Over the weekend, Bitcoin prices remained pretty stable with buyers jumping at $7,100 rejecting depreciation below $7,000. In any case, what we have is a nice bullish engulfing candlestick bouncing off a key support line at $6,000 following last week’s rapid gains. Even though our Bitcoin (BTC) longs are active in line with our trade plan, adding more with stops at $7,000 and first bull targets at $10,000 will be a nice trading plan.
From the News
Institutional involvement is and shall continue to be the lifeline of tradable assets irrespective of the exchange’s location or size. CoinBase has been on the forefront fronting and providing services that would satisfactorily address some of these institution’s requirements as risk management for example.
Services such as CoinBase Prime and Custodial Services complete with a coverage group that’s strategically positioned in New York are proving a success.
Announcing Coinbase Custody: A Digital Currency Custodian For Institutions https://t.co/HaH8udz7Sa
— Coinbase Custody (@CoinbaseCustody) November 16, 2017
So far, rumor has it that they have successfully on-boarded a prime client, a hedge fund whose valuation exceeds $20 billion. Of course this is exciting news in the crypto verse but news is, CoinBase isn’t relenting, lying on laurels. Instead the team at the grass roots expects more hedge funds to work through CoinBase tools and participate in trading activities.
As this was unfolding, CoinBase’s Facebook adverts are now live after being pre-vetted by the social media giant in line with their previous announcement. Facebook decided to review their policy last month and cognizant that a blanket ban on cryptocurrency and ICO ban was an impulsive decision, the underlying technology driving these projects is here to stay.
Bitcoin (BTC) Technical Analysis
By the end of last week, it was clear that Bitcoin buyers were back and it’s easy to see why. Visible in the weekly chart is this nice bullish engulfing pattern reversing from around the $6,000 support line. $6,000 also doubles up as 2018 lows.
Previous Bitcoin (BTC) analysis shows that this level is important in our analysis and we expected prices to react strongly. It did and with this, it also means buyers are jumping in strongly-there a spike in trading volumes last week-in between the 61.8 percent and 78.6 percent Fibonacci retracement levels.
These Fibonacci zones are often key reversal zones. By BTC reacting around these zones, odds are we might see strong gains in the coming weeks.
In this time frame, what’s important is July 17 bullish engulfing candlestick. By all accounts it’s a bullish break out candlestick which triggered our longs at $6,800 and $7,000.
Now, while we had some consolidation late last week, the fact that July 22 bull candlestick confirmed July 17 thrust means we should continue loading longs in lower time frames.
Ideal buy back zone is between $7,100 and $7,200 with first targets at $10,000. Safe stops should be at $7,000.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.