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Bitcoin Holding Above $9,000 As India Lifts Ban on Crypto Trading

March 5, 2020 at 14:21 by Matt Jackson

Bitcoin prices have bounced back above $9,000, potentially thanks to news that India has officially lifted its ban on trading cryptocurrency. A 4% increase by digital gold has been mirrored by the majority of the cryptocurrency market. Analysts point to $9,550 as the next level for bulls, while bears will be pushing for a retreat below $8,713.

In April 2018, the Reserve Bank of India imposed a ban on cryptocurrency trading, which prevented banks and other financial institutions from offering any services that enabled the trading of cryptocurrencies. At the time of the ban, the Bank of India said the move was to prevent the “ring-fencing” of the national financial system and went on to say that cryptocurrencies could not be treated as traditional currency because they are not made from metal and do not have an official government stamp. However, a number of groups challenged the decision, specifically stating that the bank should look at other nations and the way that they treat crypto trading. In a landmark ruling, this week, India’s Supreme Court overruled the cryptocurrency trading ban.

Bitcoin broke through $9,000 resistance at 09:00 GMT, rising $150 in less than an hour. Since then, the cryptocurrency has been trading between $9,050 and a peak of $9,136 on the Binance exchange. It is currently trading just under the $9,100 mark.

According to analysts, the hourly and daily charts have posted bullish patterns, and the digital currency is expected to push on to resistance at $9,550. Most notably, this morning’s increase means that Bitcoin has broken out of an inverse head and shoulders with a target of over $9,500. This bullish scenario would only be broken if prices close below $8,713.

Bitcoin miners may have played their part in this recent rise, as BTC’s hash rate has broken new records, passing 150 quintillion hashes per second for the first time ever. Hash rate is the amount of computer power used by miners to confirm transactions. Increased hash rate means improved security and faster transaction times and new record highs often lead to similar pushes in price.

However, despite Bitcoin’s bullish patterns and record hash rates, it still has its detractors. One such detractor is the man set to become the head of the Bank of England, Andrew Bailey, who has warned investors that they should be prepared to lose everything if they want to invest in Bitcoin and other cryptocurrencies. In a video available on Twitter, the former head of the UK’s Financial Conduct Authority, said that Bitcoin holds no intrinsic value and so investors should be aware that the asset could potentially crash to a $0 value. He said that Bitcoin has not caught on as much as people expected it to, but he did concede, however, that it has some extrinsic value. Bailey is set to take the position of Bank of England governor on March 17.

Finally, there are reports that Facebook backed Libra, who recently signed Shopify as their latest partner, is considering a different approach to its cryptocurrency launch, following considerable regulatory scrutiny and the loss of several high profile backers. The group is now considering offering digital versions of existing currencies, but has said that it is still committed to its pledge to bring financial services to the unbanked population of the world and that it is still “fully committed to the project.”

At 14:10 GMT, Bitcoin (BTC) had added 4.04% to its prices and is changing hands at $9,112.30 while Ethereum (ETH) has increased 3.82% to trade at $232.81. Ripple (XRP) has also seen its prices increase, adding 3.21% and trading at $0.241. Bitcoin Cash (BCH) and Bitcoin SV (BSV) have increased by 5.18% and 3.82% and now cost $339.45 and $245.29 respectively.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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