Bitcoin has made a bullish exit of our triangle formation, lining up nicely for a strong rally.
Buy above 8838. Stop loss at 8380. Take profit at 9868. Reason for the trading strategy (fundamentally): The big upcoming news event today is the “Examining Cryptocurrencies and ICO Markets” held by a subcommittee of the U.S. House of Representatives Financial Services Committee. The degree of legal expertise tapped for the panel suggests that the discussion is likely to revolve around regulatory topics, especially on the question of classifying some tokens as securities. The mood around the whole meeting is generally positive with Gaincarlo remarking that they owe it to this new generation to respect their enthusiasm for virtual currencies, with a thoughtful and balanced response, and not a dismissive one. Reason for the trading strategy (technically): Price has broken out nicely from our triangle formation leading to a strong bounce. We remain bullish above 8838 support (Fibonacci retracement, Fibonacci extension, horizontal overlap support) for a push up to at least 9868 resistance (Fibonacci retracement, horizontal swing high resistance). Stochastic (89,5,3) is seeing strong support above 9.6% and has good upside potential for our rise.