FX.co ★ BTC/USD Approaching Resistance, Prepare For Reversal

Reason for the trading strategy (fundamentally):

The Chairman of the National Securities and Stock Market Commission of Ukraine has indicated the regulator favors a decision to recognize cryptocurrencies as financial instruments. "I think it is very timely to consider the recognizing of some crypto units as financial instruments during the upcoming meeting of the Financial Stability Council," Timur Khromayev wrote on his Facebook page. He also insisted that the body should lay out approaches to regulating crypto-related activities and initiate corresponding legislative procedures. As more and more countries start to regulate cryptocurrencies, the value will start to increase as well.

Reason for the trading strategy (technically):

BTCUSD is approaching resistance at 9475 (50% Fibonacci retracement, horizontal overlap resistance) where we expect the price to reverse off from, causing it to fall to its support at 8894 (100% Fibonacci extension, horizontal swing low support).

Stochastic (21, 5, 3) is approaching resistance at 92% where a corresponding reaction is expected.

Sell below 9475. Stop loss at 9766. Take profit at 8894.