Bitcoin testing major resistance, prepare to sell
Sell below 12198. Stop loss at 13109. Take profit at 9328.
Reason for the trading strategy (fundamentally):
We are filled with more bearish news which has continued to drive the price of Bitcoin and the confidence in cryptocurrencies down. The latest being the securities commissioner of Kansas issuing a warning on the risks of cryptocurrencies and ICO investments. There has also been fears around tether ‘printing press’ as fears of controversial cryptocurrency tether could be artificially pumped up. This ‘stablecoin’ could cause a bloodbath if it turns out to be true so many investors are watching this space very closely.
Reason for the trading strategy (technically):
Bitcoin has started to drop from our selling entry of 12198 perfectly as expected (ABC Fibonacci extension, 61.8% Fibonacci extension, horizontal overlap resistance) and a and a further drop could occur below this level to push price down to at least 9328 support (Fibonacci extension, horizontal swing low support). It’s important to keep an eye out on our ascending support line which is holding price up really well. Only a break of this ascending support line would trigger a much stronger bearish move.
RSI (34) sees our long term ascending support line broken triggering a bearish move. But our intermediate ascending support line is still holding it up really well so only a break of that would add more conviction to our bearish move.
Reason for the trading strategy (fundamentally):
We are filled with more bearish news which has continued to drive the price of Bitcoin and the confidence in cryptocurrencies down. The latest being the securities commissioner of Kansas issuing a warning on the risks of cryptocurrencies and ICO investments. There has also been fears around tether ‘printing press’ as fears of controversial cryptocurrency tether could be artificially pumped up. This ‘stablecoin’ could cause a bloodbath if it turns out to be true so many investors are watching this space very closely.
Reason for the trading strategy (technically):
Bitcoin has started to drop from our selling entry of 12198 perfectly as expected (ABC Fibonacci extension, 61.8% Fibonacci extension, horizontal overlap resistance) and a and a further drop could occur below this level to push price down to at least 9328 support (Fibonacci extension, horizontal swing low support). It’s important to keep an eye out on our ascending support line which is holding price up really well. Only a break of this ascending support line would trigger a much stronger bearish move.
RSI (34) sees our long term ascending support line broken triggering a bearish move. But our intermediate ascending support line is still holding it up really well so only a break of that would add more conviction to our bearish move.
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