Bitcoin analysis for 06/12/2017

There are rumors that the Tokyo Financial Exchange has taken the first steps towards launching Bitcoin-related products. According to Bloomberg News, this stock market has created a group in which it will try to start quoting cryptocurrency contracts. As the information service explained, this would be the first step towards changes in Japanese law that would clear the way for these types of products. This information comes from a press conference organized by President Shozo Ohta, which was held on December 1st. On it, Otha announced that the stock market will seek for quick approval by regulatory authorities:"As soon as the law on financial instruments and the stock exchange recognizes cryptocurrencies as financial products, we will make futures contracts available. To achieve this, we will launch a working group that will examine the various aspects of Bitcoin, including its current state, further perspective and form will take root in Japanese society."

The fact that the stock market could move towards the release of Bitcoin futures contracts is not surprising, given the efforts of companies such as CME Group and CBOE to create such products in the US. CBOE futures trading is scheduled to begin on Sunday, and CMEs start about a week later.

Let's take a look at the Bitcoin technical picture at the H4 time frame. The market has made another all-time high at the level of $12, 390 ( at the time of writing), so the weekly pivot resistance was set to a target level. Currently, the price is still rallying higher and the irregular flat idea for a corrective wave is getting out of hand. The next best fit is the ending diagonal wave five as a termination pattern, market in golden lines. Please notice the bearish divergence between the price and the momentum indicator.

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