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 price spikes by over 9%, but currently the sellers are trimming the gains.
  • The 300 members of the National Assembly are seeking to legalize ICOs in South Korea and formulate regulations instead.

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

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin struggles at $9,300, while altcoins on the run

The cryptocurrency market recovery is driven by altcoins. XRP, BCH, ADA, LINK, XLM and other coins have been smashing resistance levels one after another with no particular fundamental reason.

More Cryptocurrencies News

XLM/USD bulls may return to $0.0800 after a short break

Stellar (XLM), the 14th largest digital asset, has gained over 10% of its value in the recent 24 hours to trade at $0.0791, at the time of writing. The coin has been growing rapidly since the start of the week and increased by over 16% on a week-on-week basis.

More Stellar Lumens News

XTZ/USD gains over 7%, bumps into daily SMA50

Tezos (XTZ) is moving within a strong bullish trend. The coin hit the recent high at $2.66 and the upside momentum is gaining traction. XTZ is now the 13th largest digital asset with the current market value of $1.94 billion. 

More Tezos News

Cardano Chart Update: ADA/USD starts correction after 25% price increase

Cardano (ADA) has been one of the best-performing altcoins in recent days. The coin gained over 85% of its value in ten days and ousted Bitcoin SV from the sixth place in the global cryptocurrency market rating.

More Cardano News


Bitcoin Weekly Forecast: BTC volatility drops to a year low, get ready for a spiral drive

The week was tough for the cryptocurrency markets confined to tight ranges. Bitcoin has lost 1% of its value during the recent seven days with the trading range limited by $9,298 on the upside and $8,933 on the downside.

Read the weekly forecast