Bitcoin analysis for 21/02/2018

On Monday, February 19, the UK newspaper The Telegraph gave the statement of the Bank of England Governor, Mark Carney, in which he stated that according to traditional definitions Bitcoin cannot be considered a legal currency. During an event at London's Regent's University, Carney said that Bitcoin did not meet the two main requirements of the traditional currency, it is neither a means of exchange nor a means of storing value. The argument that cryptocurrencies are not usable as a means of exchange is, in particular, the case with Bitcoin. On January 24, 2018, the Stripe payment processor ceased to use Bitcoin due to high fees and slow transaction confirmation times. Earlier on December 7, 2017, the Steam gaming platform stopped accepting Bitcoin payments, citing transaction fees of up to USD 20 and high volatility. Carney also stated that Blockchain technology, on which cryptocurrencies are based, may still be useful due to its decentralized nature: "The basic technology of cryptocurrencies may prove to be useful as a method of verifying financial transactions in a decentralized manner."

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The five waves up seem to be completed with a high at the level of $11,800, just after the golden trend line was hit. It is quite possible, that a corrective cycle is in progress. The next target is at the level of weekly pivot support at $10,180, but it might easily be violated, so then the price will likely drop towards the next support at the level of $9,434.

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