FX.co ★ BTC/USD approaching major resistance, prepare to sell

Bitcoin's price has continued to rise strongly yesterday and we're seeing it approaching a major resistance area. We look to sell below $17,459 resistance (Fibonacci extension, bearish price action, bearish divergence) for a drop towards at least $14,739 support (Fibonacci retracement, horizontal overlap support).

Stochastic (34,5,3) is seeing major resistance below 98% and also displays bearish divergence vs price, signalling 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 $17,459. Stop loss at $18,770. Take profit at $14,739.