Reason for the trading strategy (fundamentally):
Bitcoin has been dropping strongly largely due to an SEC pushback that has led to several proposals being withdrawn. There were several firms which were looking to list ETFs tied to bitcoin but the SEC “expressed concerns regarding the liquidity and valuation of the underlying instruments”. This has shaken the confidence of bitcoin investors which has led to the recent decline.
Reason for the trading strategy (technically):
Price has shot up and reached our profit target perfectly below dropping down once again as expected. We look to buy above major support at 14126 ( , horizontal overlap support, ) for a bounce up to at least 15391 resistance ( , horizontal overlap resistance).
(34) sees strong vs price and is a good signal that we’ll be seeing a strong bounce from here.