Bitcoin technical analysis Sept 11, 2017

My technical analysis view on BTC/USD for the morning of Sept 11th

• Heikin Ashi overlay on candlesticks - Red and trending down, bearish
• Bollinger Bands - Closing in, a few wicks have touched the lower band, price closer to lower band, neutral/bearish
• Moving averages - Price is below the 20 dma, bearish (The 20 dma is still above the 50 dma)
• Trend - Price is trending lower with lower highs. Have not produced a lower low so BTC may generate a sideways pattern?
• Stochastic/RSI - Both K and D lines are under 20, if they are under 20 for 3 full days it will embed which suggests a continued down trend, bearish
• Trend line - It broke through the lower trend line of the bullish run and started sideways action. I placed 2 trend lines in a downward channel as that may be developing. If it touches the upper trend line in a few days and heads down, that would suggest that the lower channel may be set.
• Potential support areas - The lower Bollinger band is 4065, the spike low 6 days ago was the 3900 level, the 50 dma is around the 3800 level and climbing, the low in late August was 3599.

Thoughts: The latest news is that China will shut down the cryptocurrency exchanges which has been causing the latest selloff. I would speculate that if you were in China and held onto BTC or any of the other cryptos, you might think about selling as if the exchanges are closed down, you will then have no place to sell your tokens. (You could go on vacation and sell them in another country, or possibly use the Tor browser and open an account in a different country)?

On a volume basis, China usually ranks high with just BTC trading. They are a big player in terms of purchasing and selling of BTC and a part of the 2016/17 move higher. If they were forced out of the market, we may see a continued downtrend but support will eventually set in (somewhere) to continue the bullish trend going forward. (My speculation)