Sell below 8321. Stop loss at 9805. Take profit at 5758.
Reason for the trading strategy (fundamentally):
While there has been some good news with Canadian cryptocurrency exchange Coinsquare raising $30 million in new equity financing, there was also the flipside where Hong Kong-based cryptocurrency exchange Binance continues to halt trading and customer withdrawals amongst a blackout – which has sparked fears of another hack which seems to be happening all too often these days. This has caused Bitcoin to come to a standstill in terms of price with the general consensus surrounding it being mainly neutral.
Reason for the trading strategy (technically):
Bitcoin remains under strong bearish pressure from our descending resistance line. We look to sell below 8321 resistance (Fibonacci retracement, horizontal pullback resistance, breakout level, descending resistance) for a further push down to at least 5758 support (Fibonacci extension, horizontal swing low support). We’ll be giving this trade a bit more breathing space by moving our stop loss to 9805.
RSI (34) remains under strong bearish pressure with our long-term descending resistance line.
Reason for the trading strategy (fundamentally):
While there has been some good news with Canadian cryptocurrency exchange Coinsquare raising $30 million in new equity financing, there was also the flipside where Hong Kong-based cryptocurrency exchange Binance continues to halt trading and customer withdrawals amongst a blackout – which has sparked fears of another hack which seems to be happening all too often these days. This has caused Bitcoin to come to a standstill in terms of price with the general consensus surrounding it being mainly neutral.
Reason for the trading strategy (technically):
Bitcoin remains under strong bearish pressure from our descending resistance line. We look to sell below 8321 resistance (Fibonacci retracement, horizontal pullback resistance, breakout level, descending resistance) for a further push down to at least 5758 support (Fibonacci extension, horizontal swing low support). We’ll be giving this trade a bit more breathing space by moving our stop loss to 9805.
RSI (34) remains under strong bearish pressure with our long-term descending resistance line.