Bitcoin is reacting nicely off our selling area. We remain bearish waiting for the drop.
Sell below 8590. Stop loss at 8893. Take profit at 7837.
Reason for the trading strategy (fundamentally):
The big news event surrounding cryptocurrency is Donald Trump signing an executive over to impose new sanctions against Venezuela for its controversial “petro” cryptocurrency. This was done as they see that Venezuela is seeking to use the cryptocurrency as a way to circumvent international sanctions. There has been positive news, though, with Britain’s junior finance minister, John Glen, announcing that the government will launch new research aimed to explore the potential risks posed by cryptocurrencies like bitcoin. This is a step towards more wider acceptance of Bitcoin as it would allow them to fully appreciate the value it brings.
Reason for the trading strategy (technically):
Price has risen to our selling area and started to react off it nicely. We remain bearish looking to sell below major resistance at 8590 (Fibonacci retracement, horizontal overlap resistance, Elliott wave structure, bearish divergence) for a drop once again to support at 7837 (Fibonacci retracement, horizontal pullback support).
Stochastic (34,5,3) is seeing major resistance at 92% with good downside potential. We can see bearish divergence vs price which is a good signal that a reversal is impending.
Sell below 8590. Stop loss at 8893. Take profit at 7837.
Reason for the trading strategy (fundamentally):
The big news event surrounding cryptocurrency is Donald Trump signing an executive over to impose new sanctions against Venezuela for its controversial “petro” cryptocurrency. This was done as they see that Venezuela is seeking to use the cryptocurrency as a way to circumvent international sanctions. There has been positive news, though, with Britain’s junior finance minister, John Glen, announcing that the government will launch new research aimed to explore the potential risks posed by cryptocurrencies like bitcoin. This is a step towards more wider acceptance of Bitcoin as it would allow them to fully appreciate the value it brings.
Reason for the trading strategy (technically):
Price has risen to our selling area and started to react off it nicely. We remain bearish looking to sell below major resistance at 8590 (Fibonacci retracement, horizontal overlap resistance, Elliott wave structure, bearish divergence) for a drop once again to support at 7837 (Fibonacci retracement, horizontal pullback support).
Stochastic (34,5,3) is seeing major resistance at 92% with good downside potential. We can see bearish divergence vs price which is a good signal that a reversal is impending.
Trade closed: stop reached:
we win some we lose some ><