Bitcoin price analysis: BTC/USD trading between the moving average support and resistance; Japan to change cryptocurrency taxes from progressive to a uniform rate

  • Crypto trades in Japan could be taxed up to 55% of the profit.
  • The stochastic has come out of the oversold region and is currently at 36%.

Bitcoin price is trading yet another short-term bullish flag pattern while approaching another breakout. The crypto is also exchanging hands between the moving averages support and resistance. The 100 SMA is preventing gains at $6,228.46 while the shorter term 50 SMA is providing immediate support at $6,207.65.

In other news, the Japanese government is contemplating changing the way cryptocurrency traders in the country are taxed. Due to the progressive formula rate currently used, traders in the country could be taxed up to 55% of the profits made. However, the Deputy Prime Minister of Japan, Taro Aso has intentions to scrap the progressive rate to a uniform rate. During the Upper House budget committee meeting that was held yesterday on June 25, Aso said:

“The profits gained by virtual currency transactions should be changed from current ‘miscellaneous income’ to ‘declaration separate taxation.”

The global financial consultant firm, PWC notes that in Japan “Capital gains from sales of certain securities (including shares/equity interest in corporations, warrant bonds, etc.) are taxed separately from other sources of income at a flat rate of 20.315% (i.e. 15.315% national tax and 5% local inhabitant’s tax).”

Technically, BTC/USD is trading at $6,217 at the time of writing, besides, the trend is somehow bullish. The stochastic has come out of the oversold region and is currently at 36%.The MACD, on the other hand, is slightly in the negative territory showing that some selling pressure is present. The price must clear the resistance at $6,280 to pave the way for an upward roll above the key level at $6,300. The buyers also have to keep the support at $6,200 and $6,160 respectively to avoid declines towards immediate demand zone at $6,080.

BTC/USD 15’ chart

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