Buy above 8301. Stop loss at 7499. Take profit at 10273.
Reason for the trading strategy (fundamentally):
The most recent news surrounding Bitcoin revolves around Mario Draghi, president of the European Central Bank. He has once again stated that he doesn’t think cryptocurrency is a currency as while the euro’s value is stable, the value of a bitcoin oscillates wildly. On top of that, while the euro is backed by the ECB, dollar by the Federal Reserve, currencies by the central banks or their governments, nobody backs bitcoin. With no legal protections for users who lose their bitcoins to theft and the high transaction costs of using bitcoin, it is very clear that Mario Draghi is not a big fan of Bitcoin and his statements have not given Bitcoin investors much confidence in the currency.
Reason for the trading strategy (technically):
Bitcoin has started to make a bullish exit from our long term descending resistance-turned-support line signalling that there’s a change in momentum to bullish. We remain bullish looking to buy above major support at 8301 (Fibonacci retracement, horizontal overlap support) for a push up to at least 10273 resistance (Fibonacci retracement, horizontal pullback resistance).
RSI (34) has finally made a bullish exit from our long term descending resistance-turned-support line signalling that there’s a change in momentum to bullish.
Reason for the trading strategy (fundamentally):
The most recent news surrounding Bitcoin revolves around Mario Draghi, president of the European Central Bank. He has once again stated that he doesn’t think cryptocurrency is a currency as while the euro’s value is stable, the value of a bitcoin oscillates wildly. On top of that, while the euro is backed by the ECB, dollar by the Federal Reserve, currencies by the central banks or their governments, nobody backs bitcoin. With no legal protections for users who lose their bitcoins to theft and the high transaction costs of using bitcoin, it is very clear that Mario Draghi is not a big fan of Bitcoin and his statements have not given Bitcoin investors much confidence in the currency.
Reason for the trading strategy (technically):
Bitcoin has started to make a bullish exit from our long term descending resistance-turned-support line signalling that there’s a change in momentum to bullish. We remain bullish looking to buy above major support at 8301 (Fibonacci retracement, horizontal overlap support) for a push up to at least 10273 resistance (Fibonacci retracement, horizontal pullback resistance).
RSI (34) has finally made a bullish exit from our long term descending resistance-turned-support line signalling that there’s a change in momentum to bullish.