Bitcoin continues to test our resistance level. We remain bearish on this idea.
Sell below 8945. Stop loss at 9511. Take profit at 7920.
Reason for the trading strategy (fundamentally):
The big news surrounding cryptocurrency is Social Media Giant “Snap” confirming that it has banned ads for initial coin offerings (ICOs). This has caused cryptocurrency as a whole to take a big hit, considering that facebook and google have both announced similar measures with news being that twitter is reportedly about to crack down on ads too. This news, coupled with the recent news that Washington State County has decided to stop reviewing applications for mining facilities, has put a wet blanket over the recent recovery in Cryptocurrency.
Reason for the trading strategy (technically):
Price has hovered around our selling area since yesterday. We remain bearish below our major resistance at 8945 (Fibonacci retracement, horizontal pullback resistance, Fibonacci extension). We look to sell below this level for a push down to major support at 7920 (Fibonacci retracement, Fibonacci extension).
Stochastic (89,5,3) is seeing major resistance below 92% and is starting to drop nicely from it signalling that a reversal could be impending.
Sell below 8945. Stop loss at 9511. Take profit at 7920.
Reason for the trading strategy (fundamentally):
The big news surrounding cryptocurrency is Social Media Giant “Snap” confirming that it has banned ads for initial coin offerings (ICOs). This has caused cryptocurrency as a whole to take a big hit, considering that facebook and google have both announced similar measures with news being that twitter is reportedly about to crack down on ads too. This news, coupled with the recent news that Washington State County has decided to stop reviewing applications for mining facilities, has put a wet blanket over the recent recovery in Cryptocurrency.
Reason for the trading strategy (technically):
Price has hovered around our selling area since yesterday. We remain bearish below our major resistance at 8945 (Fibonacci retracement, horizontal pullback resistance, Fibonacci extension). We look to sell below this level for a push down to major support at 7920 (Fibonacci retracement, Fibonacci extension).
Stochastic (89,5,3) is seeing major resistance below 92% and is starting to drop nicely from it signalling that a reversal could be impending.