FX.co ★ Bitcoin analysis for 22/05/2018

A group of regulators in Canada and the United States launched an "international suppression" of cryptocurrency frauds. The "Operation Cryptosweep " was presented during a Monday event organized by the North American Securities Administrators Association (NASAA). Its existence was first reported by the financial media, and details were later presented in the Tennessee Department of Commerce and Insurance (TDCI) and the Texas State Securities Board (TSSB).

Cryptosweep, according to statements, includes "almost 70 investigations and 35 pending or completed enforcement actions since the beginning of the month". It is said that this number is expected to increase, although it is not clear when any related enforcement activities will be presented. The activity gained momentum when a task force composed of NASAA members was convened to initiate a coordinated series of ICO investigations and investment products related to cryptocurrencies. The NASAA representative refused to comment on the matter, but other participants in the operation presented a picture of extensive efforts to eliminate fraud. The latest example of state regulatory action was publicizing false support from celebrities such as actress Jennifer Aniston. "The activities announced today are just the tip of the iceberg." - said in the statement deputy commissioner of TDCI, Frank Borger-Gilligan. Joseph Rotunda, director of the TSSB Enforcement Department, has a similar opinion: "The investment market in cryptocurrencies is saturated with common scams, and our work only reveals the tip of the iceberg." - he said.

It looks like more countries are joining forces to prevent the frauds in the crypto-enthusiasts community, which means, the cryptocurrencies, tokens and ICO are now on a good way to being perceived as a serious branch of the economy by the general public.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. After a failure to break higher above the level of $8,570 the market is now sliding down towards the trend line support at the level of $8,132. There are still two scenarios available. So, it is still possible the last breakout was a fake one. In order to confirm the strength, the bulls would have to impulsively move towards the level of $8,900 without making a new low below the level of $7,887. Otherwise, the alternative scenario is still valid and indicates a possible drop towards the 61% Fibo at $7,712.