Bitcoin dropped perfectly to our profit, immediate bounce next!
Buy above 8968. Stop loss at 8591. Take profit at 9898.
Reason for the trading strategy (fundamentally):
The big news would be India’s finance minister, Arun, announcing that the government does not view cryptocurrencies as a form of legal tender and would take measures against the tech’s use for illegitimate purposes. This big stance on cryptocurrencies shook many investors and has caused a sell off pushing price beyond the 10,000 psychological level.
Reason for the trading strategy (technically):
Bitcoin has dropped absolutely perfectly to our profit target as expected. We are now seeing major support at 8968 (ABC Fibonacci extension, 61.8% Fibonacci extension) and a strong bounce can be expected at this level to correct price up to 9898 resistance (Fibonacci retracement, horizontal pullback resistance, breakout level).
Stochastic (34,5,3) is seeing major support at 6.6% where a corresponding bounce could be expected.
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