Bitcoin Todat: South Korea so important for Bitcoin?Price
Sharp bullish view faded away as well as anticipation of the 9000 – 10000 highs. 8500 appeared too much to handle for bulls, and after a week of lateral struggle and couple of negative drivers from SEC and South Korea, Bitcoin eventually dropped down to the cornerstone support 7600, which coincides with the 100-days EMA at this moment. Though this correction does not change the overall bullish look, and only appears a 38% Fibo retracement for the July uptrend it overshadows the 10000 target and turns market into correction state within 7300 – 8500 boundaries. For the downward outlook: a crossover of the 7300 level will draw a Head and Shoulders reverse figure and will send the price to the 7000 level. For the bullish outlook, we will need to see a fast return above the 8000.
In medium-term, the market will be driven by SEC comments and answers on ETF proposals. The next one should come out on 10 August.
Today forecast
Trading in the 7300 – 7800 zone.
Latest news
South Korea to End Tax Breaks for Crypto Exchanges
The South Korean government has announced its proposed Revised Tax Law 2018. In the official statement published Monday, the government wrote, “from next year, the virtual currency handling businesses will be excluded from the industries eligible for the tax reduction for SMEs .”
Hong Seong-ki, head of the cryptocurrency response team at Korea’s South Services Commission, said “While crypto markets have seen rapid growth, such trading platforms don’t seem to be well-enough prepared in terms of security. We’re trying to legislate the most urgent and important things first, aiming for money-laundering prevention and investor protection. The bill should be passed as soon as possible.”
However, “taxation on the sale of cryptocurrency was not included in the amendment bill…based on the judgment that more research is needed,” the publication emphasized. “The government has been considering imposing capital gains tax virtual currency trading profits since early this year, but no specific taxation bill has come out.”
Japanese Bitcoin Exchanges Planning Tighten Trading Restrictions
The association of 16 government-approved bitcoin exchanges is reportedly working on imposing a number of trading restrictions. Jiji Press reported that there is a plan to impose trading limits for all users and additional restrictions for minors and the elderly. This follows recent reports of the association introducing margin trading limits as part of its self-regulatory rules.
The association is comprised of all of the 16 government-approved crypto exchanges in Japan. It was established in May in response to the hack of Coincheck in January.
The planned rule is aimed at preventing cryptocurrency traders with relatively small assets from suffering heavy losses and facing difficulties with daily expenses.
“The industry group plans to allow exchange operators to choose from two options: A blanket ceiling that is low enough for the safety of customers with limited assets or setting different limits for different customers based on their age, assets, investment experience and income levels.”
