Bitcoin analysis for January 5, 2018

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The Bitcoin (BTC) has been trading upwards. The price tested the level of $16.196. There are increasingly publicized challenges posed to the Australian cryptocurrency industry by the country's "big four" banks refusal to provide financial services to crypto companies. Many analysts are speculating that the issue will become a catalyst for the development of detailed regulations for the virtual currency era, arguing that the opaque nature of the current legislative apparatus pertaining to cryptocurrencies is to blame for Australia's bitcoin banking embargo. The technical picture looks overbought.

Trading recommendations:

According to the 15M time frame, I found intraday head and shoulders formation and my advice is to watch for potential selling opportunities. I also found a hidden bearish divergence on the stochastic oscillator, which is a sign of weakness. The downward targets are set at $15.457 and $14.792.

Support/Resistance

$16.196 – Intraday resistance (price action)

$14.698– Intraday support $12.112

$15.457 – Objective target 1

$14.792 – Objective target 2

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