Technical analysis of Bitcoin for 07.06.2019

Crypto Industry News:

Japanese companies did not report crypto gains of $ 93 million over the past few years until March 2019, according to local media.

According to them, about 30 enterprises related to cryptography and 50 people have not declared their revenues from cryptocurrencies since March, allegedly due to the high tax on this type of income.

Until now, the Japanese tax authorities believed that revenues related to cryptography are other income taxed at 55%.

In order to combat tax evasion in industry, the Japanese government is preparing a new system that will authorize the National Tax Agency (NTA) to request information about revenues from cryptographic exchanges, including names and addresses. The new law, to be introduced in April 2020, will allow NTA to request data primarily from users whose cryptography earnings totaled over 10 million yen ($ 88,700).

The new system will be launched in January 2020 and will authorize the Japanese government to punish these exchanges or cryptographic operators who will not disclose the necessary information.

Technical Market Overview:

The BTC/USD pair is trading inside of a narrow zone between the levels of $7,484 - $7, 896, but a Hammer candlestick pattern was made at the bottom of the range, so there is a chance for a bigger rebound. The nearest technical resistance is seen at the level of $7,978 and only is this level is clearly violated, then the short-term outlook can change from bearish to bullish. Otherwise, the horizontal movement will continue until the breakout.

Weekly Pivot Points:

WR3 - $10,284

WR2 - $9,622

WR1 - $9,121

Weekly Pivot - $8.545

WS1 - $8,037

WS2 - $7,438

WS3 - $6,960

Trading Recommendations:

The best strategy in the current market conditions is to trade in the direction of the main trend, which is still up. All the local bounces and correction should be treated as another opportunity to open the buy orders for a better price. Please notice, the larger time frame trend is up and there are no signs of any trend reversal. The level of $7,487 might be the bottom for wave 4.

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The material has been provided by InstaForex Company - www.instaforex.com