Bitcoin analysis for December 28, 2017

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Bitcoin (BTC) has been trading downwards. As I expected, the price tested the level of $13,156. The government of South Korea held a meeting on Thursday to discuss measures to deal with the growing trend of cryptocurrency speculation. The regulators clarified the clampdown on virtual accounts as well as other measures to end anonymity. In addition, the Ministry of Justice suggested an even more extreme measure. The technical picture looks bearish.

Trading recommendations:

According to the 1H time - frame, I found that there is a successful rejection from the resistance and a confirmed head and shoulders formation, which is a sign that buying looks risky. My advice is to watch for potential selling opportunities. The projected downward targets are set at the price of $12,120 and at the price of $10,645.

Support/Resistance

$14,332 – Intraday resistance (price action)

$12,120 – First objective target

$10,645 – Second objective target

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