Bitcoin bouncing off major support, remain bullish for an intermediate correction

analytics5a5ed14a677f0.png

Reason for the trading strategy (fundamentally):

Price has dropped strongly amid concerns in Asia as investors still keep an eye out on the crackdown in Korea. Most recently a senior official at the People’s Bank of China is reportedly calling for a wider ban on services related to cryptocurrency trading in the country. The goal is to end all cryptocurrency trading-related activities and services. This has rattled the market strongly leading to its sell-off.

Reason for the trading strategy (technically):

Price has dropped strongly since yesterday and we’re seeing that price has bounced off major support at 10332 (ABC Fibonacci extension, long-term 50% Fibonacci retracement) and we expect an intermediate corrective bounce from here. Our first target would be 12808 (38.2% Fibonacci retracement, horizontal pullback resistance, breakout level) before 14497 (Fibonacci retracement, horizontal swing high resistance).

Stochastic (34,5,3) is seeing major support above 12% where we expect a corresponding bounce from.

Buy above 10332. Stop loss at 7902. Take profit at 12808 and 14497.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Bitcoin bouncing off major support, remain bullish for an intermediate correction

Won't your trader friends like this?
InstaForex
About the Author
InstaForex brand was created in 2007 and at the moment it’s a top choice of more than 2,000,000 traders. More than 1,000 clients open accounts with InstaForex every day. All InstaForex clients get great opportunities for effective trading on the forex market, as well as on-time technical and customer support

Related Posts

Leave a Reply

*