According to coindesk.com, yesterday, the European Parliament's economic and monetary affairs committees defeated a motion to limit the use of proof-of-work. The votes tallied 30-23, with six committee members abstaining. Proof-of-work adds new blocks of transactions to a blockchain and is an incredibly energy-intensive process. If passed, the proposed rule could have banned bitcoin across the EU's 27 member states.
We note that the daily bitcoin chart below show's the crypto in its neutral zone, between the blue bands. However, we have added the heikin ashi (HA) as an overlay, a trend-following indicator. The HA is red, which denotes weakness. The central pivot, P, on the hourly chart on the right, is a crucial level. If it fails to attract a bid as support, market participants should monitor the hourly chart's stochastic. It may suggest a building bearish momentum if it maintains or oscillates near current levels (green rectangle).
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.