Crypto Industry News:
The European Union is in the process of developing new rules to combat tax fraud and evasion in the cryptocurrency sector. It will most likely require all digital asset service providers to report transactions belonging to their customers residing within the EU.
This initiative is part of a package of regulations aimed at increasing the transparency of the tax system. It will enable residents within the EU to pay taxes on profits from trading or investing in crypto assets.
The draft provides for the establishment of a common minimum level of penalties for serious cases of non-compliance, including failure to report despite warnings.
EU Commissioner Paolo Gentilaoni said: "Currently, there are over 9,000 different crypto-assets and the privacy afforded by anonymity means that many crypto-users who make huge profits are not on the radar of national tax authorities."
The European Commission pointed out that currently tax authorities do not have accurate information about the earnings of cryptocurrency holders, which limits tax revenues from the growing industry.
It provides rules for crypto service providers of all sizes for both local and cross-border transactions, regardless of the location of the organization. The Commission has also proposed to extend the reporting obligations of financial institutions to electronic money and digital currencies.
Technical Market Outlook:
The BTC/USD pair had made a local low at the level of $16,268 in form of a Hammer candlestick pattern on H4 time frame chart. The market had broken below 100 MA on the H4 time frame chart and is trading below the intraday technical resistance seen at $16,880. The volatility is still limited despite the recent spike down, so the trading rage is seen between the levels of $16,268 - $16,720. Any breakout below the range low would extend the corrective cycle towards the level of $15,984 (November 28th low). The weak and negative momentum supports the short-term bearish outlook on the H4 time frame chart.
Weekly Pivot Points:
WR3 - $17,039
WR2 - $16,862
WR1 - $16,778
Weekly Pivot - $16,685
WS1 - $16,601
WS2 - $16,509
WS3 - $16,332
Trading Outlook:
The down trend on the H4, Daily and Weekly time frames continues without any indication of a possible trend termination or reversal. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The new yearly low was made at $15,555 and if this level is violated, then the next long-term target for bulls is seen at $13,712. On the other hand, the gamechanging level for bulls is located at $25,367 and it must be clearly violated for a valid breakout in the longer term.
