Bitcoin analysis for 05/01/2018

Many people see bitcoin as the cryptocurrency preferred by criminals, but according to experts, this is less and less valid. Criminals give up bitcoin for other virtual currencies.

In recent years, the internet hidden network (deep web) has gained in popularity. The main attraction that people can find there are the offers of shops selling illegal products, such as drugs or weapons. However, thanks to the activities of the FBI people in the hidden network ceased to be completely unpunished. The Silk Road website was one of the most popular selling websites in the entire hidden network. In 2013, the site was closed. This was possible thanks to the FBI-led investigation, which, thanks to the analysis of bitcoin's transaction, led to many detentions.

Therefore, many underground stores have stopped accepting Bitcoin as an available form of payment. At the moment, criminals prefer to use cryptocurrencies that guarantee full anonymity - that is, so-called privacy coins. That's why Dash, Monero and Zcash are the last leaders in the deep network.

Let's now take a look at the bitcoin technical picture on the H4 time frame. The golden trend line resistance has been violated and the market tried to rally towards the technical resistance at the level of $16,638 but failed. The price reversed and is currently testing the trend line from above. As long as the market stays above the intraday support at the level of $14, 106, the outlook remains bullish to neutral. Otherwise, the bears might push the market lower towards the technical support at the level of $12,396.


The material has been provided by InstaForex Company -