The Bitcoin (BTC) is trading lower at the level of $4,091 driven on the multiple monday reports have added to speculation that Chinese authorities are planning to ban bitcoin trading on domestic exchanges, with no plans to stop non-commercial, over-the-counter transactions. After Friday's swirling rumors about Chinese regulators reportedly drawing plans to shut down domestic bitcoin exchanges, the Wall Street Journal is now reporting that China's central bank is looking to ban Chinese platforms from providing virtual currency trading services. Citing "people familiar with the matter", the report claims that the People's Bank of China (PBoC) – China's central bank – is leading a draft of instructions to stop commercial bitcoin trading on domestic exchanges. Technical analysis confirms weaknes on Bitocin.
Trading recommendations:
The analysis from last weak i still valid and we got good progres so far. According to the 1H time frame, I found a broken rising wedge and hidden bearish divergence on MA oscilator in the background, which is sign of weakness. My advice is to watch for potential selling opportunties. The downward targets are set at the price of $4,000 and $3,600.
Support/Resistance
$4,000 – Local support
$3,600 – Support (projected target)
$4,331 – Intraday resistance
$4,441 – Intraday resistance
