Crypto Industry News:
The Ministry of Finance of Russia has launched an initiative that stands in stark contrast to the tough stance of the central bank.
The Central Bank of Russia recently called for a ban on cryptocurrency trading and mining activities nationwide. Citing volatility, environmental impact, and use in illegal activities, the central bank released a report calling on regulators to impose a complete ban and impose severe sanctions on violators.
However, the proposal was opposed by the Russian Ministry of Finance. A few days after the central bank's call to ban, Ivan Chebeskov, a ministry official, said the government should regulate cryptocurrencies rather than ban them altogether. Chebeskov said authorities should give the industry a chance to develop and that a total ban could put Russia behind.
According to the reports of the RBC, the ministry sent a letter to the vice-chairman of the government of the Russian Federation, Dmitry Chernyshenko, and officially presented the government with the proposed regulation. The proposal introduces a new framework for the use of cryptocurrencies in the country which suggests that crypto operations should be carried out within a traditional banking infrastructure, with mechanisms to identify traders' personal information.
Cryptocurrency regulation can bring many benefits, such as increasing tax revenues and increasing the ability of law enforcement agencies to track criminal activity, according to the ministry.
The ministry cites statistics showing that Russian citizens are holding cryptocurrencies worth around 2 trillion Russian rubles, and that a complete ban or lack of regulation will ultimately weaken the industry and create a black market.
Technical Market Outlook
The BTC/USD pair has been rejected from the 50% Fibonacci retracement located at $38,167 after the Bearish Engulfing candlestick pattern was made at this level. The bulls are trying to break through the nearest technical resistance seen at $38,261 and $39,555, but even with the help of FED (the recent interest rate decision) they can not break through. The market conditions are extremely oversold at daily time-frame chart, but the momentum is still weak and negative. This is not a good situation for bulls as the bears are still in control and might push the price way lower soon. The next technical support is seen at $35,912 and $34,632.
Weekly Pivot Points:
WR3 - $49,548
WR2 - $46,360
WR1 - $39,808
Weekly Pivot - $37,007
WS1 - $32,011
WS2 - $27,102
WS3 - $20,525
Trading Outlook:
The market is controlled by bears that pushed the price way below the level of $40k, so a breakout above this level is a must for bulls for a trend reversal. The market retrace more than 50% since the ATH at the level of $69,654 and the next long-term technical support is located at $29,254. The corrective cycle is still in progress and is much more complex and time-consuming than anticipated.
