Sell below 11083. Stop loss at 12029. Take profit at 9443 and 8142.
Reason for the trading strategy (fundamentally):
News around cryptocurrencies have not been too positive recently. The latest being Korean crypto exchange Korbit banning non-citizens from depositing local currencies on its platform. The move was particularly because of new regulations banning anonymous cryptocurrency exchange accounts and strengthens know-your-customer (KYC) rules. As more such regulations start rolling out, we’ll likely see more and more bearish momentum building up on cryptocurrencies.
Reason for the trading strategy (technically):
Price has continued to drop strongly as predicted. We remain bearish looking to sell on strength below 11083 resistance (Fibonacci retracement, breakout resistance level) for a further push down to at least 9443 support (Fibonacci extension, major swing low support) before 8142 (61.8% Golden ratio retracement, 61.8% Fibonacci extension).
Stochastic (55,5,3) is seeing major support above 7% so we have to be careful that a bounce might occur soon and it would be most ideal to look for a good entry point with this bounce.