South Korean financial regulators are going after digital assets that are being held in exchange wallets
The South Korean finance ministry is looking for an additional way to fight tax evasion by crypto investors, reports Reuters.
The main point of discussion was the crypto wallets on centralized digital exchanges.
One of the main goals that the government announced is the widening of welfare spending, which can be achieved with new tax codes that will shut down the illegal activities in which cryptocurrencies are actively being used as the main payment tool.
Monday’s proposal is one of the first steps in reviewing the current tax system. The financial regulator is looking to renew 16 more outdated tax codes.
The South Korean government also proposed expanding taxes on companies that are hiring workers outside of Seoul and cut corporate income taxes for companies that are bringing production capacities back to the country.
The new tax review will be proposed to the parliament by Sept. 3 after it receives approval from lawmakers.
Bitcoin price analysis: Bitcoin crashes south of $60k. Has the reversal started?
- Bitcoin price analysis is bearish today.
- BTC flash crashed below the psychological mark of $60,000.
- Bitcoin continues to look for its supports.
The Bitcoin price analysis reveals a sudden drop in price as BTC went south of $60,000 in a matter of minutes. After hitting the all-time high at $65,984 on 20th October, Bitcoin is on a downward pattern, and yesterday it came down from $63,000 to $60,400. At the start of today’s session, bulls tried to elevate the price, but soon their efforts went in vain as bears started to take over the price function, and Bitcoin crashed spectacularly below the psychological mark of $60,000.
As the speculation goes around, that BTC usually crashes majorly to 50 percent after the ATH, before hitting another ATH almost double of its previous value, which will be in the region of $138,000, but the idea seems far fetched as of now.
BTC/USD 1-day price chart: BTC to find support
Bitcoin continues to find support as it is falling down at a faster pace. The nearest support is present at $57300. The Bitcoin is trading hands at $58,726 at press time, reporting a loss of 6.22 percent in value over the last 24 hours and a loss of eight percent over the past week. The market cap has suffered by 5.9 percent during this time. However, the trading volume has increased by 32 percent.
The volatility is mild as the volatility indicator, the Bollinger bands showing slow convergence, and the Bitcoin has stepped below the support of the mean average of the Bollinger bands, which is present at $59,776, turning it into resistance.
The relative strength index (RSI) shows a steep downwards slope from yesterday as Bitcoin’s south journey continues. The RSI indicates an intense selling activity going on in the market.
Bitcoin price analysis: Recent developments and further technical indications
The 4-hour Bitcoin price analysis shows that the price breakup was upwards at the start of today’s session, as the price recovered during the first four hours, but then selling pressure started again, and BTC price started falling.
The volatility is again increasing on the 4-hour chart as the price function is oscillating down at a high pace, with the price even going below the lower Bollinger band, which was the lowest technical support level in the current situation. The RSI is near the under-sold region at index 32 after taking a dip, as selling pressure is overwhelming.
Due to the recent bullish behavior of Bitcoin, the technical indicators are mostly neutral, as some short-term indicators just gave the call for a selloff, including the MA10 and the momentum oscillator. On the other hand, the mid-term indicators still support the buying decisions, as some of them are lagging indicators based on historical data.
Bitcoin price analysis: Conclusion
A situation like a flash crash was observed just a few minutes back when the Bitcoin sunk below $60,000, as today’s Bitcoin price analysis suggests. Currently, Bitcoin is testing the 8th May 2021 support and if it falters, then next in line is the recent support of $57300. Chances are there for a retest of the later support as well, as the price may continue to descend in the coming hours.
$182M in Bitcoin liquidated as price tanked almost $2,000 within an hour
- The price of Bitcoin dropped almost $2,000 early today, within a matter of minutes.
- The crash resulted in the liquidation of over $89 million BTC positions.
Zooming out to the weekly charts, the largest cryptocurrency, Bitcoin (BTC), clearly seems to be in a downtrend. Since reaching an all-time high (ATH) of $67,000 last week, the price of Bitcoin has been gradually declining. BTC has lost about 11% since the ATH, which somewhat suggests many people have been taking profits.
Going by on-chain data, this is also the case with long-term holders (LTH). According to Glassnode, a few LTHs are starting to cut in profits from the recent rally.
Finally, we assess the actual coin volume spent by LTHs.
During an extraordinary accumulation period since March, LTHs added 2.42M $BTC to wallets.
The spending above is around 39.5k $BTC or ~1.6% of the accumulated balance.
LTHs are taking profits, but not exiting en mass
3/4 pic.twitter.com/2jvVHF1ObF— glassnode (@glassnode) October 26, 2021
Bitcoin shades $2,000 within minutes
Earlier today, BTC shaded almost $2,000 from the $60,000 level to $58,017 within a matter of minutes. There isn’t any definite reason behind the sudden decline in BTC. However, it’s worth pointing out that the liquidations in the derivative market could also be a factor.
The cascade of sellings in the BTC market was strong enough to trigger the liquidation of $9.55 million worth of BTC long positions in one hour and $89.4 million within the last four hours, according to data from Bybt. On the 24 hours count, the market sees a much more loss of $182.3 million at the time of writing.
Just before this flush in the derivative market, funding rates in perpetual swap futures markets were seen at high levels following the increase in BTC. This shows many futures traders were excited and greedy at the same time amid the rally and the news around the ETF developments in the United States. When funding rates are high, it means traders have entered a state of euphoria, which usually results in steep corrections.
What’s next for Bitcoin?
BTC may have lost almost $10,000 since the October ATH. However, this can possibly be a mere correction. Many experts and analysts are positive that the bull market is still intact. On Tuesday, popular Bitcoin analysts and the S2F model creator, PlanB, said the second bull market has just begun. He predicts BTC will reach $100,000 in December.
Bitcoin Price Rejects Dumping Further! This Is Where It Could Head Next!
The coin market has been consolidating, post a healthy momentum. The market capitalization of the space, at press time, is up by 1.1% at $2,743,014,523,516. Meanwhile, the dominance of the star crypto is at 43.1%. Enthusiasts in the space, are eagerly waiting for Bitcoin to pick up the pace. Meanwhile, a popular investor’s trade mistake turns pocket heavy.
Bitcoin Goes Long, While Investor Predicts Short!
BTC did break through its resistance around $62,000. While the trade volumes remain below satisfactory levels. Crypto proponent Lark Davis, mentions that Popular American investor, Michael Burry had shorted both Bitcoin and Tesla. Both of which, have given out exceptional gains. Costing huge money for the investor. He also believes, going long could have returned over 100%. On the contrary, shorting would have given him 50%.
Analyst opines that one cannot be pessimistic with innovation and technology. As these are programmed to skyrocket. In addition, he contemplates 3.4 billion more users to come into the crypto market in the future. Analyzing the impetus following the user base would be no rocket science.
Institutional investments in Bitcoin are now a thoroughfare. Korea Teacher’s Credit Union is planning to invest in Bitcoin. The fund manages more than $40 billion in assets. Even a fraction of which, would mean huge impetus to the network. In addition, BlockFi is set to launch a partnership with Neuberger Berman, which manages around $437 billion in client assets.