Reason for the trading strategy (technically):
Bitcoin’s price has continued to rise strongly and it also continues to obey strong technical as seen in our various Fibonacci retracements and projections. The recent swing low that occurred at 12720 was purely a 50% and 100% + 161.8% . We are on this and the key question is where to find a good entry level. We look to buy above 11887 support (61.8% , horizontal pullback support) with first key level of support seen at 12116 (100% ). Our profit target would be at 15221 ( , horizontal swing high resistance).
(34,5,3) main support is at 21% and we should expect it to drop towards that level which corresponds to our buy entry.
Reason for the trading strategy (fundamentally):
While it’s important to find out what is driving the mega climb on Bitcoin , it’s likely that this run is very much fuelled by speculation over value as one of the key points is the stark contrast we’re seeing versus the other major cryptocurrencies. While Bitcoin has been rallying, Ethereum , Ripples and Litecoin were all ranging and some even dropping despite being much better and suited for day-to-day transactions – which is what the whole concept of Bitcoin and Cryptocurrencies are meant to achieve. Hence this shows that the appetite we’re seeing right now is not so much for cryptocurrencies and how they would radically redefine the financial system. Based on this, we can expect further and price to obey much more key technical levels as that is the main area the markets would be looking at especially with a lack of key fundamentals.