Bitcoin (BTC) has been trading downwards. The price tested the level of $8,540. The fall of the Silk Road marketplace continues to reverberate around the world, this week leading to a number of university students going to jail for many years. The young men have been found guilty of selling party drugs and tranquilizers online for bitcoin. The technical picture looks bearish.
Trading recommendations:
According to the Daily time - frame, I found doji (neutral) candle and successful rejection of resistance at the price of $9,080 in the background, which is a sign that buying looks risky. I also found a overbought condition on the stochastic oscillator, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward target is set at the price of $7,600.
Support/Resistance
$9,000 – Intraday resistance
$8,480– Intraday support
$7,600– Objective target
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