Bitcoin analysis for 12/02/2018

French and German finance ministers are still demanding strict regulation of Bitcoin and other cryptocurrencies. According to reports, the French Finance Minister Bruno Le Maire and the Interim German Finance Minister Peter Altmaier wrote a letter to fellow finance ministers of the G20, in which they argue that cryptocurrencies are not only risky for investors but also threaten the long-term global financial stability. "Given the rapid increase in the capitalization of tokens and the emergence of new financial instruments, these changes should be closely monitored (...) Such variable tokens may have detrimental consequences for uninformed investors who do not understand the risks they are exposed to." - they write.

Of course, this sentiment can be easily interpreted as coming from authorities of traditional financial institutions, experiencing increasing pressure from the rapidly growing, and the increasingly popular cryptocurrency market, which aims to disrupt traditional financial structures. The Finance Minister Bruno Le Maire and the Interim German Finance Minister Peter Altmaier are not the only ones who are concerned about Bitcoin and other cryptocurrencies. The member of the Board of the European Central Bank Yves Mersch expressed his negative opinion on Thursday, stating that cryptocurrencies are not money, nor will they be in the foreseeable future. In addition, the head of the Agency for International Settlements Agustin Carstens expressed his deep-rooted concerns by asking the central banks to close Bitcoin, claiming that cryptocurrencies are becoming a threat to financial stability.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The bounce from the level of $5,830 was in three waves only, so the overall strength of the market might not be not that much visible, and the current wave progression is still in favor of another corrective wave to the upside. The key technical resistance is still the zone at the level of $9.146 - $9,515.


The material has been provided by InstaForex Company -