The price correction of Bitcoin does not invalidate the price trends in any way. The bullish trend continues to be. The Buying interest in Bitcoin has continued to decline after the $8,000 price level.
The bearish head and shoulders pattern is created in the four-hour time frame. This has occurred with the BTC/USD pair falling lower than the neckline support. The technical indicators have signaled strong selling signals, and the trend has become bearish.
There is a significant downside potential for Bitcoin per the technical indicators. The downside technical support has been noted in $6,500 and $5,400 level. The Relative Strength Index is also bullish, and it is correcting along with the recent decline. The MACD indicates the token is overbought and it is currently attempting to turn bearish.
The token has been progressing in the narrow range recently. The coin has been continuing below the $8,000 barrier ever since the beginning of this week. The current bull trends are at risk, and they are likely to trigger a downside correction soon.
The technical indicators are bleak. Experts believe that the price might extend down to as low as $5,400 before the bulls can continue to take control over the situation. If there will be a sustainable move below that number, this can lead to a long-term bearish trend.
For every tax season, investors are contemplating how much they owe to the government in taxes. However, things will likely be easier in the next year. Several questions have been left unanswered in the original guidance from the IRS has led to several confusions regarding cryptocurrency taxes.
With a lot of things like airdrops, forks, free crypto, and a lot of new crypto concepts, investors are not sure of their tax liabilities.
Kirk Phillips, a certified public accountant (CPA), stated, “They may shoot to have guidance out before those extended deadlines.”
A recent comment read, “Taxpayers may have one method applied to one wallet and another method applied to another exchange when determining the fair value of all the Bitcoin transactions.”
So, depending upon which cryptocurrency you are spending, you might have to determine how much you owe the taxman.
The crypto community is looking at more clarity from the taxman.
“First in, first out” might turn out to be a problem if the owner was the one who first mined it! So, for the miner, the price of the earliest mined coin is zero.