Bitcoin has dropped from our selling area nicely and sees a lot of bearish momentum.
Sell below 8758. Stop loss at 9211. Take profit at 7920.
Reason for the trading strategy (fundamentally):
The big news event surrounding Bitcoin is Edward Snowden making an announcement that the big structural flaw that is has, the long-lasting flaw, is its public ledger. The reason for this is because he explains that “you cannot have a lifelong history of everyone’s purchases, all of the interactions be available to everyone and have that work out well at scale”. Also, he also expressed his concern that having a public ledger that documents every transaction history could draw interest from governments that wish to outlaw the technology, as seen in how NSA may be using its powerful surveillance technology to track the blockchain ledger and individual bitcoin users. This has caused Bitcoin to drop sharply recently.
Reason for the trading strategy (technically):
Price has dropped nicely from our selling area and is working its way to our profit target. We see major resistance below 8758 (Fibonacci retracement, horizontal overlap resistance, bearish Ichimoku cloud) which we look to sell below for a push down to major support at 7920 (Fibonacci retracement, Fibonacci extension).
RSI (89) sees a descending resistance line add to our bearish bias on this setup.
Sell below 8758. Stop loss at 9211. Take profit at 7920.
Reason for the trading strategy (fundamentally):
The big news event surrounding Bitcoin is Edward Snowden making an announcement that the big structural flaw that is has, the long-lasting flaw, is its public ledger. The reason for this is because he explains that “you cannot have a lifelong history of everyone’s purchases, all of the interactions be available to everyone and have that work out well at scale”. Also, he also expressed his concern that having a public ledger that documents every transaction history could draw interest from governments that wish to outlaw the technology, as seen in how NSA may be using its powerful surveillance technology to track the blockchain ledger and individual bitcoin users. This has caused Bitcoin to drop sharply recently.
Reason for the trading strategy (technically):
Price has dropped nicely from our selling area and is working its way to our profit target. We see major resistance below 8758 (Fibonacci retracement, horizontal overlap resistance, bearish Ichimoku cloud) which we look to sell below for a push down to major support at 7920 (Fibonacci retracement, Fibonacci extension).
RSI (89) sees a descending resistance line add to our bearish bias on this setup.