Intro: Bitcoin has continued to drop nicely towards our profit target, we still expect further bearish pressure albeit quite limited.
Sell below 9852. Stop loss at 10550. Take profit at 8909.
Reason for the trading strategy (fundamentally):
The big news surrounding cryptocurrency recently is from Bank of America’s annual report. It has expressed particular concern in how cryptocurrencies affect the AML, KYC, sanctions and foreign corruption laws in the U.S. Along with this, Austria has also joined the list of countries planning to regulate cryptocurrencies with the government’s central concern curbing the use of cryptocurrencies for money laundering. All these has shed a bad light on Bitcoin and is casting more doom and gloom about it.
Reason for the trading strategy (technically):
Bitcoin has continued to drop nicely from our selling entry and is fast approaching our profit target. We remain bearish looking to sell below 9852 resistance (Fibonacci retracement, horizontal overlap resistance, descending resistance) for a further drop to 8909 support (Fibonacci extension, Fibonacci retracement, horizontal overlap support area).
RSI (34) remains below our 53% resistance level signalling that we’re still in a bearish setup.