FX.co ★ Bitcoin analysis for 23/05/2018

Some countries have sanctions imposed by the US and many European nations. Several experts believe that there are countries that can bypass international sanctions through decentralized cryptocurrencies. Russia and Iran are two countries that are currently under severe sanctions that may soon use cryptocurrencies to circumvent them.

Politicians in Russia and Iran are discussing the possibility of using digital currencies to circumvent such sanctions. Decentralization is one of the biggest advantages of cryptocurrencies. Unlike traditional fiat currencies, cryptocurrency transactions cannot be stopped by a central office or body. In the latest press release of PressTV, Iranian MEP Mohammad-Reza Pourebrahimi discussed during the meeting in Moscow the possibility of using cryptocurrencies for international payments. The meeting was also attended by Dmitry Mezentsev, chairman of the Federation Council's Economic Policy Committee. According to reports, Pourebrahimi stated that Iran and Russia can use digital currencies to avoid US dollar transactions and potentially even replace the SWIFT interbank payment system. In addition, the Iranian Parliament has instructed the Central Bank of Iran (CBI) to start creating potential cases of the use of digital currencies. Pourebrahimi stated: "Russia shares our opinion. We said that if we can move forward with this work, we will be the first countries that use cryptocurrencies to exchange goods. Russia and Iran are considering using the crypto to circumvent sanctions". Mezentsev noted Pourebrahimi's statement regarding the use of cryptocurrencies and replied: "Inter-bank relations between our countries are very important. Many sanctioned countries may perceive cryptocurrencies as potential replacements for traditional international banking systems such as SWIFT. International bank transfers are not the only problem facing sanctioned countries. Centralized payment services, such as Paypal or Venmo, are also not allowed in some countries. These payment services can also be replaced by decentralized cryptocurrencies".

Iran is again facing serious sanctions after President Trump pulled the United States out of its agreement on the nuclear weapons program. Russia noted increased US sanctions for allegedly meddling in the presidential election in 2016.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. As anticipated yesterday the breakout above the old golden trend line was a fake one and currently the price has made a local low at the level of $7,890 on its way to the 61% Fibo at the level of $7,712. If the impulsive scenario is correct, it would be the last wave down labeled on the chart as the wave c, which can terminate in the area between the levels of $,7712 - $7,442.