The Bitcoin (BTC) has been trading downwards. As I expected, the price tested the level of $3,894 driven on the news that BitKan, an over-the-counter (OTC) trading service for cryptocurrencies in China, announced today that it will suspend operations amid growing scrutiny from domestic regulators. The statement noted that the suspension is a result of an announcement published by People's Bank of China on September 4 in which seven local financial regulators announced a ban on illegal initial coin offering (ICO), fundraising, and trading activities. The technical picture is in favor for sellers since there are confirmed patterns in the background.
According to the 1H time frame, I found two broken rising wedges in the background and most recently broken symmetrical triangle which is a sign of weakness. The price did break the level of $4,000 (round mark) and the next downward target is set at the price of $3,605 (projected pattern target). Watch for selling opportunities.
$4.000 – Support became resistance (price action)
$3.605 – Projected pattern target (support)
$3.887 – Intraday support (price action)
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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