| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 7400.00 |
| Take Profit | 6380.00, 5000.00 |
| Stop Loss | 8100.00 |
| Key Levels | 5000.00, 6380.00, 7500.00, 8750.00, 10000.00, 11250.00, 12500.00 |
Current trend
Bitcoin is going down, reaching the level of 7500.00 (Murray [-2/8]). The background of the digital market currency stays negative, as after the US regulator it was hit by banks. On Friday JP Morgan Chase, Bank of America and Citigroup, belonging to the fourth largest US banks, prohibited the clients to buy cryptocurrencies with credit cards. Wells Fargo can join them in the nearest future, as its management has stated earlier, that the collapse of the cryptocurrency bubble can significantly affect the real financial market. On Monday the second largest UK Lloyds Banking Group took the same decision.
According to local press, Chinese authorities have imposed censorship, forbidding the commercials of companies and goods, connected with cryptocurrencies, which affects the market negatively.
Support and resistance
Now the key “bearish” level is 7500.00 (Murray [-2/8]), after the breakout of which the price can fall to the area of 6380.00 and 5000.00 (Murray [2/8] for W1). On the other hand, as the price is near the downward channel and Stochastic is in the oversold area, the upward correction can develop to the level of 1000.00 (Murray [0/8] the middle line of Bollinger Bands). However, the negative background will unlikely let the “bulls” to restore the loss significantly.
Resistance levels: 8750.00, 10000.00, 11250.00, 12500.00.
Support levels: 7500.00, 6380.00, 5000.00.
