Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of BTC/USD for 06 March 2020

Crypto Industry News:
The Supreme Court of India overthrew the controversial ban imposed by the Reserve Bank of India (RBI) on all cooperation with companies associated with cryptocurrencies.

The Indian central bank, RBI, introduced a general ban on banking connections with cryptographic companies in April 2018, which came into force in July of the same year. After both public and industry petitions, a case combining challenges against the central bank was brought before the Supreme Court by the Internet & Mobile Association of India (IAMAI). The hearings took place in January this year for over two weeks.

IAMAI is a non-profit industry body whose role is to address governments on behalf of consumers, shareholders, and investors from the internet industry. Members include Yahoo! India, Apple, eBay, Unocoin and Etsy.

Financial media report that judges ruled that RBI's actions were "disproportionate." The key arguments, in this case, were the claims of the central bank that cryptocurrency is a digital means of payment and that the institution was authorized by law in its intervention.

IAMAI adviser Ashim Sood objected to this, arguing that cryptocurrencies can oscillate between functioning as a commodity or thesaurization medium and an exchange medium. Sood argued that RBI had no right to prohibit financial companies from providing services to cryptocurrency companies.

After the court's ruling on the groundbreaking RBI case, it seems that the legal and regulatory situation for cryptocurrencies in India faces the last obstacle. In the fall of 2019, the Indian government decided to delay the introduction of the draft bill on the potential ban on cryptocurrencies to parliament during the 2019 winter session.

The bill - entitled 'Ban on cryptocurrencies and regulation of official digital currencies' - supposedly was not only aimed at banning the use of cryptocurrencies in India altogether but also to lay the foundations for the state-supported 'digital rupee' issued by RBI.


Technical Market Overview:
The BTC/USD pair has hit the upper channel boundary located at the level of $9,123 and made a Doji candlestick pattern, which is a trend reversal warning. The momentum is now decreasing, but is still quite a strong and positive, so another wave down might happen any time now. The next target for bears is seen at the level of $8,405 and the key short-term technical resistance is seen at the level of $9,249.

Weekly Pivot Points:
WR3 - $10,789
WR2 - $10,332
WR1 - $9,212

Weekly Pivot - $8,808
WS1 - $7,687
WS2 - $7,218
WS3 - $6,064


Trading Recommendations:
The market might have made the first impulsive wave up of a higher degree. This strategy is valid as long as the level of $7,582 is not violated. Nevertheless, the larger timeframe trend is still down and all the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend until the level of $10,433 is clearly broken.






Performed by Sebastian Seliga
Analytical expert
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