Crypto Industry News:
Beijing's First People's Court has ruled that interested investors can trade cryptocurrencies. However, they should only be treated as virtual assets and not act as currency.
The ruling was made in a case regarding a crypto loan in litecoins (LTC) with a promise of repayment of interest in digital currencies. The specificity of the case indicates that in 2015 Zhai Wenjie loaned 50,000 litecoins to his friend Ding Hao. Zhai Wenjie stated that Ding Hao had promised to pay 1,000 litecoins as interest per month, which was denied by the defendant.
The court recognized the existing Chinese ban on cryptocurrency trading and its chairman noted that Litecoin cannot be treated as a currency. This is because digital assets are not issued by a monetary authority and are characterized by a lack of support from the legal and financial framework.
"According to the existing regulations and administrative arrangements, our country denies the monetary attributes of the virtual currency and prohibits its circulation as a means of payment. However, the cryptocurrency itself is property protected by law, "the court ruled.
Interestingly, Bitcoin is still banned in China. A Chinese court decided to take a separate approach to Litecoin, citing the lack of legislation regarding its perception as an illegal resource. Therefore, the judge ruled in favor of the victim and ordered the accused to return litecoins to him.
The ruling in the case reflects a recent decision by a Chaoyang-based court that banned payment of wages in Tether (USDT) precisely because of the prohibition of digital asset trading.
It's worth noting that different Chinese county courts have issued different rulings regarding the trading and handling of cryptocurrencies. For example, in May this year, the Shanghai People's High Court ruled that Bitcoin has "some economic value" and is protected by the country's laws.
Interestingly, despite existing bans, new data shows that more and more Chinese citizens continue to trade in various assets. The country currently ranks tenth in the world for cryptocurrency adoption.
Technical Market Outlook:
The BTC/USD pair keeps making the lower lows and lower highs on the H4 time frame chart. The recent low was made at the level of $19,510, but no sell-off was triggered yet. The Pin Bar candlestick pattern was made at the H4 time frame chart at the lows, so the market is consolidating around the level of $20,120. The levels of $20,472 and $20,580 will now act as the technical resistance for bulls. The weak and negative momentum supports the short-term bearish outlook towards the level of $18,640 again.
Weekly Pivot Points:
WR3 - $23,418
WR2 - $22,624
WR1 - $22,146
Weekly Pivot - $21,821
WS1 - $21,352
WS2 - $21,035
WS3 - $20,241
Trading Outlook:
The down trend on the H4, Daily and Weekly time frames continues without any indication of a possible trend termination or reversal. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The key long term technical support at the psychological level of $20,000 had been violated, the new swing low was made at $17,600 and if this level is violated, then the next long-term target for bulls is seen at $13,712. On the other hand, the gamechanging level for bulls is located at $25,367 and it must be clearly violated for a valid breakout.
