Bitcoin price analysis: BTC/USD upside capped below $9,000; while India’ Central Bank is taken to court following cryptocurrency crackdown
|- Kali Digital Eco-Systems filed the case in court; the company is planning to launch its own cryptocurrency exchange platform.
- The short-term support is at $8,800 while the next support is at the previous bull flag pattern close to $8,500.
The traders and cryptocurrency investors are shifting their sentiments towards the digital assets in the second quarter of 2018. This is happening after the first quarter witnessed the worst selloff in the history of the cryptocurrencies. Bitcoin price particularly shed off more than 60% of its value from the all-time high of about $20,000. However, the trend has been a bullish one in the month of April, where Bitcoin price has made great strides to recovery even testing the $9,000.
On the other hand, The Reserve Bank of India (RBI) was issued with a notice on April 22 following a petition that had been filed in court after the bank gave a directive earlier this on month barring crypto entities from accessing banking support in the country. The banks were told to halt business with cryptocurrency exchanges by July 2018. Kali Digital Eco-Systems filed the case in court especially because it was planning to launch its cryptocurrency exchange platform referred to as CoinRecoin. Rashmi Deshpande, associate partner, Khaitan & Co, a law firm that is representing Kali Digital Eco-Systems said that:
“The circular appears to be arbitrary and unconstitutional since it does not give strong facts as to why RBI is against the business of cryptocurrencies. Logical and well-thought argument backed by solid facts are the primary requirements under the constitution to put a stop to any business in India,”
Bitcoin price analysis
There was a breakout bull flag pattern that was started at $8,500 during the weekend trading sessions. BTC/USD recoiled higher to above the resistance level at $8,800. The bull’s appetite rose even higher to test $9,000 but face increasing selling pressure $8,977 before correcting lower towards $8,800. At the moment, Bitcoin price is ranging with the upside capped below $9,000. A bearish momentum is forming close to this level, although the 50 SMA is supporting the price on the downside close to $8,855. The short-term support is at $8,800 while the next support is at the previous bull flag pattern close to $8,500.
BTC/USD hourly chart
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