Bitcoin analysis for 08/01/2019

The Japanese Financial Services Agency (FSA)is apparently open toapproving the crypto of ETF (Exchange Traded Funds) funds. Today’s financial media reports, citing a person “familiar with this case,” states that the FSA is currently investigating institutional interest in ETFs that track cryptocurrencies and ultimately give them green light.

The ruling of the Liberal Democratic Party of Japan is reportedly presented by the draft legal act by March 2019, which may introduce such a move by amending the existing financial regulations. The law, which will also bring more self-regulatory supervision of the industry and classify many ICO tokens as securities, could enter into effect by 2020, as indicated in the report.

However, media report added that the FSA gave up its plans to approve cryptographic derivative transactions on financial exchanges because of fears that the products will mainly lead to speculation. The increased coverage of cryptographic space in Japan is the result of the hacking of the Coincheck stock in January last year, which resulted in the stolen $ 533 million in cryptocurrencies.

Cryptographic ETF funds are perceived by many market observers as a way to bring institutional capital to the sector, although not everyone is enthusiastic about this idea. In the US, several market participants plan to introduce such products, although the Securities and Exchange Commission (SEC) has not approved them yet. In August, the agency rejected nine ETCO Bitcoin applications “to prevent fraudulent and manipulative activities and practices”, and in December postponed the decision of the product from VanEck / SolidX to February.

Let’s now take a look at the Bitcoin technical picture at the H4 time frame. After making a local high at the level of $4,064 the price is now correcting the move up and slowly drifts towards the level of $3,881 – $3,850. There should be a reaction on this level, preferably an upward bounce and a further move higher towards the local high and above. The target for bulls is still seen at the level of $4,200.

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

Source:: Bitcoin analysis for 08/01/2019