Bitcoin Technical Picture 6-2-2017

The Bitcoin technical picture improved yesterday, 6/1, by closing above the $2345 resistance evident on the daily chart. It closed yesterday's trading at $2414.11 on Investing.com's exchange and has since pushed slightly higher today.

The $2345-$2360 area provided a 5-day ceiling, or resistance level, for Bitcoin. The close yesterday now turns that level into support during any pullback in price. From my last report I noted that both May 30th and May 31st were trading as successive inside bars, meaning that the high and the low price were inside the range of the previous bar. That coiling action is usually indicative of an impending breakout either up or down.

And the best way to play that scenario is to play an options straddle, where you go both long and short and cover the opposite leg after the breakout. But, without an options market, in Bitcoin you simply should wait until the new trend confirms itself and then take a position.

The goal for today isto breach yesterday's high at $2470, if not close above it. Bulls should be pressing the bears back as opposed to giving them the opportunity to line up against them. If they don't this could lead to a false breakout or anotehr short period of consolidation next week.

One last thing, the Weekly Chart is more bullish than it was a few days ago. It has the opportunity to close in the upper half of the previous bar which had an enormous range. That is a strong bounce that makes it more possible to break that all-time high near $2750.

This is part of the reason why STEEM is up today and likely to rise next week as well. I don't care, I'm powering up all of my earnings at this point for the future.

If you like this post and the others in the series, please leave a comment, upvote and/or resteem.

Ta,