Bitcoin forecasts after the drop to 107,000 with developments in BRICS and India:
Bitcoin price forecasts amidst developments in the BRICS and India that are shaking the sector, as the BTC price recovered to $107,000 during the evening trading session, Bitcoin (Bitcoin-BTC) stabilized around $107,500, down 1.50%, amid a mix of global economic shifts, the most notable being Russia strengthening its partnership with the New Development Bank (NDB) of BRICS, accelerating the move away from using the US dollar (USD). Sergey Ryabkov, Russia's Deputy Foreign Minister, recently emphasized the trend towards encouraging the use of local currencies instead of the US dollar in financial transactions in Moscow's bet to undermine Western financial dominance.
It is noted that BRICS members, led by Dilma Rousseff, President of the New Development Bank, see the imposed sanctions as obstacles to trade and development; however, the shift towards a multipolar financial system could improve demand for Bitcoin. As traditional financial systems continue to face criticism and skepticism, more countries and investors may turn to Bitcoin as an international alternative not subject to a sovereign authority, which could stimulate demand for it and raise its value.
India's tax reforms could significantly stimulate Bitcoin adoption
The optimism surrounding the possibility of Donald Trump backing down (on imposing tariffs) has sparked a wave of optimism about the potential reduction of crypto-related taxes in India, amid industry leaders exerting pressure to replace the current transaction tax burden of 1% and a 30% capital gains tax with simpler fees equivalent to
Meanwhile, prominent trading platforms like Coinbase (NASDAQ:COIN) and Binance are looking to return to India, with expectations of market growth to $15 billion by 2035, as tax cuts could attract millions of new users and increase Bitcoin adoption, possibly stimulating its breakout.
However, the ambiguity surrounding the regulation of the crypto sector and outdated laws remains the main obstacle, so the adoption by the Indian government of such changes may improve Bitcoin's standing as a leading global financial asset.
Bitcoin price movement patterns suggest a potential reversal.
Technically, Bitcoin price forecasts appear bearish due to its recent break below the upward trend line of the symmetrical triangle pattern, suggesting unpromising forecasts in the near term despite encouraging indications from some technical indicators.
Currently, the price continues to approach the Fibonacci correction level of 50% at $107,060, showing a state of hesitation, with recent trading candles with long upper wicks indicating that the current upward wave lacks momentum; however, the nearest current support levels at $105,900 and then $104,256 - corresponding to recently recorded lows - could form a strong base for a reversal.
A chart illustrating Bitcoin price movements, but a closer look at the MACD indicator shows a crossover and bearish divergence on its chart; however, this path could reverse if a bullish engulfing candle or the three white soldiers pattern forms above support levels, which would be seen as a strong breakout indicator.
As the 50-period exponential moving average (EMA-50) continues its downward movement nearing the current price, this suggests that a bullish breakout above the $108,200 barrier could push the price towards $109,631 or even $111,932.