- Cryptocurrencies have been falling sharply amid falling safe-haven demand.
- Digital coins face clear lines of resistance they must overcome to move higher.
- Here are the next levels to watch according to the Confluence Detector.
Bitcoin is providing to be a safe-haven asset – and that can be painful for the cryptocurrency market when investors stop seeking refuge. The price of digital coins has dropped substantially after the US announced it would postpone some of the tariffs planned on China. President Donald Trump – “not a fan of Bitcoin” – has decided to spare US shoppers from new levies that would have bumped prices higher. And on the way, he sent Bitcoin lower.
And while the world’s largest economies are getting closer, one of the biggest banks may be distancing itself from a dominant crypto exchange. Barclays has reportedly cut ties with Coinbase – ending a relationship which began in March. Apart from the blow to the reputation of digital coins, Coinbase would lose access to the UK’s Faster Payments Scheme (FPS) – slowing sterling transactions. Some speculate that the major British bank wants to distance itself from cryptos.
The adverse news has sent Bitcoin below $11,00, Ethereum closer to $200, and XRP toward $0.2900. Where next? We will now examine the charts.
This is what the Crypto Confluence Detector shows in its latest update:
BTC/USD faces a challenge at $10,657
Bitcoin is licking its wounds from Tuesday’s downfall and faces resistance at $10,657 which is a dense cluster including the Simple Moving Average 2004h, the SMA 10-1h, the Fibonacci 38.2% one-month, the Bollinger Band 15min-Upper, and more.
Further above and with enough momentum, the granddaddy of cryptocurrencies may challenge $11,629, which is the Fibonacci 61.8% one-month, the Fibonacci 38.2% one-week, and the Pivot Point one-day Resistance 2.
BTC/USD has some support at $10,060, where the Fibonacci 23.6% one-month hits the price.
In case of a severe downfall, the king of cryptos could fall to $9,144, which is the confluence of the previous monthly low and the PP one-week Support 3.
ETH/USD capped at $208
Ethereum faces an immediate challenge at $208, where a minefield of technical lines awaits it. This includes the SMA 5-15m, the previous 4h-low, the SMA 5-4h, the SMA 10-15m, the BB 1h-Middle, the SMA 50-15m, the SMA 10-1h, the SMA 100-15m, and more.
If ETH/USD breaks higher, the next cap awaits it at 217 which is the convergence fo the SMA 50-4h, the BB 4h-Upper, the PP 1d-R2, the SMA 200-1h, and the Fibonacci 161.8% one-day.
A third hurdle is close by – $221 – where the PP 1d-R3, the Fibonacci 23.6% one-month, and the Fibonacci 38.2% one-week converge.
Looking down, noteworthy support awaits only at $191 – last month’s low.
All in all, Vitalik Buterin’s brainchild is in a perilous technical state.
XRP/USD needs to break above $0.2959
Ripple is facing instant resistance at 0.2959 which is a dense cluster including the SMA 5-15m, the BB 1d-Lower, the SMA 10-15m, the BB 1h-Middle, the SMA 5-4h, the Fibonacci 38.2% one-day, the BB 15min-Middle, the SMA 5-1h, and the SMA 10-1h.
If XRP overcomes this hurdle, the next target is $0.3065, which is the confluence of the Fibonacci 38.2% one-week, the PP 1d-R2, and the Fibonacci 161.8% one-day.
Below, weak support awaits at $0.2988, where we find the previous weekly low.
Next, somewhat more substantial support awaits at $0.2837, which is the meeting point of the previous monthly low and the PP 1d-S3.
Cryptocurrency market update: Major cryptos remain stuck in tight ranges
- Bitcoin continues to move sideways near $7,500 on Saturday.
- Ethereum waits for Istanbul hard fork to take place later today.
- Ripple struggles to move beyond its 20-day moving average.
Major cryptocurrencies struggle to find direction on Saturday with the top three coins with regards to market capitalization registering small daily changes.
Top-three coins price overview
After gaining a total of nearly 5% in the last two days, Bitcoin (BTC/USD) failed to extend its rebound and spends the day fluctuating near $7,500 on Saturday. Technical indicators don’t seem to be providing any directional signals either with the Relative Strength Index (RSI) on the daily chart staying flat near the 50 mark. Supports for the pair could be seen at $7,450 (20-day MA),$7,080 (December low) and $6,500 (Nov. 25 low). On the flip side, $8,000 (Fibonacci 38.2% retracement of October 25- November 25 drop) seems to have formed a stiff resistance level ahead of $8,500 (Fibonacci 50% retracement of October 25- November 25 drop) and $8,750 (100-day MA).
