the “Why is the time running out?” question is concerned, the reply is provided on the USD Index chart.

USD Index and Its Implications

 

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Bitcoin Uncertain Before $2,600 Resistance

Bitcoin Uncertain Before $2,600 Resistance

After a substantial correction last week into the sub $1,900 range (from an all-time Bitstamp high of $2,760.10), Bitcoin has been holding a stable uptrend. Aside from two minor pullbacks to $2,080.25 and $2,152.97 respectively, it would seem that it is poised to break out above $2,600 which is also a level to watch, considering how close it is to the previous local high.

If the local high is broken ($2,599.38), then it is likely that a move above the all-time-high will start another bull run, quite possibly even up to a $3,000–$4,000 range.

BTC/USD as of 2017-06-05

There are many factors that could further facilitate such a turn of events, one of which is the resuming of BTC withdrawals on three large Chinese domestic exchanges, OKCoin, Huobi, and BTCChina after an almost 3 month regulatory freeze.

Bitcoin adoption is growing at a steady pace across the globe; however, the main driving force behind the current price gains seems to be originating from Japanese, South Korean, and other Asian consumers and traders.

Caution should be exercised though; the current rift between Bitcoin Core developers (Segregated Witness) and supporters of the Bitcoin Unlimited (Emergent Consensus) is still present. It has already resulted in a definitive split within the Bitcoin community. Confusion and uncertainty from the current stalemate could also serve as catalyst for a larger future downward price correction.

If you have any questions and comments on Bitcoin today, use the form below to reply.