Bitcoin has made a pullback to our selling entry, remain bearish
Sell below 11083. Stop loss at 12029. Take profit at 9443 and 8142.
Reason for the trading strategy (fundamentally):
There continues to be bearish news surrounding Bitcoin with major payment processor Stripe choosing to end support for Bitcoin. This is largely due to lengthy transaction times, increasing transaction failure rate and growing fees has caused it to become less popular among Stripe’s merchants and users. At the same time, South Korea has announced that Jan 30 is the deadline for cryptocurrency investors in South Korea to have to use their real-name bank accounts in order to continue trading. While this is definitely good news in its step to strength KYC compliance and money laundering, it has also affected a large group of traders who had preferred to remain anonymous.
Reason for the trading strategy (technically):
Price has made a pullback to our selling entry as expected. We remain bearish below 11083 resistance (Fibonacci retracement, breakout resistance level) for a further push down to at least 9443 support (Fibonacci extension, major swing low support) before 8142 (61.8% Golden ratio retracement, 61.8% Fibonacci extension).
Stochastic (21,5,3) is seeing major resistance below 94% where a corresponding reaction could occur.
Reason for the trading strategy (fundamentally):
There continues to be bearish news surrounding Bitcoin with major payment processor Stripe choosing to end support for Bitcoin. This is largely due to lengthy transaction times, increasing transaction failure rate and growing fees has caused it to become less popular among Stripe’s merchants and users. At the same time, South Korea has announced that Jan 30 is the deadline for cryptocurrency investors in South Korea to have to use their real-name bank accounts in order to continue trading. While this is definitely good news in its step to strength KYC compliance and money laundering, it has also affected a large group of traders who had preferred to remain anonymous.
Reason for the trading strategy (technically):
Price has made a pullback to our selling entry as expected. We remain bearish below 11083 resistance (Fibonacci retracement, breakout resistance level) for a further push down to at least 9443 support (Fibonacci extension, major swing low support) before 8142 (61.8% Golden ratio retracement, 61.8% Fibonacci extension).
Stochastic (21,5,3) is seeing major resistance below 94% where a corresponding reaction could occur.