Intro: Bitcoin is just about to reach a strong resistance level, good opportunity to short.
Sell below 10520. Stop loss at 10991. Take profit at 8909.
Reason for the trading strategy (fundamentally):
The major news announcement surrounding bitcoin would be the release of the much-anticipated version 0.16.0 Bitcoin Core which has added full support for Segregated Witness (SegWit), which was largely intended to solve bitcoin’s scalability obstacles. This has helped bitcoin pose a nice recovery yesterday bringing price up to the 10,000 mark.
Reason for the trading strategy (technically):
Bitcoin is approaching major resistance at 10520 (Fibonacci retracement, horizontal swing high resistance, bearish harmonic formation) and a strong reaction could occur at this level to push price down to 8909 support (Fibonacci extension, horizontal pullback support).
Stochastic (34,5,3) is seeing major resistance at 96% where a corresponding reaction could occur.
Sell below 10520. Stop loss at 10991. Take profit at 8909.
Reason for the trading strategy (fundamentally):
The major news announcement surrounding bitcoin would be the release of the much-anticipated version 0.16.0 Bitcoin Core which has added full support for Segregated Witness (SegWit), which was largely intended to solve bitcoin’s scalability obstacles. This has helped bitcoin pose a nice recovery yesterday bringing price up to the 10,000 mark.
Reason for the trading strategy (technically):
Bitcoin is approaching major resistance at 10520 (Fibonacci retracement, horizontal swing high resistance, bearish harmonic formation) and a strong reaction could occur at this level to push price down to 8909 support (Fibonacci extension, horizontal pullback support).
Stochastic (34,5,3) is seeing major resistance at 96% where a corresponding reaction could occur.