Market Watch

Market prices have held pretty consistently at $235 for the last 36 hours as bullish and bearish traders attempt to grapple with all these different technical confluences. Let’s take a look at the 15 minute chart below:

Uptrends and downtrends

There is about 36 hours or so of data at this view and the 50% Fibonacci retracement and the volume point of control resistance profiles all indicate to strong resistance at $240; see again that price has held at $235. I mentioned point of control, also known as POC’s, and it can be broken down into two different trends: the uptrend and downtrend.

“In an uptrend, naked POC’s will be created below as price trades higher, creating good support levels to refer to when price pulls back. In a downtrend, naked POC’s will be created above as price trades lower, creating good resistance levels to refer to when price pulls back.”

Since we are in an uptrend for the immediate moment and price has been pulled higher and closer to the upward resistance level. If we move into a downtrend, say towards the $200 level or so, then the lower resistance band would pull the price down. In either case, these POC’s create resistance levels that we can use as market indicators when we look at technicals and try to see where things might go.

Reading the proverbial tea leaves

At this moment, there is not any reason to change from the target top price of $240 as established by the upper resistance, though there could be a price breakthrough if some bullish momentum can be mustered. Last week we talked about the high band as entrenched around the $250 level with enough market movement but now $260 is a more substantial target.

That said, there is a chance for the current price to move south if a localized low of $230 is realized and buy/sell volume were to drop then there could be movement into bear territory. If so, a price range of $224 to $226 could be our new stable region with strong support as the resistance band solidifies. In any case, market resolution is going to be much more of a slow, deliberate and glacial movement right now rather than any hard price spikes or drops.

Words and capital

Today’s word is capital account:

“A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public and private international investments flowing in and out of a country. [It] May also refer to an account showing the net worth of a business at a specific point in time.”

Capital is important for any trader, whether with an individual or nation, and it is not any different if trading in bitcoin markets. There is a market cap and volume to deal in and capital is the medium that can allow the free exchange of commodities to flow between parties. As we mentioned earlier in the week, it could be a rough week with upper and lower bounds that have yet to be established over this weekend. Happy trading!

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