There might be some triggers for the rise of Bitcoin

13 October 2023 101
There might be some triggers for the rise of Bitcoin

The crypto market capitalization was close to $1.07 trillion by the end of the third quarter. It’s 8.56% down from April–June. In the last quarter market liquidity was decreasing, and the total trading volume on the 15 largest centralized exchanges fell by 30.59%.

 

Nevertheless, the decline in capitalization in the third quarter didn’t have a significant impact on previous gains. Total assets in the crypto market are still 34.95% higher than at the beginning of the year.

 

CoinMarketCap researchers emphasize the change in market sentiment in the third quarter towards reduced risk appetite, with the greed index dropping from 60 to 42 points.

 

In particular, BTCUSD pricing was also affected by the events in the Middle East, as they had a negative impact on the investment sentiment of traders. Bitcoin has shown a clear downtrend this week, falling below $27,000 for the first time since September.

 

Meanwhile, a group of senators in the US led by Elizabeth Warren and Angus King is pushing US tax officials (the US Treasury Department and the Internal Revenue Service) to move up the start date for crypto brokerages.

 

In a letter sent to the two regulators, the senators expressed concern over the two-year delay for the rule’s implementation. This could result in the Federal government losing billions in tax revenue.

 

Experts estimate that by 2022 the government was losing about $50 billion annually due to crypto traders' misunderstanding of the rules or willful tax evasion.

 

Officials emphasize that the Joint Committee on Taxation sees a significant increase in tax revenue in the early years of implementation.

 

Warren and King demanded the speedy implementation of the rule and urged the agencies to inform their actions by October 24, 2023.

 

The BTCUSD pair is in a broad correction on the D1 timeframe. The Stochastic Oscillator moving indicators (standard values) are approaching the oversold zone. This creates new opportunities for market participants to buy bitcoin at more favorable prices and to increase its value in the near term.

 

Signal:

The short-term outlook for the BTCUSD pair is to buy.

The target is at the level of 30,200.

Part of the profit should be fixed near the level of 28,000.

A Stop-loss should be placed near the level of 24,750.

 

The bullish trend is of a short-term nature, so it is suggested to limit the trading volume to no more than 2% of your capital.

This content is for informational purposes only and is not intended to be investing advice.

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