- Bitcoin is rangebound with a downside bias.
- Poland is about to pass the bill that will target profits received from cryptocurrency related operations.
Bitcoin stays below $7,000 handle as the positive momentum has faded away leaving crypto bulls in disarray. Ceteris paribus, the downside correction may gain traction towards the end of the week, taking the digital coin No. 1 below $6,900. However, the trend remains positive as long as the price stays above the short-term trendline at $6,850.
Poland joins the game
Governments and regulatory authorities all over the world have stepped up their game to crack down on illegal activities related to digital assets. Earlier today we reported that UE politicians are going to discuss crypto and blockchain-related issues. Now it has become known that the Finance Ministry of Poland published a bill to tackle the taxation of cryptocurrency operations. The proposed legislation is supposed to be passed in Q3 2018, which means that miners and cryptocurrency traders will have to fill in a tax statement and report their crypto related profits.
Bitcoin’s technical picture
BTC/USD is capped by SMA50 (1-hour) at $7,030. Once this level is cleared, the ultimate resistance at $7,128 (Tuesday’s high) will come into view. Considering that the way to the North is riddled with numerous technical levels, the bulls will find it difficult to renew the recovery.
On the downside, once below $6,900, the sell-off may take the price to the downside trendline at $6,863 and 23.6% Fibo retracement at $6,800.
BTC/USD, 1-hour chart
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