Sell below 10478. Stop loss at 11223. Take profit at 9328.
Reason for the trading strategy (fundamentally):
There continues to be more negative news surrounding Bitcoin and cryptocurrencies as a whole than positive ones. The latest one being the U.S. District Court issuing a temporary restraining order (TRO) freezing BitConnect’s assets as a second lawsuit was filed against the cryptocurrency exchange and lending platform. It now requires the parties to disclose cryptocurrency wallet and trading account addresses, as well as the identities of whom BitConnect has sent digital currencies within the last 90 days. This comes with increasing allegations that the entire exchange is a Ponzi scheme. This big news event has rocked the Bitcoin and cryptocurrency community leading to increasing bearish sentiments surrounding it.
Reason for the trading strategy (technically):
Bitcoin continues to test our major major psychological level of 10,000 (also a corresponding horizontal swing low support level). We remain bearish looking to sell below 10478 resistance (horizontal overlap resistance) for a further push down to major support at 9328 (Fibonacci extension, horizontal swing low support).
RSI (34) remains under heavy bearish pressure with our descending resistance line.
Reason for the trading strategy (fundamentally):
There continues to be more negative news surrounding Bitcoin and cryptocurrencies as a whole than positive ones. The latest one being the U.S. District Court issuing a temporary restraining order (TRO) freezing BitConnect’s assets as a second lawsuit was filed against the cryptocurrency exchange and lending platform. It now requires the parties to disclose cryptocurrency wallet and trading account addresses, as well as the identities of whom BitConnect has sent digital currencies within the last 90 days. This comes with increasing allegations that the entire exchange is a Ponzi scheme. This big news event has rocked the Bitcoin and cryptocurrency community leading to increasing bearish sentiments surrounding it.
Reason for the trading strategy (technically):
Bitcoin continues to test our major major psychological level of 10,000 (also a corresponding horizontal swing low support level). We remain bearish looking to sell below 10478 resistance (horizontal overlap resistance) for a further push down to major support at 9328 (Fibonacci extension, horizontal swing low support).
RSI (34) remains under heavy bearish pressure with our descending resistance line.