BTC/USD Approaching Support, Prepare For A Bounce

Reason for the trading strategy (fundamentally):

John McAfee expects a bull run on cryptocurrency markets in the near future. Billions will be pumped by institutional investors, the internet security expert predicted in a post on the microblogging platform Twitter this week. McAfee claims this will lead to significant changes in the market capitalizations of the leading cryptocurrencies, but also those of most altcoins.

"Institutional investors are preparing to enter the cryptocurrency market with a vengeance," McAfee said in his tweet. He explained that they are generally long-term investors that will spend billions on the market. "Expect the top ten coins to go through the roof fairly quickly. The bulk of altcoins will soon follow," the software guru wrote.

Reason for the trading strategy (technically): BTC/USD is approaching its support at 7492 (horizontal pullback support, 61.8% Fibonacci extension) where we expect price to bounce off and rise to its resistance at 8641(horizontal swing high resistance, 50% Fibonacci retracement).

Stochastic (55,5,3) is also approaching support and is seeing a bullish divergence in line with our bullish bias.

Buy above 7492. Stop loss at 7190. Take profit at 8641.

analytics5b06738da60f7.pngThe material has been provided by InstaForex Company -