The Bitcoin (BTC) is trading higher at the level of $4,588. Anyway, the news from Russia are not so promising for Bitcoin. The Bank of Russia has issued a statement warning about the risks of digital currencies including bitcoin as well as Initial Coin Offerings (ICOs). The central bank says it is premature to allow the circulation and use of cryptocurrencies within the financial infrastructure of Russia. "Operations with cryptocurrencies carry high risks both during exchange operations due to sharp exchange rate fluctuations, and in case of raising funds through the ICO (Initial Coin Offering – a form of attracting citizens' investments in the form of issuing and selling new cryptocurrency to investors / tokens)". The technical picture is confirming that there is space for lower price.
Trading recommendations:
According to the 1H time frame, I found a broken rising wedge in the background, which is a sign of weakness. Most recently, there is a smaller rising wedge in creation and my advice is to watch for potential selling opportunities if the price breaks the upward trendline. The downward targets will be set at the price of $4,000 and $3,607
Support/Resistance
$4.000 – Local support (projected target)
$3.606 – Major short-term support
$4.622 – Resistance (gap zone)
$4.570- Fibonacci resistance 61.8%
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