The Bitcoin (BTC) is trading lower at the level of $3.996 driven on the news that the People's Bank of China, the central bank of the country, has officially declared initial coin offerings (ICOs) as an illegal method of raising money. In an official statement, the PBoC announced that organizations and individuals are no longer permitted to conduct ICO (intial coin offering) campaigns and token sales. "PBoC bans ICOs. From now on, no organizations and persons in China are allowed to raise funds via ICOs. Fund-raising platforms are not allowed to provide trading and exchange services. Raised funds should be 'cleared up' and refunded to protect investors." Technical picture confirming weakness on the Bitocin.
Trading recommendations:
According to the 1H time frame, I found a broken rising wedge in the background, which is a sign of weakness. My advice is to watch for potential selling opportunties. The downward target is set at the price of $3.610.
Support/Resistance
$3.610 – Major support (projected target)
$4.396 – Intraday resistance cluster
$3.995 – Intraday support cluster
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