04.07.201808:55 Forex Analysis & Reviews: Bitcoin analysis for 04/07/2018

Lawyers in the European Parliament say not to prohibit or ignore cryptocurrencies in a new report published this week, predicting that "they will stay with us for some time".

The report "Virtual currency and monetary policy of central banks: challenges for the future" commissioned by the Committee on Economic and Monetary Affairs contains a rich list of supporting statements on virtual currencies ("VC"). The publication contains a broad EU look at technology, which still includes legal projects to monitor the use of residents and reduce anonymity. "Thanks to their technological properties and global reach, transaction networks are relatively safe, transparent and fast" - we read in the summary of the report, describing VC as a "modern form of private money".

This gives them good prospects for further development. However, it remains unlikely to challenge the dominant position of national currencies and central banks, especially in the main currency areas. As with other innovations, virtual currencies pose a challenge for financial supervisors, in particular, because of their anonymity and cross-border nature.

As the main media and current financial data continue to talk about the "death of Bitcoin," especially in the current price conditions, the perspective of the European Parliament seems remarkable. Apart from the fact that he believes in their longevity, the report is addressed to uninformed people, directly accusing them of being wrong if they think that cryptocurrency technology is an illegal apparatus by nature.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The price is trading slowly above the weekly pivot at the level of $6,209, but the bulls did not manage so far to break out through the technical resistance at the level of $6,809. The short-term correction to the upside is continuing and the nearest technical support for the bulls is seen at the level of $6,209 and $5,959.