Bitcoin Analysis for 29.12.2017

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The South Korean government will announce that it will forbid domestic cryptocurrency exchanges to allow users to make transactions via anonymous accounts. As part of what appears to be a series of updates aimed at improving the supervision of industry practitioners, the government will also try to prohibit banks from issuing new virtual accounts on cryptocurrency exchanges.

According to the South Korean news agency Yonhap, the statements were announced by Hong Namki, minister of the Office for Coordination of Government Policy, after discussions with vice-ministers from other government bodies after the recent increase in interest in crypto-valuables and their possession among the local community. Hong's announcement came just after an hour since the head of the Korean financial regulator warned against the Bitcoin bubble during a press meeting.Hong added that only accounts confirmed with identity could be allowed for deposits and withdrawals. A government ban on using anonymous accounts is seen in South Korea as the latest step towards curbing trade related to cryptocurrencies in the country. According to the report, the financial intelligence unit and the financial supervisory service will implement the regulation and supervise the stock exchanges in order to comply with the new rule.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market is still in a corrective cycle as it hovers around the weekly pivot at the level of $14,371. The key level for bulls is the technical resistance at the level of $16,628, just above the 61% Fibo retracement. The key level for bears is the technical support at the level of $11,174. The corrective wave 4 might likely evolve into a triangle pattern before the uptrend will continue to the new highs.

Bitcoin Analysis for 29.12.2017