Bitcoin analysis for 26/07/2018
According to a study by the Bank of Canada (BoC), Canadian citizens in 2017 used Bitcoins mainly for investment purposes. The survey updates the results of the Bitcoin Omnibus Survey (BTCOS) survey conducted by the Canadian Central Bank in the short run between December 12 and December 15, 2017, a few days before Bitcoin achieved a record result of $ 20,000 on December 17.
According to the results of the survey, in 2017 Canadians used the largest cryptocurrency mainly for investment purposes and not for transactions that in 2016 were given as the main reason for having Bitcoin. While 58 percent of respondents said the drive was “an investment”, 12 percent of Canadian Bitcoin owners own BTC because “my friends own Bitcoin”, 7 percent due to interest in new technologies, and 6 percent for buying goods and services from the internet. Of those who did not use it for transactions – those that have used Bitcoin “once or twice, but do not use it regularly”, i.e. the vast majority – 77 percent – said they were holding Bitcoin as an investment. British Columbia residents report the highest levels of Bitcoin awareness, with an increase from 77 percent in 2016 to 93 percent in 2017. Second place among Canadian provinces in terms of BTC awareness belongs to the Canadian prairies and third to Ontario.
Earlier in June, bank governor of Bank of Canada, James Chapman, stated that cryptocurrencies pose no threat to the financial system, stating that the threat can only occur in the case of hyperinflation.
Let’s now take a look at the Bitcoin technical picture at the H4 time frame. The market is still in a rally mode as the local high was established at the level of $8,442. Since then a small corrective cycle was developed with a local low at the level of $8,006 which is just below the weekly pivot resistance at $8,164. The momentum remains strong and the target for bulls is still seen at the level of $8,555. The next immediate support is seen at the levels of $7,890 and $7,750.