Bitcoin analysis for 31/10/2017:
The Lebanese Central Bank, Banque du Liban (BDL) and Governor Riad Salameh say the Bitcoin and other digital currencies are unregulated commodities the use of which should be prohibited. He also said that they would be ineffective as national currencies because they are just goods. At the opening ceremony of the 7th Corporate Social Responsibility Lebanon Forum at the end of October 2017, Salameh told participants that the BDL forbade the use of the cryptocurrencies in Lebanon because of their remoteness. In addition, he argued that future money would be digitized: «These Bitcoins are not currencies but a commodity whose prices are rising and falling without any justification, therefore the BDL forbids the use of this currency in the Lebanese market. We understand that electronic currency will play a significant role in the future, but BDL must first make the necessary arrangements before taking this step and develop a cybercrime prevention system» he said during the ceremony. At the forum Salameh also announced the plan of the Central Bank to introduce its own digital currency. He did not disclose whether the currency would be based on Blockchain’s technology that is integral to the Bitcoin and other cryptocurrencies. It is possible that BDL will use other forms of technology to create a centralized digital currency in Lebanon.
Independent countries such as Ecuador and Sweden are exploring the possibilities of using other technologies to create their own digital money. In its turn, China is studying the use of Blockchain to create its own digital currency.
Let’s now take a look at the Bitcoin technical picture at the H4 time frame. The market has made another higher high at the level of $6,312 and then slid towards the weekly pivot at the level of $6,000. Currently, the price is trading in a horizontal zone between those two levels in overbought trading conditions. Moreover, there is still a possibility for another wave down, wave (c), in order to complete the bigger cycle correction labeled as wave 4.