26.09.201710:38 Forex Analysis & Reviews: Bitcoin analysis for 26/09/2017

Bitcoin analysis for 26/09/2017:

At the beginning of September at the bank conference, JPMorgan CEO Jamie Dimon criticized Bitcoin severely. Dimon stated that the US government would work to liquidate the cryptocurrency because the entire system is one big scam. Just after his speech, Bitcoin's price dropped from $4,400 to $3,900. At about the same time, China has added three pennies by announcing a ban on the exchange of cryptocurrencies, which has led to further price declines. During such a fight on Bitcoin, however, there was one brave investor who wanted to show that Dimon was spreading false information about Bitcoin. Chamath Palihapitiya, a venture capital investor and the owner of the NBA Golden State Warriors team, during a discussion panel on CNBC's program strongly criticized Dimon and his point of view on Bitcoin. Palihapitiya explains, that governments and financial regulators can and should regulate cryptocurrency trading for security reasons. But more importantly, no one wants to manipulate or control Bitcoin itself, and P2P protocols cannot be censored. He said:" It can not be a scam. Today, you can limit the way Bitcoin is trafficked, but you can not control it. This is a decentralized system that exists in P2P networks. And to the extent that you can not eliminate the will and action of any single person in the world." In order to worsen the situation, Blockswater has filed a report on market abuse by JPMorgan, claiming that Dimon's statement was a purely manipulative play. Interestingly, JPMorgan Securities Ltd. is engaged in various types of investments in the cryptocurrency market, which may be relevant in relation to these allegations.

Let's now take a look at the Bitcoin technical picture on the H4 time frame. The price is trying to break out above the dashed black trend line, but to confirm the strength, bulls need to violate the level of $4,111 and head towards the recent all-time highs. A lack of this kind of price action will result in momentum decrease and a possible reversal to the downside towards the nearest technical support at the level of $3,452.