Sell below 8321. Stop loss at 9805. Take profit at 5758.
Reason for the trading strategy (fundamentally):
News have been slightly positive for Cryptocurrency lately with some encouragement received in the form of Nvidia CEO saying that cryptocurrency is ‘not going to go away’. Along with that, Arizona has cleared a bill that aims to allow residents in the state to pay their taxes with bitcoin and other cryptocurrencies. These are encouraging signs for cryptocurrencies indeed.
Reason for the trading strategy (technically):
Bitcoin continues to respect our descending resistance line really well and continues to test our selling entry. We remain bearish looking to sell below 8321 resistance (Fibonacci retracement, horizontal pullback resistance, breakout level, descending resistance) for a further push down to at least 5758 support (Fibonacci extension, horizontal swing low support).
RSI (34) remains under strong bearish pressure with our long-term descending resistance line. We can see multiple reactions off our resistance lines and only a break above 56% would signal a bullish recovery.
Reason for the trading strategy (fundamentally):
News have been slightly positive for Cryptocurrency lately with some encouragement received in the form of Nvidia CEO saying that cryptocurrency is ‘not going to go away’. Along with that, Arizona has cleared a bill that aims to allow residents in the state to pay their taxes with bitcoin and other cryptocurrencies. These are encouraging signs for cryptocurrencies indeed.
Reason for the trading strategy (technically):
Bitcoin continues to respect our descending resistance line really well and continues to test our selling entry. We remain bearish looking to sell below 8321 resistance (Fibonacci retracement, horizontal pullback resistance, breakout level, descending resistance) for a further push down to at least 5758 support (Fibonacci extension, horizontal swing low support).
RSI (34) remains under strong bearish pressure with our long-term descending resistance line. We can see multiple reactions off our resistance lines and only a break above 56% would signal a bullish recovery.