Bitcoin dodges regulatory bullet

Regulatory developments for Bitcoin are largely seen as bullish for the asset, giving the cryptocurrency sector more credibility and allowing more large corporations even governments to adopt Bitcoin. One recent regulatory proposal out of the E.U. that had the potential to be extremely bearish for the space was recently scrapped. I refer to the proposed ban on PoW (proof of work) based cryptocurrencies, namely Bitcoin.

The proposal comes out of concerns about PoW’s environmental impact. If it had been written into law, then Bitcoin and currently Ethereum which has still not switched over to PoS (proof of stake) effectively illegal to mine, trade or sell the top two cryptos representing around 60% of the total market cap. of the entire sector. Currently, the total market cap of all cryptos is just under $2 trillion.

On the technical front, Bitcoin is still showing bullish signs despite today’s drawdowns of less than 1%. Bitcoin has still yet to crack the elusive level of $44,275. However, it did manage a higher high of $45,400 and a higher low of $43,370 than yesterday. That marks four consecutive daily candles that contained both higher highs and higher lows. The intra-day high also reached above the 100-day moving average. The last time Bitcoin was above this major moving average was back in December 2021.

The daily Heikin Ashi chart is also very bullish, with today’s candle having a large body size and no lower wick.