Bitcoin price next move could be up as Thailand looks to attract many BTC traders like Dubai

Bitcoin (BTC) price is working out its next direction, steadily intertwining along the Simple Moving Average. While technical indicators lean in favor of bulls, BTC has ignored an important bullish fundamental from a country in southeast Asia on the Indochinese Peninsula.

Also Read: Bitcoin price sustains uptrend as Chinese investors stampede out of local market in favor of US-focused ETFs

Thailand promotes BTC and digital assets in general

A report on the Bangkok post shows that Thailand has removed the 7% value-added tax (VAT) that had been imposed on Bitcoin and cryptocurrency trading. The news follows a directive from the country’s Finance Ministry, noting that it has exempted VAT on digital asset trading in a bid to propel Thailand toward becoming a digital asset hub.

Specifically, the Secretary to the Finance Minister, Paopoom Rojanasakul, said the ministry is looking to promote digital assets as a new alternative tool for fundraising. With this, brokers and dealers will be exempted from the tax, much like some authorized digital exchanges. The Thailand Securities & Exchange Commission (SEC) will oversee this.

Authorities echoed the executive’s statement, saying the move would not only support the growth of the digital asset industry in Thailand but also provide the necessary boost to facilitate the country's digital economy in the near future.

All income derived from cryptocurrency and digital token trading was previously liable for a 7% tax. With this move, Thailand follows the likes of Dubai, which streamlined regulations to favor crypto adoption. Per the report, the VAT exemption is effective on January 1, 2024, without an expiration date.

Nevertheless, Rojanasakul called the government’s attention to the need to ensure the stability of the country’s financial system even as it harnesses its development potential.

Bitcoin price casts about for directional bias

Bitcoin price is trading horizontally, winding around the 50-day SMA at $42,962. As markets tend not to wait for so long, a damp consolidation coupled with volatility contraction followed by expansion could see Bitcoin price make a bold move soon.

Technical indicators show the odds favor the upside, with the Relative Strength Index (RSI) holding above 50. The Awesome Oscillator (AO) and the Moving Average Convergence Divergence (MACD) both lie within positive territory, flashing green histogram bars. This points to an incoming bullish cycle.

If Bitcoin price overcomes the blockade due to the 50-day SMA, confirmed by a move above the $43,750 roadblock, the $46,000 psychological level would come into focus. Such a directional bias could see BTC test $48,000 soon, or in a highly bullish case, hit $50,000. This would constitute a nearly 15% gain above current levels.

BTC/USDT 1-day chart

On the other hand, a break and close below the $41,880 support level on the daily time frame would invalidate the bullish thesis. The fall could extend to the confluence between the 100-day SMA and the horizontal line at $40,650.