News:

A local report from today informed that India's Ministry of Finance had moved a note for inter-ministerial consultations. After the consultations, it will reach the cabinet and subsequently, the Parliament.

Should it be successfully implemented, it could effectively ban dealing with cryptocurrencies in any form in the country. People familiar with the matter have connected the note with a law draft issued in July 2019, which was especially harsh on digital currency traders and investors.

It had suggested "a fine of up to Rs 25 crore ($3.3 million) and imprisonment of up to 10 years for anyone dealing in them."

According to Amit Maheshwari, partner at AKM Global, such legislation should not be passed. He argued that it would make it "illegal to hold, sell, issue, transfer, mine, or use cryptocurrencies and, if passed in the current form, would completely decimate the crypto-industry in India."

Technical analysis:

BTC has been trading downwards. As I expected, the BTC reached our first downward target at the price of $9,224. The BTC is now in correction mode and I see potential for more downside movement towards our second target at $8,654.

Trading recommendation:

Watch for selling opportunities on the rallies.

4H time-frame is setting up for the bear flag completion and potential new drop.

Downward target is set at the price of $8,654

Important intraday resistance is set at $9,540