02.05.201808:57 Forex Analysis & Reviews: Bitcoin analysis for 02/05/2018

The latest Gov't report from Hong Kong reports that Bitcoin puts a "medium-low" risk in financial crime, according to Hong Kong Financial Services and Treasury (FSTB).

The report was to establish a status on money laundering and terrorist financing. It states explicitly that virtual currencies, such as Bitcoin, are not particularly used in any type of financial crime, although there is an inherent vulnerability to money laundering. The report mentions the use of cryptocurrencies in the pyramids, so-called Ponzi and cybercrime. The report refers in particular to police reports, where in 2013-2017, 167 Bitcoins participated in such non-legal projects. "Although we have not found a significant risk in these modern payment methods, it is a rapidly growing field that requires constant monitoring."- notes the report, pointing out that financial supervision authorities in Hong Kong and law enforcement agencies will work together to look at the risks associated with ICO and generally cryptocurrencies.

According to the report, cryptocurrencies are not considered legal tender in Hong Kong. FTSB suggests that because Hong Kong is one of the freest economies in the world with a dynamic currency market and a lack of capital control, VCs are not as attractive as in economies where people may try to avoid currency controls or seek refuge from high inflation rates. Finally, it was also added that BTC ATMs in Hong Kong are not widely used by citizens.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The price has broken below the black trend line at the level of $9,126 and now is heading towards the level of $8,706. The key technical support is still seen at the level of $8,355, but the current price action does not look impulsive actually. It is quite possible that instead of five waves to the upside, the market will perform only three waves up and will continue with the downtrend.