Bitcoin Trading Lower as it Faces Tax Regulations

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btc pic 2 nov 27

Leading industry experts are considerably upset with the Australian Finance Ministry after they expressed interest in considering Bitcoin a commodity in order to levy a tax. Many in the Bitcoin community feel that such regulations will surely hamper the crypto-currency’s growth in Australia and may force individuals and companies to take their businesses overseas. This will prevent Bitcoin from developing into an enriched asset that can enable transactions from anywhere around the world.

When looking at the daily chart for the BTC/USD, one thing that is bothering many analysts is the fact that the digital currency has been unable to sustain itself above the $373 level. In the overnight session, the BTC/USD traded above that zone for most of the trading session but was met with heavy selling pressure at higher levels which drove prices below $373 an additional time.

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In today’s morning session, the BTC/USD continues to trend lower, with its next support level coming at approximately the $353 level, which happens to be the upward sloping trend-line from its recent lows. It is imperative to state that the BTC/USD is still trending below its important daily moving average. Furthermore, its stochastic oscillator is on the verge of giving a sell signal, which will indicate that its momentum is shifting towards the sell side. Lastly, the BTC/USD’s relative strength index, is giving a sell sign and is continuing to trend lower, exhibiting no inherent strength.

Actionable Insight:

Short the BTC/USD at current levels for an intermediate target at $321, with a strict stop-loss above $378.

Long the BTC/USD if it moves above $381 for an intermediate target at $430, with a strict stop-loss below $353.