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 looking to sell below 8321 resistance ( , horizontal pullback resistance, breakout level, descending resistance) for a further push down to at least 5758 support ( , horizontal swing low support).
(34) remains under strong 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 recovery.