FX.co ★ Bitcoin analysis for 10/05/2018

The Ukrainian National Securities and Exchange Commission (SSMCS) will consider recognizing cryptocurrencies as a financial instrument. The announcement was made public on Facebook by the head of the committee, Timur Khromaev, after the annual conference of the International Organization of Securities Commissions (IOSCO) on the topic of cryptocurrencies and ICO. According to Khromaev, the crypto industry has developed significantly over the past three years, causing the cryptocurrency market to become "an integral part of economic and financial relations". The SSMCS commissioner stressed the need for the legal recognition of cryptocurrencies and for the position of financial supervisors to be adjusted. Khromaev suggests that cryptographic assets and operations should be considered in terms of the existing legal framework based on the principles underlying the assets and not their form, i.e. paper or digital. He added that the new regulations should take into account the dynamic nature of digital content. Khromaev claims that the new cryptocurrency rules and regulations will be defined at the national level, as the road is still far from international standards.

Ukraine has adopted a precarious position regarding the cryptocurrencies. In August 2017, the National Bank of Ukraine (NBU) issued a statement in the crypto case, claiming that no other currency or substitute currency, except national currency, can be issued or used as a form of payment in the country. In October, the NBU reported that the High Council of Experts approved applications to establish the legal status of crypto, and in January 2018, the bank said that it is considering launching a digital version of its national currency, the hryvnia.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market has bounced from the level of $8,986 after a short-term trendline test from the upside. Currently, the price is moving up as the first wave of the corrective cycle has been completed. The next target for the price is the level of $9,409 (weekly pivot) or even $9,595. Nevertheless, the overall corrective cycle in the wave 2 still needs more waves to the downside to complete.