FX.co ★ Bitcoin analysis for 15/05/2018

In Thailand, under the Royal Decree, the legal framework for cryptocurrencies comes into force. The law published in the National's Royal Gazette defines cryptocurrencies as "digital assets and digital tokens" and passes them under the jurisdiction of the Thai Securities and Exchange Commission (SEC).

Thailand's media quotes finance minister Apisak Tantivorawonga, who claims that the new measures are not intended to prohibit cryptocurrencies or ICOs. The position of the Minister of Finance replicates the position of the SEC, which is widely supported by the ICO, provided that they are regulated.

After the royal decree has become effective, sellers of digital assets or tokens must register with the SEC within 90 days. Failure to do so requires a penalty of twice the value of an unauthorized digital transaction or at least 500,000 baht (approximately $ 15,700). Sellers who do not comply can also be sentenced to imprisonment for up to two years.

The Ministry of Finance and the SEC extend the legal framework and demand from all national cryptographic exchanges, as well as independent brokers and cryptographic dealers, registration in the relevant authorities in accordance with the provisions of the Royal Decree.

Minister Tantivorawong stressed that these activities are focused on the protection of investors, as well as on preventing the use of cryptocurrencies for criminal activities, money laundering and tax avoidance.

This decree has been subject to several changes since its presentation in the form of a project in March. The uncertainty caused by the waiting for regulations caused that the Central Bank of Thailand banned domestic banks from cryptocurrency transactions and investments in February this year. In the same month, regulatory uncertainty also caused the Thai digital stock market (TDAX) to temporarily suspend ICO transactions and registrations. At the end of March, the Ministry announced the long-awaited final version of the tax framework for cryptocurrencies.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The price has been trying to bounce higher again, but the golden trend line still hasn't been violated yet. The market made a new local high at the level of $8,850, just below the technical resistance at the level of $8,931. Only a sustained breakout above the trend line might result in a test of the wave b high at the level of $9,320. Otherwise, the price will fall again towards the level of $8,132 or below as the wave 2/B is still being considered uncompleted.