Ether updated its weekly high and hit $1,600 resistance amid increased demand before switching to a new protocol in mid-September. Bitcoin is also not sitting on the sidelines and compensated for a significant part of the decline observed last Friday. But before we deal with the technical prospects, I would like to say a few words about how things are in the field of cryptocurrencies in Afghanistan. Yes, this industry also has fairly good development in this country.
As it became known, the law enforcement agencies of Afghanistan closed more than a dozen cryptocurrency exchanges in Herat, detaining the people who ran them. The authorities began such actions immediately after introducing a ban on online foreign currency exchange, which the Taliban seem to have applied to cryptocurrency trading. According to the Taliban government, cryptocurrency trading in Afghanistan is equated to fraud. Afghan security forces have closed several cryptocurrency exchanges in the western province of Herat. The Ariana News portal reports this. At least 16 platforms trading digital currencies were closed.
The report quotes the head of the crime department of the Herat police, Syed Shah Saadat, who recalled that the Da Afghanistan Bank (DAB), the country's financial authority, recently issued an order stating that cryptocurrency trading causes a lot of problems and is equated to fraud. He also noted: "We took measures and arrested all the owners of the exchangers involved in this business and closed their companies."
Afghan officials also drew attention to the statement of the central bank in Kabul, which at the end of June said that online Forex trading contradicted Islam and banned it. Through a representative, the regulatory body warned that anyone engaging in this activity would be held accountable. By August, it came to cryptocurrency exchanges and exchangers.
According to experts, after the return of the Taliban to power in Kabul, the Afghan economy plunged into an even deeper crisis. The United States withdrew its troops in 2021, seized $10 billion worth of DAB assets, and imposed sanctions. Against this background, financial constraints and the withdrawal of Western companies made it difficult to send money home to the Afghan diaspora. As a result, many Afghans turned to cryptocurrency, which also helped them preserve their savings and prevent their confiscation by the government.
Returning to the topic of the technical picture, bitcoin buyers managed to return to the level of $19,966 yesterday and are now seriously aiming for further recovery to the area of $20,788. Considering what a bull market we are currently seeing, especially after pleasant prices against the recent correction, demand will likely only increase. The bulls' focus is now on the near-term support of $20,800. In the case of a breakout in this area, you can see a dash up to $21,540. To build a larger upward trend, you must break above the resistance levels of $22,180 and $22,670. If the pressure on bitcoin returns, it is obvious that the bulls will try to protect the support of $20,007. Its breakdown will quickly push the trading instrument back to $19,100 and pave the way for an update of the $18,620 level.
Ether has shot up very strongly, and the nearest target of buyers in the current conditions is the resistance of $ 1,605. Its breakdown will lead to a change in the market direction to an upward one, which will open up the possibility of updating the longer-range target of $1,667 and $1,743. When the pressure on the trading instrument returns, buyers need to re-manifest themselves around $ 1,530, as only this will keep the market under their control. A break in this area will push ether back to $1,476 and $1,418.
