News updates June 08, 2022
1. Bitcoin Forms Bullish Pattern, Why Break Above $31.5K Is The Key
Bitcoin remained strong above the $29,500 support against the US Dollar. BTC could start a major increase if there is a clear move above the $31,500 resistance.
* Bitcoin started a fresh increase from the $29,500 support zone.
* The price is now trading above the $30,000 level and the 100 hourly simple moving average.
* There is a key bearish trend line forming with resistance near $31,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
* The pair could start a major upward move if there is a clear move above the $31,500 resistance.
*Bitcoin Price Reverses Losses*
Bitcoin price remained well bid above the $29,200 and $29,500 levels. A low was formed near $29,200 and the price started a fresh increase. There was a clear move above the $30,000 resistance zone.
The bulls were able to pump the price above the $30,500 level and the 100 hourly simple moving average. It even surged above the $31,000 level and even tested the $31,500 resistance zone. A high is formed near $31,550 and the price is now consolidating gains.
It already tested the 23.6% Fib retracement level of the recent increase from the $29,200 swing low to $31,550 high. An immediate resistance on the upside is near the $31,400 level.
There is also a key bearish trend line forming with resistance near $31,400 on the hourly chart of the BTC/USD pair. The first major resistance is near the $31,500 level. A clear move above the $31,500 resistance level could send the price further higher.
The next major resistance might be $32,200. Any more gains might change the bias and bitcoin price could rise towards the $33,200 level.
*Fresh Decline in BTC?*
If bitcoin fails to clear the $31,500 resistance zone, it could start another decline. An immediate support on the downside is near the $30,850 level.
The next major support is near the $30,175 level. It is near the 50% Fib retracement level of the recent increase from the $29,200 swing low to $31,550 high. A downside break below the $30,175 support may perhaps spark another decline. In the stated case, the price could dive towards the $29,500 support zone in the near term.
Major Support Levels – $30,850, followed by $30,175.
Major Resistance Levels – $31,400, $31,500 and $32,200.
2. Bitcoin declared ‘dead’ 52% less in 2022 despite bear market vibes.
The cryptocurrency market has turned green once again after weeks of volatile price movement, with Bitcoin (BTC) leading the recovery effort by showing, for now, at least indications of stabilizing above the crucial $30,000 price barrier.
Interestingly amidst the current bearish market environment, the number of times Bitcoin has been declared ‘dead’ so far in the first half of 2022 stands at 12.
In point of fact, this represents a 52% reduction in the number of times the flagship digital currency was declared dead when compared with H1 2021, which totaled 25 times, according to data from 99Bitcoins, the cryptocurrency’s official obituary.
3.Bitcoin Short-Term Holders Approaching Peak Pain As BTC Trades Below $30,000: Analytics Firm Glassnode.
Analytics firm Glassnode is revealing short-term Bitcoin (BTC) holders are sitting on losses as the flagship crypto asset trades below a key psychological level.
Glassnode says nearly all the short-term holders (STH), or those who have held Bitcoin for a period of fewer than 155 days, are counting losses.
“At the moment, almost 58% of the circulating supply is in profit while in the last three market capitulations this metric fell down to <50% levels. STH-Supply in profit is just 2.2% meaning the short-term holders are almost entirely at a loss.”
The crypto analytics firm says long-term holders (LTH) are holding the lion’s share of the profits in the prevailing bear market.
According to Glassnode, Bitcoin’s short-term holders are currently holding less than 10% of the profit in the market, as was the case during the previous two bear markets. The figure is based on the 14-period displaced moving average (DMA) of the Supply in Profit Held By Long-Term Holders metric.
The long-term holders, on the other hand, hold over 90% of the profit in the market as Bitcoin hovers below $30,000.
“In the last two extended bear markets, the 14 DMA of this metric broke above the 90% threshold line.
This means under the psychological pressure of bearish price action, short-term holders were holding < 10% of the profit in the market.
With the recent leg down to sub $30,000 range, this metric crossed over the 90% threshold. Above this level, STHs have essentially reached a near-peak pain threshold, with almost no unrealized profits held while LTHs dominate the remaining profitable supply.”
4. Bitcoin Miner Revenues Stay Low As Price Decline Continues.
Bitcoin miners have been one of the worse-hit following the decline in the price of the digital asset. After what can be said to be a wonderful run towards the end of 2021, the miners have now hit a rough patch where their revenues have been dropping. The previous week would prove to be no different, signaling a continuation of lower cash flow on the part of miners, as the daily miner revenues remain depressed in the first week of June.
Bitcoin Miners Take A Hit
Bitcoin miners have not had the best couple of months now. With the price of bitcoin dropping, miner revenues have taken a hit. This had seen their daily figures drop to $26 million the previous week and with a 1.47% increase last week, daily miner revenues had jumped to $27.19 million. This is a far cry from what miners were earning when the price of the digital asset had hit its all-time high.
