Bitcoin analysis for 03/04/2018

During the meeting with the legislative arm of Taiwan, the head of the Central Bank, Yang Chin-long, was asked about how the banking authorities will respond to the current lack of transparency in the trade of cryptocurrencies in this country. The discussion was intensified mainly by recent price drops, in accordance with the news given by the Central Taiwan Agency. Answering the parliamentary MP's questions, the Governor of Taiwan said that the Central Bank has increased its efforts to monitor volatile movements of Bitcoin prices and will issue warnings to investors about the risk of cryptocurrency transactions. In addition, Yang said the banking body suggested to the Taiwanese Ministry of Justice that cryptocurrency transactions should be regulated in accordance with the applicable anti-money laundering (AML) regulations in the financial sector.The case remains open and it is not known whether the suggestion will be supported by the ministry, but it is to be the last move of the Taiwanese authorities in implementing BTC regulations. Earlier this month, the finance minister of the island, Sheu Yu-jer, expressed the belief that cryptocurrencies - which are treated like virtual goods - should be taxed in Taiwan. He added that the agency is currently investigating how to implement the appropriate taxation rules. Jang's comments appeared just after other Asian governments, such as South Korea and Malaysia, have already taken action to regulate cryptocurrencies under the anti-money laundering rules to prevent financial crimes.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market has bounced from the level of $6,400 and now is testing the technical resistance at the level of $7,245, just above the weekly pivot at the level of $7,146. the bounce from the level of $6,400 seems solid, so if the level of $7,245 is broken, then the bulls might push the price higher towards the level of $8,000. Bullish divergence supports the upward view.

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