Bitcoin Price Action As Tight As It Has Ever Been; Carefully Play Technicals With Strategic Stop Loss Protection

Bitcoin has now begun to retrace as the Rogue* Wave track laid out continues to perform as expected. Overnight (US CST) trading held BTC to a tight range – less than 100 points to be precise while looking at the mid-scale chart. The sell signal given at 6800 resistance was the end target for BTC before attempting to retrace, and so far price has done exactly so. Now trading at about 6685, BTC is only just over 100 points down from the selling point, a sign that it is attempting to hold higher price levels near resistance while still a far cry from 6400 major support. This, however, is not a signal to re-enter quite yet. There are still a couple of factors to consider.

A breakthrough 6800 to hold this area as support would be optimal, but considering there is a retracement occurring, the major item at hand is BTC’s ability to hold support at 6400 and better yet 6450 considering this was the last pivot area for 6550 entry on the previous entry. Best case scenario for BTC would be to hold 6650, which is roughly 1/2 retracement of the previous leg up. This would best be matched with a drop in stochastic levels, but the likelihood of breaking below would be higher in this case as stochastic bottoming would entail a proper longer-term retracement.
Stochastic levels are trading in the 60’s zone and currently aim to go down further. The point to look out for is where price holds short and long-term support. Wait for the drop and cross in stochastic to confirm with support how exactly price will hold. This will be an important tool to watch when the hourly and 4-hour candle during the cross forms. The next level up for BTC to seek is 7200 (beyond 6800)
MACD continues to show downward momentum but also shows a slow down hourly. This is more of an exit tool, therefore it should be used by looking for a cross or some positive ticks.
BTC is currently a no play. Watch for support and pivot confirmation. The downside break of support will continue a no play situation.
Futures Traders – trade the trend. The short-term trend is currently short.