Bitcoin analysis for 05/12/2017

Currently, the South Korean government remains very positive towards Bitcoin and recently announced that it intends to introduce a national regulatory framework for the cryptocurrency market. According to Cointelegraph, Deputy Prime Minister and Minister of Strategy and Finance of South Korea, Kim Dong-yeon announced that the government is actively investigating methods for providing Bitcoin investors with consumer protection, introducing stricter Know-Your-Customer (KYC) rules on anti-money laundering (AML) and protection of customer resources.

The South Korean government is not going to ban any aspect or area of the cryptocurrency market, because such a policy can lead to the migration of investors and their funds to unregulated OTC markets, which are significantly more difficult to oversee by the government. This means that the rumor that the South Korean government is introducing barriers to the virtual currency market is not true. Last week, the Ministry of Finance and Korea's Strategy revealed that it has already begun the process of developing various regulations for cryptocurrencies. What's more, South Korean deputy prime minister Kim Dong-Yeon said: "The South Korean Ministry of Finance and Strategy has developed a tax policy regarding Bitcoin trading. However, the regulatory framework for Bitcoin taxation will not be implemented in 2018."

Let's take a look at the Bitcoin technical picture at the H4 time frame. The price is still hovering around the recent all-time highs at the level of $11,785. The golden trend line still provides a dynamic support for the price and the key level to the downside is at $10,494. In a case of a breakout higher, the next target for the price is at the level of $12,284.

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