Bitcoin expecting a further drop, wait for a pullback
Sell below 7993. Stop loss at 8885. Take profit at 5758.
Reason for the trading strategy (fundamentally):
Another big news in the cryptoworld is Lloyds Banking Group, which includes Lloyds Bank, Halifax, MBNA and Bank of Scotland, has barred customers from using credit cards to buy bitcoin and other cryptocurrencies. Its decision is over concerns that users may buy cryptocurrencies with credit amid market euphoria and fail to pay the debit balance should the market drop. This is especially since the cryptocurrency market has took a hammering recently, especially bitcoin which as dropped by more than 50% since its $20,000 highs in mid-December 2017.
Reason for the trading strategy (technically):
Bitcoin has continued to drop further and has now broke below our descending support-turned-resistance line which signals a further downside acceleration. We look to sell below 7993 resistance (Fibonacci retracement, horizontal pullback resistance, breakout level) for a further push down to at least 5758 support (Fibonacci extension, horizontal swing low support).
RSI (34) remains under strong bearish pressure with our long term descending resistance line.
Reason for the trading strategy (fundamentally):
Another big news in the cryptoworld is Lloyds Banking Group, which includes Lloyds Bank, Halifax, MBNA and Bank of Scotland, has barred customers from using credit cards to buy bitcoin and other cryptocurrencies. Its decision is over concerns that users may buy cryptocurrencies with credit amid market euphoria and fail to pay the debit balance should the market drop. This is especially since the cryptocurrency market has took a hammering recently, especially bitcoin which as dropped by more than 50% since its $20,000 highs in mid-December 2017.
Reason for the trading strategy (technically):
Bitcoin has continued to drop further and has now broke below our descending support-turned-resistance line which signals a further downside acceleration. We look to sell below 7993 resistance (Fibonacci retracement, horizontal pullback resistance, breakout level) for a further push down to at least 5758 support (Fibonacci extension, horizontal swing low support).
RSI (34) remains under strong bearish pressure with our long term descending resistance line.
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