Right now the whole market is in a state of uncertainty. The ICO ban in China has influenced the general uptrend of top cryptocurrencies. Apart from that, a few days later, news about China planning to limit bitcoin transactions came out. This news undoubtedly influenced the market a lot. Later we saw a slight positive due to news proving initial rumors to be fake. Still, no clear course of events has been confirmed. All in all, a hot week for rumors and bogus statements. Such a buzz negatively reflects on general crypto market dynamics.
The news heavily affected the levels’ placement.
- The uptrend line has been hit. Assumptions about false hit have proven to be false, right now we’re seeing a downtrend formation.
- $4000 level has not settled and has probably become resistance. We will see a retest of $4000 potential resistance in the coming days (if there is no negative news).
- If the price stays, it will be good news for bulls. - If the downtrend continues, the nearest resistance zone is $2900.