Technical analysis of Bitcoin for 12/06/2019:

Crypto Industry News:

The Russian parliament, the State Duma, is considering imposing administrative responsibility for the extraction of cryptocurrencies, as reported by the local press agency TASS.

In an interview with TASS, Anatoly Aksakov, chairman of the State Duma Committee on Financial Market, said that the government could introduce administrative responsibility for the extraction of the digital currency by the end of June.

All operations related to cryptocurrencies are contrary to Russian legislation and will be considered illegal. This means that mining, organizing emissions, circulation, creating exchange points for these tools will be prohibited. The administrative liability in the form of a fine will be incurred for such actions. We believe that cryptocurrencies created on open Blockchains, such as Bitcoin, Ethereum and others, are illegal.

– Aksakov announced.

Aksakov stressed, however, that despite the ban on extracting crypts in Russia, it is still possible to own Bitcoins if they were purchased under foreign law at foreign points of sale and exchange points.

The main cryptographic bill, “On digital financial assets”, was approved by the Russian parliament in May 2018, but was later sent back to the first reading stage after reports on the absence of major key terms such as cryptocurrency, cryptocurrencies, and tokens. Since that time, Russia has postponed the adoption of cryptographic regulations due to the requirement of the Anti-Money Laundering Team (FATF) to add cryptographic concepts.

At the beginning of June, Lyudmila Nowoselov, chair of the Intellectual Property Court of the Russian Federation and the judge of the Supreme Court of Arbitration, also argued that the concept of digital assets should be included in Russian civil law.

Technical Market Overview:

The BTC/USD pair is consolidating the recent gains in a narrow horizontal range, but it does not look like it is about to go down. On the contrary, the price might be ready for another leg up as the momentum is increasing. The bulls tried to break through the technical resistance at the level of $7,978 already but so far no avail. In the case of a breakout, the next target is seen at the level of $8,102 and $8,241. On the other hand, any violation of the level of $7,405 will lead to the sell-off towards the level of $6,986.

Weekly Pivot Points:

WR3 – $9,578

WR2 – $9,128

WR1 – $8,319

Weekly Pivot Point: $7,869

WS1 – $7,020

WS2 – $6,556

WS3 – $5,664

Trading Recommendations:

The best strategy in the current market conditions is to trade in the direction of the short-term trend, which is still down and the corrective cycle continues. All the local bounces and correction should be treated as another opportunity to open the sell orders for a better price. Please notice, the larger time frame trend is up and there are no signs of any trend reversal, this is only the correction during the up trend.

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