Bitcoin market technical picture indicates the soon end of consolidation and breaking through $7700 resistance

Yesterday news broke that the Supreme Court of South Korea decided to consider bitcoin a legally recognized valuable asset. The resolution occurred on May 30, 2018. Perhaps this decision of the Korean authorities was caused not by the desire to assign legal status to digital currency, but to create conditions for the confiscation of digital assets in case of using them in cybercrimes and distribution of prohibited content. The widespread of such precedents in recent times is great.

Korean legislation states that valuable assets include cash, deposits, shares and other forms of tangible and intangible objects that have a standard value. According to the decision of the Court , now bitcoin is classified as an intangible digital asset in the form of crypto files, it is traded on the exchange and can be used to accumulate profit and to make transactions.

This is the first such legal precedent, as for the first time in history the digital currency has received the status of a legal asset. This gives digital assets an increase in legitimacy. At the same time, South Korea is also engaged in the legalization and regulation of initial monetary offers (ICO). Recall that in September of the last year, there was implemented an internal ban on ICO in South Korea, which is still in force.

If we turn to the technical picture of the market, bitcoin price continues to consolidate in a narrow range of $7020- $7700, in which the market has been trading for two weeks. Yesterday, the market pushed off from the level of $7325 and was able to show positive dynamics. It is possible that, given the lack of positive news, it was Supreme Court decision news that supported the market and formed a positive impulse. So far, the market sentiment points to the fact that in the coming days there will be an upward impulse and will finally see the capture of the resistance level around $7700. If bulls initiative is supported by the incoming bitcoin volume, the market will be able to test the mark of $8100.

FortFS