The Reserve Bank of India has banned regulated financial institutions from dealing in cryptocurrencies, citing the risks involved. American billionaire Tim Draper believes that India is making a big mistake by shutting its doors to cryptocurrencies. According to Draper, this will only lead to brain drain as many will be forced to move to other places, which are more crypto-friendly.
Japan, which is a major hub for crypto and Blockchain activity is facing shortage of software engineers. There are similar requirements at other places, where Blockchain professionals are in demand. This has forced the top MBA colleges in the world to increase the presence of virtual currency and Blockchain classes in their programs.
With the RBI’s move, India will lag behind other nations in the technology of the future.
Turning back to Bitcoin’s price, Thomas Lee, the head of research at Fundstrat Global Advisors believes that the cryptocurrency’s sell offs will subside after the mid-April tax filing deadline. He has maintained his year-end targets of $25,000 for Bitcoin and $1,900 for Ethereum.
On the other hand, investment research firm Capital Economics believes that Bitcoin will be a huge underperformer compared to the other asset classes in the coming months.
Like any other asset type, cryptocurrencies will have analysts taking both bearish and bullish views. But, we shall rely on the chart patterns to initiate trades that offer us a good risk to reward ratio. Let’s see if we find any buy setups today.
Bitcoin is close to breaking down of the April 01 lows of $6,757.26 and moving lower towards its next support of $6,075.04. Though the digital currency has fallen below the $7,000 level, we don’t find any significant buying support.
The 20-day EMA is trending down and is placed just above the resistance line of the descending channel. The BTC/USD pair has not broken out of the 20-day EMA since March 08, which shows the extent of selling. This will act as a major resistance on any pullbacks.
We suggest a buy only after price breaks out and remains above the 20-day EMA.