17.08.201808:03 Forex Analysis & Reviews: Bitcoin analysis for 17/08/2018

The European Parliament's Committee on Economic and Monetary Affairs is working on new regulations for crowdfunding, which could include part of the initial monetary offers (ICO), says the initial report.

Ashley Fox, British Member of the European Parliament, proposes to include several ICOs in the new draft regulatory framework for crowdfunding, which is being developed from March. The report says that although the draft crowdfunding legislation may not provide a comprehensive solution to the problem of ICO space regulation, it is a very necessary step towards introducing appropriate regulatory measures to protect investors.

Emphasizing that the ICO represent "an excellent stream of funding for technology start-ups", the report proposes that the new framework offers an opportunity for ICO that want to prove their compliance with the requirements of this regulation.

"To enable a competitive EU legal framework, crowdfunding service providers should have the right to raise capital through their platforms using certain cryptocurrencies [...]. ICOs offer new and innovative ways of financing, but they can also generate significant market risks, frauds and cyber threats for investors. Accordingly, [ICO] should comply with certain additional requirements in accordance with this Regulation"- we read in the report.

Fox proposes that the new requirements should not cover all types of ICO. Omissions include ICOs, which are considered "private practices" that use a counterparty or which seek to collect more than 8 million euros - a threshold "to which the EU Member States may exempt securities from the obligation to publish a prospectus pursuant to Art. 3 of Regulation (EU) 2017/1129 of the European Parliament and of the Council".

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market is still trading inside of the horizontal zone between the levels of $5,846 - $6,597, but the downside momentum is decreasing. In a case of a breakout higher, the next target for bulls is seen at the level of $6,782. The nearest intraday support is seen at the level of $6,200.