Bitcoin analysis for October 30, 2017

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The Bitcoin (BTC) has been trading upwards. The price tested the level of $6.221. The Japanese Financial Services Agency (FSA) has issued a statement regarding initial coin offerings (ICOs). In addition to risk warnings, the agency detailed how two existing laws may apply to token sales. Technical picture looks bearish.

Trading recommendations:

According to the 1H time frame, I found a potential double top formation and confirmed resistance at the price of $6.621. There is also a doji candle in the background, which is a sign that buyers lost power and that Bitcoin may start a potential downward correction. My advice is to watch for potential selling opportunities. Downward targets are set at the price of $6.012, $5.947 and $5.888. All targets are based on Fibonacci levels.

Support/Resistance

$6.222 – Resistance (price action)

$6.012 – Fibonacci 38.2 % support

$5.947 – Fibonacci 50 % support

$5.888 – Fibonacci 61.8 % support

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