Bitcoin price analysis: BTC/USD above $7,000 once again, giving false hope to the bulls; Belarus legalizing everything related to crypto

• Belarus new law lures foreign capital offering tax breaks to crypto related business.
• Bitcoin is back above $7,000, but the recovery stalls.

Bitcoin fell as low as $6,600 during early Asian hours before rebounding, trading at $7,200. While the recovery triggered a sigh of relief from Bitcoin bulls and hardcore HODLers, the upside may prove to be short-lived as long as it is based on market positioning on approach to key technical levels. 

The trading volumes are diminishing from the recent peak, though they are still relatively high when compared with the low levels registered during the week. The subsiding interest may signal that the recovery is petering out ahead of Easter holidays in the Catholic world.

While most of the world is turning against cryptocurrencies and digital assets, some countries stand apart, trying to create a favorable environment for fintech startups and digital economy players. Belarus is among them. The Presidental Decree that became effective as of March 28, 2018, legalized all crypto-related business in the country, including, ICOs, mining and cryptocurrency exchange operations. The companies operating in those fields will enjoy tax breaks until January 2023.

Bitcoin price technical picture

The short-term resistance is placed at $7,250, as several attempts to go beyond that level failed. The upside momentum is not strong enough to take the price higher, though if $7,250 is cleared, the recovery may be extended towards $7,500 (50-SMA, hourly chart) and $7,800 (100-SMA, hourly chart). On the downside, the ultimate support comes at $7,000; it is followed by Asian low $6,600. Once it is cleared, the focus will shift onto $6,000.

BTC/USD, the hourly chart

 

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