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As Bitcoin Suddenly Surges 7.82%, Traders Spark Breakout Calls Above $10,500

Bitcoin bounced back after crashing below $9,000 a day before. The cryptocurrency’s recovery run took its price above $9,500, a crucial resistance level. Meanwhile, traders called the rebound a “re-accumulation” move before bitcoin breaks above $10,500. Bitcoin bounced back on Tuesday after the Federal Reserve announced its plans to purchase corporate bonds to boost the […]

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  • Bitcoin bounced back after crashing below $9,000 a day before.
  • The cryptocurrency’s recovery run took its price above $9,500, a crucial resistance level.
  • Meanwhile, traders called the rebound a “re-accumulation” move before bitcoin breaks above $10,500.

Bitcoin bounced back on Tuesday after the Federal Reserve announced its plans to purchase corporate bonds to boost the financial markets through the pandemic.

The benchmark cryptocurrency surged by up to 7.82 percent from its Monday low below $9,000. The move uphill took its price above $9,500, sparking calls towards an extended recovery run towards the $10,000-$10,500 area.

Re-Accumulating Bitcoin

One pseudonymous analyst said earlier Tuesday that Bitcoin’s recovery from below $9,000 is a part of a “re-accumulation” strategy. He concluded that the cryptocurrency would break above $10,500, a resistance level from June 1, 2020, and February 13, 2020, as the uptrend flourishes.

bitcoin, btcusd, xbtusd, btcusdt, cryptocurrency, crypto
Bitcoin price chart on TradingView.com showing its latest rebound from lows below $9,000. Source: TradingView.com, Credible Crypto

The analyst explained that bitcoin is testing 10,500 for the third time since February 2020. Nevertheless, each downside break leads to an accumulation phase that causes Bitcoin to retest the red area, as shown in the chart above.

“We have been sitting under this level and consolidating now for a month,” he added.

Many believe that this sideways consolidation we have been seeing on $BTC for the last month or so is distribution before a larger move back down to 6-7k’s. I personally believe that this is rather re-accumulation before the inevitable break of 10.5k.

Skepticism

The analogy met criticism by other top analysts. One among them argued that each rejection from the $10,000-$10,500 grew stronger, adding that the downside corrections – more or less – pointed towards the absence of buyers.

“A re-accumulation without previous accumulation is weird, especially when the ltf structure has impulses downwards and corrections upwards,” the skeptic noted.

Nevertheless, those in favor of a bullish breakout argued back by saying that macroeconomic catalysts played an essential role in exacerbating Bitcoin’s sell-offs near the red zone. They were visibly pointing to the stock market crash in February and March 2020 that led almost every asset lower.

Bitcoin’s latest attempt to breach above $10,500 came at a time when the U.S. stock market was correcting lower from its overbought levels. The cryptocurrency, which formed an erratic positive correlation with the S&P 500 index, merely tailed the downside.

On late Monday, both Bitcoin and the S&P 500 recovered in tandem after the Fed revealed it would begin buying individual corporate bonds. Futures tied to the U.S. benchmark hinted a rally continuation after the New York opening bell Tuesday. It left Bitcoin with a similar upside bias.

bitcoin, btcusd, xbtusd, btcusdt, cryptocurrency, crypto
Bitcoin price chart on TradingView.com showing it trending inside an ascending triangle pattern. Source: TradingView.com

The BTC/USD exchange rate is now trending inside an Ascending Triangle (red area). The pattern typically leads to an upside breakout worth the maximum height of the Triangle. That roughly puts the cryptocurrency’s upside target near $11,800.

Source: https://www.newsbtc.com/2020/06/16/bitcoins-upside-breakout-calls-10-5k/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoins-upside-breakout-calls-10-5k

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Bitcoin Has Highest Monthly Close in History, Two Analysts Say $25K By Year End

After setting new all-time highs on multiple crypto exchanges on Monday (November 30) and closing the month at the highest ever price level, at least two crypto analysts now expect the Bitcoin to reach $25,000 by year end. According to the CryptoCompare index (which takes the average of the Bitcoin price across multiple exchanges), the […]

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After setting new all-time highs on multiple crypto exchanges on Monday (November 30) and closing the month at the highest ever price level, at least two crypto analysts now expect the Bitcoin to reach $25,000 by year end.

According to the CryptoCompare index (which takes the average of the Bitcoin price across multiple exchanges), the Bitcoin price reached the intraday high of $19,850 at 15:10 UTC on November 30, which was just $20 shy of Bitcoin’s all-time high (ATH) of $19,870, which was reached on 17 December 2017.

