Bitcoin records modest gains in choppy session
|After losing more than $400 on Wednesday, Bitcoin rebounded in the late NA session to close the day virtually unchanged and went into a consolidation phase on Thursday, shaking off the negative impact of concerns over greater oversight from US regulators. At the moment, the BTC/USD pair is trading at $5645, up 1.2%, or $70, on the day.
There were no catalysts on the day that could impact the price action and a broad-based selling pressure seen on the greenback seems to help the pair record small gains in the day. The US Dollar Index, which advanced to a weekly high at 93.66 yesterday, reversed course and eased below the 93 handle today.
On a positive development for Bitcoin, the Australian government announced that it would no longer tax cryptocurrency purchases.Reporting on the issue, "following the passing of new legislation in the country's parliament today, the long controversial "double taxation" of cryptocurrencies – first when buying it, then later when buying items subject to the tax – is finally coming to an end," Daniel Palmer, an author at Coindesk.com, wrote.
Technical outlook
The immediate resistance for the pair could be seen at $5600 (Oct. 18 high) ahead of $5850 (record high) and $6000 (psychological level). On the downside, supports align at $5100 (daily Oct. 18 low), $5000 (psychological level) and $4815 (Oct. 12 low).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.