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Bitcoin Price Watch: What Does BTC/USD’s Failure Near $6,600 Indicate?

Key Points Bitcoin price jumped above the $6,400 and $6,550 resistance levels, but failed to hold gains against the US Dollar. There is a major bullish trend line in place with support at $6,240 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair clearly made a failed attempt to break

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Key Points

  • Bitcoin price jumped above the $6,400 and $6,550 resistance levels, but failed to hold gains against the US Dollar.
  • There is a major bullish trend line in place with support at $6,240 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair clearly made a failed attempt to break the $6,550 and $6,600 resistance levels, and declined.

Bitcoin price gained momentum above $6,400, but it was unsuccessful near $6,650 against the US Dollar. BTC/USD trimmed all yesterday’s gains and settled below $6,400.

Bitcoin Price Analysis

Yesterday, we discussed positive moves above $6,350 in bitcoin price against the US Dollar. The BTC/USD pair did trade higher, broke the $6,400 and $6,550 resistance levels, but it failed to retain gains. There was a failure near the last swing high at $6,640-50. The price was rejected and it seems like it was an unsuccessful attempt to break the $6,550 resistance. A fresh bearish wave initiated and the price declined below the 23.6% Fib retracement level of the last wave from the $5,884 low to $6,652 high.

The price also moved below the $6,400 support level and even tested the $6,200 support. However, the 100 hourly simple moving average acted as a support near $6,200. Also, the 50% Fib retracement level of the last wave from the $5,884 low to $6,652 high is acting as a support. More importantly, there is a major bullish trend line in place with support at $6,240 on the hourly chart of the BTC/USD pair. Should there be a break and close below the trend line support, the price could drop further towards the $6,100 and $6,000 levels.

Bitcoin Price Analysis BTC USD

Looking at the chart, bitcoin failed to retain gains above $6,550. However, if it continues to hold the trend line and $6,200, it could make another attempt to trade higher.

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is about to move into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI is currently flat near the 50 level.

Major Support Level – $6,200

Major Resistance Level – $6,550

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South Korean Crypto Circles Criticize Tax Perks Exclusion

The recent decision to exclude South Korean cryptocurrency exchanges from the proposed tax benefits for “New-Growth Technologies” has been met with significant backlash from three leading blockchain associations. Controversial proposal The South Korean Ministry of Small and Medium-sized Enterprises (SMEs) has ruled that cryptocurrency trading platforms are to be treated in the same ilk as …

The post South Korean Crypto Circles Criticize Tax Perks Exclusion appeared first on BitcoinNews.com.

The recent decision to exclude South Korean cryptocurrency exchanges from the proposed tax benefits for “New-Growth Technologies” has been met with significant backlash from three leading blockchain associations.

Controversial proposal

The South Korean Ministry of Small and Medium-sized Enterprises (SMEs) has ruled that cryptocurrency trading platforms are to be treated in the same ilk as entertainment or gambling businesses and others. Therefore, they will not be subject to the special tax relief that had been proposed earlier in July.

In total, 157 technologies across 11 areas were included in the “new-growth technologies”. Quantum computing, commercialization facilities and blockchain technologies were part of this list.

The announcement came from the “Revitalization Support System for Investment Promotion” that took place on 18 July. A point of contention, however, was that government wasn’t sure where blockchain technologies were concerned, due to initial coin offerings (ICOs) and digital currencies still being treated as gambling.

SMEs or venture businesses included in the Restriction of Special Taxation Act found themselves relishing in tax cuts of anywhere between 50-100% in their first five years of operation.

Later on, in July, the government concluded that cryptocurrency exchanges did not fit within this new taxation law for SMEs and proposed for the amendment exclude exchanges from the special tax rate. The government justified this saying, “The virtual currency transaction brokerage was not effective in generating added value.”

Backlash

This proposal is now subject to much scrutiny among blockchain groups in South Korea. On 10 August, the Ministry of SMEs formally announced that it would be amending the tax laws and confirmed the aforementioned rationale to exclude cryptocurrency exchanges from them.

The Korea Blockchain Association, Korea Blockchain Industry Promotion Association and the Korea Blockchain Startup Association have banded together to combat the decision in strong opposition.

