The decision of Bitfinex, Kraken and many other Bitcoins startup, to leave New York because of BitLicense has resulted in a negative sentiment among the market participants which prompted a bearish move on Saturday with comparably low volumes. This move as shown in the hourly chart, was opposed by heavy support at 261. The lower Bollinger band flattened at this point, resulting in a trend reversal and a good short covering rally. The MACD indicator has just crossed the signal line and even the RSI bouncing of the 30 level implicates impending bullishness in the market. The possible entry points for quick momentum trades would be around 262 and possible targets would be hourly middle Bollinger band and 34 SMA. Since the market has been sideways between 261-271 levels, opportune short term trades at resistances like 34 SMA, Upper bollinger band and 200 SMA would come into play but only for quick retracements. With change in the trend patterns of SMAs and Bollinger bands supporting, the short term trades from the long side can be converted to medium term trades with targets taken from daily chart. Trades bouncing of 5 SMA can prove to be very profitable.
For detailed analysis and insight check: ihb.io/2015-08-10/ne...gence-08-10-15-22381
