FX.co ★ BTC analysis for 02.21.2020 - Watch for potential downside continuation ,bear flag is in creation and there is potential for drop towarrds the $9.275

Industry news:

New Jersey lawmaker Yvonne Lopez is concerned. There is a lack of consumer protection in the crypto space and she wants to put that right by introducing new regulatory measures.

New Jersey Assemblywoman Lopez is the prime sponsor of new legislation labeled the "Digital Asset and Blockchain Technology Act" (A-2891). In a release this Wednesday, Lopez explained that the bill has two main purposes.

Primarily, it aims to protect consumers who "are not quite sure what [crypto] is." At the same time, it proposes to establish "licensure requirements" for virtual currency businesses operating in the State.

Lopez maintains that she wants the crypto industry to grow in New Jersey. However, this can only happen in the right regulatory environment.

Technical analysis

BTC has been trading sideways at the price of $9.685. Due to the strong downside momentum in the background and the breakout of the support trend line, I do expect potential for further downside movement and eventual test of $9.725 and $8.260.

I would watch for selling opportunities with the downward targets at the price of $9.275 and $8.260.

MACD oscillator is showing neutral stance but the slow line is turned to the downside.

Resistance levels are set at the price of $9.800 and $10.215.

Support levels and downward targets are set at the price of $9.275 and $8.260.