Crypto Industry News:
South Korean experts have found in local media that cryptocurrencies are a "bad choice" as a safe asset during the COVID-19 pandemic. Professor Hong Ki-hoon of Hongik University said that crypto assets such as Bitcoin should not be considered "safe" at the level of gold, dollars or even US Treasury bonds. However, he does not deny that volatility in the financial markets causes the accumulation of more money on the cryptocurrency market.
Hong from the University of Hongik's business administration department says:
"To be a safe haven, two conditions must be met. First, asset volatility must be low, and second, when market volatility is expected to increase, value should increase. Therefore, crypto does not meet the conditions."
The professor also says about the reasons for the increase in the range of cryptography during a coronavirus outbreak:
"The reason for the rise in volume after the crash in the markets was because the spirit of investing in greater volatility worked to offset the depreciated asset value."
The article also expressed concerns about "market manipulation." He states that the cryptographic environment is not sufficiently regulated in the country. They believe that the current popularity of the market does not reduce the concerns of investors who are hesitant about buying cryptocurrency.
On the other hand, an anonymous investment expert cited by an information portal revealed:
"Individual investors are often unable to properly manage the risk associated with shares, but it is virtually impossible to assess the risk factors for cryptocurrencies. You must understand before you fully invest."
The Ministry of Economy and Finance of South Korea announced on May 27 that they are preparing to amend the Income Tax Act, which may affect the profitability of cryptocurrencies in this country.
Technical Market Outlook:
The local high during the BTC/USD bounce was made at the level of $9,530 and since then the market pulled back towards the technical support located at the level of $9,249. In a case of a pull back extension from here, the next technical support is seen at the level of $8,565 and the nearest technical resistance is still seen at the level of $9,530. The larger time frame trend remains up. The momentum indicator is totally flat around the neutral level of fifty.
Weekly Pivot Points:
WR3 - $10,691
WR2 - $10,307
WR1 - $9,752
Weekly Pivot - $9,407
WS1 - $8,828
WS2 - $8,448
WS3 - $7,903
Trading Recommendations:
The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated. The key mid-term technical support is located at the level of $7,897.
