Bitcoin analysis for October 04, 2017

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The Bitcoin (BTC) has been trading downwards. As I expected, the price tested the level of $4.182 (yesterday's target). Two government officials of the Crimean Council of Ministers were caught mining bitcoin using government computers and were subsequently fired. They reportedly installed "malicious software" on the government's server and programmed over a dozen computers to mine bitcoin. The technical picture is bearish.

Trading recommendations:

According to the 15M time frame, I found that price filed Monday gap, which is a sign that buyers lost power. Anyway, the critical support is set at the price of $4.181. My advice is to watch for the potential breakout of the support to confirm further downward movement. The downward target will be set at the price of $4.016. There is a hidden bearish divergence on the moving average oscillator, which is another sign of weakness. Watch for potential selling opportunities.

Support/Resistance

$4.334 – Intraday resistance (price action)

$4.260 – Intraday resistance FR 50% (Fibonacci)

$4.276 – Intraday resistance FR 61.8% (Fibonacci)

$4.181 – Key support

$4.016 – Downward target if the price breaks the support level

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