BTC Tops $46,000 Since May 18th, Crypto Tax Bill May Push BTC to Retake $50,000

On Monday, Bitcoin and the whole crypto market has been in bullish movements.


On Monday morning, we saw Bitcoin fall to a low of $42,811 before finding support. Bitcoin price has cleared the strategically important 200-day SMA at $44,983 with a bullish outside day on the bar charts.

 

Beyond the 200-day SMA, Bitcoin price is primed to overcome the BTC resistance associated with the 50% and 61.8% retracement levels at $46,849 and $51,109, respectively, before discovering the next genuine resistance around $57,750.

 

The Senate on Monday struck down a bipartisan amendment to overhaul and clarify newly proposed cryptocurrency tax-reporting requirements included in the Senate's $1.2 trillion infrastructure bill, dealing a potentially massive blow to a slew of companies concerned they could be forced to hand over transaction information to the Internal Revenue Service.

 

The new Securities and Exchange Commission chairman, Gary Gensler, has said he wants Congress to give the SEC more explicit authority to regulate cryptocurrencies, trading venues, stable coins, exchange-traded crypto asset funds and the decentralized finance sector.

 

Yellen has foreshadowed specific new regulations on stablecoins – digital currencies backed by traditional currencies or commodities – which are regarded as more of a threat to fiat currencies, payment systems and financial stability than, say, bitcoins.

 

While there are those in the sector who see the US legislation as a positive, by effectively providing the legislators' endorsement of the credibility of crypto assets and therefor helping to make them just another form of investment or currency, transparency would rob crypto assets of the libertarian, anti-establishment flavour that has played a key role in their development.

 

Technical Analysis - Bitcoin May Soon Discard Resistance of $50,000

On the daily chart, Bitcoin (BTC) price soared to a 3 month high at $46,293 after bulls confirmed that they intend to take full control of the market. BTC price now has broken several mid-term and short-term moving averages. MACD's signal lines are trending higher above 0 and RSI is also in the overbought zone.

 

All indicators give bullish signals. If BTC breaks above $50,000, another rally may be kicked off.

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