Bitcoin analysis for 20/09/2017:
Professor Yang Dong, the lecturer at the Chinese University of Renmin, in an interview for CCTV, publicized the reasons why the Bitcoin bans recently occurred in China. The first reason is a lack of appropriate licenses. At present, Chinese cryptocurrency exchanges do not have the power to obtain a banking license, so they operate outside of the legal system. According to the researcher, this poses a significant business risk The second reason is the Bitcoin functional model. Dong claims, that the mechanism of limiting the Bitcoin quantity using a specific code is “controversial”. In addition, he stresses the problem caused by the high volatility of Bitcoin. The third reason is a high possibility of fraud and money laundering opportunities used by criminals. The fourth reason is market manipulation possibilities that can be used by “whales” (investors, who operate millions of Dollars, are influencing Bitcoin’s price, for example, heavily hitting its course in a short time). The fifth reason is security issues, as in the case of insufficient security, hackers can gain access to the resources and data of cryptoanalysts leading to irreversible losses. The last reason discussed by the professor is the darknet market. Since they do not use money laundering or customer identification laws, the government can not effectively control this area. In conclusion, a well-spotted reason for which the government regulation is needed not only in China, but all over the world as the rise in popularity of cryptocurrencies is now very high and it does not look it will end soon.
Let’s now take a look at the Bitcoin technical picture on the H4 time frame. So far only a three-wave up move was made from the lows at the level of $2,965, so this progression looks more like a part of a wave B than a new, strong impulsive wave to the upside. Any breakout below the level of $3,452 will immediately expose the recent lows for a test ( and possible breakout) and the impulsive upwards scenario will be invalidated.
The material has been provided by InstaForex Company – www.instaforex.com
Source:: Bitcoin analysis for 20/09/2017