This is an insightful daily analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole.
Amid rising concerns over cryptocurrency taxation policies, Bitcoin’s (BTC) recent breakout has captured significant attention early this week. The leading cryptocurrency broke through the $87,000 level, marking a strong rally that highlights potential movement toward the $90,000-$92,000 range — a key area previously acting as strong support.
The Role of Cryptocurrency Taxation Policies
Bitcoin’s bold move past $87,000 indicates that traders are focused on breaking barriers despite the challenges posed by cryptocurrency taxation policies. This shift suggests a continuation of the upward trend, aligning with the larger recovery initiated from the April lows under $75,000.
This rally is significant as the $90,000-$92,000 range served as a robust support zone in the past, providing stability during price declines from December to early February. This zone was compromised in late February, triggering a drop to below $75,000. Now, the renewed bullish momentum has managed to overcome a week of consolidated trading between $83,000 and $86,000.
Recent activity in Bitcoin’s chart shows the breakout on both hourly and daily timeframes. The invalidation of a persistent bearish trendline, coupled with the surpassing of the 30-day exponential moving average (EMA), signals renewed confidence among traders and investors.
The focus remains on the $90,000-$92,000 range, especially as the current price surpasses the 200-day simple moving average (SMA), which is currently pegged at $88,245.
The positive outlook, however, could face challenges should Bitcoin’s price retract to $85K by the end of the trading day (UTC). Analysts remain vigilant toward the potential impacts of cryptocurrency taxation policies, which could influence future moves.
For additional insights into cryptocurrency trends and policies, visit CoinDesk.
At Bakara Invest, our analysis suggests that while the current bullish momentum is promising, ongoing monitoring of cryptocurrency taxation policies remains crucial for investors navigating the crypto market landscape.
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