27.09.201710:14 Forex Analysis & Reviews: Bitcoin analysis for 27/09/2017

Bitcoin analysis for 27/09/2017:

The European Central Bank claims, that it does not have enough legitimate power to ban cryptocurrencies. In response to the European Parliament's Committee on Economic and Monetary Affairs, Draghi said that "we do not have the power to prohibit and regulate Bitcoin or other digital currency." Draghi, in response to a question of whether the ECB intends to establish a legal framework or completely prohibit cryptocurrency and whether higher capital requirements for fintech are required to protect the banking sector, said that the ECB does not yet discuss the potential impact of cryptocurrency, but analyzes the risks associated with digital currencies, due to their scale, use, and economic impact. Moreover, he added that cryptocurrencies are still too immature to be considered a viable payment method:" We need to find out what economic effects cryptocurrency have.The main problem for the ECB in the field of cryptocurrency and digital innovations is generally the issue of cybersecurity".

Earlier this month Draghi also criticized the proposal for an initiative in Estonia to launch a national digital currency called "estcoin", explaining that in the Eurozone the Euro is the only legal payment method and no member can declare its own currency.

Let's now take a look at the Bitcoin technical picture on the H4 time frame. After the breakout above the dashed black trend line, the market is consolidating the gains in a narrow price range between the levels of $3,962 - $3, 841. The most important zone for the bulls is the gray rectangle area between the levels of $4,111 - $4,000. In order to move higher, the bulls must break through this zone in impulsive fashion. The nearest support is seen at the level of $3,738.

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