Bitcoin analysis for 06/11/2017

With the growing tension between Iran and the United States, the first one plans to incorporate the Bitcoin into its payment system. After the speech of Donald Trump who called the deal with Iran the worst transaction in history, Iran and the United States have no best relations. Iran still suffers from international sanctions that affect several sectors of its economy, including finance, energy and the maritime industry. These sanctions also hinder Iranian citizens from using online payment platforms such as PayPal, Venmo and Braintree. The Iranian government has devised a way to circumvent these repressive measures by implementing the Bitcoin as the basic online payment method. One of the main advantages of such a solution is that the currency is decentralized and can not be controlled by a central institution such as a corporation or government and therefore does not allow for blocking of payments originating in Iran. With the Bitcoin, Iranian citizens can easily bypass economic sanctions and be able to conduct international transactions. Recognition of the Bitcoin by the Iranian economy is a milestone for the cryptocurrency. This means that the government can begin to open up on the progress of payments and currency.

Amir Hossein Davaee, Deputy Minister for Information and Communication Technology of Iran said that the Bitcoin business involves creation of money, so the Central Bank of Iran should establish basic principles and supervise the activities associated with it. Otherwise, the decision to introduce this digital currency could disrupt the economic cycle. Iran is now completing the right infrastructure for not only Bitcoin, but also for other cryptocurrencies. At the end of the project the digital currency will be properly integrated and regulated.

Let's now take a look at the Bitcoin technical picture on the H4 time frame. The price is now developing w fifth wave extension with the projected target at the level of $8,356 - $8,545 zone. This projection is valid as long as the support at the level of $6,971 is not violated. In a case of a violation, the projections will be adjusted, and the price will head to test the technical support at the level of $6,176.

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