Bitcoin stays flat above $4000, up $400 on the week

The BTC/USD pair struggled to find direction on the last trading day of the week and stayed confined in a relatively tight range above the $4000 handle. As of writing, the pair was virtually unchanged on the day at $4200.

Despite today's subdued trading action, the pair is on track to close the second week in a row with gains as bitcoin continues to recover from the sharp fall witnessed in the middle of the month after China's ban on ICOs (initial coin offerings). On a monthly basis, however, the pair is looking to end September lower, recording its biggest monthly percentage loss since its introduction.

On Friday, South Korea announced that it was following China's lead on banning ICOs as well. "The country's Financial Services Commission (FSC) said Friday that it was banning all ICOs in the country, with a threat of "stern penalties" for those who continue with the fundraising method," Fortune.com author Devid Meyer wrote. On the other hand, Coindesk.com announced that Japan's Financial Services Agency (FSA) has issued operating licenses to 11 bitcoin exchanges, not allowing a sharp sell-off.

Technical outlook

The technical picture for the pair remains bullish with the 20-DMA staying above the 50 and 100-DMAs. Moreover, the RSI on the daily graph continues to edge higher above the 50 mark, supporting the bullish outlook. The pair could encounter the initial hurdle at $4380 (Sep. 12 high) before $4700 (Sep. 8 high) and $5000 (psychological level). On the downside, supports could be seen at $4000 (psychological level), $3650 (Sep. 25 low), $3365 (100-DMA).