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Bitcoin – South Korea Gives the Bulls Hope

Bob Mason

Bitcoin gained 2.69% on Saturday, following on from Friday’s 1.18% rise, to end the day at $6,779.7, the moves through the day taking Bitcoin up 6.78% for the current week.

A relatively range bound morning saw Bitcoin pullback from an early morning $6,623.9 high to a late in the day intraday low $6,511 before the cryptomarket responded to favourable regulatory news from South Korea.

Bitcoin rallied through the day’s first major resistance level at $6,683.57 and second major resistance level at $6,757.63 to an intraday high $6,839.4, the late rally also seeing Bitcoin break out from the 23.6% FIB Retracement Level of $6,757 before easing back to $6,700 levels by the day’s end.

There were plenty of positives for the Bitcoin bulls by the day’s end, with a hold above the 23.6% FIB Retracement Level of $6,767 at the day’s end supporting the prospects of a near-term bullish trend formation should profit taking not lead to a more material reversal on Sunday.

The news was certainly on the positive side out of South Korea, with the government loosening its rules and regulations on cryptocurrencies, in order to be more aligned with the planned July release of unified global regulations by the G20.

In addition to news of a loosening of the rules and regulations, the government is also reportedly reviewing the domestic ban on initial coin offerings, with the general consensus now being that the ban will be removed.

While the news was certainly a positive, the shift in South Korean government attitudes towards cryptocurrencies and initial coin offerings having contributed to the first half of the year’s losses across the cryptomarket, there is still plenty of uncertainty ahead, with the unknown being what kind of unified regulations the G20 will roll out by the end of this month.

The good news is that there’s not much longer for the cryptomarket to wait and, while we will expect some tighter rules and regulations, we won’t expect a unified set of global rules and regs to bring an end to the cryptomarket and in a worst case scenario will provide buying opportunities for those who missed out on last December’s bull run.

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At the time of writing, Bitcoin was down 0.48% to $6,729.6, selling pressure at the 23.6% FIB Retracement Level of $6,757 kicking in after a start of the day move to a morning high $6,801.9, leading Bitcoin to a morning low $6,710.0 before steadying.

Moves through the early morning left the day’s first major resistance and support levels untested, though for the Bitcoin bulls, a pullback from the 23.6% FIB Retracement Level of $6,757 will have been of greater significance early on, Bitcoin coming under pressure as investors locked in profits from late Saturday’s gains.

For the day ahead, a move back through the 23.6% FIB Retracement Level of $6,757 would signal a resumption of Saturday’s late rally and the formation of a near-term bullish trend from late June’s swing lo $5,755 that would bring $7,000 levels into play for the first time since 11th June.

Failure to break back through the 23.6% FIB Retracement Level could see Bitcoin come under selling pressure through the early afternoon, with the day’s first major support level at $6,580.67 in play through the afternoon. We would expect Bitcoin to avoid testing sub-$6,500 support levels on the day however, barring negative news hitting the wires, support off the back of Saturday’s news likely to come into play later in the day.

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This article was originally posted on FX Empire

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