Bitcoin profit target reached perfectly, time to play the bounce

Bitcoin profit target reached perfectly, time to play the bounce

Bitcoin has reached our profit target. Now bouncing off major support, time to buy.

Buy above 9381. Stop loss at 8897. Take profit at 10728.

Reason for the trading strategy (fundamentally):

One of the bigger news surrounding cryptocurrency recently has to do with Japanese authorities reportedly preparing to crack down on cryptocurrency exchanges by issuing ‘administrative punishment notices’ and suspending others from doing business – largely in response to the country’s FSA discovering issues with exchanges’ customer protection and AML procedures. It’s a good effort by the FSA to more stringently regulate Japan’s cryptocurrency exchanges after Coincheck admitted to losing roughly 500 million NEM tokens from its digital wallets.

Reason for the trading strategy (technically):

Price has dropped perfectly from our selling area and has reached our profit target. We look to buy above major support at 9381 (Fibonacci retracement, horizontal overlap support, Fibonacci extension) for a bounce up to at least 10728 resistance (Fibonacci retracement, horizontal breakout level).

RSI (34) sees major support above 34% and a corresponding bounce could occur at this level in line with our short term recovery on price.

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About the analyst

Desmond Leong provides technical analysis to the largest banks, hedge funds, and brokers whilst coaching hundreds of aspiring traders. He specializes in providing actionable and accurate analysis that utilizes the most advanced theories.

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