In a letter to the ministry, the associations have accused the government of stifling innovation within the blockchain industry, arguing that the change is “against the regulatory innovation trend of President Moon Jae-in”.

They wrote, “If this legislation is implemented, domestic companies with the second largest number of blockchain technology patents after IBM will be excluded from classification as venture businesses just because they operate a cryptocurrency exchange.”

Adding, “The investment in research and development by blockchain technology-based companies will be hindered. As such, companies that are not able to receive policy benefits and tax incentives will either fail or move overseas.”

Until 4 September, the ministry’s proposal will be under review; it can be expected that South Korean cryptocurrency exchange operators and blockchain associations will be challenging this proposal until then.

 

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Ethereum Classic (ETC) Surges After Coinbase Consumer Confirms Listing

Over the past few weeks, Ethereum Classic (ETC) hit crypto headlines, as multiple exchanges finally announced fiat-to-crypto support for the popular cryptocurrency. Coinbase Consumer Meet Ethereum Classic Coinbase’s support for Ethereum Classic has been in the works for a while now, originally announcing that the firm’s engineering team had begun testing implementation in early-June. Although many

The post Ethereum Classic (ETC) Surges After Coinbase Consumer Confirms Listing appeared first on NewsBTC.

Over the past few weeks, Ethereum Classic (ETC) hit crypto headlines, as multiple exchanges finally announced fiat-to-crypto support for the popular cryptocurrency.

Coinbase Consumer Meet Ethereum Classic

Coinbase’s support for Ethereum Classic has been in the works for a while now, originally announcing that the firm’s engineering team had begun testing implementation in early-June. Although many Ethereum Classic proponents were over the moon about this proactive step, the San Fransisco-based firm went quiet on ETC’s listing for weeks.

But as reported by NewsBTC previously, on August 3rd, Coinbase’s engineering team came out of hiding to reveal that it had entered the “final testing” phase for the support of Coinbase’s 5th crypto asset. Along with issuing this announcement, the crypto startup also pointed out that August 7th was when it planned to accept incoming ETC deposits on Coinbase Pro, with fully-fledged trading expected to be implemented through a four-stage process just a few days later.

August 7th passed, and Coinbase Pro’s four-stage implementation process succeeded, but there were still multiple steps left on the platform’s radar, namely support for Coinbase Consumer (Coinbase.com) and its in-house institutional-focused index fund. This plan was acknowledged in the original announcement, with the platform citing liquidity concerns as a leading factor to why the asset would not be initially available on all products and services.

Over the past 48 hours, the situation surrounding this asset has quickly shifted, with the company introducing ETC support for the Coinbase Index Fund and its consumer-focused platform in rapid succession. Firstly, the Coinbase Index has been rebalanced to include Ethereum Classic, which now accounts for 0.91% of the index in accordance with the weighted market capitalizations. As such, a Coinbase Index Fund investor will hold a 0.91% stake in Ethereum Classic.

Secondly, Coinbase has just announced that on August 16th at 5:00 PM (PST), Ethereum Classic will be available on the exchange’s retail-focused platform (Coinbase.com). The exchange wrote:

“ETC will be available to customers in every country where Coinbase Consumer is available. We’re thrilled to offer ETC to all of our customers and will continue working to add more assets to Coinbase.”

Ethereum Classic Posts 16% Gain Amidst A Shaky Market

In a direct correlation with these announcements, Ethereum Classic saw an influx of buying pressure, and a subsequent spike in price, with the asset currently posting a gain of a staggering 16%. As it stands, ETC the best performing asset in CoinMarketCap’s top 100, with the 5th highest volume figure. ETC is also one of the only four cryptocurrencies in the top 20 that has posted a gain, as the market remains in a shaky state following a large downtrend.

It is likely that speculators are doing their best to cash in on the potential influx of investor interest following a Coinbase listing, as the exchange has been continually touted as one of the most influential services in this space.

This is an evident example of the so-called “Coinbase Effect,” where assets listed or even fleetingly mentioned by the firm see a large uptick in popularity and price. But while it is clear to see why ETC is performing well today, others are not too sure about the mid to long-term prospects of this asset, as ETC was eclipsed by ETH in terms of price and real-world adoption months, if not years ago.

Featured Image from Shutterstock

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