FX.co ★ Bitcoin analysis for 28/05/2018

The first deputy governor of the Russian Central Bank, Olga Skorobogatova, said that Blockchain technology is not yet mature enough to be used on an industrial scale, reports the local media.

During a discussion at the International Economic Forum in Saint Petersburg, Skorobogatova suggested that the newly emerging technology still needs to be improved. According to her, this technology has not yet been applied on an industrial scale, except for its use for cryptocurrencies, such as Bitcoin. Skorobogatova focused on security and scalability as key issues that still need to be addressed before industrial-scale deployment begins. She also shared Blockchain applications for two main applications. First, Blockchain systems offering a distributed billing infrastructure, such as Corda and Ripple, that can be used to process payments by banks. Second, Blockchain platforms that provide smart contract functionality, such as Ethereum and Hyperledger.

Skorobogatova has already talked about Blockchain as a revolutionary technology that you definitely need to invest in, while stressing that understanding the risks involved and how to manage it is essential for the main financial sector. A fully controlled integration would require from seven to ten years, according to her estimates from June last year.

This week, it was also announced that the first officially regulated ICO in the country will be tested using the newly created regulation of the Russian Central Bank, and the main investor Sberbank, being the main investor of this project, will be state-owned. Also this week, the Russian parliament approved the first of three new regulations regulating the crypto and blockchain industries, which define both cryptocurrencies and cryptocurrencies as a property.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market has made a new lower low at the level of $7,000, but the pattern that is unfolding now looks like a Falling Wedge, which means, there are high chances for a temporary pull-back towards the level of weekly pivot at $7,582 or even $7,712. Moreover, there is a positive divergence forming between the price and the momentum oscillator, which supports the temporary bullish outlook.