Bitcoin analysis for 11/09/2018

The European Commission will conclude this year's regulatory assessment regarding the management of cryptocurrency resources. Speaking at a press conference following the meeting of the Economic and Financial Council, Valdis Dombrovskis, Vice-President of the European Commission, said that member states support changes in the regulations governing the activity of the cryptocurrency industry in the economic region: "We also had a good exchange of views on the subject of crypto-assets. We are aware of the fact that crypto-assets will be permanent. Despite recent turmoil, this market is still growing" says Dombrovskis. In addition, he suggested that initial monetary offers (ICO) could become a viable form of alternative financing: "Already last year, ICO helped raise more than $6 billion in funding, and this year will be much larger" he added. In order to make the best use of this potential, Dombrovskis claims that the challenge now is to "categorize and classify" cryptographic assets and whether the EU should apply the existing rules of the financial market or create a set of special rules dedicated to cryptocurrencies" In this context, we are currently working with the European regulators on what we call regulatory mapping of cryptographic resources to answer these questions exactly. This will provide a solid basis for further work and make decisions on further steps in this area" he says.

In the past, Dombrovskis was positive about the ICO as an innovative method of raising funds. He pointed out that regulators would take a more individual approach to manage specific projects, although he admitted that the Commission had a lot of work to do.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market remains locked inside a horizontal zone between the levels of $6,365 - $6,083. Moreover, the black trend line still provides the dynamic resistance for the price around the level of $6,350 and the Pin Bar candlestick reveals the weakness of bulls so far. In order to regain the control over this market, bulls must break out above the technical resistance at the level of $6,514 and spike higher towards the level of $6,752 and above. Otherwise, the bears will push the prices lower towards the level of $6,083 and then $5,846.

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