02.01.201810:55 Forex Analysis & Reviews: Bitcoin analysis for 02/01/2018

The Central Bank of Great Britain has been studying cryptocurrencies since 2015. As it turns out, not without a reason, because within a year it can release its currency modeled on Bitcoin. The goal is to reduce the role of commercial banks, ie: high-risk banks. Customers could be served directly by the Bank of England, the central bank. The new currency would be linked to the pound sterling, so the goal is not to eliminate the current national currency. Interestingly, the Bank of England created a currency prototype called RSCoin that could be used by central banks already in that year. In one opinion, commercial banks may feel threatened and everything indicates that in the next few decades they may die like dinosaurs. Of course, there is also a shortage of the other side of the coin. The elimination of commercial banks and the takeover of transaction services by central banks may encourage greater surveillance of the public.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The corrective cycle continues to unfold as there is wave C to be completed yet. Nevertheless, there is still possible for wave $ to unfold as a triangle pattern. In this case, the level of $11,150 is the key level as any violation of this level would lead to the ABC corrective cycle to unfold much lower ( even to $7,800).