Bitcoin BullBear Price Update for 2/1/2015



Market Commentary (BTC):

Super Bowl Sunday!  Given that many of us are likely participating in the football fever, we thought it appropriate to summarize the recent bitcoin price action using one word: headfake. Don't be fooled, we are still in the chop, and will be for the 12-24 hours as the market awaits moves in the US dollar and precious metals tomorrow morning.  While it may appear as though the market is breaking out, there is no reason to FOMO by a small countertrend rally.  In fact, we see a nice scalp trade developing.

Keep in mind that the bear market remains in effect and we remain steadfast in our belief that the 198 to 200 $ range (at a minimum) must be tested before key resistance levels at 234 and 242 $ can be taken out in earnest.  We continue to maintain that neutrality and patience are the keys to remaining in an optimal position to take advantage of opportunities that we see coming in the next few months.  Having said that, we see a short term ProTrade setup from the short side which we detail below.  Don't hold this one, just set your levels and wait.

We also think that the coming week is very important in terms of technicals for pretty much every market we cover.  The S&P 500 is close to breaking key support, and the toppiness is undeniable, the Dax needs to push higher to keep the momentum going, and gold and silver are in a congestion zone that will resolve soon.  All told, we could look back at Q1 '15 as a turning point in many global markets.


**Bitcoin ProTrade [issued on 2/1/2015]**: Get short at current levels with at a tight stop at 222.87 $ and downside targets of (1) 211 $ and (2) 201 $.