FX.co ★ Technical Analysis of BTC/USD for August 1, 2023

Crypto Industry News:

Supporters of the cryptocurrency industry in Japan are calling for a revision of the country's tax regime for digital assets. The Japan Blockchain Association (JBA), a lobbying NGO, has made an official request to the country's government outlining three main steps to ease the tax burden on cryptocurrency holders.

This application was published on the Association's website on July 28. He identifies the taxation of cryptocurrencies as the biggest obstacle for companies operating in the Web3 space in Japan, as well as a factor that stops citizens from actively owning and using digital assets. Therefore, the group proposes three main changes that could ease the pressure on the digital economy.

The first is to eliminate taxation of unsettled profits at the end of the year for corporations holding cryptocurrency assets. Unsettled profits refer to profits that have only occurred on paper, but the corresponding transactions have not yet been executed. The JBA is seeking to eliminate taxes on unsettled profits for third-party issued tokens. In June, Japan's National Tax Agency (NTA) exempted local companies from taxing unsettled year-end profits on cryptocurrencies they issued.

The second demand concerns the method of taxation of profits from personal trading of cryptocurrency assets. It proposes to change the current system of general taxation to self-taxation with a uniform tax rate of 20%. In addition, a period of three years is proposed for the deduction of losses due to the depreciation of digital assets.

Third, the JBA demands the abolition of income tax on profits generated whenever an entity exchanges cryptocurrency assets.

Technical Market Outlook:

The BTC/USD pair has made another local low at the level of $28,760 as the down move continues. The intraday technical resistance is seen at the level of $30,447, but now the level of $29,623 will act as the technical resistance as well. The momentum is weak and negative which supports the short-term bearish outlook for BTC. So far the bulls are bouncing up from the lows, but in a case of a another breakout lower, the next target is located at $28,446 (this level will work as the technical support and the line in the sand for bulls).

Weekly Pivot Points:

WR3 - $30,065

WR2 - $39,681

WR1 - $29,562

Weekly Pivot - $29,316

WS1 - $29,148

WS2 - $28,983

WS3 - $28,567

Trading Outlook:

The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The last pull-back has reached the 38% Fibonacci retracement and the market is ready to continue the up move. The next target for bulls is seen at the level of $32,350. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.