FX.co ★ Bitcoin analysis for September 08, 2017

The Bitcoin (BTC) is trading sideways at the price of $4.617 driven on the news that several Chinese cryptocurrency exchanges have delisted markets in a bid to comply with China's recent clarifications on the legality of ICOs. Yunbi, Dahonguo, and Yuanbao have issued statements addressing the central bank's new regulations, moving to delist markets that facilitate the trade of tokens issued via initial coin offering. Technical picture is showing that there is weakness in the backround.

Trading recommendations:

According to the 1H time frame, I found a broken rising wedge in the background, which is a sign of weakness. The price is testing the gap zone from Monday and gap zone acting like resistance at this point.There is also a hidden bearish divergence on the moving average oscilator. My advice is to watch for potential selling opportunties. The downward targets are set at the price of $4.460, $4.351 and $4.000.

Support/Resistance

$4.680 – Gap resistance

$4.920 – Major price action resistance

$4.460 – Intraday support

$4.351 – Intraday support

$4000 – Projected pattern target (support)