FX.co ★ Bitcoin analysis for 12/03/2018

The European Commission has announced its expected official line of action on the regulation of Fintech technology, including Blockchain technology, in all EU Member States. In a press release outlining the ideas that the Commission is now calling an action plan, high-level EU officials are expressing the need to create structures that allow innovative technologies to be introduced in the future. "Technologies such as Blockchain can mean major changes in financial services and more [...]. We need to create a structure that will allow innovation to thrive while managing risk and protecting consumers."- said Commissioner for Digital Economy and Society, Mariya Gabriel.

The action plan focuses on five main areas. Creation of FinTech EU Laboratory, Blockchain Observatory, promotion of digitization of information from registered companies, cybersecurity efforts and the best possible regulatory practices, which, according to the Commission, will be based on guidelines from the European Supervisory Authorities. Also, crowdfunding licensing schemes are also planned. Government plenipotentiary Valdis Dombrovskis claims that this will help crowdfunding platforms increase their reach in Europe.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market has bounced twice from the grey rectangle zone between the levels of $8,085 - $8,397 and now is testing the old golden trend line again. After the weekend the price got stuck between the weekly pivot at the level of $9,738 and local support at the level of $9,434. If bulls want to gain more control over this market, then they have to move the price towards the level of $10,111 and break out above it. This move will confirm the bulls strength and make the attack of the recent high at the level of $11,714 possible. Otherwise, the bears will push the price back towards the grey rectangle area.