Bitcoin has extended its losses as the IRS seeks additional authority from the US Congress to regulate the cryptocurrency sector. President Biden’s government is proposing for cryptocurrency exchanges and other brokers to report details regarding their customers. This includes indirect foreign investors.
If the lawmakers approve the proposal, businesses will not be required to report every time they receive crypto assets worth over $10,000. While speaking in a Senate Finance Committee hearing on Tuesday, IRS Commissioner Charles Rettig said,
“We get challenged frequently, and to have a clear dictate from Congress on the authority for us to collect that information is critical.”
With reference to Bitcoin’s price movements, Academy Securities’ Head of Macro Strategy, Peter Tchir has indicated that it is time for investors to pause on Bitcoin. During an interview on ‘Bloomberg Daybreak: Asia’, the analyst indicated that various countries are likely to intensify their focus on regulating the crypto industry. This will impact crypto prices as it is the preferred currency for ransomware. Tchir highlighted the possibility of “a global kind of government crackdown of regulation on it, and this is going to drag down the price for now.”
Bitcoin technical outlook
Bitcoin is down by 1.78% at $32,807.29. In the previous session, it recouped some of its losses by rising from an intraday low of 31,003.54 to 33,936.53. Since Friday last week, the crypto has declined by about 16.53%.
On a 2-hour chart, it is trading below the 25 and 50-day exponential moving averages. Based on its current price movements, the psychological mark of 30,000 will determine if its downtrend will continue or if a recovery is imminent. I expect Bitcoin to find resistance along the 25-day EMA at 33,808. Above that level, the next target will be along the 50-day EMA at 34,744. However, it may decline to find support at 31,000.
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