Cryptocurrency Market Update: Crypto bulls return as Bitcoin touches $10,200

Cryptocurrencies back in the red cloud after Bitcoin hit a snag under $10,300.
Bitcoin bears continue gaining traction towards the first support at $10,100.
A new bill in the US Congress proposes a tax exemption for value gain of less than $200.

Bulls stole the show on Tuesday pushing for recovery across the board in the cryptocurrency market. All the top three digital assets, Bitcoin, Ethereum and Ripple embarked on a recovery action that saw several resistance zones shuttered. Bitcoin sprinted above $10,000 and extended the gains above $10,200 while Ethereum returned above $280. On the other hand, Ripple broke above the resistance at $0.30 to a weekly high of $0.30252.

United States cryptocurrency regulations

Most experts believe that the stringent regulation in the US or the lack of it is retrogressive for the crypto industry. This was made clear with Facebook’s proposed digital currency Libra which got nothing but rejection in both the Congress and the Senate. While Facebook is still fighting to have Libra operational, many believe that it will take time before the US becomes fully supportive of the merging digital money economy.

However, recent developments show that little progress is being made especially in regards to taxation. A bill that was recently introduced in the US Congress suggests that certain cryptocurrency transaction be exempted from value gain tax. The bill referred to as The Virtual Currency Tax Fairness Act of 2020 originates from Congressmen Suzan Delbene and David Schweikert from Washington and Arizona, respectively. The draft law notes:

Cryptocurrency transactions due to changes in exchange rates should not be included in an individual’s income. The previous sentence does not apply if the profit exceeds $200.

Bitcoin price update

Bitcoin is trading at $10,128 after adjusting from a recently posted weekly high at $10,288. The weak bearish momentum appears to be gaining traction, especially with the downward sloping RSI. Immediate support is seen at $10,100 but losses towards $10,000 will try and seek refuge at the 100 SMA at $10,061 on the 1-hour chart. The only way the bulls will keep the uptrend is to retake the support at $10,200 and keep the focus on $10,500.

Also read: Bitcoin Price Analysis: BTC/USD wedge pattern breakout or bull trap?

BTC/USD hourly chart

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