Bitcoin analysis for January 08, 2018

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Bitcoin (BTC) has been trading sideways at the price of $14.637. The South Korean government has announced that some taxes can be applied to cryptocurrencies under the current law, which will be finalized in the first half of this year. Other taxes are also being considered, but some are not easily implemented under the current tax system. Technical picture looks bearish.

Trading recommendations:

According to the 4H time frame, I found a broken wedge formation, which is a sign that buying looks risky. I also found hidden bearish divergence on the moving average oscillator, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the prices of $12.760 and $10.670.

Support/Resistance

$16.036 – Intraday resistance (price action)

$12.759 – Objective target 1

$10.671 – Objective target 2

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