Intro: Bitcoin is still unable to break out major resistance which would open a strong recovery.
Buy above 11704. Stop loss at 10972. Take profit at 13030.
Reason for the trading strategy (fundamentally):
There has not been any significant news in the bitcoin industry recently which has led to prices stagnating. The biggest drivers, if any, have been largely negative as cryptocurrency exchange Coinbase has been hit by a class action lawsuit over alleged insider trading during its launch of bitcoin cash. Such market manipulation is strongly frowned upon and always affects the confidence of investors in a particular asset. In this case, no result of the investigation conducted by Coinbase has been revealed to assure investors too.
Reason for the trading strategy (technically):
Price has hovered below our buy entry yesterday and is unable to break above it. We are still seeing major resistance at 11704 (Fibonacci retracement, horizontal swing high resistance) which needs to be broken before it opens a bigger move up to 13030 resistance (Fibonacci retracement, horizontal overlap resistance). It’s nice to see that price has broken our long term descending resistance-turned-support line signalling that we’re likely to see a change in momentum from bearish to bullish.
RSI (34) is holding well above our ascending support.
Buy above 11704. Stop loss at 10972. Take profit at 13030.
Reason for the trading strategy (fundamentally):
There has not been any significant news in the bitcoin industry recently which has led to prices stagnating. The biggest drivers, if any, have been largely negative as cryptocurrency exchange Coinbase has been hit by a class action lawsuit over alleged insider trading during its launch of bitcoin cash. Such market manipulation is strongly frowned upon and always affects the confidence of investors in a particular asset. In this case, no result of the investigation conducted by Coinbase has been revealed to assure investors too.
Reason for the trading strategy (technically):
Price has hovered below our buy entry yesterday and is unable to break above it. We are still seeing major resistance at 11704 (Fibonacci retracement, horizontal swing high resistance) which needs to be broken before it opens a bigger move up to 13030 resistance (Fibonacci retracement, horizontal overlap resistance). It’s nice to see that price has broken our long term descending resistance-turned-support line signalling that we’re likely to see a change in momentum from bearish to bullish.
RSI (34) is holding well above our ascending support.