Bitcoin analysis for 20/09/2017: Professor Yang Dong, the lecturer at the Chinese University of Renmin, in an interview for CCTV, publicized the reasons the Bitcoin prohibits just recently occurred in China. The very first factor is an absence of proper licenses. At present, Chinese cryptocurrency exchanges do not have the power to obtain a banking license, so they operate beyond the legal system. According to the researcher, this positions a considerable company threat The second factor is the Bitcoin functional model. Dong claims, that the system of restricting the Bitcoin amount using a specific code is “controversial”. In addition, he worries the issue caused by the high volatility of Bitcoin. The third reason is a high possibility of fraud and cash laundering chances utilized by bad guys. The 4th factor is market adjustment possibilities that can be used by “whales” (financiers, who operate countless Dollars, are influencing Bitcoin’s cost, for instance, greatly hitting its course in a brief time). The 5th factor is security problems, as when it comes to insufficient security, hackers can get to the resources and information of cryptoanalysts leading to permanent losses. The last reason talked about by the teacher is the darknet market. Considering that they do not utilize loan laundering or client identification laws, the government can not effectively control this area. In conclusion, a well-spotted factor for which the federal government regulation is needed not only in China, however all over the world as the rise in popularity of cryptocurrencies is now very high and it does not look it will end soon.
Let’s now have a look at the Bitcoin technical photo on the H4 amount of time. So far just a three-wave up relocation was made from the lows at the level of $2,965, so this progression looks more like a part of a wave B than a brand-new, strong impulsive wave to the benefit. Any breakout listed below the level of $3,452 will instantly expose the recent lows for a test (and possible breakout) and the spontaneous upwards scenario will be invalidated.
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