08.12.201711:31 Forex Analysis & Reviews: Bitcoin analysis for 08/12/2017

The British State Treasury is planning to introduce regulations on Bitcoin and other cryptocurrencies. The agency is increasingly concerned about the possibility of using digital currencies in illegal activities, such as money laundering and tax evasion, due to their increasing popularity.

According to the planned legislation, which is to cover the entire European Union, cryptocurrency traders will be forced to disclose their identity and report any suspicious activities. Such a move by the UK government may cause confusion among industry players, as most of the stock exchanges in the country are already in line with existing customer-awareness regulations (KML) and money laundering laws (AML).

The proposed regulation can be implemented by the British Government immediately due to the rapidly growing digital currency market in the country. The constant increase in their prices on the market, in particular Bitcoin, which attracted many people, may encourage further investment. The constant lack of applicable regulations regulating the trade and use of cryptocurrencies may cause the degree of risk to increase.

According to the spokesman of the British Ministry of the Treasury, a new regulation on cryptocurrencies may be implemented by the end of 2018. However, the date of introduction of the regulation may be changed, and the details of the proposed regulations are not yet specified. It is also expected that in the near future more regulations related to digital currencies will be introduced in various EU countries.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The price has made a new all-time high at the level of $16,628 and now the internal corrective cycle is in progress. The local support at the level of $14,066 holds the line very well so far. From the Elliott Wave Theory point of view, there is still one more wave to the upside missing - wave (v). No indication of an uptrend change so far.