Bitcoin retreats ahead of a looming India ban
The price of cryptocurrencies declined sharply as the market reflected on a potential ban in India. According to Reuters, the government is considering outlawing all digital currencies except those issued by the country's central bank. It will ban the exchanges, miners, and other important participants. India will become the first country to ban currencies. The price of Bitcoin fell to $52,000, a few days after it reached an all-time high of $62,000. Similarly, currencies like Ethereum and Cardano have dropped by more than 3%.
The Australian dollar declined slightly after the latest RBA minutes. The minutes showed that the economy is recovering swiftly and reacting to the withdrawal of some of the government’s fiscal help. For example, the government’s JobKeeper program will expire this month. Other programs introduced as part of the coronavirus response will also expire in the near term. Still, analysts believe that the country’s V-shaped recovery will continue, helped by a strong recovery of the Chinese market and vaccinations.
The US dollar is in a tight range ahead of the important US retail sales numbers that will come out in the afternoon session. After a strong start of the year, economists believe that the sales retreated in February as the impact of the stimulus package eased. Precisely, investors expect the data to show that the headline and core retail sales declined by 0.5% and 0.1%, respectively. The numbers will then bounce back in March and April because of the $1.9 trillion stimulus package. The country’s statistics bureau will also publish the latest industrial and manufacturing production numbers.
The EUR/USD price is in a tight range ahead of important US retail sales numbers. The pair is trading at 1.1930, where it was yesterday. On the hourly chart. The price is close to the short and longer-term moving averages while the gap between the three Bollinger Bands has narrowed. Also, the Average True Range (ATR), which is a measure of volatility, has also declined. Therefore, the pair may break-out later after the US retail sales numbers.
The BTC/USD price has fallen sharply from the all-time high of 62,o00 to the current 54,548. On the four-hour chart, the price is still slightly above the ascending trendline that connects the lowest levels since the year started. It is also slightly below the upper side of the ascending channel shown in yellow and is between the middle and lower lines of the Bollinger Bands. Therefore, the pair will likely resume the upward trend as bulls attempt to retest the all-time high at 62,000.
The GBP/USD price declined slightly during the American and Asian sessions. The pair fell to 1.3860, which is slightly below Friday’s high of 1.4000. On the four-hour chart, this price has moved slightly below the 25-day exponential moving averages (EMA). The signal and histogram of the MACD have also declined below the neutral line. Therefore, the pair may continue falling, with the next key support being at 1.3850.