Bitcoin analysis for 16/01/2018

The rules for cryptocurrency trading in South Korea were announced on Sunday, January 14, after mainstream media misunderstandings about the proposed ban on trading in cryptocurrencies by the Justice Minister last week. Reports at the local news agency Yonhap speak of requirements from Korean traders to use real names for cryptocurrency accounts. Potential regulation notified earlier in January will come into force by the end of this month. Yonhap informs that fines will also be imposed on those who do not comply with the new rules, although the amount of the fine has not yet been determined. Yonhap quotes today's government statement saying: "The proposed closure of exchanges, which was recently mentioned by the Minister of Justice, is one of the measures proposed by the Ministry of Justice to limit speculation. We will make a decision about the national range in the future after sufficient consultations and coordination of opinions."

The turbulent regulatory landscape in South Korea caused fragmentary information to appear on a daily basis on how the cryptocurrency would eventually fall under the jurisdiction of Seoul. In the latest news from Monday, January 15, the official statement of the Office for Coordination of Government Policy was issued, stating that the ban on using cryptocurrencies does not work.

Public moods in the field suggest a real consensus that trade is open and accessible, and last week's petition rejected the ban on cryptocurrencies, which has more than 150,000 signatures. If the petition reaches 200,000 signatures by January 27th, it will force the government to respond.

Let's now take a look at Bitcoin technical picture at the H4 time frame. The local support at the level of $12,439 has been violated and the triangle pattern scenario is getting out of hand. The next best possible corrective scenario is an ABC Irregular Flat pattern, that might even push the priced down to the level of $10,000 and then $8,602. The key technical support is still seen at the level of $11,1150.

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