Bitcoin analysis for 16/02/2018

The head of the International Monetary Foundation (IMF), Christine Lagarde, said that the regulation of cryptocurrencies was inevitable and necessary at the international level. Asked during the interview about whether the growing popularity of cryptocurrency markets was caused by the hunger for high profits in global markets, Lagarde replied that that trend showed the mentality of those who were looking for high-performance products, as well as an element of speculation. She added that it was also driven by dark activities, which was a reference to the potential use of cryptocurrencies in money laundering and other illegal online activities, due to their anonymous character.

Regarding the regulation of cryptocurrencies, Lagarde spoke about its inevitability and the need to focus on the regulation of actions over the subjects: "This is the sphere in which we need international regulation and proper supervision."- she said.

According to Lagard, already in October 2016, banks will adopt digital currencies in the next five years, while a regulation will be needed to prevent money laundering and illegal activities. However, in October last year, she expressed interest in the IMF, in launching its own cryptocurrency, after the previous comments on the potential benefits for countries with weak national currencies.

As the cryptocurrency markets experienced a quite unstable start of the new year, banks and financial institutions began to treat regulating cryptocurrencies more and more seriously. On the other hand, the joint hearing of Future Commodity Futures Commissions (CFTC) and Securities and Exchange Commission (SEC), on February 6, gave the impression that the future regulations must cherish the cryptocurrency sector rather than crush it.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market has tested the level of $10,000 (round psychological number) and even gone a little higher towards the level of $10,239 before starting to test the level of $10,000 from below. In a case of a further move higher, the next technical resistance is seen at the level of $11,896 ( weekly pivot resistance is seen at the level of $10,998 ). On the other hand, the next support is seen at the level of $9,146.


The material has been provided by InstaForex Company -