The Chinese ban on cryptocurrency trading, the possibility of a similar ruling in South Korea and the fear of regulations around the globe were some of the reasons that started the current decline.
However, with the election of Yi Gang as the head of People’s Bank of China (PBoC), the country’s central bank, some market experts believe that the Chinese ban on cryptocurrency trading might be overturned.
South Korean regulators are finalizing the taxation framework for cryptocurrencies and will most likely throw some light on the probability of a full-scale regulation of the cryptocurrencies after mid-June.
This has not deterred the Mayor of Seoul to announce the creation of ‘S coin’, the cryptocurrency of the city. He also wants to encourage the development of Blockchain projects as he foresees the widespread use of the technology in the city.
Let’s see if we find any buy setups on any of the digital currencies we track?
Bitcoin broke below the $7,000 mark on April 01, but the dip was purchased aggressively by the bulls. As a result, the price has been back above the $7,000 level once again.
The 20-day EMA is the important resistance to watch out for during any pullback, which is just above $8,200 levels. The bears will strongly defend this level, while the bulls will attempt to break out of it.
We should wait for the BTC/USD pair to sustain above the 20-day EMA before recommending any long positions.
The trend remains down, hence, we don’t find any buy setups on the digital currency.