The cryptocurrencies came under pressure again overnight. The crypto exchanges in South Korea are still under threat. A complete ban was initially prevented. But it´s clear that the country plans strict regulations. For the crypto markets, this will be of little benefit, and many speculators could step down, which would also put more pressure on prices.
Cryptocurrencies before further regulation?
South Korea is not the only country recently considering stricter regulations regarding cryptos. France’s Finance Minister has announced that a new crypto law will soon follow. He sees the crypto currencies primarily as an instrument for tax evasion and terrorist financing. Meanwhile, US Treasury Secretary Mnuchin called the crypto wallets the “new Swiss bank account”. He wants to work on new rules with the G20.
It´s uncertain which regulations will eventually come into play and how hard the respective countries will take action. However, the current events are poisonous for the mood on the crypto exchanges.
What do the charts say?
Bitcoin will soon be testing the support in the $11,650 and $12,000 range. Otherwise, there is a threat of a correction to the psychologically important $10,000 mark.
Ethereum is again holding up relatively well. Support for $1200 was initially maintained. A clear break underneath would signal a correction up to $1075.
Ripple broke through the important support overnight at $1.50. In the short term, further losses are expected in XRP/USD, with the next notable support now at $1.30. The support is expected to continue in XRP/USD.