Bitcoin Still in Trouble

The rally in BitCoin was a perfect 13 weeks up from the last strategic low. It peaked with the Weekly Array the week of 12/18 which was both a Panic Cycle and a Directional Change. However, with the impending ban in South Korea on trading cryptocurrencies, the high of December appears to be at least an important temporary high. A weekly closing back below 9425 will ten to confirm the end of the bull market for now.

South Korean plans to restrict cryptocurrency trading. Bitcoin investors saw the collapse to $13,600 from the previous day trading at $16,500 dollars. South Korea, one of the world’s most important countries for virtual currency trading, wants to ban the opening of anonymous accounts for cyber currencies, among other things. There will also be a new law that will allow regulators to close stock exchanges where Bitcoin & Co. is traded under certain circumstances. “We share the view that cryptocurrency trading is irrationally overheating,” the government said. “We can no longer tolerate this abnormal speculation.”

Nearly a million people are estimated to own Bitcoin. South Korea is very important because it represents around one-fifth of Bitcoin’s global trade. Regulation by South Korea is extremely important. Even the German financial supervision warns that the risk is total loss for investors. Many view this as if it were the Dutch Tulip Bubble since BitCoin cannot be used in the economy in a fair and orderly manner.

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