Bitcoin analysis for 23/07/2018
The Central Bank of India (RBI) has called on the Supreme Court of the country to regulate cryptocurrencies, informs the local newsletter, Financial Express.
In April this year, the RBI announced that it would cease providing services to companies or persons dealing with cryptocurrencies, citing high risk. Senior advocate RBI, Shyam Divan, told the board headed by President Dipak Misra that it is necessary to regulate Bitcoin and other cryptocurrencies because these “special measures” will encourage illegal transactions.
Divan also pointed out that this issue has an enormous political dimension, confirming that the crypto has the potential to influence global cash flows. The senior lawyer explained that the issue is an interdisciplinary committee headed by the secretary for Economic Affairs, Subhash Garg, created in 2017 to develop the legal framework for cryptocurrencies. The RBI will need three weeks to respond to many petitions regarding legislation.
On July 19, the Supreme Court allegedly postponed the final hearing on the RBI ban on cryptographic transactions – originally scheduled for July 20 – until September 11. The April ban on cryptography met with sharp criticism from the Indian community that created an internet petition aimed at reversing the ban – the petition had collected over 44,000 signatures.
Also in May India’s Supreme Court ordered not to submit any petitions in any Indian High Court against the RBI’s decision to ban cryptographic transactions. On July 5, the three-month deadline for the withdrawal of companies from cryptography, filed by the RBI, ended, which means that the ban came into force in its entirety. On the 12th of July, an anonymous source in the Indian government reported that the authorities may plan to classify crypts as commodities instead of implementing a general cryptographic ban.
Let’s now take a look at the Bitcoin technical picture at the H4 time frame. The market is still locked inside the horizontal range between the levels of $7,176 – $7,650, but the bulls still have control over the market. The technical resistance at the level of $7,752 is the target for bulls for today, but in a case of a breakout higher, the next target is seen at the level of $7,890. Please notice the growing negative divergence between the price and the momentum indicator, that signals incoming corrective pull-back soon.