Bitcoin analysis for September 07, 2017

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The Bitcoin (BTC) has been trading sideways at the level of $4,538. Anyway, most recent are not in favor of bitocin. People's Bank of China may move to freeze bank accounts associated with initial coin offerings (ICOs). The reports have surfaced following China's suspension of all ICOs operating within China's borders. 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 conrifming weakness in the background.

Trading recommendations:

According to the 1H time frame, I found a broken rising wedge in the background, which is 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

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