Bitcoin bounced right above our support, prepare to short again!
Sell below 7993. Stop loss at 8885. Take profit at 5758.
Reason for the trading strategy (fundamentally):
Bank for International Settlements (BIS) chief, Agustin Carstens, has blasted bitcoin as a ponzi scheme, an environmental disaster and a threat to central banks. He further blasted bitcoin by stating that cryptocurrencies fail to meet the basic textbook definition of a currency. The volatility of cryptocurrencies are tolerated mostly by those “who massively evade taxes and launder money”. These statements have cast further doom and gloom about bitcoin as its value continues to drop.
Reason for the trading strategy (technically):
Bitcoin has now made a pullback from our support level and is right at our major resistance line once again. This time it is testing our long-term descending resistance and short-term descending resistance. We look to sell below 7993 resistance (Fibonacci retracement, horizontal pullback resistance, breakout level) for a further push down to at least 5758 support (Fibonacci extension, horizontal swing low support).
RSI (34) remains under strong bearish pressure with our long-term descending resistance line.
Reason for the trading strategy (fundamentally):
Bank for International Settlements (BIS) chief, Agustin Carstens, has blasted bitcoin as a ponzi scheme, an environmental disaster and a threat to central banks. He further blasted bitcoin by stating that cryptocurrencies fail to meet the basic textbook definition of a currency. The volatility of cryptocurrencies are tolerated mostly by those “who massively evade taxes and launder money”. These statements have cast further doom and gloom about bitcoin as its value continues to drop.
Reason for the trading strategy (technically):
Bitcoin has now made a pullback from our support level and is right at our major resistance line once again. This time it is testing our long-term descending resistance and short-term descending resistance. We look to sell below 7993 resistance (Fibonacci retracement, horizontal pullback resistance, breakout level) for a further push down to at least 5758 support (Fibonacci extension, horizontal swing low support).
RSI (34) remains under strong bearish pressure with our long-term descending resistance line.