In some breaking news, it has emerged that the U.S. Treasury has mandated all crypto exchanges operating in the US to report transactions above $10,000 to the IRS. Consequently, Bitcoin prices (BTC/USD) shed off a third of gains already made on Thursday.
Bitcoin was not the only crypto whose price reacted negatively to the news. Ethereum and several altcoins in the top 20 list all shed off some gains.
This is considered a significant clampdown on the cryptocurrency market, following actions from China that initiated the huge market drop seen yesterday. Crypto traders still have a period of reprieve, as the regulation only comes into effect in 2023 to allow cryptocurrency exchanges time to adjust to the new regime.
BTC/USD remains up on the day but has lost the $40,000 price level.
Technical Outlook for Bitcoin Prices
The 37,895 support level is all that is holding Bitcoin prices from dropping like a rock to 33,000. Below this, yesterday’s support at 29961 may be the pivot at which a new bounce occurs.
On the other hand, a bounce at 37895 allows for a retest of 40,000. Above this resistance, 42000 may emerge as a barrier that bulls need to take out for the price to target 44,000, 46,080 and 48,000.