South Korea considers shutting down some cryptocurrency exchanges
Bitcoin (BTCUSD on xStation5) declines as low as $13700
Dash (DSHUSD) struggles at vicinity of $1000 handle
Just as we thought that cryptocurrencies began to recover after a slump last week, another sell-off has stormed the market. One may say that it should be ascribed to end-year profit taking. However, the more likely reason behind this comes from South Korea, a country that by some measures is said to be responsible for over one-fifth of global trading in cryptocurrency market. This morning all major cryptocurrencies are in the red, with Dash (DSHUSD) being top-looser as it is sliding almost 10% at present.
Dash is a top-loser this morning. Source: xStation5
South Korea’s authorities said that in order to ease speculative madness they were considering a potential shutdown of some cryptocurrency exchanges in the country. This seems to be the next episode of the Korean government battle against cryptocurrencies after the meeting in early December. Back then it was agreed that regulations and principles for crypto exchanges are crucial. Moreover, country’s authorities do not rule out imposing a ban on foreign and underage traders as well as forbidding opening anonymous accounts. Of course, the latter is a matter of security in order to prevent cybercriminals hacking exchanges. The potential ban on youngsters is caused by concerns whether and how investing in highly volatile and speculative markets may impact Korean youth.
Looking at BTCUSD hourly chart we can see that the recovery after latest slump was stopped by the 61.8% retracement of the last downward impulse localized around $16273 handle. Afterwards, as the sell-off resumed, the price was pushed down to $13700. At present BTCUSD bounced back though it might be just a re-test of the 38.2% retracement level around $14200 handle. In case the bulls manage to break above this level, they may want to look out at the area just above $15300 where is located a recent resistance.
BTCUSD bounces off $13700 handle. Source: xStation5
Dash (DSHUSD) leads the losses this morning. Cryptocurrency has slid almost 10% and remains under pressure. After the news from South Korea emerged, DSHUSD plummeted towards $970 handle, where 23.6% retracement of the latest downward impulse is localized, and got second wind just a notch above $980. However, the recovery was neither big nor lasting as bears have returned to the market recently. If they prevail, the declines may extend to even $840, where crucial support from mid-December is located.
DSHUSD tries to recoup after initial decline. Source: xStation5
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