08.01.202108:54 Forex Analysis & Reviews: Technical Analysis of BTC/USD for January 8, 2021

Crypto Industry News:

The South Korean government issued an amendment introducing a tax on profits from cryptocurrency trading. Following a legislative announcement through January 21, the amendment is likely to be passed in February, media reports. However, cryptocurrency taxes will not be collected until 2023.

The proposal would introduce a series of additional taxes on capital gains, along with a progressive taxation of equity gains. For cryptocurrency holders, anyone with an annual income of more than $ 2,300 from cryptocurrency profits will be taxed at 20%. This threshold is much lower than for stocks where profits above $ 46,000 will be taxed.

For cryptocurrencies held before the beginning of the tax schedule, authorities will consider the highest of the market price immediately before 2023 or the actual purchase price.

The proposed tax regime was envisaged and delayed several times in 2020. Following lobbying from local cryptocurrency supporters, the government initially pulled back the implementation by 2022. The government now appears to have engraved the date in stone, though taking into account a further delay.

While the relative popularity of cryptocurrencies in Korea declined after the 2018 bear market, as exemplified by Binance Korea's failure to solidify, the country remains a stronghold of cryptocurrency adoption.

The Korean government has pushed for various Blockchain technology-based initiatives in the field of digital identity and Blockchain voting. It also designated the City of Busan as a "Blockchain City," though some reports suggest the categorization is devoid of content.

Technical Market Outlook:

The BTC/USD pair has made another all time high when the price hit the level of $40,321. Moreover, the up trend keeps going parabolic, almost vertical. The first mid-term target has been hit, so the next mid-term target for bulls is seen at the level of $50,000. The nearest technical support is seen at the level of $36,000 and $34,000. The momentum remains strong and positive, despite the extremely overbought market conditions on all mains time frames.

Weekly Pivot Points:

WR3 - $46,938

WR2 - $40,854

WR1 - $37,989

Weekly Pivot - $31,477

WS1 - $28,840

WS2 - $22,622

WS3 - $19,555

Trading Recommendations:

Bitcoin made another ATH and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $35,051, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $20,000 is clearly broken.