04.09.201713:36 Forex Analysis & Reviews: Bitcoin analysis for September 04, 2017

Long-term review

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The Bitcoin (BTC) is trading lower at the level of $4,308 driven on the news that Western exchanges reached a weighted average high of $4,980 per BTC. Shortly after bitcoin had hit a historical high, the price started to dive hard, taking its biggest loss in less than two months, losing over $300 in value. The technical analysis confirms that buyers got exhausted and that we may see a futher lower price.

Trading recommendations:

According to the 1H time frame, I found a broken rising wedge and the breakout ocoured with the gap, which is a sign that sellers sold agressively. A moving average oscilator showed a hidden bearish divergence, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward targets are set at the price of $4,166.00 and $3,598.00.

Support/Resistance

$4,622.00 – Gap resistance

$4,493.00 – Intraday resistance

$4,166.00 – Technical support

$4,925.00 – Major technical resistance

$3,958.00 – Major short - term support

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