16.08.201807:49 Forex Analysis & Reviews: Bitcoin analysis for 16/08/2018

A governmental committee made up of Saudi regulators issued a statement that trading in cryptocurrencies in the kingdom is illegal. According to a statement issued on Sunday, a permanent committee warned against the trading of cryptocurrencies due to the negative consequences and high risk posed by traders who are out of the government's supervision.

"The committee assured that the virtual currency, including, but not limited to, Bitcoin, is illegal in the kingdom and neither party nor person is licensed for such practices "- explains the statement.

The publication does not indicate what the consequences may be for sites that would sell cryptocurrencies.

Established by the highest decree, the Standing Committee on Consciousness in Action on Unauthorized Securities on the currency market was created by five regulatory bodies of the Middle East, including the Capital Market Office (CMA) and the Saudi Monetary Fund (SAMA) - in practice, the central bank of this country.

In addition to the mandate for unauthorized securities, the commission is also required to notify the relevant agencies of any activities related to the virtual currency in order to limit their access to society.

This warning appeared after the critical remark of the Saudi Prince Al-Waleed bin Talal in December 2017, in which he said that Bitcoin one day imploded. Prince additionally compared the world's largest cryptocurrency to Enron, an American energy company, which fell in early 2000 after revealing huge accounting scams.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market has bounced from the local low at the level of $5835 and rallied towards the important technical resistance at the level of $6597. Nevertheless, the bulls were too weak to break through this level and the Bearish Engulfing candlestick pattern was created at this level. Currently, the price is trading below the weekly pivot at the level of $6,252 and the question remains whether the bulls will try again to break the technical resistance. The nearest support is seen at the level of $6,083.