Bitcoin bearish edge for the week as regulation in focus

Yesterday, Janet Yellen, at an event hosted by American University, suggested the need for the regulation of cryptocurrencies and digital assets. Unfortunately, the Treasury Secretary didn't give a lot of detail in this regard, but management is on the horizon. Her speech comes when crypto is becoming more accepted and mainstream, and any government regulation will need to balance protection with innovation.

The weekly bitcoin chart has developed a bearish edge (2). Moreover, last week's candle (1), the cryptocurrency closed off its high for the week. If we combine candles 1 and 2 into a single candle (3), we get a candlestick similar to an inverted hammer with a lengthy selling wick.I.e., bulls pushed price up to the high last week before losing control to the bears, who have maintained control for the time being.

Russell Shor

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.

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