Bitcoin continues to drop as expected, we remain bearish for a further drop.
Sell below 8755. Stop loss at 9089. Take profit at 7920.
Reason for the trading strategy (fundamentally):
The big news surrounding Bitcoin is The Office of Foreign Asset Control (OFAC) announcing that it was considering including digital currency addresses associated with its list of persons and entities with whom U.S. persons and businesses are forbidden to transact business. This list of Specially Designated Nationals (SDNs) includes individuals and entities associated with sanctioned governments, terrorism, trafficking in weapons of mass destructions, and illegal drug trafficking. This has spooked the Bitcoin community quite a bit as people worry about being tainted by association and possibly creating lowering the value of ‘dirty’ coins which has passed through one of the listed addresses.
Reason for the trading strategy (technically):
Price has continued to drop further as expected towards our profit target. We remain bearish as we have now seen a strong bearish exit signalling that additional bearish acceleration could be expected. We look to sell below major resistance at 8755 (Fibonacci retracement, horizontal overlap resistance, bearish Ichimoku cloud) for a push down all the way to major support at 7920 (Fibonacci retracement).
RSI (55) is testing major ascending support and only a break of this major ascending support would trigger a big
Trade closed: target reached:
Whoo! Totally kicked ass on this idea ;) Anyone got in on this?