Bitcoin was trading higher on Friday after yet another heavy selloff a day earlier on the back of an announcement from the South Korean government stating that it would take several steps to combat speculation in digital currency trading.
South Korea is a key country for trading in the largest cryptocurrency by market cap as it is calculated that 20% of all Bitcoin transactions take place there and that its citizens own around 1 million bitcoins.
“cryptocurrency speculation has been irrationally overheated in Korea”, the government said in the statement. “The government cannot leave alone the abnormal situation of speculation any longer”.
However, the cryptocurrency is well known for its volatility with huge intraday moves on an almost daily basis. Bitcoin has tumbled approximately 33%, from $19219 to $12789.00 between 19th of December and 23rd of December. The price is currently at $14098.0.
Bitcoin has resumed trading sideways after a period of highly volatile over the last two weeks. A trade is suggested only if market gives breakout at $14405 on the very top, and at $13978 on the very bottom.