Bitcoin analysis for 07/09/2017:
The Bank of Japan and the European Central Bank released the findings of their joint analysis of Distributed Ledger Technology (DLT) called Project Stella that was launched in 2016. The main objective was to: "assess the applicability of DLT solutions in the area of financial market infrastructures." After a year of study, three main findings can be concluded: DLT-based solutions could meet the performance needs of a Real-Time Gross Settlement (RTGS) system; DLT performance is affected by network size and distance between nodes; DLT solutions have the potential to strengthen resilience and reliability.
In conclusion, while the reports were favorable regarding the performance of Blockchain technology for international banking needs, they nevertheless concluded that the technology is not at a point of maturity to function as a solution for banking practices at this time. The early stage of the DLT development is currently incapable for large-scale applications like BOJ-NET and TARGET2.
Let's now take a look at the Bitcoin technical picture at the H1 time frame. The price has managed to bounce from the golden trend line support to the level of 61% Fibo at $,4,596. The zone between the levels of $4,615 - $4, 691 is a strong supply zone, so a reversal to the downside might happen anytime soon as the level of $4,650 might be the top for the corrective wave (b). Currently, the price is trading around the weekly pivot at the level of $4, 544, but the momentum is still pointing to the downside.
