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Bitcoin Follows Events In India

Published 11/25/2021, 09:54 AM
Updated 07/09/2023, 06:31 AM

After a local correction from all-time highs, followed by a weekly consolidation, the Bitcoin price has initiated a move towards short-term resistance. Earlier in the week, the largest cryptocurrency by market capitalization dipped to mid-October lows around $55,300 and has been trending mostly higher since then. 

However, the recovery doesn’t give much ground for optimism so far, at least as long as the prices stay below the 20-DMA, currently at $61,400. Also, the BTC/USD pair is yet to regain the $60,000 psychological barrier that represents an intermediate resistance on the way towards historic highs registered around $69,000 earlier this month.   

The selling pressure surrounding the digital currency has eased, but it could reemerge both in the short- and medium-term amid speculation and end-of-the-year profit-taking. The recent rebound in prices to the levels just below the $59,000 figure was in part due to reports that India might eventually impose tighter crypto rules instead of an outright ban on private coins. If the speculation is confirmed, the cryptocurrency market could see a relief rally. So far, the country’s government plans to introduce a bill to ban private cryptocurrencies.

Indian authorities continue to warn citizens against investing in digital currencies citing heightened financial risks. Meanwhile, the long-term outlook for Bitcoin remains upbeat, with market volatility decreasing further, attracting more retail and institutional investors across the globe.

Also, the crypto coin may continue to benefit as a hedge from inflation as consumer prices keep rising in many countries, deterring potential investors from traditional assets.   

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