Bitcoin price analysis: BTC/USD sidelined at $6,700; India considers its own crypto

India is all for cryptos as long as they are issued by the state. The Reserve Bank of India is considering the feasibility creating of its own virtual currency, according to RBI statement published on Thursday. The dedicated task group will provide a detailed report on the topic in June 2018.

"While many central banks are still engaged in the debate, an interdepartmental group has been constituted by the Reserve Bank to study and provide guidance on the desirability and feasibility to introduce a central bank digital currency. The Report will be submitted by end-June 2018," the statement reads.

However, the RBI forbid the regulated entities to deal with virtual currencies in any form as they are considered to be too risky and associated with money laundering and financing illegal activities.

"Reserve Bank has repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated with dealing with such virtual currencies. In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs."

Read more about India's crypto ban

Bitcoin technical picture

BTC/USD is trading at $6,700 handle with the upside limited by $6,875 (50-EMA, hourly interval) and $6,900 (upper line of Andrew's pitchfork and mid-term downside trendline). Once this area is cleared, $7,000 and $7,200 (200-EMA, hourly interval) will come to focus. On the downside, the near-term support is seen at $6,600; it is followed by $6,000 and $5,896 (February 6 low).

 
BTC/USD, the hourly chart