Cryptocurrencies Bounced After Korean-hack Drop; Japan Focus on Cryptos


by | 21st June 2018 | 0 comments

Major cryptocurrencies closed Wednesday off lows as investors bought cheaper Bitcoin and Ethereum at daily lows. Bitcoin performed a green hammer and it is testing the 6,820 area; Ethereum did a red hammer, with the pair testing the 515.00 support; while Bitcoin Cash fell below the 900.00 area.

Japan focus and to question crypto exchanges

The Japanese regulator Financial Services Agency FSA said they would take administrative actions against registered cryptocurrency exchange operators including Bitbank, BITPoint, BtcBox, Quoine and Bitflyer among others.

The reason would be the absence of internal control systems in payment services to avoid money laundering. FSA said the action aims to make the crypto industry safer and healthier.

According to the FSA, firms failed to take hard measures against money laundering such as internal control, registration, and screening.

US SEC to freeze asset of fraudulent ICO

The United States Security and Exchange Commission is taking action against Dominic Lacroix, owner of PlexCorps as the SEC alleges Lacroix has been using secret accounts to dissipate assets obtained from an ICO.

The SEC actions would mean permanent injunctions, penalties and interest payments for Lacroix. Also a permanent ban.

PlexCorps promised a return of 1,354% in less than a month to investors. The ICO raised $15 million from thousands of investors.

Bitcoin tests 6,800 area after performing a hammer

The daily chart is showing a green hammer on June 20 for the BTC/USD after the pair fell to 6,555 following the South Korean Cryptocurrency Exchange hack news and it bounced back to the 6,800 area before closing Wednesday at 6,760.

A hammer usually means indecision in the cross but bearish exhaustion as the price got a minimum and it bounced back hard. In this case, the hammer was performed just below the 6,800 level, a key resistance for the last trading sessions.

BTC/USD is currently trading flat on Thursday at 6,760. Technically, the pair is getting overbought, but momentum is turning neutral. Moving averages are pointing to the downside.

To the upside, the pair needs a close above 6,800 to spur bulls to buy. Then, a break above 6,900, will open the doors to the 7,200 and 7,300 levels.

To the downside, if bitcoin extend declines below 6,380, it will find next support at the 6,000 level with a focus on the critical 5,870 line. Below, only the 5,550.

Ethereum got a red hammer, testing the 515.00 support

ETH/USD Daily Chart - 21-06-18

Ethereum performed a red hammer on Wednesday as the pair bounced at the 515.00 support, but it wasn’t able to turn the bounce into gains. ETH/USD remains subdued below the 20-day moving average.

Ethereum is, however, 1.03% positive on the day at 541.50, trading above yesterday highs. Technically, the pair looks overbought and slightly turning for positive momentum.

The 200-day moving average is neutral, but 50 and 20 days are pointing to the downside.

Ethereum needs a close above 530.00 before making bulls believing in an uptrend. Above that, 560.00 is the natural resistance and then 630.00.

To the downside, if the pair closes below the 515.00 support and it falls below the 450.00, Ethereum will find support at 430.00. Then, the last frontier lies at 400.00.


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