Deep Dive in Bitcoin
The BTC/USD was closed at 51781.3 after placing a high of 55067.0 and a low of 51781.3. BTC/USD remained bearish throughout the day and dropped below 52,000 as Bitcoin’s dominance over the crypto market came below the 50% mark for the first time since 2018 after Ethereum recorded a new all-time high (ATH).
The loss came when Ether, the native currency of the second largest crypto network Ethereum, reached a new ATH of $2600. The present market value of Bitcoin is $1.02 trillion against the total crypto market value of $2.13, with Ethereum accounting for 14.61% of market shares.
JPMorgan Chase & Co. and Tallbacken Capital Advisors LLC had recently warned that there was potential for a further downside after the largest cryptocurrency fell back from its record high of $64,000 on April 14.
The U.S. President Joe Biden was set to propose a tax hike o the wealthiest Americans. The proposal would raise the top marginal rate and increase taxes on investment gains for the rich. The news triggered a sell-off on Wall Street and the crypto market, where significant indexes and digital assets slipped during Thursday’s trading session. The decline in Bitcoin for the seventh time in eight days and extended losses on Thursday after President Joe Biden was set to propose almost doubling the capital gains tax for the wealthy.
The plan will not affect any family earning less than $400,000 a year, but it would also nearly double taxes on capital gains to 39.6% for people making more than $1M. In some states which impose their capital gains tax, the total bill some investors could face might exceed 50%. This news added further pressure on Bitcoin prices, and the prices extended their losses for the day.
BTC/USD Intraday Technical Levels
Pivot Point: 54706.7
BTC/USD - Technical Outlook
The BTC/USD is trading sharply bearish at 48,530 level, having dropped from the support level of 55,229 level. On the daily timeframe, the BTC/USD pair has crossed below the 20 & 50 periods EMA (Exponential Moving Average) that converts bullish trend into bearish. Bitcoin’s next support level holds around 46,700, and violation of this level exposes the pair towards 43,737 support. Conversely, the resistance holds around 50,369 and 53,354 levels and the bearish bias dominates Bitcoin below 53,350 level today. All the best!
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