The Bitcoin (BTC) has been trading sideways at the level of $4,538. Anyway, the most recent news is not in favor of the bitocin. The People's Bank of China may freeze the bank accounts associated with initial coin offerings (ICOs). The reports have surfaced following China's suspension of all ICOs operating within the country. This week, China began to carry out a sweeping crackdown on ICOs. China's central bank described ICOs as "an unapproved illegal public financing behavior," and has suspended all ICOs operating within China, and banned the practice of fundraising through token sales. Technical picture is conrifming weakness in the background.
Trading recommendations:
According to the 1H time frame, I found a broken rising wedge in the background, which is a sign of weakness. My advice is to watch for potential selling opportunties. The downward target is set at the price of $4,000 and $3,606. I found a hidden bearish divergence on the moving average oscilator, which is another sign of weakness.
Support/Resistance
$4.625 – Gap zone resistance
$4.924 – Major swing high (resistance)
$4.000 – Swing low (support)
$3.606 – Major short-term support