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India’s Supreme Court on Wednesday quashed a Reserve Bank of India (RBI) order dated April 6, 2018, which prohibited banks from providing services to entities dealing with cryptocurrencies.

The high court's decision has brought cheer to the crypto community, as Indian traders will be able to directly deposit Indian rupee (INR) from bank accounts to crypto exchanges. As a result, it will be more convenient for users to cash in and cash out of their holdings.

Major exchanges are predicting a rise in trading volumes. "Volumes on Indian cryptocurrency exchanges to grow by 10 times in the near future," said Nischal Shetty, founder & CEO of Mumbai-based cryptocurrency exchange WazirX, which was recently acquired by Binance, the world's largest exchange by trading volume.

Meanwhile, CoinSwitch’s Ashish Singhal anticipates average daily volume rising as high as $50 million to $60 million – the level seen before the RBI ban – and may surpass that level.

Some observers say volume growth may still not be as strong as widely expected, as the regulatory uncertainty remains despite Supreme Court's decision. Moreover, the government is yet to announce regulations and legalities of operating cryptocurrency businesses in India.

The Indian government had submitted a draft crypto bill, “Banning of Cryptocurrency & Regulation of Official Digital Currencies” to the Supreme Court in August 2019, seeking to bar the use of cryptocurrency as legal tender or currency while prohibiting mining, buying, holding, selling, dealing in, issuance, disposal or use of cryptocurrency.

However, the government did not introduce the draft bill in the winter session of the parliament held between Nov. 18 and Dec. 13.

Bitcoin Confirms Price Breakout

BTC: Price: $9,060 | Market cap: $165 billion | 24-Hr Volume: $38 billion

Trend: Bullish

Bitcoin has crossed above $9,000, confirming an inverse head-and-shoulders bullish reversal pattern on the hourly chart. The breakout has created room for a rally to $9,550 (target as per the measured move method).

Supporting the bullish case is the 14-day relative strength index, which has breached the descending trendline, marking an end of the correction from recent highs near $10,500. Additionally, the daily chart MACD histogram is producing higher lows in favor of the bulls.

That said, markets often crowd out weak hands (buyers) following an inverse head-and-shoulders breakout by revisiting the former hurdle-turned-support of the neckline. So, a brief drop to or below $9,000 may be seen before rally toward higher resistance levels.

All in all, technical charts look to have aligned in favor of a rise to resistance at $9,312 (Feb. 19 low). A violation there would expose the inverse head-and-shoulders breakout target of $9,550. The bullish case would weaken only if prices print a UTC close below the 200-day average at $8,713.

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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.

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