Bitcoin Price Forecast 9/9/2017

To create radical change we must take radical actions! Current MC: $145.6B (-$16.68B in two days) BTC Dominance 47.5%

Twice in the past week there have been serious rumors and announcements made in China which have caused mass panic in the crypto markets. First there was the rumor of the ICO crackdown last week which led to China actually banning ICOs (temporarily) until more regulation can be put into place. The second blow came from certain news sources spreading rumors of China shutting down Bitcoin exchanges across the country. There hasn't been an official announcement from the Chinese government yet so there is still a lot of uncertainty floating around.

According to @boxmining the Chinese government, much like the US government, doesn't work on weekends so if there will be any announcement it will come on Monday at the earliest. This gives us two more days of market uncertainty since China constitutes a significant portion of Bitcoin transactions and users. Will Bitcoin face further suppression in the face of the communist Chinese government or will they allow their citizens to carry on freely?

It's beginning to look like the wild west days are coming to an end for cryptocurrency as more government regulation takes over. Pretty soon we can expect a similar crackdown in the US once the SEC and IRS decide their plan of action. This could mark the dark ages for cryptocurrencies as such announcements will trigger a bear market worldwide.

In today's chart you can see the two major sell-off events this week that resulted from the recent rumors and announcements coming from China. The support zones are holding up nicely in the low $4K range and it will be a test to see if we can hold above $4,000 through the weekend. If China does end up shutting down some exchanges it will significantly drop the price of BTC but it isn't the end of the world- there are millions of other Bitcoin users and dozens of other exchanges worldwide.

Currently we are well below the moving average around $4430 and Stochastics indicate we are OVERSOLD! Market sentiments will be the biggest driving factor so keep an eye on any announcements coming out on Monday since that will be the catalyst for further price action. Expect alt-coin markets to stagnate in the meantime as BTC remains depressed.

Likely Scenarios:

• BTC holds above $4K through most of the day and takes a slight dip below by tomorrow
• BTC holds above the support zones at $4150-4250
• Volumes pick up and we pop to $4550 before dropping back down to $4350 or below

TLDR Version:
The markets are very weak right now in the face of uncertainty. On Monday we will may see another HUGE drop due to new Chinese government regulations coming out. Expect prices to hold around the low $4K zone through the weekend.

Price Target:
$4530

*Never invest more than you are willing to lose and always do your own research before making any investment decisions.