Bitcoin has made a bullish exit from its descending channel and has surpassed its major resistance.
Buy above 7247. Stop loss at 6818. Take profit at 8268.
Reason for the trading strategy (fundamentally):
The value of bitcoin has been hanging in there following a turbulent start to the year with prices rocketing over Christmas and plummeting back in January and February as government and central banks around the world continue to raise the spectre of future regulation. Aside from the looming prospects of regulation, a series of high profile thefts has contributed to its rapid dips in bitcoin value. Google has also recently announced that it would ban cryptocurrency advertising from its pages from June onwards suggesting that it considers it “deceptive content”. This has caused a major blow to the sector.
Reason for the trading strategy (technically):
Price has broken out of our descending channel and its major resistance at 7247 (78.6% Fibonacci retracement, horizontal overlap resistance, channel breakout). Together with the double bottom reversal identified, it has added to our confirmation of a bullish reversal. We can also see that price has crossed over our Ichimoku cloud which is the first precursor of a potential bullish reversal.
RSI (55) has made a bullish exit signalling that we might be seeing a bullish exit in price too. A bullish channel has also been identified.
Buy above 7247. Stop loss at 6818. Take profit at 8268.
Reason for the trading strategy (fundamentally):
The value of bitcoin has been hanging in there following a turbulent start to the year with prices rocketing over Christmas and plummeting back in January and February as government and central banks around the world continue to raise the spectre of future regulation. Aside from the looming prospects of regulation, a series of high profile thefts has contributed to its rapid dips in bitcoin value. Google has also recently announced that it would ban cryptocurrency advertising from its pages from June onwards suggesting that it considers it “deceptive content”. This has caused a major blow to the sector.
Reason for the trading strategy (technically):
Price has broken out of our descending channel and its major resistance at 7247 (78.6% Fibonacci retracement, horizontal overlap resistance, channel breakout). Together with the double bottom reversal identified, it has added to our confirmation of a bullish reversal. We can also see that price has crossed over our Ichimoku cloud which is the first precursor of a potential bullish reversal.
RSI (55) has made a bullish exit signalling that we might be seeing a bullish exit in price too. A bullish channel has also been identified.