Intro: Bitcoin is once again approaching strong resistance. Good opportunity to sell.
Sell below 11194. Stop loss at 11548. Take profit at 10397.
Reason for the trading strategy (fundamentally):
We’re seeing some mixed news on cryptocurrencies so far with Singapore’s MAS weighing the need to introduce new rules to protect cryptocurrency investors. This signals that a new regulatory framework would be needed and also that the MAS is paying close attention to domestic cryptocurrency activities. Along with that, not only are America’s biggest banks worried about cryptocurrency competition, but US regional banks like WesBanco and IberiaBank are also worried. This is a good sign that cryptocurrency is going in the right direction if it’s causing the big players to get uncomfortable.
Reason for the trading strategy (technically):
Price has risen strongly and is now testing major resistance at 11194 (Fibonacci retracement, Fibonacci extension, horizontal overlap resistance, Elliott wave structure) and a strong reaction could occur at this level to push price down to 10397 support (Fibonacci retracement, horizontal overlap support)
Stochastic (34,5,3) is seeing major resistance below 94% where a corresponding reaction could occur.
Sell below 11194. Stop loss at 11548. Take profit at 10397.
Reason for the trading strategy (fundamentally):
We’re seeing some mixed news on cryptocurrencies so far with Singapore’s MAS weighing the need to introduce new rules to protect cryptocurrency investors. This signals that a new regulatory framework would be needed and also that the MAS is paying close attention to domestic cryptocurrency activities. Along with that, not only are America’s biggest banks worried about cryptocurrency competition, but US regional banks like WesBanco and IberiaBank are also worried. This is a good sign that cryptocurrency is going in the right direction if it’s causing the big players to get uncomfortable.
Reason for the trading strategy (technically):
Price has risen strongly and is now testing major resistance at 11194 (Fibonacci retracement, Fibonacci extension, horizontal overlap resistance, Elliott wave structure) and a strong reaction could occur at this level to push price down to 10397 support (Fibonacci retracement, horizontal overlap support)
Stochastic (34,5,3) is seeing major resistance below 94% where a corresponding reaction could occur.