Bitcoin Cash price analysis: BCH/USD testing the rough waters below $700; South Korea reveals new cryptocurrency regulations

Bitcoin Cash upside has been capped below $720, but at the moment there is a weak bullish trend in progress testing the resistance at $700. BCH/USD sustained yet another bearish movement during the Asian trading hours on Thursday, however, the downside was protected at the immediate support level ($690). The price recently broke out of a short-term bullish flag pattern but encountered resistance marginally above $770 culminating in a decline below $690.

The technical indicators are sending signals to confirm the bullish trend, but the support is still not enough to recoil towards the key resistance at $720. The stochastic RSI on the one hour chart is making attempts to recover from the oversold levels. In addition to that, the gap between the 50 SMA and the 100 SMA is narrowing to show that the buyers are battling for more entries in the short-term. Bitcoin Cash has the immediate support at $690 while the demand area above $660 will hold in the event of a trend reversal.

Regulations in South Korea

The Financial Services Commission (FSC) in an exclusive with CCN news website has updated the cryptocurrency regulation in the country. The new framework touches on anti-money laundering (AML) as well as Know Your Customer (KYC) policies for cryptocurrency exchanges operating in the country.

In the new framework, the FSC has mandated the Korea Financial Intelligence Unit (KFIU) to superintend the virtual currency transactions alongside the user activity. The FSC has also instructed an investigation into some banks in the country including Nonghyup, Hana Bank, and Kookmin. These banks work with various crypto exchange companies by offering them banking services. From now onwards, exchange platforms are required to “conduct Customer Due Diligence (CDD) and Enhanced (EDD), and perform sufficient background checks to ensure foreigners are not using local cryptocurrency exchanges to buy and sell digital assets, criminals are not using personal accounts of individuals secretly to launder money and prevent suspicious transactions and payment processing.”

BCH/USD 1-hour chart