Altcoins Continue to Tumble While Analysts Remain Bullish on Bitcoin Price
Bitcoin and meme-inspired coins are still down as news of India planning to make cryptocurrency illegal continues to shock the industry. The government of India is planning to prohibit most cryptocurrencies as part of its master plan to introduce a digital currency of its own. The bill proposing the Indian digital currency will be pushed forward in the next parliamentary session by the end of November.
According to a bulletin released on the Indian parliamentary website, the bill seeks to ban all private cryptocurrencies in India. However, it “allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.”
On Wednesday, Bitcoin fell 3% at $56,100 based on latest data from CoinDesk. Ethereum was also down 4% while altcoins such as Dogecoin tumbled to 7% from its highs last Tuesday. Shiba Inu, another meme-inspired coin following in the footsteps of Dogecoin, lost its ground and fell 12%. Dogecoin has a market capitalization of almost $29 billion compared to Shiba Inu’s $21 billion.
Analysts believe the proposed crypto ban in India may not have the same impact as China’s crackdown. However, it is considered another stumbling block towards the advancement of cryptocurrency towards economic progress.
The Indian government may not be able to prohibit cryptocurrency trading on private computers in international exchanges. An official ban might at least limit activity due to a ban in marketing and advertising.
Meanwhile, a trend reversal in Bitcoin price is seen by analysts as the current $56,000 level is deemed to be “seriously cheap.” In a tweet on Nov. 24, Phillip Swift from LookIntoBitcoin believes the cryptocurrency will be bullish again in the near future.
He explained the concept of Advanced NVT Signal as it uses Bitcoin’s market cap and network volume to determine if the cryptocurrency is oversold or overbought. Swift explains the metric as it takes into account certain changes in investor habits.
Advanced NVT, according to Cointelegraph, is the total Bitcoin market cap divided by the 90-day moving average of network transaction volume. An increase in price is believed to be on the horizon.
Reissa covers latest news for Revolution Crypto.