BTC to GBP Outlook: There is Room for More Selling Below 28900

Summary:

The BTC to GBP pair experiences a steep selloff after the Russian Central Bank proposes a total ban on cryptocurrencies.

The BTC to GBP rate is close to notching a 3rd straight day of losses, stemming from concerns over the Russian Central Bank’s proposed ban on cryptos. The apex bank cited environmental concerns, threats to Russia’s economy and wide usage for illegal purposes as the reasons behind its 37-page report that has called for a comprehensive ban on cryptocurrencies.

This ban would include prohibiting crypto trading, its usage for transactions, crypto mining, and bans on operations of crypto exchanges, trading desks and P2P platforms. The proposed law would also make it illegal for corporations to invest in crypto-related businesses or engage in any form of crypto investments.

As expected, Bitcoin prices on the BTC/GBP pair fell 5.23% as of writing on Friday, with the market recording more than $700m worth of liquidations.

BTC to GBP Outlook

Following the rejection of bullish action at the 32213 resistance late Thursday, the price decline took out the 30100 and 28912 support levels. However, an intraday bounce aims to take the pair back above 28912. A rejection of this return move confirms the breakdown of this level and opens the door for an additional deterioration towards 27054.

On the flip side, hopes for a recovery move that gives a breather to the bulls come alive only when the 32213 resistance is breached. This allows for a potential run towards 34036 and 36306 before 38221 and 40000 re-enter as new barriers to the north.