Bitcoin stabilized, went up, went down and now is going up again. The rail has bot wild and the opinions on the outlook te the market have bot shifting. Wij hold a constant course and strive to filterzakje out all the noise to give you the most relevant information. An there&rsquo,s infrequently a more significant time than now for that. The tide might have turned and wij&rsquo,re on the lookout for a confirmation of the trigger. Such a confirmation could increase the profits on our hypothetical position.
The South Korean government moved to raid the thickest cryptocurrency exchange te the country. On Reuters, wij read:
South Korean prosecutors raided the country&rsquo,s largest cryptocurrency exchange, Upbit, on Thursday and Friday on suspicion of fraud, Yonhap news agency reported.
The agency did not give details. Neither Upbit strafgevangenis the financial investigation team of the Seoul Southern District public prosecutors&rsquo, office wasgoed instantly available for comment.
Upbit sent a note to its clients that it is co-operating with the prosecutors and that it can assure that all its clients&rsquo, assets are secure.
Four executives from two other South Korean cryptocurrency exchanges were detained ter April ter connection with the alleged embezzlement of billions of won.
It is significant not to scare at this uur. The government is not out there to get your bitcoins. The act of South Korean prosecutors is most likely an extension of their usual activities. The only special thing about the entire situation is that it involves Bitcoin. For the government, it doesn&rsquo,t indeed matter if potential fraud is committed with checks, credit cards or Bitcoin. Sorry if this doesn&rsquo,t fairly sound spil titillating spil a conspiracy theory involving malicious activities on the part of the South Korean authorities. But wij would rather give you a story which is true than one which is arousing but false.
The one thing to keep ter mind spil a Bitcoin trader is to always conduct your own due diligence before committing funds to any particular exchange. Review the permitido standing of the exchange, check the opinions of its users and so forward. However, even if a specific exchange doesn&rsquo,t do anything inherently illegal, it is still possible that the regulator doesn&rsquo,t have a utter grip of the concept of cryptocurrencies and might overreact to Bitcoin exchanges. It might be wise to diversify inbetween Bitcoin exchanges te order to not have all your funds locked into one specific toneel.
Bitcoin at Short-term Resistance
On BitStamp, from the short-term perspective, the latest rally and the subsequent stir down have given us the chance to apply Fibonacci retracements to the latest regional top, which wasgoed not indeed possible earlier. This analysis shows that something significant might be going on te the market.
Bitcoin went down from the latest locorregional top and right to the 38.2% retracement. This might be significant for the next duo of days. At the ogenblik of writing thesis words, the currency is fluctuating around this level. If wij see a confirmed budge below this level, the stir down might accelerate.
It is possible that wij could see a stir up from here, but the budge might be limited by the level of the latest almacén top around $Ten,000. On the other mitt, the stir down might bring Bitcoin down to around $6,000-6,500. It increasingly looks like the latest consolidation might be overheen and the budge down might resume from here.
Looking for Bearish Trigger
On the long-term Bitfinex chart, wij see that the stir down of the last duo of days has brought Bitcoin to yet another Fibonacci retracement level. This time, wij have the 78.6% level based on the stir from around $Five,500 to around $20,000 ter mind. Wij have mentioned a duo of times te the past that this level is not a particularly strong one spil far spil the bullish implications are worried. The situation now is slightly different.
The 78.6% level might not be spil significant spil other levels but the fact that wij are now back at this level and that the latest appreciation has bot denied might be taken spil a mildly bearish indication. If wij see a confirmed breakdown below this level, the implications might become slightly more significant.
Another bearish indication comes from the fact that the latest moves to the downside seem to have transpired on higher volume than the latest moves up. This might suggest that the momentum is now shifting to the downside spil far spil short-term activity is worried.
From the long-term perspective, wij are eyeing that the latest rally might have bot simply a correction within a larger decline. Spil no significant bullish indications have emerged and wij have some bearish hint and the común trend to the downside, the situation remains bearish. If wij see a bearish trigger, like a confirmed stir below the 78.6% level, wij might have an acceleration of the decline on our arms. Actually, if you consider the rising resistance line based on the February and March recinto lows, wij might have seen a confirmed budge down, a confirmed slowdown ter the rally and a potential bearish trigger. Whether the decline accelerates instantaneously or wij have to see more bearish confirmations, the current outlook remains bearish and the profits on our hypothetical positions might increase. Wij are looking for this trigger for you.
Summing up, the tide might have turned and wij might have more declines on our arms.