Bitcoin analysis for 04/12/2017

The Indian finance minister, Arun Jaitley, stressed that the Government of India had not yet recognized Bitcoin as a legal tender. He pointed out that work is underway on recommendations regarding the possible legalization of Bitcoin and other virtual currencies. In an interview with the Economic Times, Jaitley said he had already informed the Indian parliament that the —Āentral bank of the country, the Reserve Bank of India (RBI), has not yet issued any licenses for the operation of digital currencies. He further stated that the government is still assessing the recommendations regarding the regulation of virtual currencies.

For several months, the Government of India has been working on regulations regarding the use of virtual currencies. In April 2017, the government set up an interdisciplinary commission to check whether it is necessary to develop regulations on digital currencies. The committee consisted of several government agencies, including the RBI, the Financial Services Department and the Ministry of the Treasury. In October 2017, the Supreme Court of India approached RBI and other related agencies with a request to respond to the petition on regulating cryptocurrencies. The original petition expressed concerns about the possible use of Bitcoin and other virtual currencies in cross-border transactions that cannot be monitored, making them attractive tools for cybercriminals and tax evaders.

Despite the growing popularity of cryptocurrencies in India, regulators have not yet decided how to regulate them. Until then, Bitcoin is not considered a legal tender in India. In a previous report, the chief economist predicts that Bitcoin in India will not become legal without being monitored by the government.

Let's now take a look at the Bitcoin technical picture in the H4 time frame. The price had made yet another higher high at the level of $11,758, but then dropped towards the support at the level of $10,495 and bounced from the golden trend line. The current main Elliott Wave count is still valid and the next best fit is abc Irregular/Running Flat Correction scenario that might reach the level of $8,990 again. The key support remains at the level of $8,352.


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