Bitcoin Cash price analysis: BCH/USD gains steam, but upside capped below $1,000; ICO’s could be legalized in South Korea soon

Bitcoin Cash is one of the biggest gainers on the day and especially in the brief bullish momentum that swept across the entire market on Tuesday. The price traded lows of $872 during the Asian trading hours before embarking on an upward trend breaking through the retracements as seen on the short-term chart.

BCH/USD is up 9.83% on the day, although the bears have found an entry and are pushing to trim the gains. The cryptocurrency is correcting lower at the moment and has broken below the short-term support zones at $980 and $970 respectively. Bitcoin Cash is trading at $967 at the time of writing.

The 61.8% Fib retracement level with the last swing high of $1,000 and a low of $872 will support the crypto above $950. The moving averages are pointing upwards but the gap between them is widening to show that sellers are putting their best foot forward. In the event the downside movement progresses further, Bitcoin Cash could again test the support level at $900.

In other news in the market, South Korea’s National Assembly has recently recommended that the ban on Initial Coin Offerings be lifted. The proposal touches on various aspects of cryptocurrencies and the blockchain technology in the country as well. The 300 members of the National Assembly are seeking to legalize ICOs and creating a way to regulate them as opposed to banning them entirely. The committee that released the report said:

“We need to form a task force including private experts in order to improve transparency of cryptocurrency trading and establish a healthy trade order. The administration also needs to consider setting up a new committee and building governance systems at its level in a bid to systematically make blockchain policy and efficiently provide industrial support. We will also establish a legal basis for cryptocurrency trading, including permission of ICOs, through the National Assembly Standing Committee.”

At the beginning of May, a legislator, Hong-rak from the Democratic Party of South Korea started working on a bill that will also seek to make ICOs legal. The legislator said:

“The bill is aimed at legalizing ICOs under the government’s supervision[…]. The primary goal (of the legislation is helping remove uncertainties facing blockchain-related businesses.”

BCH/USD 15' chart