India appears to be following China’s path. India’s finance minister recently gave a clear answer that India is not going to recognize Bitcoin as a currency. However, cryptocurrencies will not be banned in India either. India’s finance minister has advised companies to continue to conduct customer due diligence procedures in line with Know Your Customer (KYC) and Anti Money Laundering (AML) regulations.
This news had no impact on Bitcoin. The cryptocurrency continues to unsuccessfully try to rise above $58000 and gain a foothold there. But as soon as the price of Bitcoin rises above $58000, the pressure of the bears intensifies and they lower the price. The bulls have to contain the bears and keep the Bitcoin price above $57000. This scenario is repeated for the third day in a row. After the Bitcoin price peaked at $59250 yesterday, it dropped below $57000. At the time of publication, the BTC/USD pair is trading around 56900.
These three days show that the bears still control the market. It is easier for them to push the price below the support level of 57000 than it is for the bulls to raise it above 58000. The level of 57000 remains an important support level for Bitcoin. If the bears push the price below this level, we will see the price of Bitcoin drop to the area of 56200. Here the price will receive additional support in the form of a 100-hour moving average. A break below this level will push the price of Bitcoin down to the area of 55000.
However, if the bulls still manage to raise the Bitcoin price above $58000 again, and most importantly hold it, then the bulls will have a chance to continue the price growth. However, they will get the first resistance around 58200. A quick pass of this level will activate the bulls and help to overcome the next resistance around 58500. A move above that level would target the bulls for the test of 60000.