05.02.201811:42 Forex Analysis & Reviews: Bitcoin analysis for 05/02/2018

Long-term review

In three of the largest US banking groups, customers will not be able to pay for credit cards with Bitcoin. This prohibition applies to JPMorgan Chase, the Bank of America and Citigroup. The reason is the investment risk, because with such fluctuations in Bitcoin rates, banks are beginning to approach investing in crypto assets as gambling. First, credit institutions began to withdraw from running accounts to business entities dealing in the trade of virtual "currencies", and now restrictions begin to affect individual customers. In the United States, bans begin to appear in the case of crediting bitcoin investments.

Of the three banks that decided to take such a step, JPMorgan Chase's position is the least surprising. The president of the largest American bank, Jamie Dimon, called bitcoin a scam. What's more, he announced that he would release "without a second of hesitation" any trader who would invest money into a virtual "currency". The current position of the bank sent to the CNBC editorial office reads: "At the moment, we do not settle the purchase of cryptocurrencies using credit cards due to their high volatility and risk."

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The most important intraday support is at the level of $,7531 and any violation of this support will lead to the further sell-off extension towards the next target projection at the level of $6,741.Please notice that the bullish divergence between the price and the momentum oscillator is growing up.

Exchange Rates 05.02.2018 analysis

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Sebastian Seliga,
Analytical expert of InstaForex
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