FX.co ★ Technical Analysis of BTC/USD for March 22, 2022

Crypto Industry News:

India's cryptocurrency tax policy has gotten even more complicated just a week before the new tax laws come into force. A new parliamentary memo answering questions about the new tax policy on digital virtual assets suggests that traders cannot compensate for losses from one digital asset with profits from another.

While the new tax policy is waiting to go into effect on April 1, many experts say recent government explanations are funeral bells for traders. The government's tax policy on cryptocurrencies stipulates that investors will treat every investment and profit / loss on digital assets independently.

For example, if a trader invests $ 100 in Bitcoin and Ethereum and then makes a profit of $ 100 on Ethereum and a loss of $ 100 on Bitcoin, then they would have to pay a 30% tax on Ethereum profit without settling losses on BTC.

India has yet to finalize the regulatory framework for the crypto industry, despite several government assurances since 2018. While many hoped the introduction of taxes would provide some form of legitimacy to the crypto industry, the finance ministry made it clear that the industry would only gain any legal status after enactment cryptocurrency act.

Technical Market Outlook:

The BTC/USD pair continues to move higher and the technical resistance located at the level of $42,607 had been violated. The next target for bulls is the big supply zone located between the levels of $44,785 - $45,823. The market is trading inside the ascending channel and as long as the price stay inside the channel and above the technical support seen at $44,407 - $44,123 the outlook is bullish.

Weekly Pivot Points:

WR3 - $48,672

WR2 - $45,530

WR1 - $43,812

Weekly Pivot - $40,165

WS1 - $38,913

WS2 - $35,770

WS3 - $33,971

Trading Outlook:

The market still keeps trying to bounce after over the 60% retracement made since the ATH at the level of $68,998 was made. The level of $45,427 is the key technical resistance for bulls, but the game changing technical supply zone is seen between the levels of $52,033 - $52,899. When this zone is clearly broken, the BTC is back to the up trend, otherwise the bearish pressure might push down the BTC towards the level of $29,254.