Bitcoin analysis for April 06, 2018

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The Bitcoin (BTC) has been trading downwards. As I expected, the price tested the level of $6.455. The cryptocurrency mining market in North America is facing a major consolidation as one of the biggest players is taking over another. The resulting combined company will be publicly traded and control over 21,000 rigs, consuming 28 MW of power with an ability to grow to over 90 MW. Technical picture looks bearish.

Trading recommendations:

According to the 30M time - frame, I found that the price did a successful breakout of the bearish pennant in the background, which is a sign that sellers are in control. I also found weak demand after the breakout, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the price of $6.289 and at the price of $5.935.

Support/Resistance

$6.754 – Intraday resistance

$6.440– Intraday support

$6.289 – Objective target 1

$5.936 – Objective target 2

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