Reason for the trading strategy (fundamentally):
The most recent news surrounding Bitcoin revolves around Mario Draghi, president of the European . He has once again stated that he doesn’t think cryptocurrency is a currency as while the euro’s value is stable, the value of a bitcoin oscillates wildly. On top of that, while the euro is backed by the ECB, dollar by the , currencies by the central banks or their governments, nobody backs bitcoin . With no legal protections for users who lose their bitcoins to theft and the high transaction costs of using bitcoin , it is very clear that Mario Draghi is not a big fan of Bitcoin and his statements have not given Bitcoin investors much confidence in the currency.
Reason for the trading strategy (technically):
Bitcoin has started to make a exit from our long term descending resistance-turned-support line signalling that there’s a change in momentum to . We remain looking to buy above major support at 8301 ( , horizontal overlap support) for a push up to at least 10273 resistance ( , horizontal pullback resistance).
(34) has finally made a exit from our long term descending resistance-turned-support line signalling that there’s a change in momentum to .