Bitcoin analysis for 28/02/2018

The European Commission hosted a conference entitled "Cryptocurrencies - Opportunities and Risks", including the impact of cryptocurrencies on financial markets and problems arising in connection with Initial Coin Offers (ICO). The meeting was chaired by Valdis Dombrovskis, Vice-President of the Commission responsible for financial stability, financial services and the union of capital markets. The Commission's press release described the event as a place of organization, countries, central banks, scientists and entrepreneurs of the European Union to respond to the challenges of cryptocurrencies and the underlying Blockchain technology.

The conference was divided into three themes: cryptography and financial markets, investor protection and market integrity and ICO. After the end of the roundtable, Dombrovskis told the press that since Europe has such a small share in cryptocurrency trading, which he called a "global phenomenon", the next step is to discuss the same topics at the G20 level, reflecting the opinions of officials from the French and European Central Bank. He also told one journalist that he also did not exclude the possibility of speeding up regulation at EU level, pending future developments in the crypto world. He added that "Blockchain technology has strong promises for financial markets" and that steps should be taken not to hinder technological innovation. Dombrovskis reiterated the previous position of EU regulators on the risks involved in investing and trading in cryptocurrencies at the end of their roundtable debate, stating that "warnings about risks to consumers, investors must be clear in all jurisdictions."

The fintech action plan is to be presented by the European Commission at the beginning of March.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market is still in a local uptrend and now is testing the golden trend line from the downside again. Any violation of the level of $11,000 will open the road towards the level of $11,698 (local high) and then $11, 937 ( wave (b) high). Only a sustained breakout back below the technical support at the level of $9,170 would change the current outlook from bullish to bearish.

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