Bitcoin is on short term support, opportunity to play a bounce from here.
Buy above 8838. Stop loss at 8380. Take profit at 9868.
Reason for the trading strategy (fundamentally):
There aren’t many huge news event that have affected bitcoin and cryptocurrencies in general, although there has been some good news with South Korea’s ban on initial coin offerings (ICOs) being potentially eased in the coming months. However, cloud mining service Genesis Mining has been hit with a cease-and-desist order because the model that they were using – where buyers essentially purchase an amount of computing power over a period of time hosted elsewhere – was deemed as ‘constitute investment contracts and are thus securities’ under South Carolina law. This is seen as negative news as it essentially means such an effective model of mining cryptocurrencies cannot be further used.
Reason for the trading strategy (technically):
Price is testing support at 8838 (Fibonacci extension, Fibonacci retracement, horizontal overlap support) and an intermediate bounce could occur from here to push prices back up to major resistance at 9868 (Fibonacci retracement, horizontal swing high resistance).
Stochastic (21,5,3) is seeing major support above 9.6% where a corresponding bounce could occur.
Buy above 8838. Stop loss at 8380. Take profit at 9868.
Reason for the trading strategy (fundamentally):
There aren’t many huge news event that have affected bitcoin and cryptocurrencies in general, although there has been some good news with South Korea’s ban on initial coin offerings (ICOs) being potentially eased in the coming months. However, cloud mining service Genesis Mining has been hit with a cease-and-desist order because the model that they were using – where buyers essentially purchase an amount of computing power over a period of time hosted elsewhere – was deemed as ‘constitute investment contracts and are thus securities’ under South Carolina law. This is seen as negative news as it essentially means such an effective model of mining cryptocurrencies cannot be further used.
Reason for the trading strategy (technically):
Price is testing support at 8838 (Fibonacci extension, Fibonacci retracement, horizontal overlap support) and an intermediate bounce could occur from here to push prices back up to major resistance at 9868 (Fibonacci retracement, horizontal swing high resistance).
Stochastic (21,5,3) is seeing major support above 9.6% where a corresponding bounce could occur.