The Bitcoin (BTC) is trading downwards. As I expected, the price tested the level of $3,612 driven on the news that over the past week, bitcoiners everywhere have been focused on the speculative news about China 'banning' bitcoin and wondering if the stories were true. According to recent reports from local media and the country's National Internet Finance Association (NIFA), bitcoin is not 'illegal,' but exchanges may face tighter regulatory supervision and might have to cease operations temporarily until they are licensed. Technical picture is still very bearish.
Trading recommendations:
According to the 1H time frame, the price is near the critical support at $3,605 and my advice is to watch for potential breakout of support to confirm further lower price. The next downward target will be set at the price of $3,186. Few bearish patterns are broken in the background, which is a sign that sellers are in control.
Support/Resistance
$3.945 – Intraday resistance (price action)
$3.605 – Projected pattern target (support)
$3.186 – Short-term downward target
