By Mike Paulenoff, MPTrader.com Bitcoin plunged from 7385 to 6830, or 7.5%, Wednesday in reaction to a Business Insider report that Goldman Sachs has decided to drop a year-ago decision to create a crypto-currency trading desk. Apparently, Goldman is "uncertain" about the regulatory environment. Hmm, really? Since when has Goldman shied away from forging a new path while it influences the architecture of a new regulatory environment? Be that as it may, let's notice on the attached chart of September Bitcoin that the reaction to the report triggered a plunge that traversed the entire width of the bullish one-month price channel. But the weakness in and of itself has not (yet?) inflicted serious technical damage to the upmove from the August low at 5850 to the September high at 7415. Key support resides from 6830 down to 6760, which must contain further weakness to avert a broken bullish pattern, with potential for a much deeper retrace of the August- September upmove. As long as 6830 to 6760 support remains intact, so does the budding uptrend in the aftermath of the December (2017) to August (2018) decline from 20,000 to 5850. To my mind, the fact that Gold (UGLD) also has climbed off of a mid-August, multi-year low (in UGLD from 7.57 to 8.55 at the Aug. high), and generally has exhibited relative strength for three weeks, and coincides with the underlying recovery in Bitcoin is not a coincidence. Neither is the fact that both Bitcoin and UGLD peaked in December-January, and both declined precipitously into mid-August. Maybe both are bottoming now? Certainly, we need to watch the action in both, especially if Bitcoin can manage to hold key support (discussed above) at 6830-6760. The ability of Bitcoin to hold support could (will?) influence and support Gold (UGLD), which in turn will support the Gold Miners (using NUGT) as it approaches critical support along its year-long lower channel support line, now in the vicinity of 11.10. If there IS a relationship here, then it is the behavior of Bitcoin that is calling the shots. Let's see if Wednesday's debacle in Bitcoin was a one-off exodus in reaction to the Goldman news, or if the negativity and fallout have shelf-life.Mike Paulenoff is author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial! * I really like Mike's charts and analysis. This is shared with my readers here via MPtrader.com *Disclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal. If you liked this article, please click the LIKE (thumbs up) button. Feel free to leave any comments, question, or opinions. Follow us and check back occasionally for additional articles or comments.