Bitcoin has broken major descending resistance, turning bullish
Sell below 8321. Stop loss at 9805. Take profit at 5758.
Reason for the trading strategy (fundamentally):
There are mixed vibes going around the cryptocurrency market with JPMorgan reporting that one day cryptocurrencies could help investors diversity their equity and bond portfolios while on the other hand, cryptocurrency continues to be plagued with bad news such as piling lawsuits against BitConnect and the recent malware that has exploited over 4,000 visitors’ computers to mine monero. Along with that, we have 3 European Supervisory Authorities that have released a warning on the risks involved with investing in cryptocurrencies. So generally, there’s an air of uncertainty amidst hopeful optimism that Bitcoin would finally pose a recovery.
Reason for the trading strategy (technically):
Bitcoin has started to make a bullish exit from our long term descending resistance-turned-support line signalling that there’s a change in momentum to bullish. We now look to buy above major support at 8301 (Fibonacci retracement, horizontal overlap support) for a push up to at least 10273 resistance (Fibonacci retracement, horizontal pullback resistance).
RSI (34) has finally made a bullish exit from our long term descending resistance-turned-support line signalling that there’s a change in momentum to bullish.
Reason for the trading strategy (fundamentally):
There are mixed vibes going around the cryptocurrency market with JPMorgan reporting that one day cryptocurrencies could help investors diversity their equity and bond portfolios while on the other hand, cryptocurrency continues to be plagued with bad news such as piling lawsuits against BitConnect and the recent malware that has exploited over 4,000 visitors’ computers to mine monero. Along with that, we have 3 European Supervisory Authorities that have released a warning on the risks involved with investing in cryptocurrencies. So generally, there’s an air of uncertainty amidst hopeful optimism that Bitcoin would finally pose a recovery.
Reason for the trading strategy (technically):
Bitcoin has started to make a bullish exit from our long term descending resistance-turned-support line signalling that there’s a change in momentum to bullish. We now look to buy above major support at 8301 (Fibonacci retracement, horizontal overlap support) for a push up to at least 10273 resistance (Fibonacci retracement, horizontal pullback resistance).
RSI (34) has finally made a bullish exit from our long term descending resistance-turned-support line signalling that there’s a change in momentum to bullish.