Bitcoin And Cryptocurrency Markets Suffer As India Reviews Crypto Ban
The SEC decision dominates market perceptions despite tentatively positive news elsewhere.
Cryptocurrency markets are bleak leading into Wednesday, August 21. Bitcoin has reversed all of its hard-fought gains since the start of the week, falling back below the $10,000 mark.
The overall market is also seeing strong losses, most notably ETH, which has fallen back to its weekend price. The heaviest losses in the top-40 were registered by Chainlink (LINK), Ontology (ONT), Monero (XMR) and Dash (DASH), which fell by more than 8% so far. The rest of the market is not far behind.
Overall sentiment, as measured by theTie.io, has also taken a plunge and now hovers around neutral levels.
While today’s fall could be affected by the SEC decision for ICORating, the size of the decline could indicate a reversing outlook in the crypto market, which was already extremely vulnerable to fundamental shocks. Still, institutional investors appear to be eyeing Bitcoin, and the upcoming release of Bakkt in September is laying the grounds for a potential recovery down the line.
India could lift crypto ban
The Indian Supreme Court is seeing developments of the case against the Reserve Bank of India, which last year banned banks from providing services for cryptocurrency-centric transactions. As reported by Crypto Kanoon, the court has ordered RBI to reconsider the banking ban, deferring the case for two weeks.
Case takes the most unlredictable turn. Justice Nariman directs that RBI must respond to the representation in the manner appropriate.
Offers to defer the case for 2 weeks as part heard, let the answer come on reconsideration of banking ban by RBI.
RBI has agreed.
— Crypto Kanoon (@cryptokanoon) August 21, 2019
Expectations should be tempered, as a recent alleged leak indicates that India’s legislators might be going towards a comprehensive cryptocurrency ban, which would cement its status regardless of RBI’s decision.
Anthony Pompliano gives bullish interview
In unrelated news, Co-Founder of Morgan Creek Digital Assets Anthony Pompliano came out on CNBC with a strongly positive overview for the crypto market.
@APompliano on the future of Bitcoin, saying, "The more infrastructure that's built around this, the more likely it is to never go away… we're at a tipping point now where Bitcoin is here to stay." Catch more of his interview with @JoeSquawk on @CNBC pic.twitter.com/UVTRnDRYQ4
— The Exchange (@CNBCTheExchange) August 20, 2019
However it may be, the market is bleeding with the exception of Ethereum Classic, which managed to hold on to yesterday’s gains. While there are many positive signs for Bitcoin, the situation with the SEC is currently generating uncertainty for the broader token markets, and that uncertainty is dominating the overall crypto landscape for now.
Technical Analysis: Nathan Batchelor on Bitcoin
Bitcoin moved back under the $10,000 level fairly quickly after buyers were once again unable to overcome the $11,000 resistance level during yesterday’s U.S trading session. The broader cryptocurrency market is also under heavy pressure today, with Bitcoin’s nearest rivals Ethereum and Ripple appearing increasingly bearish in the short-term.
It is worth pointing out that if we see the top coins falling below their current monthly trading lows, there is potential to further sour trading sentiment in the cryptocurrency market, and quite possibly send Bitcoin back towards its current monthly trading low, around the $9,450 level.
A degree of patience is also needed in the short-term. Bitcoin is currently unable to break under its former monthly trading low and equally unable to break above its former monthly high. We are stuck in a very broad range until the breakout from the $9,100 to $13,200 levels takes place.
From a short-term technical perspective, Bitcoin buyers need to close the day above the $10,100 level, or bears will start to have a much firmer grip over the BTC/USD pair in the short-term. If sellers continue to keep price below the $10,100 level, I suspect we could then start to push back towards the $9,100 support level.
*Bitcoin’s repeated failure to surpass the $11,000 benchmark has caused bears to test below the $10,000 support level. Watch the $9,450 support level closely if the decline gathers pace.*
Intraday bullish sentiment for Bitcoin has unsurprisingly fallen to 37.00%, according to data from TheTIE.io – while the long-term sentiment indicator has once again picked-up, to 70.11% positive.
Recently Bitcoin’s network hashrate has reached a new all-time high, which shows that investors remain confident in the cryptocurrency. Historically, bitcoin price has followed the hashrate, and it is likely that the situation will repeat again.
Bitcoin’s upside potential is currently based around its ability to launch a sustainable recovery above the $10,550 resistance level over the coming sessions. Yesterday we saw a more than five-hundred point drop in the price of Bitcoin from the $10,600 level in less than one hour. It would certainly send a bullish statement to the market if yesterday’s losses were quickly recovered.
Short-term bulls will be focused on the $11,000 level if we see price move above the $10,550 level, which would certainly go a long way to improving the sentiment towards Bitcoin. Closing the day above Bitcoin’s former weekly price close will also be seen as bullish for overall short-term sentiment.
Key near-term technical resistance for the BTC/USD pair is located at the $10,380 and the $10,450 levels. Extended resistance above the $10,550 level is currently found at the $10,777 and $10,985 levels.
The downside for Bitcoin is likely to open up if we continue to see weakness below the $10,000 level today. It is worth reiterating that the decline below the $10,000 level is likely to be further exacerbated if we see a strong decline in the broader cryptocurrency market.
From a traders’ perspective, Bitcoin is still making higher lows in the short term. Friday’s swing-low, at $9,750, and the former weekly low, at $9,450, are the two most important support levels prior to the $9,100 level.