Bitcoin ascending support broken,short on break of majpr support
Intro: Bitcoin has broken its ascending support but requires one more major support to be broken to trigger a sell off.
Sell below 10356. Stop loss at 11300. Take profit at 8909.
Reason for the trading strategy (fundamentally):
One of the latest news surrounding cryptocurrency is what Venezuelans are saying about their new national cryptocurrency, Petro. This is a big step for government-backed cryptocurrency with the crypto world watching closely on its progress and how well received it is. If everything turns out perfectly, it would spell a great future for cryptocurrencies. However, reviews so far are mixed and even had a stinging attack from Deputy Rafael Guzman saying that “petro is a fraudulent, illegal and invalid mechanism for the government to continue its shady business and money laundering, because it is not known where those resources will come from”. This has instead shed light back onto the key underlying issues with cryptocurrencies and how limiting they can be.
Reason for the trading strategy (technically):
Bitcoin has finally broken our ascending support line signalling that there is likely going to be a change in momentum from bullish to bearish. However, we can see major support at 10356 (Fibonacci retracement, horizontal overlap support) and only a break below this level would signal a bearish move all the way down to 8909 support (Fibonacci retracement, horizontal swing high support).
RSI (55) has also broken below our 53% support signalling that we’re likely to see a strong drop. The only confirmation we need is price breaking below 10356.
Sell below 10356. Stop loss at 11300. Take profit at 8909.
Reason for the trading strategy (fundamentally):
One of the latest news surrounding cryptocurrency is what Venezuelans are saying about their new national cryptocurrency, Petro. This is a big step for government-backed cryptocurrency with the crypto world watching closely on its progress and how well received it is. If everything turns out perfectly, it would spell a great future for cryptocurrencies. However, reviews so far are mixed and even had a stinging attack from Deputy Rafael Guzman saying that “petro is a fraudulent, illegal and invalid mechanism for the government to continue its shady business and money laundering, because it is not known where those resources will come from”. This has instead shed light back onto the key underlying issues with cryptocurrencies and how limiting they can be.
Reason for the trading strategy (technically):
Bitcoin has finally broken our ascending support line signalling that there is likely going to be a change in momentum from bullish to bearish. However, we can see major support at 10356 (Fibonacci retracement, horizontal overlap support) and only a break below this level would signal a bearish move all the way down to 8909 support (Fibonacci retracement, horizontal swing high support).
RSI (55) has also broken below our 53% support signalling that we’re likely to see a strong drop. The only confirmation we need is price breaking below 10356.