Bitcoin bouncing perfectly, remain bullish for a further rise
Buy above 10356. Stop loss at 9092. Take profit at 12976.
Reason for the trading strategy (fundamentally):
The latest news surrounding bitcoin involves Israel confirming it will tax bitcoin as a property, meaning that it is treated more as ‘a property, not a currency’, making it therefore taxable as such means profits from cryptocurrencies will be subject to capital gains tax at rates between 20-25%, while individuals mining or trading cryptocurrencies in connection with business must pay a 17% VAT on top of that. This news is not too unexpected, but is a firm reminder on some countries’ stance on cryptocurrencies and might prove to be throwing some cold water on the recent recovery of bitcoin.
Reason for the trading strategy (technically):
Bitcoin has continued to rise nicely and bounced from our buying level perfectly yesterday, which also confirms that the market is still obeying our ascending support line. We remain bullish looking to buy on dips above 10356 support (horizontal overlap support, ascending support) for a further rise to 12976 resistance (Fibonacci retracement, horizontal overlap resistance).
RSI (55) sees an overlap support at 53%which continues to hold our bullish bias.
Reason for the trading strategy (fundamentally):
The latest news surrounding bitcoin involves Israel confirming it will tax bitcoin as a property, meaning that it is treated more as ‘a property, not a currency’, making it therefore taxable as such means profits from cryptocurrencies will be subject to capital gains tax at rates between 20-25%, while individuals mining or trading cryptocurrencies in connection with business must pay a 17% VAT on top of that. This news is not too unexpected, but is a firm reminder on some countries’ stance on cryptocurrencies and might prove to be throwing some cold water on the recent recovery of bitcoin.
Reason for the trading strategy (technically):
Bitcoin has continued to rise nicely and bounced from our buying level perfectly yesterday, which also confirms that the market is still obeying our ascending support line. We remain bullish looking to buy on dips above 10356 support (horizontal overlap support, ascending support) for a further rise to 12976 resistance (Fibonacci retracement, horizontal overlap resistance).
RSI (55) sees an overlap support at 53%which continues to hold our bullish bias.