Bitcoin Struggles above $28K as Breakout or Breakdown Is Imminent – May 28, 2022
Bitcoin (BTC) now consolidates above $28,000 as breakout or breakdown is imminent. For the past two weeks, BTC/USD has been range-bound between $28,500 and $32,000 price levels. Today, further upward moves are doubtful as the current support is threatened by the bears.
Bitcoin Price Statistics Data :
•Bitcoin price now – $28,828.81
•Bitcoin market cap – $549,245,040,282
•Bitcoin circulating supply – 19,051,456.00 BTC
•Bitcoin total supply – $605,429,025,776
•Bitcoin Coinmarketcap ranking – # 1
Resistance Levels: $50,000, $55,000, $60,000
Support Levels: $40,000, $35,000, $30,000
Bitcoin is now trading in a tight range below the 21-day line moving average. The moving average is acting as a resistance to the price bars. For the past two weeks, buyers have been defending the $28,600 support. On the upside, if the BTC price rebounds, it will break the 21-day line SMA. The bullish momentum will extend to the 50-day line SMA. A break above the 50-day line SMA will signal the resumption uptrend. Conversely, if the BTC price turns from the 21-day line SMA, the bears will break the $28,600 support. The bearish momentum will extend to the previous low at $26,591. Meanwhile, Bitcoin is at level 37 of the Relative Strength Index period 17. The crypto is in the downtrend zone and capable of a further downward move.
Brazil’s Crypto Investors to Pay Taxes on Cryptocurrency Trading Profits
Brazil’s Federal Reserve (RFB) has stated that Brazilian investors in the crypto-asset market must pay income tax on transactions involving cryptocurrency pairs. The Federal Revenue of Brazil wants investors to pay taxes on cryptocurrency trading profits, even if there is no exchange for Brazil’s national currency. The taxable investors who pay income tax are those who trade more than BRL 35,000 (roughly $7263.67). Also, capital gains earned on the sale of cryptocurrencies are exempted from income tax. That is, “if the sales value in a month, of all kinds of crypto assets or virtual currencies, regardless of their name, is equal to or less than BRL 35,000, 00 (thirty-five thousand reais),” as declared by the RFB.
Nevertheless, the bears are attempting to break below the $28,600 support as breakout or breakdown is imminent. There is a likelihood of price breakout or breakdown in a couple of days. Meanwhile, on May 12 downtrend; a retraced candlestick body tested the 78.6% Fibonacci retracement level. The retracement indicates that Bitcoin will further decline to 1.272 Fibonacci extension or $21,437.4.
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