Analytics / Forex and Crypto News
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.
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.