The Bitcoin Price May Rise if It Breaks above Its Current Range

Alexander Salazar
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The Bitcoin Price May Rise if It Breaks above Its Current Range

Bitcoin must break above the 50-day MA at USD 20,000 and the 100-day MA at USD 21,100 to exceed USD 25,000. If it drops, the next target would be USD 18,000, but it needs to exceed the upper border to invalidate the bearish wedge.

Although the crypto market still undergoes a phase of uncertainty and low volatility, the price action of cryptocurrencies is steady. The medium-term direction of Bitcoin (BTC) will depend on how it breaks out of its current range.

The Daily Chart of the Price of Bitcoin

The value of Bitcoin created a pullback despite the multi-month bearish serving as its significant resistance. However, a considerable lack of demand in the market causes the bullish momentum to be discouraging.

In addition to declining bullish momentum, Bitcoin faces the 50-day MA at USD 20,000 and the 100-day MA at USD 21,100. The price has to break above those levels quickly to exceed the significant USD 25,000 sentimental resistance level.

As for market sentiment and declining momentum, there might be a price rejection from those critical levels before dropping further.

The 4-Hour Chart of the Price of Bitcoin

The 4-hour chart shows a static range between USD 21,000 and USD 18,000 has struck the price for some time. Meanwhile, the value of Bitcoin has created a bearish wedge pattern.

The price of the pioneering cryptocurrency has formed a double-top pattern. After a rejection by the USD 20.5000 resistance level, it now tests the lower threshold of the wedge.

If it drops, the next target would be the crucial support level at USD 18,000, which the price could break before going deeper. Besides, Bitcoin must exceed the upper border to invalidate the bearish wedge.

To summarize, the multi-week bearish trend line is the primary barrier in the path of BTC toward USD 21,500 and USD 25,000.

The Estimated Sentiment Leverage Ratio

Over the last week, the Exchange Netflow metric has registered a higher volume of trading outflows. That may have been a portfolio restructuring in the stock market, but prolonged market activity occurred due to little positive sentiment.

Besides the significant outflows, the Estimated Leverage Ratio metric reached an all-time high. That situation indicates that traders use riskier leverage in the futures market.

However, the dominance of activity in the derivatives market is evident with the lack of new retail investors. Despite significant foreign exchange (FX) outflows and a high leverage ratio, the relatively neutral funding rate indicates the price movement needs to set a direction.

Meanwhile, Bitcoin is trading at around USD 19,113 and has accumulated a 0.6% loss over the last 24 hours. While its daily trading volume is above USD 24.54 billion, its market capitalization is about USD 366.51 billion, according to CoinGecko.

Bitcoin plays a relevant role in the global economic system, which an increasing number of institutional investors demonstrates. However, it is necessary to wait to see how the behavior of the market will influence its price in the coming days and weeks.

By Alexander Salazar

Those Living in Portugal to Pay a 28% Tax on Cryptocurrency Earnings since 2023

Alexander Salazar
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Those Living in Portugal to Pay a 28% Tax on Cryptocurrency Earnings since 2023

Portugal forces people interested in Bitcoin and other cryptocurrencies to hold their coins for over a year to avoid paying high taxes. In addition, the government plans to implement a 4% tax on cryptocurrency brokerage, seeking to encourage the crypto economy.

The Portuguese government plans to tax the local crypto market at 28% on earnings from transactions. That would apply since 2023 to those who hold their coins for less than a year.

Many European cryptocurrency enthusiasts have migrated to Portugal, as it has not charged taxes on transactions with crypto assets.

Investors in cryptocurrencies viewed Portugal as a tax haven, which brought business and innovation to the European nation. For example, the Bitcoin Family from the Netherlands moved to undertake a business there.

However, the government will cause that situation to change in the coming months.

The Portuguese Government to Charge a 28% Tax on Cryptocurrency Earnings

Portugal indirectly advises people interested in Bitcoin and other cryptocurrencies to hold their coins. In other words, they should not sell them in the short term to avoid paying high taxes.

Those buying and selling cryptocurrencies in the country in less than one year will pay a 28% tax on their transactions. That amount is so high that it can eliminate any profit made in the short term.

Fernando Medina, the Portuguese Finance Minister, recently announced those measures, which include a tax on cryptocurrency mining.

Regarding the Internal Revenue Service (IRS), they propose to tax the income from transactions with cryptocurrencies. Some examples are business and professional proceeds from issuing crypto assets through mining, or as capital gains, without detriment to other categories.

Investors Must Hold their Coins for over One Year

Crypto-related capital gains held for less than one year are subject to a 28% rate without detriment to the bundling option. Meanwhile, cryptocurrency investors will be exempt from tax on earnings if they hold their coins for more than 365 days.

