- Bitcoin price reject lower lows, stable
- Exchanges in South Korea band together to protect investors and prevent illegalities
- Transaction volumes low, prices trading in tight ranges
Despite yesterday’s declines, BTC is technically bullish. From candlestick arrangements, it is likely that in days ahead, buyers will flock in driving prices back above the $3,800 level triggering bulls. Demands as such will lift investors and confirm our BTC/USD trading assertions.
Bitcoin Price Analysis
South Korea, like Japan, embraces new technology. Blockchain is pivotal and spin-offs as cryptocurrencies are heavily regulated. At one point, back in 2017, there were rumors that the country’s regulators were following China’s route of banning cryptocurrencies and exchanges sending jitters across the sphere.
Luckily, that didn’t materialize. All the same, cryptocurrencies and exchanges remain under a tight grip of the Financial Supervisory Service (FSS). For example, all exchanges must register with the FSS and regulators don’t tolerate the idea of Bitcoin futures. Unfortunately, they can’t prevent hackers from infiltrating exchange’s systems. That’s despite all the guidelines and emphasis laid on security.
Because of this, CoinOne, Korbit, UpBit, and Bithumb are banding and introducing new KYC rules to prevent possibilities of hacking. Besides, these exchanges are looking at various ways to prevent the proliferation of illegal activities as voice phishing as well as build up of pyramid schemes. To this end, they will be registering all suspicious wallets.
BTC is steady in the last hour and day shedding 0.5 percent. Even with this, it is clear that BTC is finding support at lower levels. At this rate, sellers have an advantage. However, before there is panic liquidation, odds are Bitcoin bulls will jump in and drive prices as mentioned in our previous trade plans.
In the short-term–and being optimistic thanks to favorable candlestick arrangements, bulls have the upper hand. Ideally, what we would like to see are high volume bars reversing Jan 28 losses. When that prints, we shall have a double bar bull reversal pattern at around a fundamental Fibonacci retracement level of 78.6 percent.
From the chart, this level coincides with $3,500, the lower limit of our support zone. All the same, we recommend patience until after prices rally above $3,800 or Jan 14. In the meantime, we shall only take a wait-and-see approach until when prices surge above our minor bull trigger or cave in below $3,500 at the back of above average volumes. Any rally above $3,800 shall open doors from $4,500 and later $5,000.
Trading volumes are still low. After Jan 28 close, recorded volumes was 17k against 12k which is less than Jan 20 of 20k. Before we suggest longs, gains above $3,800 must be at the back of high market participation exceeding 20k and later 35k—those of Jan 10.