Bitcoin Recovers from Downward Correction as It Breaks Above $48K
Since September 13, BTC/USD has been trading marginally above the $44,000 support as it breaks above $48K. Today, BTC’s price has risen to $48,000 high. Bitcoin will resume an upward move if buyers sustain the price level above the $48,000 resistance level. A rally to the $50,000 psychological price level is expected if buyers jump the hurdle above the $48,000 resistance.
Resistance Levels: $50,000, $51,000, $52,000
Support Levels: $40,000, $39,000, $38,000
Following the recent breakdown, Bitcoin dropped down but was trading between the 21-day SMA and the 50-day SMA. On September 13, the bears broke below the 50-day SMA as bulls bought the dips. However, if the bearish momentum is sustained below the 50-day SMA, the downtrend would have resumed. Meanwhile, BTC price has broken above the 50-day SMA to resume an upward move. On the upside, if buyers sustain BTC price above the 21-day SMA, and the bullish momentum is sustained, the market will begin to rise. Buyers will have the opportunity to retest the previous price levels. However, if the BTC price faces rejection at the 21-day SMA, the crypto will fall and resume a downward correction. BTC price is at level 52 of the Relative Index period 14. It indicates that Bitcoin is in the uptrend zone and capable of rising on the upside.
El Salvador Exempts Tax Payment on Cryptos’ Investment
El Salvador government is reported to exempt investors from paying a capital gains tax and an income tax on Bitcoin trading. According to Javier Argueta, the legal adviser to President Nayib Bukele, he said the government wants to attract foreign investment by adopting major tax breaks on Bitcoin trading. The legal adviser said: “If a person has assets in Bitcoin and makes high profits, there will be no tax. This is done obviously to encourage foreign investment,” Argueta said, adding that El Salvador will impose no taxes on “either the capital increase or the income.”
Meanwhile, Bitcoin bulls struggle below recent high as it breaks above $48K. Buyers have an uphill task to breach the resistance level as the market reaches the overbought region. Buyers have broken above the $48,000 resistance level at the time of writing. Can the bulls sustain the bullish momentum? However, BTC price will fall sharply if the bullish scenario is invalidated.
Read more:
• How to buy Bitcoin
• How to buy cryptocurrency
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