FX.co ★ Bitcoin analysis for 07/12/2017

Indonesian Central Bank revealed that it is considering introducing new regulations that would prohibit Bitcoin transactions from 2018. Chief of Transformation Onny Vidjanarkko said yesterday that the bank wants to introduce a ban because of concerns about the potential use of Bitcoin in financing terrorism, money laundering and trade drugs.

The Central Bank, which has the power to decide on monetary policy, is currently conducting research to determine whether Bitcoin will be regulated in accordance with the applicable provisions on electronic money or in separate frameworks for cryptocurrencies. According to the Jakarta Post report, Vidjanarko stated: "Currently, there is no single regulation applicable to all those who carry out transactions using Bitcoin." The official also appealed to companies accepting Bitcoin payments to stop this practice. He justified this by saying that the Bank of Indonesia will not be liable for losses incurred as a result of such transactions.

If Indonesia actually banned Bitcoin as a payment method, it would join other countries that oppose cryptocurrencies, such as China. Russia's Minister of Finance also has a similar position to Indonesia, which in September declared that it expects a law on cryptocurrencies, in which a ban on payments with the use of Bitcoin will be introduced.

Let's now take a look at the Bitcoin technical picture. Weekly, daily and H4 charts have been changed due to update in a main Elliot Wave scenario. The current Elliott Wave development is very bullish as the market participants are in wave 3 progression towards the first target around the level of $25k. On the lower time frame charts, the local support is at the levels of $14,071 and $13,031.All of the weekly pivot resistances has been surpassed already and the price continues a parabolic move upwards.