Buy above 8975. Stop loss at 8181. Take profit at 10273.
Reason for the trading strategy (fundamentally):
There has been more positive news about Bitcoin recently with CFTC approving the creation of two subcommittees. One devoted to cryptocurrencies and the other on broader application of distributed ledgers in the finance space. There has also been strong appeal to regulators to boost their involvement in the blockchain and cryptocurrency industries. The general mood after the meeting was one that the CFTC is starting to accept that they need to keep up with the times in managing cryptocurrencies.
Reason for the trading strategy (technically):
Bitcoin has rose nicely as expected after breaking our long term descending resistance-turned-support line. We can see that price has broken a short term intermediate descending line too (gold) which signals an acceleration of bullish momentum. We remain bullish above 8975 support (horizontal pullback support, bullish breakout level) for a further push up to 10273 resistance (Fibonacci retracement, horizontal overlap resistance).
RSI (34) has also made a bullish exit from its long term descending resistance-turned-support line signalling a change in momentum.
Reason for the trading strategy (fundamentally):
There has been more positive news about Bitcoin recently with CFTC approving the creation of two subcommittees. One devoted to cryptocurrencies and the other on broader application of distributed ledgers in the finance space. There has also been strong appeal to regulators to boost their involvement in the blockchain and cryptocurrency industries. The general mood after the meeting was one that the CFTC is starting to accept that they need to keep up with the times in managing cryptocurrencies.
Reason for the trading strategy (technically):
Bitcoin has rose nicely as expected after breaking our long term descending resistance-turned-support line. We can see that price has broken a short term intermediate descending line too (gold) which signals an acceleration of bullish momentum. We remain bullish above 8975 support (horizontal pullback support, bullish breakout level) for a further push up to 10273 resistance (Fibonacci retracement, horizontal overlap resistance).
RSI (34) has also made a bullish exit from its long term descending resistance-turned-support line signalling a change in momentum.