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

Reason for the trading strategy (fundamentally):LMAX Exchange Group, which operates a UK Financial Conduct Authority (FCA) regulated FX trading venue, has announced today a physical cryptocurrency exchange dedicated to serving only institutional clients. The company says it developed LMAX Digital at the request of its existing clients who asked for a credible, efficient and trusted platform to trade with like-minded institutions. "The rise of institutional trading of crypto currencies will be a game-changer for the industry. We believe our new exchange will support the transformation of the crypto market from the fringes to the mainstream. Digital currencies are, without a doubt, coming of age. Exchanges will play a crucial role in bringing the major crypto currencies into wider circulation, helping them to become accepted into conventional funds which in turn will help to support a normalisation of value," the CEO of LMAX Exchange, David Mercer added.

Reason for the trading strategy (technically):BTCUSD is approaching its resistance at 8475.2 (horizontal overlap resistance, 61.8% Fibonacci retracement) where we expect price to fall to its support at 8067.0 (horizontal swing low support, 61.8% Fibonacci extension, 78.6% Fibonacci retracement). RSI (34) is also reacting off its resistance where we can expect a corresponding drop in price.

Sell below 8475. Stop loss at 8702. Take profit at 8067.