Bitcoin Dropping Perfectly, Remain Bearish For A Further Drop

Reason for the trading strategy (fundamentally):The big news surrounding cryptocurrencies is that eToro, the social investing platform, is launching a full-fledged cryptocurrency exchange and mobile wallet for the US. It has opened the waiting list for people in the US who want to trade bitcoin, Ethereum, XRP, dash, bitcoin cash, stellar, Ethereum classic, NEO and EOS. This is a good news for cryptocurrency as it would no doubt increase the liquidity across the board. It is also a good sign that the trading of cryptocurrencies are starting to be more widely accepted in the most respected trading circles. Reason for the trading strategy (technically):

Price has reacted perfectly from our selling area yesterday and is dropping nicely. We remain bearish looking to sell below major resistance at 8351. This requires a break of our short term ascending support and swing low support to trigger a strong move down to major support at 7827 (Fibonacci retracement, horizontal overlap support). We do have to be wary of intermediate support at 8200 (Fibonacci retracement, horizontal swing low support).

RSI (89) remains under strong bearish pressure from our descending resistance line.

Sell below 8351. Stop loss at 8601. Take profit at 7827.


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