17.05.201809:15 Forex Analysis & Reviews: Bitcoin analysis for 17/05/2018

The State Duma of the Russian Federation will support the first reading of the initiative, which will add the basic norms of the digital economy to the civil code of the Russian Federation. This is the latest step on the way to introducing cryptocurrencies in the country, informs local press service.

"The initiative aims to minimize the existing risks associated with the use of digital objects to transfer assets to an unregulated digital environment to legalize criminal income, bankruptcy or sponsorship of terrorist groups" - said Pavel Krasheninnikov from the United Russia political party and head of the legislative work commission. The initiative to be considered next week does not mean that digital currencies will become a legal tender. Instead, a separate act developed by the Central Bank, the Ministry of Finance and the Ministry of Economic Development will set the conditions for digital currencies to be used as payments "in controlled quantities." The initiative will make the digital confirmation by the user in a smart contract equal to his written consent.

Russia first prepared a draft "On Digital Financial Assets" bill in March this year, which would provide federal laws regulating cryptocurrencies and ICO, after President Vladimir Putin's decision to initiate crypto-regulation from July 1. The project of 20th March defines cryptographic and digital tokens as assets intended exclusively for trading on authorized exchanges, also requiring that user accounts on the cryptographic exchange comply with AML regulations and terrorism financing regulations. "It is important that cryptocurrencies and tokens are included in the legal field of the Russian Federation. On the one hand, these are opportunities that we can not miss. On the other hand, when they are outside the legal field, you can use them to give bribes, withdraw money in the event of bankruptcy, pay black salaries and simply steal - without any consequences [for criminals]"- said Igor Sudets, director of the "Blockchain for Lawyers" program at the Russian University of Economics in Plekhanov in Moscow.

In conclusion, one might speculate, that after the cryptocurrency use in Russian Federation will become legal and regulated, it might be a good time for a national cryptocurrency? According to the current path of events this idea does not seems to be far fetched.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The price has bounced from the 50% Fibo at the level of $8,132 again, but the bounce was short-lived so far. The market is still trading below the golden trend line, so the outlook remains bearish. The next target is seen at the level of $7,974 and $7,712. The impulsive scenario invalidation level is still at $6,402.