Fundamental Analysis on April 21, 2023: The European Parliament Passes a Law on Cryptocurrencies

FXOpen

On Thursday, MEPs voted 529 to 29 with 14 abstentions to approve Markets in Crypto-assets (MiCA), a law that creates a regulatory framework for the circulation of cryptocurrencies. On the one hand, regulation can help the wider adoption of cryptocurrencies. On the other hand, how much can end users like it if the law allows tracking transfers in cryptocurrencies and blocking suspicious transactions?

The real impact of the law will be judged later — whether it will control or protect users. In the meantime, their attention is more focused on the bearish dynamics of BTCUSD around the psychological level of USD 30k — we have been talking about this since last Wednesday.

The BTCUSD rate fell to the median line (1) of the ascending channel, which has been relevant since the beginning of the year, so the bitcoin quote can find support here. However, arguing about the position of the current price relative to the A-B triangle, which testified to the temporary balance of supply and demand, one can come to negative conclusions. After all, if we evaluate the rally on April 10-11 as an imbalance in favor of demand forces, then the latest price action indicates that the imbalance occurred in the wrong direction. And where the bulls did not succeed, the bears can.

This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Crypto CFD Trading with FXOpen

Crypto CFD Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 40 markets 24/7
  • Trade with tight spreads and low commissions
  • Choose from 3 trading platforms: MT4, MT5, or TickTrader
Learn more

Latest articles

USD/CAD Consolidates
Forex Analysis

USD/CAD Consolidates

In the second half of April, the USD/CAD chart has shown a decline in volatility following significant spikes observed since February.

The Canadian dollar has stabilised against the US dollar within the 1.390–1.380 range over the

Why Coinbase (COIN) Shares Are Rising
Shares

Why Coinbase (COIN) Shares Are Rising

As the Coinbase (COIN) stock chart shows, trading closed yesterday above the $200 mark — for the first time since March.

Since the beginning of April, COIN's share price has risen by nearly 20%, while the S&P 500 index

Forex Analysis

USD/CHF Rebounds from Multi-Year Low

As the charts show, the USD/CHF exchange rate fell below 0.810 US dollars per franc earlier this week. The pair had not traded this low since the 2008 financial crisis. Demand for the Swiss franc as a safe-haven

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.