The Bitcoin (BTC) has been trading downwards. As I expected, the price tested the level of $10.275. Bitconnect is facing litigation from six individuals accusing the company of operating a Ponzi scheme in addition to numerous violations of securities laws. The six plaintiffs collectively invested approximately $771,000 USD into Bitconnect, and are seeking a recourse following the sudden removal of the company's lending platform that immediately led to a more than 90% loss in the value of Bitconnect tokens. The technical picture looks bearish.
Trading recommendations:
According to the 30M time - frame, I found a broken bearish pennant pattern, which is a sign that sellers are in control. I also found a confirmed 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 price of $9.855, $9.350 and at the price of $8.160.
Support/Resistance
$11.616 – Intraday resistance
$10.275– Intraday support
$9.855 – Objective target 1
$9.350 – Objective target 2
$8.160 – Objective target 3
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