Reason for the trading strategy (fundamentally):
There has been some positive news lately surrounding cryptocurrency, with the latest being Singapore Deputy PM and chairman of Monetary Authority of Singapore (MAS) saying that cryptocurrency and related trading activity currently do not pose any threat to Singapore’s finance system and there is no strong case to ban cryptocurrency trading. Along with that, the optimistic tone set by the U.S. SEC and CFTC at a senate hearing on Tuesday has helped Bitcoin recover a bit.
Reason for the trading strategy (technically):
Bitcoin has made a pullback to our major , tested it and is now reacting nicely off that level. The most immediate resistance we can see on it is our short-term descending resistance line. We look to sell below 7993 resistance ( , horizontal pullback resistance, breakout level, short-term descending resistance) for a further push down to at least 5758 support ( , horizontal swing low support).
(34) remains under strong pressure with our long-term descending resistance line.