Bitcoin testing major resistance, prepare to sell
Sell below 12198. Stop loss at 13109. Take profit at 9328.
Reason for the trading strategy (fundamentally):
The security of cryptocurrency has been hit once again with tokyo-based cryptocurrency exchance Coincheck confirming that It has suffered what appears to be the biggest hack in the history of the technology, losing $533 million. While this doesn’t directly affect bitcoin, it does shed some light into the whole security of holding cryptocurrencies and should, at least in the interim, continue to put bearish pressure on Bitcoin.
Reason for the trading strategy (technically):
Price has risen a bit and is now testing major resistance at 12198 (ABC Fibonacci extension, 61.8% Fibonacci extension, horizontal overlap resistance) and a strong reaction could occur at this level to push price down to at least 9328 support (Fibonacci extension, horizontal swing low support).
Stochastic (34,5,3) is seeing major resistance at 95% where a corresponding reaction could occur.
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