Bitcoin has surged nearly 100 percent since its lowest level this year hitting a three week high overnight amidst South Korea’s financial regulators easing stance on cryptocurrencies.
The threat of heavy regulation and a possible ban on exchange trading has made traders uneasy over recent weeks however, reports this morning that the South Korean Government are softening their stance given traders confidence to buy.
The push for regulatory supervision comes as the general public have entered the market hoping to capitalise on the rise of cryptocurrencies prompting inherent fears around the world of a bubble.
Seoul originally considered shutting down local cryptocurrency exchanges in response which has since thrown the market into turmoil. However, officials were quick to state that a total ban was only one option that was being considered and a final decision is yet to be made.
According to the Luxembourg-based Bitstamp exchange, Bitcoin is trying to break the downtrend line of the bear market and hit a three week high of $US11,722.58. Bitcoin is up nearly 100 percent since this years low of $US5920 in early February.
Currently there is strong resistance around $12000 formed by the downtrend line. If the price bounces from the resistance zone, we may see a downward movement to $10000, $8000 and $6000 support.
However, the breakout seems more logical at this given the weekly bullish chart. If the price can move above $12000 the next resistance is $15000 and $17000 levels before breached previous highs around $20000.
However, bitcoin has been under significant pressure this year with regulatory initiatives and hacks on exchanges which have lowers market confidence.