Bitcoin analysis for 30/11/2017

According to China Central Television (CCTV), Chinese digital currency exchanges allowing peer-to-peer trade between Chinese yuan and cryptocurrencies may violate financial rules. Recalling the significant increase in trading on the OTC market in China as one of the possible reasons for Bitcoin’s price increase, the program spoke of concerns about this practice. Financial columnist and television personality Li Cangyu, in a statement from the People’s Bank of China (PBOC) in September, said p2p is trying to deceive law enforcement and violates a specific rule issued by the PBoC, which forbids any trade practice between cryptocurrencies and fiduciary currencies. Another commentator, Wan Zhe, chief economist at China National Gold Group Corporation, the central state-owned gold mining company in the country, repeated Li’s opinion and referenced Huobi Pro’s website: “Not every trade in a peer-to-peer network is necessarily illegal, but by providing a “how to” guide and a trading platform of this type we undoubtedly violate the rules.” It is worth to mention here, that after the ban on ICO by the Chinese Central Bank and the suspension of transactions between cryptocurrencies and Chinese yuan, large national stock exchanges, including Huobi and OKCoin, have moved their operations to foreign peer-to-peer trading platforms such as Huobi Pro. or OKEx.

CCTV is a state channel and one of the official spokespersons of the government and the Communist Party of China. Although the program itself did not reveal the government’s official position, it provided an important message and gave insights into how state media depict cryptocurrencies. The next parts of the program also discussed the high variability of Bitcoin and the benefits of Blockchain technology. Commentator Wan also presented counterfactual statements, saying that Amazon now accepts Bitcoin as a payment method.

Let’s now take a look at the Bitcoin technical picture at the H4 time frame. The reversal from the Fibonacci cluster between the levels of $11,111 – $11,318 was spot on and the price dropped down to the level of the previous wave four zones at $9,243. This price action indicates a possible start of a deeper corrective movement, and wave (a) of this correction might have started already.

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The material has been provided by InstaForex Company – www.instaforex.com

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