Bitcoin Prices Remain Under Pressure As India Mulls Cryptocurrency Restrictions

Summary:

Bitcoin prices slumped on Monday as India's new crypto laws seeks to limit cryptocurrency ownership and storage.

Bitcoin prices resumed the downside push this Monday, as the Omicron COVID-19 variant’s increased spread piled more pressure on the risk-associated assets. As a result, Bitcoin prices are down 4.5% as of writing to just above 47,800.

The slump follows several days of price action in which the daily candles formed progressively lower lows, pointing to diminishing buying momentum.

Also putting pressure on Bitcoin prices are the pronouncements around the Indian cryptocurrency law, which is expected to criminalize ownership of private wallets. On a slightly muted price action day, Bitcoin prices evened out into the range formed by the 46800 support (4 October/10 December lows) and the 51550 resistance mark (5 October and 7 December highs).

Bitcoin Price Prediction

Following the intraday decline, the active daily candle is now on course to target the 46809 Support (78.6% Fibonacci retracement from the 28 September swing low to the 10 November swing high. Below this level, 37327 becomes an additional target (5 August low) as will the 30 June/4 July highs at 35955.

On the other hand, a bounce on the immediate support gives the bulls a breather, with 52,000 expected to be the next target to the upside. Additional resistance points are seen at 58200 and at 64,000, with 62,000 (21 November high) serving as a potential target to the north.