Bitcoin analysis for 02/10/2017:
The head of the International Monetary Fund Christine Lagarde, warns central bankers that Bitcoin is rising. In an interview with ABC News she said: "In many ways, virtual currencies might just give existing currencies and monetary policy a run for their money. The best response by central bankers is to continue running effective monetary policy, while being open to fresh ideas and new demands, as economies evolve." In her opinion, cryptocurrencies are unlikely to replace the traditional currency for now, as they are too violate, too risky and underlying technologies are not yet scalable. Nevertheless, she warned the central bankers that they should not ignore the technology or underestimate it as there will inevitably and undoubtedly be more technological innovation in blockchain and digital currencies will continue to grow and thrive.
Let's now take a look at the Bitcoin technical picture on the H4 time frame. The first projected target for wave (c) had been hit and now the market is at the crucial moment. Either it will reverse here and move impulsively lower towards the level of $4,000 or the price will extend the move even higher towards the next projected target at the level of $4,661. Please notice the growing bearish divergence between the price and the momentum indicator.
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