Bitcoin analysis for 24/04/2018

The Central Bank of Iran has banned domestic banks and other financial institutions from dealing with cryptocurrencies, citing concerns about money laundering that first appeared in December 2017. The Iranian State Information Agency (IRNA) has published a statement saying that banks, credit institutions, and stock exchanges should avoid buying these currencies or take any action to promote them. Today, Radio Free Europe / Radio Liberty (REFRL) cites further details from the December circular: "All cryptocurrencies can be transformed into money laundering and terrorist financing, and can generally be a way to transfer money to criminals".

The ban will come when the country prepares for a possible renewal of US sanctions, when the national currency, rial, has plunged into unprecedented levels. Reuters further reports that Iran has unified its official and open exchange rates because it is trying to support the ailing financial institutions in the country and stop further currency declines. Iran's attitude towards cryptocurrencies was hardened in particular in February 2018, when local media cited the Central Bank's intention to "control and prevent" what is believed to be highly unreliable and risky.

Concurrent reports in February on Iran's investigation into the issue of a state digital currency led to comparisons with the centrally released Petro Venezuela, which many perceive as a reaction to their own, mutilating international sanctions. The Central Bank of Iran has introduced a crypto ban to all domestic banks and other financial institutions dealing with digital currencies, citing concerns about money laundering.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The technical resistance at the wave (b) top had been violated as the price made another marginal high at the level of $9,260. Moreover, the whole move up looks like it been made in five waves now, so the chance for a corrective pull-back are high. The immediate support is seen at the level of $8,989, but in a case of a further downside extension, the next support is seen at the level of $8,355, just below the weekly pivot at the level of $8,617. On the other hand, the next target for bulls is the 61% Fibo retracement at the level of $9,607.

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