Trading in CFDs and generally leveraged products involves substantial risk of loss and you may lose all of your invested capital.
Trading in CFDs and generally leveraged products involves substantial risk of loss and you may lose all of your invested capital.

Market Analysis

Bitcoin still bouncing off major support, remain bullish

March 09, 2018

Bitcoin continues to test our major support, remain bullish for another bounce while keeping a tight stop loss.

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

Reason for the trading strategy (fundamentally):

The big news event on the horizon is the US Congress set to hold a hearing next week on cryptocurrencies and initial coin offerings (ICOs). The hearing would largely be educational in nature and stated the Financial Services Committee members have a growing interest in learning more about the subjects and the implications of the tech’s use in areas like remittances. This foray into the world of cryptocurrencies and embracing it instead of turning against it is a good sign for cryptocurrencies in general.

Reason for the trading strategy (technically):

Price made a bounce yesterday before dropping to our support level once again. We remain bullish 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. We can also see bullish divergence vs price signalling that a bounce is impending.

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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.


Disclaimer: The publication of Analytics is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience, or current financial situation. The Analytics is not prepared in accordance with legal requirements promoting independent investment research, and Exness is not subject to any prohibition on dealing before the release of the Analytics. Readers should consider the possibility that they may incur losses. Therefore, Exness is not liable for any losses incurred due to the use of its Analytics.

 

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