Bitcoin price analysis: BTC/USD faces strong resistance;  sudden death of South Korean regulator may weight it down

The Bitcoin price has gained over 93% since the low reached on February 6,  and broke above psychological $11,000 level amid broader crypto market recovery. But now the long-term downtrend line stands on its way.

Suspicious death of the regulator

Meanwhile, the Wall Street Journal runs a story about South Korean cryptocurrency regulator found dead at home. 

Jung Ki-joon, 52, led the regulatory clampdown on cryptocurrency trading. He took a tough approach to the virtual currencies  and called upon “strongly respond to excessive cryptocurrency speculation and illegal activity.” The death was probably caused by a heart attack, but the government spokesman could not confirm that information.  Police are investigating the case.

Rumors about the South Korean ban on cryptocurrency trading triggered the massive sell-off on the market as bitcoin and other digital assets are wildly popular in this country. Last year the South Korean won was used in 4.5% of all bitcoin transactions, which makes it the second popular fiat currency in crypto trading after the US dollar.

Bitcoin price technical picture

BTC/USD bullish momentum gathered pace on Monday as the price broke above $11,000 level and settled at $11,350.  The coin is well supported by  50% Fibonacci placed at $10,266, though the upside may be limited by  $11.800-$12,000 area where 100-DMA and long-term downside trend from December 17, 2017 peak create a strong resistance.  Once it is cleared, 38.2% Fibonacci at $12,498 will come into focus.  on the downside, the break below $11,000 may bring the price back to $10,266. 

BTC/ USD, daily chart