Traders must be ready to ensure at least one year when buying or mining cryptocurrencies in Portugal. That way, they avoid the high taxes the government plans to implement in 2023.

In addition, the government plans to implement a 4% tax on cryptocurrency brokerage. They seek to encourage the crypto economy in Portugal to avoid scaring businesses away despite the tax.

The Government Wants to Collect More Taxes to Reduce Public Spending

Over the last few months, the Portuguese Finance Minister has kept an eye on the crypto market. The government has sought to implement a tax on cryptocurrency transactions to benefit the country.

Since they expect the Portuguese economy to thrive in 2023, they plan to take advantage of the tax on cryptocurrencies. Besides, they want to create energy producers, reduce the burden of public debt and contain inflation, among other activities.

Meanwhile, Bitcoin is trading at around USD 19,113 and has accumulated a 0.6% loss over the last 24 hours. While its daily trading volume is above USD 24.54 billion, its market capitalization is about USD 366.51 billion, according to CoinGecko.

By Alexander Salazar

Cryptocurrencies Might Benefit from the End of 2% Inflation Targets

Alexander Salazar
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Cryptocurrencies Might Benefit from the End of 2% Inflation Targets

Despite the adverse effects of government efforts to control debts and maintain the economic balance, cryptocurrencies would benefit in the long term. Although crypto assets have lost their inflation-hedging properties and value this year, prolonged high inflation might be favorable.

Central banks have usually used monetary policy at 2% to keep inflation on track worldwide. However, the economic turmoil might force them to adjust it to the upside, causing damage to fiat currencies.

Governments have made efforts to control debts and maintain the economic balance. Despite the adverse effects on fiat currencies, cryptocurrencies would benefit from that situation in the long term.

During the 2008 crisis, avaricious investment banks shattered this by issuing and profiting from toxic loans. Bitcoin emerged as a hedge against banks and their interference due to an unavoidable crash. However, the financial debacle is occurring again as inflation is so uncontrollable it is hard for central banks to stop it.

Inflation Targets Increase to 4%

According to The Economist, long-standing 2% inflation targets may have increased to 4%. Jeremy Allaire, the CEO of Circle, recently commented on that “new normal” in response to a take from crypto liquidity provider Cumberland.

Revising the target up to 4% would allow central bankers to plan for a budget windfall. That would also help them create a launching platform for the imminent deflationary crisis.

However, increasing inflation targets might lead to a loss of trust, only seen as another form of QE (quantitative easing). Since inflation-proof investments are unavailable to most people, it also causes inequality, according to Cumberland.

Capital tends to flow into real-world assets such as property and commodities whose value is rising these days. However, Cumberland commented that a new class of digital assets is available worldwide for the first time in history.

The Devaluation of Fiat Currencies Benefit Digital Assets

Since markets behaved like tech stocks this year, crypto assets lost their inflation-hedging properties and value. However, market cycles usually last around two years, which means prolonged high inflation might benefit digital assets.

According to Cumberland, cryptocurrencies have become more of a devaluation hedge than an inflation hedge. However, they said that cryptocurrencies perform excellently against sustained and tolerated inflation like fiat currency devaluation.

Those properties are evident in countries like Argentina, Venezuela, and Turkey, where citizens turned to cryptocurrencies due to the collapse of their fiat currencies.

Cryptocurrencies play a crucial role in the economic system, which people worldwide know very well. That has led to their adoption in countries whose national fiat currency has lost its value dramatically.

Since no centralized authority or government controls them, they allow people to conduct cross-border transactions more quickly and safely. For example, some Venezuelans moving abroad due to the crisis in their country have used cryptocurrencies to send money to their relatives.

Meanwhile, Bitcoin (BTC) is trading at around USD 19,238 and has accumulated a 0.9% gain over the last week. While its trading volume is above USD 16.92 billion, its market capitalization is about USD 368.90 billion, according to CoinGecko.

By Alexander Salazar

The Prices of Bitcoin and other Cryptocurrencies Might Rise Significantly in 2023

Alexander Salazar
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0
The Prices of Bitcoin and other Cryptocurrencies Might Rise Significantly in 2023

The bears still dominate the crypto market, making it hard to see bullish price movements, but the value of cryptocurrencies might explode again. The entry of institutional investors has raised the dependence on the stock markets, which might change in 2023.

Most leading cryptocurrencies reached all-time highs in November 2021, but their prices dropped dramatically in 2022. The bearish market started to dominate by the turn of the year, ensuring that prices were already falling significantly.

Many cryptocurrencies suffered massive losses in the first half of 2022, especially in January and May. In mid-June 2022, many crypto assets reached a yearly low, which preceded price stabilization in the third quarter.

