The Bitcoin (BTC) has been trading downwards. As I expected, the price tested the level of $3,894 driven on the news that BitKan, an over-the-counter (OTC) trading service for cryptocurrencies in China, announced today that it will suspend operations amid growing scrutiny from domestic regulators. The statement noted that the suspension is a result of an announcement published by People's Bank of China on September 4 in which seven local financial regulators announced a ban on illegal initial coin offering (ICO), fundraising, and trading activities. The technical picture is in favor for sellers since there are confirmed patterns in the background.
Trading recommendations:
According to the 1H time frame, I found two broken rising wedges in the background and most recently broken symmetrical triangle which is a sign of weakness. The price did break the level of $4,000 (round mark) and the next downward target is set at the price of $3,605 (projected pattern target). Watch for selling opportunities.
Support/Resistance
$4.000 – Support became resistance (price action)
$3.605 – Projected pattern target (support)
$3.887 – Intraday support (price action)
