Regardless of the two-way motion on the value of bitcoin over the past 24 hours, the bears nonetheless seem to have the higher hand.
CoinDesk’s Bitcoin Worth Index (BPI) fell to $13,455 yesterday earlier than rising again above $14,900. At that time, it appeared bitcoin (BTC) had discovered a backside, however the ascent was reduce quick at $14,942 and costs fell additional to $12,845 at 04:29 UTC – very probably on fears South Korea might quickly announce an outright ban on cryptocurrency buying and selling at exchanges.
With South Korea one of many greatest markets for cryptocurrencies, such a ban by the nation would positively weaken the demand facet strain. Consequently, markets reacted negatively to the information.
Nevertheless, the preliminary knee-jerk drop in costs got here to a halt seemingly as a result of later reviews clarifying that South Korea might not be capable of implement the brand new laws anytime quickly.
Reuters acknowledged: “Laws for an outright ban of digital coin buying and selling would require a majority vote of the entire 297 members of the Nationwide Meeting, a course of that might take months and even years.”
At time of writing, Bitcoin was buying and selling at $13,7290 – down four.08 % from the intraday excessive of $13,845 (08:59 UTC). As per knowledge supply OnChainFX, bitcoin has depreciated by four.four % within the final 24 hours.
The technical charts additionally favor additional draw back to costs.
The above chart (costs as per Coinbase) exhibits:
- Yesterday’s bullish hammer-like candle meant the sell-off from $17,174 (Jan. 6 excessive) has ended at $13,550 (yesterday’s low). Additionally, costs closed (as per UTC) yesterday above the rising trendline (contained in the rising wedge).
- Nevertheless, the bulls didn’t capitalize on yesterday’s optimistic worth motion, and the minor rally stalled at $14,970 earlier than falling to an 11-day low of $12,800 at present.
- The worth motion solely provides credence to the bearish continuation sample and a bearish 5-day and 10-day shifting common crossover.
- The relative power index (RSI) has entered bearish territory (beneath 50.00).
- BTC is extra prone to reduce by the assist at $12,500 (Dec. 30 low) and will lengthen losses as little as $10,400–$10,000 over the 72 hours.
- Right now’s excessive/low ($14,970 and $12,800) engulfs the day prior to this’s worth motion. So, at present’s candle appears like a bearish exterior day, indicating the continuation of the sell-off.
- Bullish situation: An in depth (as per UTC) at present above $14,970 may save the day for bitcoin bulls. That stated, solely a transfer above $17,174 (Jan. 6 excessive) would sign a bearish-to-bullish development change.
Fitness center weights picture by way of Shutterstock
The chief in blockchain information, CoinDesk is an impartial media outlet that strives for the very best journalistic requirements and abides by a strict set of editorial insurance policies. Taken with providing your experience or insights to our reporting? Contact us at firstname.lastname@example.org.
Disclaimer: This text shouldn’t be taken as, and isn’t meant to supply, funding recommendation. Please conduct your individual thorough analysis earlier than investing in any cryptocurrency.