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  • President Joe Biden’s administration announced its supports for a harsher tax regulation policy on cryptocurrencies.
  • Bitcoin consolidates in a narrow trading range of 46,755 – 45,000. Brace for a breakout. 
  • Forex trading market participants should look for a buy trade above the $46,750 level.

 The BTC/USD was closed at $45,612.0 after placing a high of $46,674.0 and a low of $44,644.0. BTC/USD reversed its course on Tuesday and turned red for the day after rising to its highest since the mid of May. Bitcoin price prediction is neutral as the pair consolidates in a narrow range. The breakout of 46,755 – 45,000 level can determine the further trend in Bitcoin. 

President Joe Biden Support to Harsher Tax Regulation

The administration of President Joe Biden has announced that it supports a harsher tax regulation policy on cryptocurrencies. The Senate was discussing ways to tackle the crypto business in the United States. The White House prompted a cryptocurrency tax which is part of the Senate Infrastructure Bill presented to leverage the U.S. economy. 

The original bill required the digital asset brokers to report crypto capital gains. However, an alternative amendment was presented before the Senate that offers a tax exemption for bitcoin miners, software developers, crypto validators, and wallet creators. 

The new proposals seek a better definition of the “broker” term, and the vote on amendment took on early Tuesday that came in against the bill. This news added weight on BTC/USD and turned its prices red for the day.

Can Japanese Junichi Nakajima’s Opinion Underpin Bitcoin?

  

Meanwhile, the latest Japan’s Financial Services Agency Commissioner, Junichi Nakajima, shared his opinion on easing crypto regulations. He said that it would take a lot more to make crypto investments easy for the people of Japan. He had positive views about the possible benefits of Bitcoin as he said that bitcoin has the power to allow its users to transfer cash faster and at a minimal cost. 

However, the asset was not being used to transfer money but was being used as an investment. Nakajima further said that tight regulations would remain in place regarding cryptocurrencies, and it will take much more convincing to loosen up crypto regulation in Japan. His remarks added a little pressure on already declining prices of BTC/USD.

Talking about cryptocurrency regulations, Jim Cramer, an American television host, believed that cryptocurrencies need more regulations as the market could collapse without them. He further praised Ethereum as the best performing digital asset and spared bitcoin, which added extra pressure on BTC/USD.

On the flip side, the global investment manager VanEck has filed for the second time with the SEC for a Bitcoin strategy future ETF. With over $60 billion in assets under management, the firm had previously filed for the first bitcoin ETF in 2017. However, the SEC denied the file. The proposed Bitcoin Strategy ETF will not give direct exposure to Bitcoin, but rather it will provide exposure to Bitcoin futures and other investment vehicles.

Furthermore, the popular payment app Venmo has launched a new feature of the credit card on Tuesday. It will allow users to convert their cash-back rewards into bitcoin for free. It means there will be no transaction fees involved; however, there were no signs of adding the bitcoin withdrawal option in the app.

Bitcoin Price Prediction – Daily Technical Levels

Bitcoin Price Prediction
BTC/USD 4-Hour Chart

Support Resistance

44612.6 46642.6

43613.3 47673.3

42582.6 48672.6

Pivot Point: 45643.3

Bitcoin Price Prediction – Daily Technical Analysis: Choppy Trading in Play

Bitcoin price prediction remains neutral as the pair hasn’t violated a narrow trading range of 46,755 – 45,000 level. Breakout of this range will determine the further trend in Bitcoin. The BTC/USD has traded in line with my previous Bitcoin Price Prediction – Aug 09. 

The BTC/USD’s immediate resistance stays at the $46,765 level, and a bullish breakout of this level can extend buying trend until the $47,655 and $48,570 levels. On the 4-hour chart, the BTC/USD pair is trying to disrupt the resistance level of $46,765 level. If this happens, the next target will be a $48,570 level. 

The oscillator tools like Stochastic RSI hold at 37 in the selling zone while the 50 daily EMA (exponential moving average – red line) supports bullish. The 50 EMA provides support at the 46,000 level; therefore, investors should wait for a breakout of 46,755 resistance level and Stochastic RSI 50 crossover.  

Hence, the  Forex trading market participants should look for a buy trade above the $46,750 level. The initial target remains at $47,550 and $48,550. All the best. 

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