Market Pumping Back into Resistance.

30.08.2023

Dear traders,

Is this a liquidity grab before the next leg down or just a retest of the drop?

Jake
TOP Trader

BTC is pushing into the 28k resistance and retracing the drop. In the coming days, if it doesn’t sustain the push, it could retreat to new lows and continue the breakdown.

ETH is pushing back from the $1630 support, showing momentum and a potential retest of the drop before the next leg down.

XRP is pushing back to the $0.54 resistance, grabbing liquidity. Only if it breaks and holds above $0.54 on a daily basis could it make a bigger push upwards.

LINK is still holding above $6 and consolidating. Despite the waning momentum, any price below $7 presents a favorable buying opportunity.

SOL is retesting the drop and encountering resistance at $22. There is a significant possibility of a bigger push back in the coming days.

EOS is retesting the resistance at $0.63 and needs a strong push to break above. It remains an attractive option for long-term investment.

LTC is retesting the resistance at $70 and needs to break it on a daily basis to continue the push.

The DXY dropped to support at 103.5 and needs to hold it for the next leg up.

Crypto/stock daily news:

CRYPTO’S NEW PROPOSED TAX RULES

Ladies and gents, the U.S. government is proposing new crypto tax rules…

The bad news: The proposal is 282 pages long.

The good news: The Trader Jake did all the reading so you wouldn’t have to.

Luckily, he has a rare ability called IntraOsmosisLearningism* so it went by quickly.

(*totally made up. But if it were real, it’d probably look like this..)

Here’s everything you need to know about the newly proposed U.S. tax rules:

Crypto brokers would need to collect and file information on their customers to the IRS.

“Crypto brokers” would include crypto trading platforms (centralized and decentralized), crypto payment processors, and certain crypto wallets.

Brokers would need to report information on customers’ tax positions via a new 1099 form that details gains and losses.

Investors would then use that form to report taxes.

If passed – the rules would go into effect in 2026, for the 2025 tax year.

It was proposed by the Department of Treasury and Internal Revenue Services (IRS).

This is big for 2 reasons…

On the one hand, rules and regulations are important. They’ll help bring the crypto industry out from the shadows and unlock massive growth.

Plus, it’s estimated the new rules could generate the U.S. government $28B in revenue over the next 10 years. #moneymaker

On the other hand, many are against the newest proposed rules because they include decentralized exchanges and self-hosted wallets.

If passed, many speculate the rules would kill decentralized finance in the U.S. as we know it.

So, what’s next? The U.S. government has opened up a public comment period until October 30th, then a public hearing will be held on November 7, 2023.

Milk Road Take: Taxes are a lot like paid subscriptions to your country – except you can’t cancel them, no matter how sh*tty the service gets.

So some crypto tax rules are needed. But unclear regulations that target decentralized platforms (and crypto as a whole) will only push crypto companies away from the U.S.

And it’s already started…

A handful of crypto companies have shut down U.S.-based services

Founders are advising crypto devs to focus on customers outside of the U.S. over the next 5-10 years

Although the proposed tax rules aren’t finalized, it feels like U.S. investors are being punished by their parents – while crypto and the rest of the world are having fun outside.

FAST NEWS:

OnlyFans invested $19M+ into ETH last year, according to recent financial statements. The bad news? OnlyFans is down 42% on its investment. The good news? Everything else is up – revenue, profit, subscribers, hormones. You name it.

Three founders of the popular memecoin PEPE stole $16M from the project. They’ve abandoned the project and left full control with the last remaining founder. #TheLastPepeStanding

Western Union is exploring ways to integrate the Ripple blockchain and XRP token into global money transactions. Blockchain tech ? Global payments.

BlackRock has invested $400M in publicly-listed Bitcoin mining companies. The firm is the second largest shareholder for 4 out of the 5 biggest Bitcoin miners.

Earl Sweatshirt and The Alchemist dropped a new NFT music album on Gala Music. During the last tour, Earl Sweatshirt had QR codes up and fans who scanned it received a free, limited-edition NFT of one of the songs. Other fans can buy the album, or stream it for free, on Gala Music. (Pretty cool use case)