Bitcoin is seeing a strong change in momentum to bullish after breaking our major resistances.
Buy above 7774. Stop loss at 7536. Take profit at 8265.
Reason for the trading strategy (fundamentally):
The big news surrounding cryptocurrency is that the biggest bank in Denmark, Danske Bank, has released a report criticising cryptocurrencies over perceived risks and lack of transparency. It cites that it does not come with central bank backing, has high volatility and a lack of pricing transparency and lack of regulatory oversight making it a target for criminals. It has then decided to strongly recommend customers to avoid investing in cryptocurrencies and has also phased out the option of buying financial instruments that are linked to the price of cryptocurrencies.
Reason for the trading strategy (technically):
Price has broken our major descending resistance line and has crossed above our Ichimoku cloud signalling that we’re about to see an intermediate correction on Bitcoin. We look to buy above major support at 7774 (Fibonacci retracement, horizontal overlap support, Fibonacci extension) for a bounce towards 8265 resistance (Fibonacci retracement, horizontal overlap resistance, Fibonacci extension).
RSI (55) has also made a bullish exit and sees a short term ascending support line hold it up really nicely.
Buy above 7774. Stop loss at 7536. Take profit at 8265.
Reason for the trading strategy (fundamentally):
The big news surrounding cryptocurrency is that the biggest bank in Denmark, Danske Bank, has released a report criticising cryptocurrencies over perceived risks and lack of transparency. It cites that it does not come with central bank backing, has high volatility and a lack of pricing transparency and lack of regulatory oversight making it a target for criminals. It has then decided to strongly recommend customers to avoid investing in cryptocurrencies and has also phased out the option of buying financial instruments that are linked to the price of cryptocurrencies.
Reason for the trading strategy (technically):
Price has broken our major descending resistance line and has crossed above our Ichimoku cloud signalling that we’re about to see an intermediate correction on Bitcoin. We look to buy above major support at 7774 (Fibonacci retracement, horizontal overlap support, Fibonacci extension) for a bounce towards 8265 resistance (Fibonacci retracement, horizontal overlap resistance, Fibonacci extension).
RSI (55) has also made a bullish exit and sees a short term ascending support line hold it up really nicely.