As investors withdraw to the sidelines while waiting for the highly-anticipated Istanbul update to take place on the Ethereum network, Ethereum (ETH) is staying calm near $150. According to Etherscan.io’s block countdown, the hard fork is expected to occur around 01:00 GMT on Sunday, in about 10 hours. The daily RSI edges lower below the 40 mark suggesting that sellers are looking to remain in control of the action. ETH could encounter the initial support at $143 (December 4 low) ahead of $132 (November 25 low) and $124 (March 4 low). Resistances align at $154 (20-day moving average), $160 (former static support/November 29 high) and $175 (100-day moving average).
Ripple (XRP) renewed its lowest level in nearly two years at $0.2025 on November 15th and the following rebound met resistance near $0.24. Although the pair gained more than 5% on Thursday and Friday, it failed to break above the 20-day MA, which is currently located at $0.23. The RSI indicator is moving sideways near 40, suggesting that the pair is having a difficult time gathering bullish momentum. Above the 20-day MA, the pair could face the hurdles at $0.24 (Fibonacci 23.6% retracement of September 16 – September 23 drop) and $0.2560 (Fibonacci 38.2% retracement of September 16 – September 23 drop). On the downside, $0.2110 (December 4 low) could be interim support before $0.2025 (2-year low/November 25 low).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.
Internal Revenue Service (IRS) Claims 91% Conviction Rate for Tax Crimes In 2019
Last Updated on December 6, 2019
The Internal Revenue Service (IRS) of the US recently revealed that they successfully brought conviction in 91.2% of all tax crimes it identified during 2019. It highlighted an aggressive strategy to enforce rules and bring more tax criminals to justice.
IRS wants better conviction rates
IRS figures reveal that it has convicted at 9 out of 10 cases of tax crime. However, the officials suggest that they want to improve the conviction rate further. The annual report of criminal investigations emphasizes the aggressive enforcement actions by the agency. It also highlights how criminals are using new technologies and unique methods to evade taxes.
IRS criminal investigation unit head Don Fort commented,
“They took their money offshore and hid around the world, but we found them. They went on the dark web, thinking that their actions were anonymous, but they weren’t, and we again found them.”
He added that criminals are using cryptocurrencies to keep their transactions anonymous. However, IRS agents have found ways to identify their transactions and follow their illegal activities.
What does the data suggest?
The agency incarcerated about 79% of the convicted criminals in 2019 and sentenced them to three years on average. Other convicts were sent on house arrest, restitution and were ordered to pay fines. The IRS identified tax frauds valued at over $1.8 billion during the year. It also identified $4.4 billion in additional financial crimes, including frauds and money laundering.
The IRS prioritized tax evasion crimes in 2019 and focused its attention on cryptocurrencies. The anonymity feature of digital assets like Bitcoin allows users to transfer money around the globe with no oversight. Some coins like Zcash and Monero are designed to provide additional privacy to users and scrambles their tracks which makes identification difficult.
However, the IRS found a new way to tackle these issues. It received details of more than 10,000 users of cryptocurrency exchange Coinbase and sent them letters earlier this year. It asked them to pay taxes on their crypto holdings or face action. Some of these letters had a relatively harsh tone which suggested that the agency isn’t keen on delays and excuses.
The newfound enthusiasm at the agency is being credited to Michael Desmond and Charles Retting who joined the agency in 2019 and 2018 respectively. Both are known to be effective tax litigators who keep prosecution in criminal cases as their top priority.
Japan’s biggest bank MUFG cryptocurrency set for a delay
- Mitsubishi UFJ Financial Group has been preparing the launch of its own cryptocurrency.
- Reports suggest the release will now be in the first half of next year.
Japan’s largest bank Mitsubishi UFJ Financial Group is getting set to release a cryptocurrency, however the project has now been postponed to a later date.
The firm is set to leverage the digital currency in a mobile payments business. According to local reports, the mobile payment service will start utilising the new digital coin as a unit of transactions that will be shown off hand in hand in partnership with the HR company, Recruit Holdings.
Users will be able to start converting their money they have pocketed away in their bank accounts into the MUFG coin, as part of this new service.
It is reported that the mobile payment service is expected to be launched in next year’s first half. Currently, the two firms are awaiting regulatory approval. They are seeking a fund transfer service provider license.” Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.