One of the most significant populations of people who are proponents of and speculators of cryptocurrency is South Korea. At various times, South Korea has represented a bulwark of positive activity for Bitcoin and cryptocurrencies as a whole. That was until 2018. 2018 was not only the most prolonged and most violent downturn in cryptocurrency history, but it represented a series of events that hammered cryptocurrency enthusiasts. Back in January of 2018, Reuters reported that South Korea banned traders from the use of any bank account that could use anonymously – this transitioned into no anonymous crypto transactions as well. And in March of 2018, any government officials were banned from holding any cryptocurrency. Perhaps the most bearish event was just before 2018 on December 28th, 2017, when CNBC reported that the South Korean Financial Services Commission banned new cryptocurrency trading accounts. But a new bull phase might begin for South Korea and the entire cryptocurrency market.
Cryptocurrency news outlet Cryptopotato reported that a subcommittee in South Korea’s National Assembly approved a bill that creates clarity as to what cryptocurrency is: a digital asset. While this isn’t the first bullish news coming out of South Korea, it is another example of the positive regulatory movement that the South Korean government and people are pursuing – providing a balance between free-markets and protection from bad-actors. No doubt, we will see South Korea continue to be a leader among the major world economies in creating clarity within government and regulated financial markets.
Bitcoin itself continues to make attempts to claw back the losses it sustained during the prior trading week. Yesterday’s trading saw Bitcoin gain +218.37 (+3.16%) from its open – a far cry from any big dent from last week, but a positive move nonetheless. Yesterday’s range was significant. At one point, Bitcoin rallied from the new 2019 low of 6526 to the daily high of 7379.99, a +13.09% swing. Today’s trading shows a relatively typical and standard reaction to the bullish drive up on the previous day. Currently, Bitcoin has created an inside bar – which could generate a bullish entry event on Wednesday’s trading. Inside bars are popular chart patterns with many traders. Inside bars are a candlestick that has a higher low and a lower high than the prior candlestick. A common strategy when trading inside bars is dependent on the prevailing trend. If the trend is in a bear market, then a short below the inside bar low is the short entry. Otherwise, to go long, the strategy says to wait until the outside bar’s high has been breached. From the short side perspective then, a short would be generated if price moves below the close of the current daily candle (currently at 7021.84). A long entry will be created if price can move above Monday’s (November 25th, 2019) high of 7379.99. What we need to see is more participation in the broader market for us to believe a reversal is imminent. A bullish drive up on Bitcoin is one thing – but I want to see Bitcoin and the altcoin market experience a significant move. Don’t forget: the altcoin market has been in an extended bear market since the beginning of 2018, and we have yet to see a majority of the top 20 altcoins experience a protracted corrective move higher.