Bitcoin Potential Bullish Breakout, Keep An Eye On This Setup
Bitcoin potentially breaking out of our long term descending channel. Watch for the breakout confirmation.
Buy above 7224. Stop loss at 6687. Take profit at 8257.
Reason for the trading strategy (fundamentally):
The big news event surrounding cryptocurrency is the National Bank of Kazakhstan announcing that it wants to ban cryptocurrency trading and mining in the European nation, citing that they believe cryptocurrencies are “an ideal instrument for money laundering and tax evasion”. This is the latest blow to cryptocurrency as it can’t seem to shake off the bad stigma of it being used for money laundering and tax evasion.
Reason for the trading strategy (technically):
Price is testing our descending channel and we look to buy above major resistance at 7224 (Fibonacci retracement, horizontal overlap resistance, channel breakout, bullish divergence). It’s important to see that price not only breaks out of our bearish channel, but also to break above our major resistance at 7224 to confirm our bullish reversal. We can also see that price has crossed over our Ichimoku cloud which is the first precursor of a potential bullish reversal.
RSI (55) has made a bullish exit signalling that we might be seeing a bullish exit in price too. We can also see bullish divergence vs price signalling that a bullish reversal is impending.
Buy above 7224. Stop loss at 6687. Take profit at 8257.
Reason for the trading strategy (fundamentally):
The big news event surrounding cryptocurrency is the National Bank of Kazakhstan announcing that it wants to ban cryptocurrency trading and mining in the European nation, citing that they believe cryptocurrencies are “an ideal instrument for money laundering and tax evasion”. This is the latest blow to cryptocurrency as it can’t seem to shake off the bad stigma of it being used for money laundering and tax evasion.
Reason for the trading strategy (technically):
Price is testing our descending channel and we look to buy above major resistance at 7224 (Fibonacci retracement, horizontal overlap resistance, channel breakout, bullish divergence). It’s important to see that price not only breaks out of our bearish channel, but also to break above our major resistance at 7224 to confirm our bullish reversal. We can also see that price has crossed over our Ichimoku cloud which is the first precursor of a potential bullish reversal.
RSI (55) has made a bullish exit signalling that we might be seeing a bullish exit in price too. We can also see bullish divergence vs price signalling that a bullish reversal is impending.