- Chinese central bank calls initial coin offerings (ICOs) illegal
- Bitcoin (BTCUSD on xStation5) crashes 10% after striking $5000
- Israeli watchdog to consider ICO regulations
- Dash (DSHUSD) tumbles along with its peers
It looks like the Chinese central bank (PBoC) wants to crack down on the proliferation of ICOs across China. The PBoC said that initial coin offerings are illegal and have asked all related fundraising activity to be halted immediately. The China’s central bank also reported that it has completed investigations into organizations and individuals who have conducted ICOs, and have ruled that the financing activities disturb financial order and shall be banned.
We did not have to wait too long to notice market responses to that kind of unfavorable remarks. Nevertheless, it’s worth mentioning that the Bitcoin price crashed yet before the Chinese story (there could have been some leaks related to the Chinese announcement). Either way, revelations from the PBoC undoubtedly added fuel to the fire. As a result, a daily change of Bitcoin equals -10%.
A technical view may suggest that sellers are nearing a first more noteworthy support in form of a 100MA. Let’s notice that this line has served as a springboard thus far, hence a U-turn cannot be ruled out. If the price rebounds from the orange line, it could give a rise to a retest of the latest peak.
On the other side, while China is trying to crack down on ICOs, the Israeli Securities Authority (ISA) has announced the establishment of a committee tasked with assessing the need for ICO regulations in Israel. The new ISA committee is expected to submit its assessments regarding ICO regulations by December 31st, 2017. As we can see, there is no consistency in terms of an approach to ICOs.
Dash crashes as well and tests a relevant support line being underpinned by a 75-moving average. If a bullish candlestick is drawn in the vicinity of current levels, it could constitute a trade opportunity. Source: xStation5
A hefty decline seen in Bitcoin has brought on a broad-based sell-off across major cryptocurrencies. For instance, the above-mentioned Dash has been knocked down after a recent string of steady increases.