Buy above 14332. Stop loss at 13581. Take profit at 15662.
Reason for the trading strategy (fundamentally):
We’re seeing a slight recovery on Bitcoin largely because of a few good news surrounding it. Firstly a report by Goldman Sachs highlights how bitcoin could serve as alternative forms of money in troubled economies, especially where traditional services of money are inadequately supplied. Along with that, Bitmain, the China-based bitcoin mining giant, has set up a new subsidiary in Switzerland after China’s move to quash the mining ecosystem. This has provided hope to many Bitcoin investors that most of these bitcoin mining companies would simply relocate to Switzerland.
Reason for the trading strategy (technically):
Price has finally managed to break out of our strong descending resistance line triggering a bullish move from here. We remain bullish above 14332 support (Fibonacci retracement, horizontal overlap support) and expect price to rise up further to 15662 resistance (Fibonacci retracement, horizontal overlap resistance). Our next most intermediate level of resistance is at 14980 (swing high resistance, Fibonacci retracement) and only if price surpasses this level would it add further conviction to our bullish move.
RSI (34) sees a recent bullish exit of its resistance-turned-support line which is in line with what we have seen in price.
Reason for the trading strategy (fundamentally):
We’re seeing a slight recovery on Bitcoin largely because of a few good news surrounding it. Firstly a report by Goldman Sachs highlights how bitcoin could serve as alternative forms of money in troubled economies, especially where traditional services of money are inadequately supplied. Along with that, Bitmain, the China-based bitcoin mining giant, has set up a new subsidiary in Switzerland after China’s move to quash the mining ecosystem. This has provided hope to many Bitcoin investors that most of these bitcoin mining companies would simply relocate to Switzerland.
Reason for the trading strategy (technically):
Price has finally managed to break out of our strong descending resistance line triggering a bullish move from here. We remain bullish above 14332 support (Fibonacci retracement, horizontal overlap support) and expect price to rise up further to 15662 resistance (Fibonacci retracement, horizontal overlap resistance). Our next most intermediate level of resistance is at 14980 (swing high resistance, Fibonacci retracement) and only if price surpasses this level would it add further conviction to our bullish move.
RSI (34) sees a recent bullish exit of its resistance-turned-support line which is in line with what we have seen in price.