Bitcoin right on major support, prepare for a bounce
Buy above 8098. Stop loss at 7161. Take profit at 9923.
Reason for the trading strategy (fundamentally):
The big news surrounding cryptocurrencies would be Bank of America and JP Morgan Chase banning customers from purchasing bitcoin with their credit cards. This was largely due to the concerns about the credit risk of those who make such purchases. Adding on, BoA cited anti-money laundering regulations for the move along with the potential for thieves to convert solten credit cards into cryptocurrency stashes.
Reason for the trading strategy (technically):
Bitcoin is now testing major support at 8098 (Multiple ABC Fibonacci extensions, horizontal swing low support, bullish price action) and we expect an intermediate bounce above this level to push price to at least 9923 resistance (Fibonacci retracement, horizontal pullback resistance).
Stochastic (34,5,3) is seeing major support above 12% where we expect a corresponding bounce from.
Reason for the trading strategy (fundamentally):
The big news surrounding cryptocurrencies would be Bank of America and JP Morgan Chase banning customers from purchasing bitcoin with their credit cards. This was largely due to the concerns about the credit risk of those who make such purchases. Adding on, BoA cited anti-money laundering regulations for the move along with the potential for thieves to convert solten credit cards into cryptocurrency stashes.
Reason for the trading strategy (technically):
Bitcoin is now testing major support at 8098 (Multiple ABC Fibonacci extensions, horizontal swing low support, bullish price action) and we expect an intermediate bounce above this level to push price to at least 9923 resistance (Fibonacci retracement, horizontal pullback resistance).
Stochastic (34,5,3) is seeing major support above 12% where we expect a corresponding bounce from.
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