5. Japan’s Prime Minister Aids Abolition Of Country’s Strict Crypto Rules.
According to Bloomberg, Fushio Kishida, Japan’s Prime Minister, has indicated his disapproval of the stringent rules currently guiding the country’s cryptocurrency industry, this has therefore led to discussions for new and better policies.
In May, Kishida was a member of a government panel that harshly critiqued the crypto listing process in the country, asserting that it could be a lot easier, and unnecessarily time was usually spent during the prescreening of crypto assets.
Following this call, The Japan Virtual and Crypto Assets Exchange Association (JVCEA), is moving to allow the process of listing coins easier, the self regulatory body is said to be having discussions on the matter and would come to a final decision by the end of the year.
Nevertheless, whatever decisions the JVCEA come up with will be screened first by Japan’s Financial Service Agency, FSA. An FSA officer who asked not to be identified said that they are not sure what the JVCEA will come up with and whether the FSA will approve of it.
Sources with knowledge of the matter say the JVCEA won’t be involved during the listing process henceforth. However, they will oversee the assets after listing. The current process involves the listing of coins that may not be on the JVCEA green list introduced earlier this year.
Although Japan’s local crypto firms have very little to offer as regards coins listing, the country has begun to seek measures to boost the crypto space and Prime Minister Kishida has indicated interest in utilizing Web3 to boost economic growth.
6. Crypto Tax TDS Percent in India Rectified After Typo on Income Tax Website.
Tax Deductible at Source (TDS) for virtual digital assets has been reaffirmed at 1 percent, as indicated in the Union Budget for 2022-23, despite the department’s previous statement that it had been reduced to 0.1 percent, causing uncertainty. There was a typo when the department’s website declared earlier that the TDS rate for virtual digital assets had been reduced to 0.1 percent from the 1% rate established in the Union Budget.
Short-Lived Happiness For Investors
When several individuals became aware of the blunder, the website changed its documentation to reflect the correct information. Several cryptocurrency platforms and investors took to social media to debate the issue. It seems to be a typo that has been addressed and updated by the Income Tax Department.
According to the website, there is no tax if the total value does not exceed approx. $129 (Rs 10,000) in a financial year for a non-specified person and $645 (Rs 50,000) in a financial year for a specified person, both of which are unaltered. As of July 1, 2022, a 1% TDS will be applied to virtual digital assets.
Saravanan Pandian – Founder and CEO – of Koinbazar said:
“Partial Regulation and Heavy taxation are suppressing the huge potential of the crypto sector in India. Government should lay down fair taxation rules and promote crypto in a controlled way as it will drive the economy and bring in job opportunities.”
Indian Finance Minister Nirmala Sitharaman had announced a flat 30% tax on all earnings originating from the sale of virtual digital assets, including cryptocurrency, in the Union Budget of 2022. In addition, the Finance Minister imposed a 1% TDS on all cryptocurrency transactions. The Indian crypto community strongly objected, calling the new rules “unfair” and “destructive.”
A recent trip to the United States by Sitharaman raised questions about the global cryptocurrency market’s potential and called for a regulatory framework that would be acceptable to all nations in an effort to prevent cryptocurrencies from being used for money laundering or terrorist financing.
7. French Lawmaker Releases New Report to Push for Crypto Legislation.
Pierre Person, a lawmaker from France’s ruling La République En Marche! (LREM) party, has unveiled a new report which introduces a number of legislative proposals related to crypto and digital assets, pushing for the adoption of crypto legislation in the French parliament.
In his report, the MP refers to the cryptosphere by saying that “the decentralized and totally innovative nature of this ecosystem requires a fresh look at regulatory approaches in order to adapt the rules in force.”
Some of Person’s proposals include:
banning cryptoasset mining with the use of carbon-based energy and adapting French regulations on pollution rights to apply them to miners, allocating carbon credits to miners involved in financing new renewable energy sources;
amending France’s regulations on intellectual property to cover non-fungible tokens (NFTs);
issuing a French wholesale central bank digital currency (CBDC);
at the European level, issuing a digital euro available to individuals and entities;
amending France’s regulations applicable to decentralized finance (DeFi) to develop a regulatory sandbox under the supervision of the country’s regulators;
allowing decentralized autonomous organizations (DAOs) to become legal persons in France, allowing such organizations to enter into contractual relationships.
Person has a track record of pro-crypto activities. In 2020, when French Finance Minister Bruno Le Maire unveiled a regulation that was meant to enable the state to combat the anonymity of crypto transactions, the politician accused his ministry of potentially hampering the sector's development.
8. As Federal Agencies Organize, US States Continue to Lead in Regulating Digital Assets
The Biden administration’s “whole of government” approach to crypto may not be an improvement to the current patchwork of rules.
On March 9, 2022, the Biden administration issued a much anticipated executive order regarding digital assets, which called for “the first-ever, whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology.”
While its reception has been mixed, one comment – from New York State Department of Financial Services (NYDFS) Deputy Superintendent Dan Sangeap on LinkedIn – raised an interesting question: After almost eight years of letting states craft their own crypto policies, “what’s the rush” at the federal level?
