Bitcoin, Litecoin and Bitcoin Cash analysis: Japan seeking a more regulated cryptocurrency market

  • Japan increases control over Crypto trading platforms and demands more safety guarantees.
  • Balcanic miners being accused of causing trouble in the European electrical grid.

Japan keeps going forward in the race to regulate the Crypto markets, putting several trading platforms under investigation, as Japanese officials argue they don't offer guarantee safety for investments and they don't put enough efforts into the tax-evasion fight. After the scandals from Mt.Gox and Coincheck, the Japanese regulators are stepping in to try to prevent potential market disrupting events.

On the other hand, in Europe there are voices claiming that Bitcoin miners from Serbia and Kosovo are responsibles for serious problems in the European electrical network. Since last January, the European grid has suffered frequency divergences, causing trouble in home appliance devices around the old continent. The Balcan region has very low energetic costs, down at levels similar to China, and the location of several big mining infrastructures there has brought some attention. Anyway, this can be considered just noise right now, as the Serbian-Kosovo border is a conflict area with deeper problems than the presence of mining servers.

 

BTC/USD 4H chart

BTC/USD

BTC/USD has reached $8376.14 during the Asian session, touching the inverted head&shoulders target, the one we foresaw back at the start of the week. We can find several return figures in different timeframes across the Crypto board, but the indicators still don't seem to be too well-positioned for immediate price swings. Expect volatility in tight price ranges. We should be vigilant, and if price dips down below the support lines and picks up bearish steam, it would erase the current formation, indicating an important weakness signal for Bitcoin.

MACD in the Bitcoin 4-hour chart keeps its bearish potential, although a retracement movement is not out of the cards after the strong falls that BTC/USD has experienced.

Directional Movement Index shows a big distance between buyers and sellers, reaching such an extreme divergence that usually brings contrarian action. D- is moving below the ADX line and technically it's in position to progressively slow down its current strength.

Similar scenarios in the altcoins analyzed

Among the altcoins analyzed, we can find similar technical outlooks that stress the importance of the current outlook.

LTC/USD 4H chart

LTC/USD

MACD in the Litecoin 4-hour chart shows less bearish potential than in the Bitcoin one, although it also requires important retracements if the indicator wants to turn to the upside.

Directional Movement Index also shows a lot of amplitude, which should be favorable to trend swings, with the D- clearly below an ADX that has skyrocketed and doesn't look to be slowing down anytime soon. Buyers have disappeared and we should be tracking very closely the D+, as it might be key to recognize a possible exhaustion of the bearish leg.

BCH/USD 4H chart

BCH/USD

MACD in the Bitcoin Cash 4-hour chart is on an ideal situation for a potentially big bullish move. That would cross up the indicator, leaving a divergence that would support such a bullish swing. Next few trading sessions should be vital in the mid-term.

Directional Movement Index is in an identical situation than its fellow Cryptos, with D- below the ADX looking to keep losing steam. Buyers are still missing and that is the worrying sign, as there can't be any surge with no buyers. ADX is showing good trend strength with any weakness signs.

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