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Bitcoin bouncing off major support, remain bullish for an intermediate correction

Jan. 17, 2018, 02:59

Buy above 10332. Stop loss at 7902. Take profit at 12808 and 14497.

Reason for the trading strategy (fundamentally):

Price has dropped strongly amid concerns in Asia as investors still keep an eye out on the crackdown in Korea. Most recently a senior official at the People’s Bank of China is reportedly calling for a wider ban on services related to cryptocurrency trading in the country. The goal is to end all cryptocurrency trading-related activities and services. This has rattled the market strongly leading to its sell off.

Reason for the trading strategy (technically):

Price has dropped strongly since yesterday and we’re seeing that price has bounced off major support at 10332 (ABC Fibonacci extension, long term 50% Fibonacci retracement) and we expect an intermediate corrective bounce from here. Our first target would be 12808 (38.2% Fibonacci retracement, horizontal pullback resistance, breakout level) before 14497 (Fibonacci retracement, horizontal swing high resistance).

Stochastic (34,5,3) is seeing major support above 12% where we expect a corresponding bounce from.

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