Forex and Crypto News

Investors Sell Bitcoin After News of Tax Hike

10:52 23 April /2021

The price of Bitcoin could not stay above the level of $54000 and began to decline sharply from the evening of April 22. At the time of publication, the price of Bitcoin dropped below $54000, $53000, $50000 and is trading around $49000.

Bitcoin pulled the entire cryptocurrency market with it. Ethereum price dropped below $2500, XRP price approached $1. Investors have started to sell cryptocurrencies amid rumors that the United States is considering raising taxes on capital gains.

Joe Biden is initiating tougher rules in the cryptocurrency industry and a bill is already ready to be submitted to Congress. According to insider information, this bill provides for an increase in the tax rate to 43.4%. Thus, President Biden wants to increase taxes for millionaire investors in order to support his various social programs.

This decline was not a surprise to some investors, as JP Morgan Chase & Co. already a pond that Bitcoin could not rise above $60000, as it lacks momentum and this could lead to the beginning of a decline in the price of Bitcoin. And we have already written about this on our website. The bullish momentum began to fall as institutional interest in Bitcoin began to decline.

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On the hourly chart, the BTC/USD pair dropped below the price channel limited by $58000 and $52700. The pair also dropped below the 100-hour moving average.

The bulls failed to keep the price above the psychological support level of $50000. As a result, the short-term outlook for Bitcoin has become extremely bearish. However, the bulls were able to keep the price from falling below $48000. This prevented a deeper decline towards $45000. Now the 52500-53000 area provides the main resistance for the BTC/USD pair. A successful break above the resistance area is required to return to the previous level.

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