- The Bitcoin price recovers, resistance at $11,000
- Russia proposes a bill which categorizes Bitcoin and crypto as property
- Binance banned in Russia
- A bill in Israel may see Bitcoin and crypto classified as currencies
The Bitcoin price is bouncing back, snapping back to trend, reversing blips of early this week. From trackers, the BTC USD pair has pared losses but is galloping ahead of ETH.
Crypto as Currency?
Amid optimism is news from Israel.
According to a local report, four members from Knesset–Israel’s legislative body, submitted a bill on Sep 22. If adopted, the rule will significantly change the way cryptocurrencies are taxed.
Specifically, the bill seeks to change digital assets’ classification from property to currency under the country’s Income Tax Ordinance.
This shall lift the taxation burden of coin holders who currently pay 25 percent as tax on capital gains. Should Bitcoin (and cryptocurrencies) be deemed as currencies, capital gains will drop to 15 percent.
The State of Israel can be among the leaders in the field of digital currencies. If only it recognizes the use of the blockchain as a currency for everything. It is precisely in this period when the economic future is unclear It is possible to promote digital payment options due to the social distance that has been forced on us.
Russia’s Strict Proposal
In Russia, a radical proposal by the Ministry of Finance was tabled to the State Duma—the parliament, on Sep 24. Controversial, the Ministry of Finance astonishingly considers cryptocurrencies as tools of money laundering and terrorist financing.
Consequently, it proposes holders to submit any holding above $1,300 or (100K Rubles) to tax authorities.
Failure attracts a jail term of up to three years. The softer option will be forced labor as punishment. The only good news this proposal bears is the classification of Bitcoin and crypto as property.
However, this is to pave ways for tax authorities who can proceed to charge capital gains.
On the same day, Binance—the world’s largest cryptocurrency exchange, was banned by the Roskomnadzor.
Baffling, the agency says the site’s homepage promotes the buying and selling of Bitcoin. It is the second time in three months the agency is blacklisting Binance.
Bitcoin Price Prediction
The Bitcoin price is swinging between bearish and neutral judging from candlestick arrangements and technical indicators.
In the last day of trading, BTC has recovered losses against the USD and is flat. However, it is outperforming ETH in the daily and weekly charts.
Candlestick arrangements in the daily chart suggest strength in the immediate term.
There is a double bar bullish reversal pattern from the 61.8 and 78.6 percent Fibonacci retracement level of July to September trade range.
Since prices are back above the middle BB, bulls are likely to edge higher in the immediate term.
Strong liquidation levels is expected at $11,200 and $11,500. This is Sep 3 highs. A sharp, high-volume break above this level will nullify bearish attempts of Sep 1 and 2 and probably paves the way for bulls to retest $12,500.
BTC USD Technical Indicators
- Support lies between $10,100 and $10,400
- Resistance is at $11,000 and $11,500.
- Most traders (88 percent) are bullish from sentiment analysis.