empty
 
 
08.11.2018 08:21 AM
Bitcoin analysis for 08/11/2018

According to Reuters reports, the Chinese central bank, the People's Bank of China (PBoC), warned about "bubbles" related to financing and investments in Blockchain. PBoC, known for its anti-scriptural attitude, said that the government should strengthen the oversight of "speculation, market manipulation and other irregularities" that it claims are common in national investment and Blockchain schemes.

Local Chinese news sites revealed further details about the bank's warning, which was issued in the form of a working document of the PBoC entitled "What Blockchain can do and what can not do?" According to China Financial Forty Forum think-tank, the document was written by Xu Zhong, director of the Research Office in PBoC: There are few Blockchain projects that bring social benefits. In addition to Blockchain's low physical performance, shortcomings in the economic functions are also important. It should be based on continuous research and experiments. Rationally, objectively assess what Blockchain can and can not do" - we read in the document.

The local forex financial information source, East Money, further stressed that this article contains an economic analysis of the "tokenization" paradigm adopted by "mainstream" Blockchain projects and explains technological principles such as consensus mechanisms, intelligent contracts and methods of using tokens in Blockchain ecosystems. They noted, that the bank also analyzed the aspects of performance and security of Blockchain systems, ending with an analysis of the benefits and limitations of this technology.

Although the PBoC and Chinese political establishment widely adopted a positive attitude towards Blockchain technology, the ambivalent tone expressed in the latest PBoC document is not unprecedented, as other national regulators have similarly warned in the past against the mythologizing of this technology.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market has broken through the technical resistance zone between the levels of $6,433 - $6,455, made a new local high at the level of $6,508 and reversed towards the trend line support around the level of $6,410. Any break out below this level will likely result in acceleration od the drops towards the next technical support at the level of $6,383 or $6,344.

This image is no longer relevant

Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback