- India could be banning cryptocurrencies in the near future.
- Some experts still believe that Bitcoin will drop to $7,400 before reversing upwards again.
Bitcoin is opening the door for more declines after failing to hold ground above $10,800. As covered by FXStreet, the failure to push for a reversal above $10,800 on Monday would demoralize the bulls who would eventually want to create fresh demand for the world’s largest cryptocurrency at a lower level.
The trading has been leaning towards a sell-off since the opening session on Tuesday. The Asian trading hours saw Bitcoin plunge massively from highs around $10,326 to a low around $9,935 (hit during the European session).
As Bitcoin continues to seek support, the cryptocurrency space in India is fearing the worst after a committee formed by the government present a draft bill and a report recommending the banning of digital currencies. The CEO of Binance, Changpeng Zhao commenting on the proposed ban said that cryptocurrency does not depend on “any one country” to thrive.
“Cryptocurrency will survive regardless of any one country. Most countries that try to ban bitcoin cause their citizens to want cryptocurrency more,” Zhao said.
Bitcoin price technical picture
At press time, Bitcoin is trading at $9,935 amid a building bearish momentum. The potential for declines is massive as observed with the technical levels. The Relative Strength Index (RSI) digging deeper inside the overbought. The RSI has been unable to recover to levels above 70 after the drop on July 21.
The downward sloping trend shows prevailing bearish momentum is getting stronger. The next support target is at $9,500 with $9,000 remaining as the major support in the short-term. However, not that some experts still believe that Bitcoin will drop to $7,400 before reversing upwards again.
BTC/USD 1-h chart