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

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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.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

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.

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