Russian Security Council says Bitcoin ban could backfire while BTC price teases bearish shift
- Bank of Russia proposed a ban on crypto issuance, exchanges and mining as it threatens the country's financial stability.
- A former Russian President believes that a ban on Bitcoin could move activities to a "grey" area.
- Analysts predict Bitcoin could post a third month of losses with a bearish shift in momentum.
The Central Bank of the Russian Federation revealed plans to ban cryptocurrency issuance and related activities. The former President of Russia criticized the plan.
Bitcoin momentum could shift to bearish according to top indicator
Bank of Russia, the central bank of the Russian Federation, has revealed plans to ban Bitcoin, cryptocurrencies and related activities. Russian politicians and critics opposed the central bank's restrictive policy on crypto.
Dmitry Medvedev, the former Russian President, now serves as Deputy Chairman of the Security Council. Medvedev argues that a ban on Bitcoin and crypto could backfire, having the opposite of the intended effect.
The former Russian President is quoted as saying:
To be honest, when you try to ban something, this very often leads to the opposite result.
Medvedev believes that restrictions on the issuance and circulation of Bitcoin and cryptocurrencies could halt the development of blockchain technology in Russia. The Russian Association for Electronic Communications (REAC) believes a ban would complicate control as market activities move to the "grey" area.
The RAEC issued the following statement:
The ban on the circulation of cryptocurrencies will leave Russia on the sidelines of the development of one of the fastest-growing digital markets at the moment, which will significantly slow down the innovative development of the country.
The moving average convergence divergence (MACD), a momentum indicator, shows the relationship between two moving averages of a cryptocurrency. As MACD histogram dropped below zero, analysts noted that this implies a "sell signal" in Bitcoin.
The indicator suggests that momentum could turn bearish, and selling pressure on Bitcoin may increase.
FXStreet analysts have predicted that Bitcoin price could crash to $30,000.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
