BTCUSD Testing Support, Prepare For A Bounce!
Bitcoin / Dollar BITFINEX:BTCUSD
Buy above 6513.
Stop loss at 6134.
Take profit at 7761.
Reason for the trading strategy (technically):
BTCUSD is testing its support at 6050 (100% Fibonacci extension , 61.8% Fibonacci extension , horizontal swing low support) where we expect it to bounce and rise to its resistance at 7020 (100% Fibonacci extension , 23.6% Fibonacci retracement , horizontal pullback resistance).
Stochastic (55, 5, 3) is testing its support at 2.6% where a corresponding bounce is expected. We have also identified a bullish divergence with price which contributes to our bullish bias.