Bitcoin on major support, time to play an intermediate bounce
Buy above 12948. Stop loss at 11965. Take profit at 14250.
Reason for the trading strategy (fundamentally):
Investors are getting spooked especially with news that South Korea might potentially ban the trading of cryptocurrencies via exchanges in the nation. This is largely due to the Korean government mulling its options for curbing what is seen as excessive speculation in the crypto markets. They have even raided bitcoin exchanges such as Bithumb and Coinone with police and tax office officials recently amid investigations into tax evasion. All this has led to the shaking of investor’s confidence and hence the price decline.
Reason for the trading strategy (technically):
Price has continued to drop strongly and is now testing major support at 12948 (Fibonacci extension, horizontal swing low support) and a bounce could occur at this level to pose a temporary recovery to at least 14250 resistance (Fibonacci retracement, horizontal overlap resistance).
Stochastic (34,5,3) is seeing major support at 9.7% where a corresponding bounce could occur.
Reason for the trading strategy (fundamentally):
Investors are getting spooked especially with news that South Korea might potentially ban the trading of cryptocurrencies via exchanges in the nation. This is largely due to the Korean government mulling its options for curbing what is seen as excessive speculation in the crypto markets. They have even raided bitcoin exchanges such as Bithumb and Coinone with police and tax office officials recently amid investigations into tax evasion. All this has led to the shaking of investor’s confidence and hence the price decline.
Reason for the trading strategy (technically):
Price has continued to drop strongly and is now testing major support at 12948 (Fibonacci extension, horizontal swing low support) and a bounce could occur at this level to pose a temporary recovery to at least 14250 resistance (Fibonacci retracement, horizontal overlap resistance).
Stochastic (34,5,3) is seeing major support at 9.7% where a corresponding bounce could occur.