Intro: Bitcoin has broke our major support line triggering our bearish move yesterday. We tighten our stop loss to protect our profits while riding this move down.
Sell below 10356. Stop loss at 11015. Take profit at 8909.
Reason for the trading strategy (fundamentally):
The big news today is the L’Authorite Des Marches Financiers (AMF), which is France’s stock market regulator, has released a statement saying that trading platforms should not be allowed to market cryptocurrency derivative products electronically, per regulations that cover derivatives more broadly. This has caused the wider cryptocurrency market to take a hit on confidence and is casting a bit more gloom over its recent recovery.
Reason for the trading strategy (technically):
Bitcoin has finally broken the major support-turned-resistance line at 10356 triggering our bearish move down. We look to sell on strength below major resistance at 10356 (Fibonacci retracement, horizontal overlap resistance, breakout level) for a push down to 8909 support (Fibonacci retracement, horizontal overlap support). We also tighten our stop loss a bit to 11015 to protect our profits while we ride the move down further.
RSI (34) remains below our 53% signalling there is a change in momentum to bearish.