Bitcoin analysis for 01/09/2017:
One of the biggest advantages of the Bitcoin cryptocurrency, anonymous trading, has been criticized recently by Australian government's representative. According to Australian Justice Minister Michael Keenan, "Bitcoin, which can be traded anonymously and is as good as cash, is traded now on most significant international exchanges". This is the main reason for Keenan why Bitcoin exchanges assist in facilitating criminal activities: they lack transparency regarding transactions and encryption. Australian government plans to introduce new legislation that will make cryptocurrencies and altcoins submit to the same disclosure laws as banks and the more traditional exchanges. The main reason behind introducing this new law bill is a substantial loss of Australian budget due to illegal practices made by organized crime in Australia. According to the recent study conducted by Australian Criminal Intelligence Commission (ACIC), the illegal and non-regulated practices cost the country over $28.34 billion annually. Will the Australia be the first country in the world to regulate the cryptocurrencies? We will soon find out.
Let's now take a look at the Bitcoin technical picture on the H4 time frame. The price is trading around all-time highs at the level of $4,783, but according to the Elliott wave theory principle, the up move might soon be terminated as the fifth wave is near completion. The price is moving inside of a possible Ending Diagonal pattern and will likely hit the $5,000 level before any meaningful correction will occur. In that case, the immediate technical support is seen at the level of $4,464.The growing bearish divergence and overbought market conditions support this view. On the larger time frames, the uptrend continues and only a clear, visible violation of the technical support at the level of $3.584 might change the bullish point of view.
