Bitcoin price analysis: Acceleration on track as India’s Zebpay halts fiat deposits and withdrawals
|- India’s central bank directive to regulated financial institutions takes effect on July 5.
- Zebpay exchange is currently disabling both deposits and withdrawals using the Indian rupee.
- Bitcoin is still range bound but has support at the 50% Fib retracement.
Bitcoin price is changing hands marginally above $6,500, although the intraday upside is still limited below $6,700 just as covered in the previous analysis. It is making slight gains but the buyers lack a catalyst to retrace higher past the short-term resistance at $6,600. The trend is, however, generally bullish at the moment.
In the meantime, India’s cryptocurrency exchanges have finally caught up with the directive from the Reserve Bank of India (RBI) to terminate all banking support by July 5. In light with this, the biggest exchange platform in the country, Zebpay has moved to stop both deposits and withdrawals performed using Indian rupee (INR). The exchange communicated to its customers on Wednesday 4. The announcement reads:
“Today we are disabling the rupee deposit and withdrawal options on the Zebpay app. This is being done in light of the bank account closures as per the RBI guideline.”
The RBI on April 5 this year, sent a directive to all the banks and regulated financial institutions in India to stop dealing or supporting crypto related businesses as from July 5. The ban is looming in spite of the effort made to reverse the directive in court. The ban will go on as scheduled but the Supreme will hear the case come July 20. Zebpay had also informed its customers of the impending banking service ban in June this year.
Bitcoin price analysis
The cryptocurrency market is highly volatile and a slight trigger could send the prices spiraling to rock-bottom. However, it is too early to know how the assets will react after the ban, but in the meantime, BTC/USD exchanging hands at $6,528. There is a bullish trend forming at the time of writing but it is not strong enough to break the resistance at $6,600 in the short-term. The bearish trendline will also prevent gains towards the key resistance zone at $6,700. Bitcoin is still range bound but has support at the 50% Fib retracement level with the last swing high of $7,74 and a $5,777 low marginally below $6,400.
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