09.04.201808:10 Forex Analysis & Reviews: Bitcoin analysis for 09/04/2018

The Reserve Bank of India (RBI) announced in a statement on the development and regulatory policies, that it was considering issuing its own central bank digital currency (CBDC). RBI set up an inter-ministerial group to explore the potential benefits and feasibility of the CBDC, which will present its findings in the report in June 2018, the statement."Technological innovations, including virtual currencies, have the potential to improve the efficiency and integrity of the financial system." - said Bibhu Prasad Kanungo, deputy RBI governor. The information appeared despite the bank's earlier announcement that it prohibits all regulated entities from providing services to users, traders or holders of cryptocurrencies. The RBI position - a pro-state cryptocurrency and a decentralized cryptocurrency - represents a broader trend among international central banks. One of the solutions to potential problems of central banks, such as money laundering, is the co-optation of Blockchain technology by the institutions themselves, as Kanungo emphasized: "We are aware that Blockchain technology has potential benefits for the financial sector and we believe that it should be encouraged to use it for the benefit of the economy."

Already in 2016, the Bank of England and the People's Bank of China analyzed the possibility of issuing their own digital currencies, together with over 90 central banks testing DLT technology in the same year. In 2017, the Bank of Canada published extensive research on the benefits of CBDC, and already in the first months of 2018, banks in Malaysia, Taiwan, Poland, and Switzerland, they conducted research on the use of Blockchain systems.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market is hovering around the weekly pivot at the level of $6,908 after the spike down towards the technical support at the level of $6,402 was unsuccessful. The nearest technical resistance is still seen at the level of $7,442, just above the weekly pivot resistance at the level of $7,333. The whole impulsive rally will get invalidated when the price will break through the level of $5,829.