Bitcoin testing major resistance, remain bearish
Sell below 7993. Stop loss at 8885. Take profit at 5758.
Reason for the trading strategy (fundamentally):
There has been some positive news lately surrounding cryptocurrency, with the latest being Singapore Deputy PM and chairman of Monetary Authority of Singapore (MAS) saying that cryptocurrency and related trading activity currently do not pose any threat to Singapore’s finance system and there is no strong case to ban cryptocurrency trading. Along with that, the optimistic tone set by the U.S. SEC and CFTC at a senate hearing on Tuesday has helped Bitcoin recover a bit.
Reason for the trading strategy (technically):
Bitcoin has made a pullback to our major resistance level, tested it and is now reacting nicely off that level. The most immediate resistance we can see on it is our short-term descending resistance line. We look to sell below 7993 resistance (Fibonacci retracement, horizontal pullback resistance, breakout level, short-term descending resistance) 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):
There has been some positive news lately surrounding cryptocurrency, with the latest being Singapore Deputy PM and chairman of Monetary Authority of Singapore (MAS) saying that cryptocurrency and related trading activity currently do not pose any threat to Singapore’s finance system and there is no strong case to ban cryptocurrency trading. Along with that, the optimistic tone set by the U.S. SEC and CFTC at a senate hearing on Tuesday has helped Bitcoin recover a bit.
Reason for the trading strategy (technically):
Bitcoin has made a pullback to our major resistance level, tested it and is now reacting nicely off that level. The most immediate resistance we can see on it is our short-term descending resistance line. We look to sell below 7993 resistance (Fibonacci retracement, horizontal pullback resistance, breakout level, short-term descending resistance) 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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