Technical analysis Bitcoin BTC/USD - 17.09.2017

Last week, once again, was negative for the Bitcoin price. It was caused by several fundamental factors. At the beginning, China banned the issuance of cryptocurrencies and ICO (crowdfunding offers based on blockchain), and subsequently announced the closure of all the markets of digital assets. The effect of that is that all exchange markets are going to be closed until 30th september, except the two largest, OkCoin and Huobi, which due to the fact that they have, among others, a very large number of user on their platforms, are free to work by the end of october. We need to add that all the changes that are going to be introduced by China, are only temporary.

Another hit for BTC was the Jamie Diamons, CEO of JP Morgan, Wednesdays statement. At Barclays conference, he stated that Bitcoin is the most famous speculation bubble in history. According to him, this is a scam that will eventually come out and he would fire any JP Morgan trader using the cryptocurrencies. As a result, the BTC rate dropped significantly by several percent.

It is funny, however, that almost at the same time JP Morgan Bank has announced that it is looking for managers, blockchain specialists.

In addition, after the decline caused by these statements, as it turned out, the largest buyer was the JP Morgan bank.

So let's look how the technical situation looks like in the chart
The price hit the bottom of the down channel until it reached 61.8% of the last growth impulse (up channel). This level coincided with a round number of 3,000 USD. Hence, probably due to JP Morgan, and the announcement that the two largest Chinese exchanges will be open until the end of October, the price rebounded strongly up to the resistance of 3800 USD. This is an important resistance from a technical point of view.

Buying currency can be planned in two ways. The first is to break the top of the previously described resistance, and his test from the top.

The second way is a complete break of the price from the top of channel and its test.

The alternative play will be selling. The safest place will be the situation when the price will break support at 3000 USD and test it again from below.