Bitcoin analysis for May 07, 2018

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The Bitcoin (BTC) has been trading downwards. The price tested the level of $9.170. The Japanese financial regulator has imposed five new criteria for all cryptocurrency exchanges operating in the country. These rules apply to existing exchange operators as well as new ones applying for registration for the first time. On-site inspections will be conducted on all exchanges prior to approval. Technical picture on Bitcoin looks neutral to bearish.

Trading recommendations:

According to the 1H time - frame, I found that the price failed to hold above the recent high at $9.714, which is a sign of weakness. I also found a bearish flag in creation, which is another sign that sellers are in control. My advice is to watch for potential breakout of bearish flag to confirm further downward continuation. According to the current structure, the most recent downward movement is potentially part of larger correction (C wave). Watch for selling opportunities. The downward target is set at the price of $8.606.

Support/Resistance

$9.356 – Intraday resistance

$9.174– Intraday support

$8.606 – Objective target

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