However, since different crypto exchanges have their own idea of what the ATH price is, various exchanges conider that Bitcoin surpassed its ATH price yesterday.

Here are a couple of examples.

Binance tweeted at 15:14 UTC:

Kraken tweeted 21 minutes later:

In fact, the Binance CEO was so excited about Bitcoin’s price setting a new ATH yesterday that he sent out the following tweet to make fun of those weak hands that had their BTC holdings:

Amid all the confusion, Sam Bankman-Fried, the CEO of crypto exchange FTX, said that the real new ATH price should be at least $20,000 (presumably to avoid all uncertainty):

Last Sunday (November 29), crypto analyst Lark Davis said that a record monthly close is significant because the last two times that Bitcoin had a monthly close that was higher than the previous ATH price, it “mooned super hard.”

Of course, everyone is in agreement that one of the main drivers for the current Bitcoin bull run has been the increasing amount of interest from institutional investors and high net worth individuals.

Yesterday, Michael Sonnenshein, the Managing Director at Grayscale Investments (which is one of the largest buyers of Bitcoin) suggested during an interview with Melissa Lee on CNBC’s “Squawk Box” that the current Bitcoin bull ran is far from over:

CNBC also interviewed Tyler Winklevoss, Co-Founder and CEO of crypto exchange Gemini and his twin brother Cameron Winklevoss yesterday, who explained why they expect the price of Bitcoin to reach $500,000 or more within the next decade.

Their comments about Bitcoin came during an interview with Seema Mody and Andrew Ross Sorkin on CNBC’s “Squawk Box”.

Mody started by asking Tyler what the twins have been doing during the past eight months while Bitcoin has been experiencing a “meteoric” price increase.

Tyler replied:

“So we’ve just been HODLing. Our thesis is that Bitcoin is gold 2.0 and it will disrupt gold. If it does that, it has to have a market cap of $9 trillion. So we think Bitcoin could price one day at $500,000 a bitcoin. So at $18,000 Bitcoin, it’s a HOLD or at least if you don’t have any, it’s a BUY opportunity because we think there’s a 25x from here.”

Earlier today, the Binance CEO made the following “price prediction” for Bitcoin:

Simon Peters, a crypto analyst at social trading platform eToro, said in a note shared with CryptoGlobe:

“Bitcoin’s upwards trajectory continues to excite investors. We have seen a 66% increase in the number of people holding a bitcoin position on eToro today, compared with the last time the crypto’s price hit an all-time high in December 2017…

“Whilst this meteoric rise does look similar to the run of 2017, there are some fundamental differences which indicate bitcoin could go higher still.

“Firstly, it isn’t just the average person on the street buying bitcoin. Larger investors, such as pension funds and hedge funds, are investing in crypto with many seeing it as a hedge against inflation.

“Secondly, the demand continues to outweigh the supply, with investors looking to hold onto their bitcoin.

“For these reasons, bitcoin could continue to climb this year. If we maintain the current rise, then $25,000 before the start of 2021 is on the cards. There will be some selling at $20,000, and this could see a short move backwards. But if bitcoin shrugs off this selling and continues rising, then New Year’s Eve at $25,000 is there for the taking.”

And even Macroeconomist and crypto analyst Alex Krüger, who rarely offers price predictions for Bitcoin on Twitter, seems convinced that Bitcoin’s price is on its way to reaching $25,000 before the end of this year.

Featured Image by “SnapLaunch” via Pixabay.com

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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South Korea Approves Postponing Crypto Tax Enforcement Until 2022

South Korea’s National Assembly has approved the postponement of the country’s 20% cryptocurrency tax enforcement until early 2022. This conclusion was reached after recent regulatory talks concerning the amendment of several tax laws in the country. South Korean Assembly Ratifies 20% Crypto Tax According to South Korean news agency Yonhap, lawmakers on Nov. 30 agreed … Continued

The post South Korea Approves Postponing Crypto Tax Enforcement Until 2022 appeared first on BeInCrypto.

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South Korea’s National Assembly has approved the postponement of the country’s 20% cryptocurrency tax enforcement until early 2022.

This conclusion was reached after recent regulatory talks concerning the amendment of several tax laws in the country.

South Korean Assembly Ratifies 20% Crypto Tax

According to South Korean news agency Yonhap, lawmakers on Nov. 30 agreed to delay the start of the crypto tax regime until January 2022. As previously detailed by BeInCrypto, reports emerged in November that such a decision was imminent.

