Crypto’s under surveillance

Media reported that the British FCA said on Friday that firms offering services linked to crypto-currencies would likely require it’s authorization. The regulation also includes a number of derivatives. On the same note, Australia also clamps down on regulation of crypto’s, as all digital currency exchange providers with operations in Australia must register with AUSTRAC as part of the country’s anti money-laundering efforts. On other news mining gets more and more energy consuming and crypto-currency consumers seek cheap energy in Norway and Sweden. Overall, as regulators seem to be on the move the outlook for bitcoin remains negative.

Bitcoin entered a sideways movement in the past few days between the 7425 resistance line and the 5710 support line. Technically, please be advised that Bitcoin has broken the downward trend line incepted since the 5th of March and is currently moving in a sideways manner. We see the case for the crypto-currency to continue to move in a sideways manner currently, however we retain the negative outlook as regulators may intensify efforts to set the crypto-market under control. Should the bulls take the reins we could see the crypto-currency breaking the 7425 resistance line while on the other hand should the bears have the upper hand we could see it breaking the 5710 (S1) support line.