Bitcoin analysis for October 11, 2017

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The Bitcoin (BTC) has been trading downwards. The price tested the level of $4.692. The President of the Russian Federation, Vladimir Putin, held a meeting on Tuesday to discuss cryptocurrencies. It was attended by top regulators including the central bank governor, her deputy, and the finance minister. While Putin acknowledged the risks associated with cryptocurrencies, he stressed the importance to not "build up unnecessary barriers" for new technologies. Anyway, the current technical intraday picture looks bearish.

Trading recommendations:

According to the 15M time frame, I found the fake breakout of the trading range in the background, which is a sign that buying looks risky. There is also a strong downward reaction after the fake breakout and broken bearish flag, which is another sign of weakness. My advice is to watch for potential selling opportunities. Downward targets are set at the price of $4.690, $4.613 and $4.490.

Support/Resistance

$4.819 – Intraday resistance (price action)

$4.689 – First target (price action)

$4.613 – Second target (Fibonacci expansion 100%)

$4.490 – Third target (Fibonacci expansion 161.8%)

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