Bitcoin (BTC) has been trading sideways at the price of $10.050. The state of California has introduced a new bill that aims to recognize blockchain transactions, digital signatures, and smart contracts as a legal form of record. Assemblyman Ian Calderon introduced Assembly Bill 2658 on February 20 in order to re-define laws that apply to electronic records that take place within the state. Technical picture on bitcoin looks bearish.

Trading recommendations:

According to the 30M time frame, I found that the price is trading inside the well-defined downward channel, which is a sign that sellers are in control and that buying looks risky. I also found overbought conditions on the stochastic oscillator, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the prices of $9.555 and $9.136.

Support/Resistance

$10.160 – Intraday resistance

$9.555 – Intraday support

$9.555 – Objective target 1

$9.136 – Objective target 2

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