BTC/USD reacting off our selling entry perfectly, remain bearish

Bitcoin has reached our selling area and is reacting off it nicely. We remain bearish looking to sell below 17459 resistance (Fibonacci extension, bearish price action, bearish divergence) for a drop towards at least 14739 support (Fibonacci retracement, horizontal overlap support).

Stochastic (34,5,3) is seeing major resistance below 98% and also displays bearish divergence vs price, signaling that a reversal is impending.

Reason for the trading strategy (fundamentally):

Bitcoin January futures (which are contracts that let investors buy or sell something at a specific price in the future) price are about $17,800 which is rather close to where we forecast major resistance. This is in line with the immediate resistance we're seeing on the technical side so it would be safe to start looking to short Bitcoin for a correction.

Sell below 17459. Stop loss is at 18770. Take profit is at 14739.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Analysis are provided by InstaForex