BTC/USD Testing Its Resistance, Prepare For A Further Drop
May 14, 2018 6:24 am
Reason for the trading strategy (fundamentally):Pakistan’s experience with cryptocurrencies offers another example of how ineffective financial authorities can be when trying to fill a legal vacuum with prohibitive administrative measures. Central banks often forget that they are neither parliaments, nor governments, and their regulatory overreach cannot legitimately substitute the normal legal process. The recent decision of the State Bank of Pakistan to ban crypto-related activities proves that observation. If anything, the State Bank has barred commercial banks and financial firms from dealing in cryptocurrency which, of course, makes life harder for local exchanges. Individual traders, however, are finding alternative ways to acquire or sell cryptocurrencies, defying the warnings and the prohibitions. Although some countries have placed restrictive measures on cryptocurrencies, this may not stop individuals from trading it. Reason for the trading strategy (technically): BTC/USD is testing its resistance at 8699 (100% Fibonacci extension, 38.2% Fibonacci retracement, 23.6% Fibonacci retracement) where we expect to see the price reverse and fall to its support at 8208 (50% Fibonacci retracement, horizontal overlap support).
Stochastic (21, 5, 3) reversed nicely off its intermediate resistance at 88% where a corresponding drop is expected.
Sell below 8699. Stop loss at 9023. Take profit at 8208.
The material has been provided by InstaForex Company – www.instaforex.com
Reason for the trading strategy (fundamentally):Pakistan’s experience with cryptocurrencies offers another example of how ineffective financial authorities can be when trying to fill a legal vacuum with prohibitive administrative measures. Central banks often forget that they are neither parliaments, nor governments, and their regulatory overreach cannot legitimately substitute the normal legal process. The recent decision of the State Bank of Pakistan to ban crypto-related activities proves that observation. If anything, the State Bank has barred commercial banks and financial firms from dealing in cryptocurrency which, of course, makes life harder for local exchanges. Individual traders, however, are finding alternative ways to acquire or sell cryptocurrencies, defying the warnings and the prohibitions. Although some countries have placed restrictive measures on cryptocurrencies, this may not stop individuals from trading it. Reason for the trading strategy (technically): BTC/USD is testing its resistance at 8699 (100% Fibonacci extension, 38.2% Fibonacci retracement, 23.6% Fibonacci retracement) where we expect to see the price reverse and fall to its support at 8208 (50% Fibonacci retracement, horizontal overlap support).
Stochastic (21, 5, 3) reversed nicely off its intermediate resistance at 88% where a corresponding drop is expected.
Sell below 8699. Stop loss at 9023. Take profit at 8208.
The material has been provided by InstaForex Company – www.instaforex.com
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