Bitcoin analysis for 22/12/2017

Singapore's Monetary Authority (MAS), in other words, the Central Bank of the country, has become the newest financial supervisor that warns of the risks associated with cryptocurrencies. Citing the recent speculative rise in prices, MAS has published a statement in which it recommends that the public be extremely cautious when investing in digital currencies such as Bitcoin. The authority also stressed that it does not regulate cryptocurrencies and that investors must be prepared for the risk of losing the invested funds. Explaining that cryptocurrencies are not legal tender in the country, MAS stated:"Singapore's monetary authorities advise the public to act with extreme caution and understand the significant risks that are being taken when investing in cryptocurrencies."

MAS also noted that in Singapore there is no regulatory body that could secure investments in cryptocurrencies or ensure the reliability of cryptocurrency intermediaries. The bank also explains that if the intermediary uses cryptocurrencies for illegal purposes, his actions may be stopped by law enforcement authorities.

The statement is in line with the investors' earlier warning from MAS about the risks associated with the ICO projects published in August.

Let's now take a look at Bitcoin technical picture at the H4 time frame. The market has started a sudden and deep corrective cycle, labeled as wave 4. The first part of this correction was almost made as the price has hit the key technical support at the level of $12, 692. This corrective cycle might get extended in time and price even more and in turn, evolve into more complex and time-consuming correction. The key technical resistance is seen at the level of $15,478.

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