As part of the Planning and Finance Committee session held on Nov. 30, lawmakers also ratified the government’s 20% crypto tax policy. Back in June, the Ministry of Economy and Finance proposed a 20% capital gains tax on cryptocurrency trading profits exceeding 2.5 million won ($2,250) per annum.

South Korea Government Crypto

At the time, the proposed crypto tax plan was to come into effect in October 2021. However, the National Assembly’s decision will see enforcement of the rule delayed by a further three months.

The additional grace period is to give cryptocurrency exchanges ample time to create the necessary crypto tax reporting infrastructure. Platforms will also need to move forward with integrating real-name trading accounts on their systems.

Real-name Trading Accounts Required for Tax Reporting

Presently, only the “big four” — Bithumb, Coinone, Upbit, and Corbit — are in compliance with the real-name trading accounts rule. This law became mandatory in South Korea following the legalization of cryptocurrency trading back in March 2020.

Exchanges that fail to comply with the law will have to shutter their operations in the country. Some commentators say the cost of compliance to these strict laws may force smaller volume platforms to move abroad.

South Korea’s planned crypto tax policy will reportedly treat virtual currencies as transferrable income like real estate and not like interest or dividends. In some ways, the rule bears similarities with the cryptocurrency tax treatment utilized by the US Internal Revenue Service (IRS).

Amid the emergence of different tax policies, intergovernmental bodies like the Organization for Economic Co-operation and Development (OECD) are trying to streamline the crypto-financial reporting system. The move is part of efforts to foster greater international cooperation in combating crypto tax evasion.

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Osato is a reporter at BeInCrypto and Bitcoin believer based in Lagos, Nigeria. When not immersed in the daily happenings in the crypto scene, he can be found watching historical documentaries or trying to beat his Scrabble high score.

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Source: https://beincrypto.com/south-korea-approves-postponing-crypto-tax-enforcement-until-2022/

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Canaan Sees Over 75% Decline in Net Revenue in Q3 as Bitcoin’s Price Surge

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Chinese Bitcoin mining firm Canaan has recorded a loss in yet another quarter but is showing positive signs of a recovery as share price and market capitalization spikes. Following a disappointing initial public offering (IPO) last year and declining inventory sales, the company has seen the balance of power shift considerably to major competitors MicroBT and Bitmain.

$12.7 Million Loss for Q3 2020

Bitcoin miner maker Canaan has reported a 75.7% year-on-year (YOY) decline in net revenue as part of its Q3 2020 financials published on Nov. 30. In the report, Canaan revealed that its net revenue for the period was $24 million, which also amounts to an 8.5% reduction from the earnings recorded in the previous quarter.

Following the significant drop in quarter-on-quarter (QOQ) net revenue, it is unsurprising to see Canaan post another quarterly net loss in 2020. According to its Q3 2020 financials, the bitcoin mining chip maker recorded a net loss of $12.7 million, compared to a $2.5 million loss in Q2 2020 and $14.3 million in Q3 2019.

Commenting on the firm’s Q3 financial performance, Nangeng Zhang, Canaan’s CEO and Chairman said:

“During the third quarter of 2020, we remained undeterred by the pandemic to strengthen our research and development capabilities, expand our AI business, and execute new business initiatives. By leveraging our enhanced R&D capabilities in the third quarter, we launched our A1246 product series, which continues to lead the industry with its energy efficiency, computing power, and unit cost.”

Canaan Market Cap on the Rise

Net loss aside, Canaan has been recording some positives in the latter part of 2020. Indeed, the company’s market capitalization has more than tripled from $300 million in September to about $900.8 million as of press time.

Canaan’s share price has also been on a tear in recent months, rising over 200% within the same period. With one-third of Q4 remaining, the company’s stock has risen over 170%. Maintaining the current price action could see the Bitcoin miner manufacturer’s stock price challenge its IPO float price of $9, which incidentally is its all-time high share price.

Tweeting on Canaan’s Q3 performance, @WuBlockchain identified rising inventory sales and the release of the company’s A1246 miners are contributing factors to the firm’s recent resurgence.

Canaan was also among a group of Chinese mining hopefuls looking to float IPOs in the last couple of years. However, Canaan’s offerings fell short of the mark, failing to even realize a quarter of the $400 million estimate.

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Source: https://cryptopotato.com/canaan-sees-over-75-decline-in-net-revenue-in-q3-as-bitcoins-price-surge/

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