Bitcoin analysis for 23/02/2018

According to a BBC report from February 22, the British Parliament’s Treasury Committee will start investigating cryptocurrencies and their impact on the British investors and the company. The investigation is caused by the growing global interest in cryptocurrencies, as well as the recent rise and fall of the crypto market from the new year. Nicky Morgan, chairman of the Treasury Committee, told the BBC that she wanted to protect people who “may not be aware that cryptocurrencies are currently unregulated in the UK”, but do not want to interfere with the blockchain technology behind digital currencies. “The Treasury Committee will look at the potential risks that digital currencies can bring to consumers, businesses and governments, including the risk of price volatility, money laundering and cyber crime, as well as the potential benefits of cryptocurrencies and Blockchain technology. It will also assess the creation of innovative opportunities and the possible degree of disruption of the economy and the replacement of the traditional method of payment.” – Morgan told the BBC.

The BBC writes that the commission will examine what it considers crucial in the sphere of cryptocurrencies, namely, whether they could ever replace traditional payment systems. And if so, what benefits would it bring to society, businesses and governments. Regarding regulation, the committee will hear evidence on how regulation could “bring benefits to digital currency start-ups by increasing consumer confidence” and examine how other countries have dealt with regulating digital currencies. The British House of Parliament also recommended exploring the blockchain technology for government services, including national security and public security, healthcare, cyber security, customs and immigration.

Let’s now take a look at the bitcoin technical picture on the H4 time frame. The price has retraced 38% of the previous swing up and bounced from the level of $9,404. This level might be a bottom for the wave 2 as there is a clear double ZigZag structure inside this wave. Currently, the key resistance is seen at the level of $10.120, so if this level is violated, then the price will rally towards the wave 1 high at the level of $11,750.

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The material has been provided by InstaForex Company – www.instaforex.com