- Bitcoin slides in early trading but it could offer a decent buying opportunity given a technical view
- South Korean authorities confirm the country’s government will support cryptocurrency trading
- BoE’s Carney argues Bitcoin has failed so far as a legitimate currency
Admittedly, Bitcoin is losing some ground in early trading, it could be just a buying opportunity given the current technical view. However, before we move to the most important revelations regarding virtual currencies let’s take a look at the chart below, which seems to suggest Bitcoin buyers could prevail over the next days.
The H4 chart depicts that the price has already tested a rising trend line drawing a bullish candlestick which may bode well for buyers going forward. Notice that if the price grows over the next two and a half hours it could result in a morning star pattern – a typical bullish signal. Thus, the base scenario appears to Bitcoin positive barring a sudden breakout below the above-mentioned trend line. If it happened, a bit deeper pullback would be on the cards (ca. toward $10300).
South Korean government plans to support digital currency trading
Is it going to be a turning point for Bitcoin? According to the head of South Korea’s financial regulator the country’s government will support cryptocurrency trading and will encourage banks to facilitate transactions with exchanges. It looks like the ultimate end of the latest prolonged period of elevated fears with regard to a potential ban of virtual currencies there. If South Korea develops the blockchain technology, it could be an important change for the whole cryptocurrency industry as the country accounts for a crucial part of that.
Bank of England chairman Carney says Bitcoin has failed as a currency thus far
Central banks have been expressing more doubts and fears than hopes and positives regarding cryptocurrencies, hence from that point of view the latest comments from Mark Carney should not have been surprising. According to him Bitcoin has failed so far to be a legitimate currency as it’s neither a store of value nor a useful medium of exchange. It shows still a high extent of uncertainty among one of the most important central bank in the world suggesting that the BoE and its major counterparts around the world are still far away from the idea of accepting cryptocurrencies. One may assume that it will not change until digital currencies are so volatile and unpredictable as opposed to currencies backed by central banks.