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Bitcoin analysis for October 05, 2017

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The Bitcoin (BTC) has been trading downwards. As I expected, the price tested the level of $4,132. Last week, South Korean regulators said they would ban all initial coin offerings. They are imposing a "prohibition on all forms of ICOs." However, they have not implemented this ban yet. Now, startups in the area are pushing back against the impending ban. Techincal picture is still very bearish and buyers are weak.

Trading recommendations:

According to the 15M time frame, I found the resistance cluster at the price of $4,236 on the test. I also placed Fibonacci retracement to find potential resistance levels and I got FR 50% at the price of $4,236 and FR 61.8% at the price of $4,258. My advice is to watch for potential selling opportunities. The downward targets are set at the price of $4.126 and $4.016.

Support/Resistance

$4.238 – Intraday resistance (price action)

$4.257 – Fibonacci 61.8 % resistance (price action)

$4.126 – Intraday support (price action)

$4.016 – Objective target

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