Bitcoin analysis for November 03, 2017

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The Bitcoin (BTC) has been trading upwards. As I expected, the price tested the level of $7.470. A bill has been submitted to the Ukrainian parliament to amend the country's tax code to exempt cryptocurrency income and profits from taxation, including from buying, selling, transacting, and mining. Technical picture looks bearish.

Trading recommendations:

According to the 1H time frame, I found double doji candles at the price of $7.403 (pivot resistance 1), which is a sign that buyers lost power and that Bitcoin may start downward corection. There is also a hidden bearish divergence on the RSI oscillator, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the price of $6.979 (pivot level) and at the price of $6.618 (pivot support 1).

Support/Resistance

$7.470 – Intraday resistance (price action)

$6.979 – Pivot level

$6.618 – Pivot support 1

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