Bitcoin analysis for 31/05/2018

Singapore's Monetary Office (MAS), the de facto central bank of a city-state, proposes changes to existing laws that would facilitate the entry of decentralized Blockchain-based exchanges.

According to the published document, MAS claims that the current, single-level legal framework of "recognized market entities" (RMO) is not able to meet the demand for new business models based on new technologies. To solve this problem, the authority proposes the introduction of a three-tier structure to facilitate market access for small-scale platforms: "MAS has observed the emergence of new business models in transactional platforms, including commercial facilities using Blockchain technology or platforms that enable P2P exchange without the participation of intermediaries. [...] As the current RMO regime has existed since 2002, the regulatory framework for market actors needs to be revised to ensure that they continue to meet the requirements of a changing landscape" we can read in the official report.

In particular, the level 3 of the proposed rules apply to market participants that are significantly smaller than well-established stock exchanges. Its purpose is to enable the implementation of Blockchain and P2P technology and the introduction of services in the supervised environment: "This new level is aimed at facilitating new market participants who develop solutions for wholesale market participants or business entities who have left the sandbox and are profitable, but whose enterprises are unable to meet the requirements of the existing RMO system" - explains MAS.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The price is about to test the golden trend line from below around the level of $7,700. In a case of a breakout, the next target for bulls is seen at the level of $7,890 and $7,977. The immediate support is seen at the level of $7,435, the key support is still at swing low at the level of $6,984. The growing bullish divergence between the price and the momentum oscillator supports the bullish outlook.

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The material has been provided by InstaForex Company - www.instaforex.com