Bitcoin’s latest crash may be over after the value of the cryptocurrency stabilized Thursday. The plunge began Sunday, with several factors possibly feeding into it, including a cyberheist that hit South Korea’s Coinrail cryptocurrency exchange—even though no bitcoins were stolen—and a U.S. regulatory probe into Bitcoin price manipulation. Bitcoin’s price fell from more than $7,600 on Sunday to little over $6,100 on Wednesday, marking a four-month low for a virtual currency that has already fallen precipitously from its almost-$20,000 high last December. The cryptocurrency-whisperers over at Coindesk reckon that, even if there is a brief rally now, the market remains bearish and Bitcoin may still fall below $6,000. That last happened back in February.
Reason for the trading strategy (technically):
BTCUSD is testing its resistance at 6638 (61.8% Fibonacci retracement, 38.2% Fibonacci retracement, horizontal overlap resistance) where we expect the price to reverse, causing price to fall to its support at 6256 (horizontal swing low support).
Stochastic (55, 5, 3) is approaching its resistance at 89% where a corresponding reversal is expected.
Buy above 6638. Stop loss at 6883. Take profit at 6246.
The material has been provided by InstaForex Company – www.instaforex.com
Reason for the trading strategy (fundamentally):
Bitcoin’s latest crash may be over after the value of the cryptocurrency stabilized Thursday. The plunge began Sunday, with several factors possibly feeding into it, including a cyberheist that hit South Korea’s Coinrail cryptocurrency exchange—even though no bitcoins were stolen—and a U.S. regulatory probe into Bitcoin price manipulation. Bitcoin’s price fell from more than $7,600 on Sunday to little over $6,100 on Wednesday, marking a four-month low for a virtual currency that has already fallen precipitously from its almost-$20,000 high last December. The cryptocurrency-whisperers over at Coindesk reckon that, even if there is a brief rally now, the market remains bearish and Bitcoin may still fall below $6,000. That last happened back in February.
Reason for the trading strategy (technically):
BTCUSD is testing its resistance at 6638 (61.8% Fibonacci retracement, 38.2% Fibonacci retracement, horizontal overlap resistance) where we expect the price to reverse, causing price to fall to its support at 6256 (horizontal swing low support).
Stochastic (55, 5, 3) is approaching its resistance at 89% where a corresponding reversal is expected.
Buy above 6638. Stop loss at 6883. Take profit at 6246.
The material has been provided by InstaForex Company – www.instaforex.com
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