Bitcoin had a sharp drop today, falling from $14,800 to as low as $12,800 before recovering somewhat. We are currently quoted around the $13,900 handle. News that South Korea may ban crypto-currency trading in the country send almost all coins in the red today. Some recovered better than others.
Ether Uptrend Remains
Despite some losses overnight, the rally in ETH/BTC continues. We are currently quoted at 0.08456 BTC, down from 0.0965 BTC yesterday. Strong Ether gains are underpinning this rally, with the ETH/USD counterpart trading at $1201 at the moment.
Support on the way down can be found at the 0.08177 BTC level, followed by the 0.08 round figure. Further down we have more support at the 0.06856 swing low and the 0.06749 swing high. A break of this resistance area may extend the move toward the 0.06 round figure. But the rally will remain in place until the 0.05405 BTC level is taken out.
Resistance higher up can be found at the 0.09322 former high, followed by the latest swing high at 0.0965 and the 0.1 round figure. On the longer-term weekly and monthly charts, ETH/BTC is also in an uptrend.
Dash prices are back in a range versus bitcoin. We are quoted at 0.07272 BTC per coin right now. A new rally requires a breakout above 0.08424 while a new downtrend may commence on a break below 0.059 BTC swing low. For now, we are in ‘wait and see’ mode.
The daily chart above with the zig-zag price action perfectly shows the current market sentiment. The bulls and bears are currently locked in a battle here. On the weekly charts, DSH/BTC is also range-bound. The monthlies are keeping a slightly bullish bias.
Bitcoin Drops $2,000 on South Korea News
Bitcoin prices dropped over $2,000 last night as news emerged that South Korea may ban crypto-currency trading in the country. Justice minister Park Sang-ki said the government was preparing a bill to ban trading of the virtual currency on domestic exchanges.
“There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges”
This was later retracted somewhat with the government saying the ban is only one of the proposals. After the China ban last year, South Korea now currently accounts for the majority of bitcoin trading.
Open a Metatrader 4 Cryptocurrency Forex account with FXOpen broker.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage, 30% margin call, 0.01 lot minimum transaction size with no maximum — at your service. Open your trading account now or learn more about making your money go further 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.