Bitcoin analysis for September 12, 2017

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The Bitcoin (BTC) is trading sideways at the level of $4,290 driven on the news that The U.K.'s Financial Conduct Authority (FCA) is the latest in a wave of regulators around the globe to issue a formal warning on initial coin offerings (ICOs).The FCA states on its website that ICOs constitute "very high-risk, speculative investments," and that, as they are largely unregulated, it may not be able to offer protection of any kind. Technical picutre looks bearish since there are broken bearish patterns in the background.

Trading recommendations:

According to the 1H time frame, I found two broken rising wedges in the background, which is a sign of weakness. Most recently, there is a symmetrical triangle in creation. My advice is to watch for a potential downward breakout to confirm further lower price. There is also a hidden bearish divergence on MA oscilator and rejection from Fibonacci retracement 50%, which is also a sign of weakness. Downward targets are set at the price of $4,000 and $3,605.

Support/Resistance

$4,000 – Support (price action)

$3,605 – Projected pattern target (support)

$4,366 – Intraday resistance (Fibonacci 50%)

$4,450 – Intraday resistance (Fibonacci 61.8%)

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