Bitcoin analysis for 28/03/2018

It seems that Russian legislation has been looking for the right regulatory approach for cryptocurrencies for a long time. This time, concepts such as "digital money" or "digital rights" appear in the draft new legislation. The new law, apart from tax issues, would also define cryptocurrencies as a subject in matters of inheritance or bankruptcy. The initiators of the new project are the chairman of the Russian Duma, Wiaczeslaw Wolodin and its deputy, Pawel Krasheninnikov. The law in this form (although with numerous restrictions and only in specific cases) would not exclude the use of cryptocurrencies as a means of payment in this country. As we read from the project, acceptance of digital currencies for the purposes of payments, deposits or units of account would not be obligatory, although admissible in the Russian Federation, if such an operation would be "technically possible" and "risk-free". "In the long run, digital money will be used as a means of payment, but only in cases and on the terms set out by the new law," says Krasheninnikov.

It is worth noting that only a week earlier, also to the lower house of the Russian parliament, the same type of project (titled "Digital Financial Assets") was obtained in that case by the Ministry of Finance of the Federation. This document states, among other things, that cryptocurrency holders would have the right to exchange them for rubles or foreign currency only through state-licensed exchange platforms. The bill of the Ministry of Finance also attempts to define the principles of operation of cryptocurrency mines in this country (extraction of cryptocurrencies would be defined as business activities beyond the set limit of electricity consumption), as well as business projects financed based on ICO (Initial Coin Offering). In October last year, President Vladimir Putin issued a personal directive addressed to the Russian government and the Central Bank there, giving them until July 1, 2018, to determine their legal status, including blockchain technology, cryptocurrency, and so-called smart contracts in Russian Federation.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market dropped below the 61% Fibo support and made a new low at the level of $7,500 as the wave C of the corrective wave 2 is extending. The invalidation level for the current impulsive upward scenario is at the level of $7,269. Any violation of this level would open the road towards the next important technical support at the level of $5,829.

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