Bitcoin analysis for 20/10/2017:
On October 16, Ilan Goldfajn, president of the Central Bank of Brazil (Banco Central do Brasil), disregarded Bitcoin. He said: «Bitcoin is a financial asset without the ballast people buy because they believe it will grow. This is a typical bubble or pyramid.» Many huge jumps in value made Goldfajna’s unfavorable statements: «The central bank is not interested in bubbles or illegal payments. This is not something that the Brazilian Central Bank would like to encourage.» Nevertheless, Goldfajn pointed out that technological innovation can be separated from unstable virtual currency. You can not blame the central bank for ignorance on this issue. In August 2017, the institution published results of a real-time gross settlement system study that tested blockchain platform prototypes, including BlockApps based on Ethereum and JP Morgan’s Quorum.
Will the position of Brazil be unstoppable? Perhaps with time, Brazil will see the potential of cryptocurrency and blockchain technology.
Let’s now take a look at the Bitcoin technical picture at the H4 time frame. The market is consolidating the recent gains near to the swing high at the level of $5,700. Any weekly candlestick closes above the weekly pivot point at the level of $5,342 will confirm the bullish scenario for Bitcoin, despite the overbought trading conditions. The key technical support level is still seen at $5,097.