The Reasons for the Prices of Cryptocurrencies to Fall so Sharply

The start of the bearish market was the main factor leading to the losses over the last few months. Bitcoin (BTC) and other cryptocurrencies experience a 4-year cycle where an upward trend market alternates with a downward one. The Bitcoin halving determines that cycle, which occurs about every four years.

The latest Bitcoin halving in 2020 caused the last bullish market to start. In 2021, it was in full swing, which led prices to experience significant increases. However, the bearish market suddenly established itself, which always signals sudden and steep declines.

Other factors causing sharp drops in prices in the short and medium term were the outbreak of the COVID-19 pandemic and the war in Ukraine.

Why Cryptocurrency Prices Might Rise Again in 2023

The bears still dominate the crypto market, which makes it difficult to see any upward movement in prices. However, there are good reasons to think that the value of cryptocurrency might explode again in 2023.

In 2018, the price of Bitcoin dropped from almost USD 20,000 to USD 3,500 in a few months. However, it made its first significant gains after the halving event in 2020, which had already started in 2019.

The price of Bitcoin at USD 3,500 in early 2019 could make significant gains again. It rose to over USD 10,000, tripling in a few months, followed by altcoins.

Over the last few years, the increasing dependence of the price of Bitcoin on the value of US tech stocks has been evident. In general, BTC has become more reliant on classical financial markets.

The entry of more institutional investors into the market has raised that dependence. Therefore, the price fell whenever the prices on the stock markets did, which cryptocurrencies should counteract.

The global economy has struggled with inflation over the last few months. In the US and Europe, it has risen dramatically for several months, affecting savings and the value of fiat currencies.

Central banks have raised crucial interest rates, increasing the risk of an upcoming recession.

Bitcoin and other cryptocurrencies might popularize further with a deepening recession in 2023. Investors are now seeking alternative assets to avoid losing the value of their crypto asset holdings. Therefore, the value of cryptocurrencies against classic assets might change, leading to an explosion in their prices.

By Alexander Salazar

Ripple (XRP) and VeChain (VET) Decline, as Flasko (FLSK) Rises in Popularity

Audy Castañeda
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Ripple (XRP) and VeChain (VET) Decline, as Flasko (FLSK) Rises in Popularity

Many cryptocurrency lovers are still attracted to and charmed by digital currencies in particular.

The success of any digital currency or non-fungible token (NFT) project is based on a few criteria. Blockchain Tech enthusiasts often show their support for a project based on how useful they find it and how much attention it pays to the needs of the community. This is probably why a large number of cryptocurrency lovers are still attracted by digital currencies in particular.

There has been a sudden surge of interest in the Flasko coin among crypto enthusiasts, which is why a group of Ripple (XRP) and VeChain (VET) investors are shifting their investments to the Flasko presale token.

Official Ripple Currency (XRP) Has Not Exceeded $2 since December 2018

The native currencies of the Ripple (XRP) network are called XRP. Interestingly, unlike other cryptocurrencies, Ripple (XRP) is owned by a single company. So there is no decentralized community.

Furthermore, Ripple (XRP) is not intended to replace fiat money. Instead, it seeks to act as an intermediary to promote international exchange between units of value. It implies that it can be an intermediary for the exchange of Ether (ETH) for fiat money such as the dollar.

A few years ago, Ripple (XRP) was in the top 3 most popular coins after Bitcoin (BTC) and Ethereum (ETH). Ripple (XRP) reached a record price of $3.55 in the 2017 Bull Run.

However, the current value of Ripple (XRP), like that of many other coins, is well below its all-time high. The current value of a Ripple coin (XRP) is around 46 cents. The project still has a dark shadow hanging over it with the start of ongoing SEC litigation. Additionally, the appeal of Ripple (XRP) as a cryptocurrency has diminished. Better projects with more features and less cost stability risks can be found elsewhere, which is why Ripple (XRP) investors look elsewhere to protect their investments.

VeChain (VET) Building on Past Successes

VeChain (VET), is a payment token that satisfies gas functionality. Furthermore, VeChain (VET) is supposed to be a PoA token that uses very little processing power. One of the limiting limits of VeChain (VET) is its diminishing carbon footprint. The carbon footprint of VeChain (VET) is small and is set at 2.4%.

Combining the many unsatisfying elements of these tokens discussed above, why not choose a more viable coin like Flasko, instead of VeChain (VET)?

Flasko: First Cryptographic Platform of its Kind

Throw away the memo coins and cryptocurrencies that have caused your investors to lose billions of dollars. Flasko will soon become the talk of the town in cryptocurrency offering the world of magnificent wines, whiskeys and champagnes worthy of an investment as fractional NFTs.

With a Solid Proof Audit now successfully completed and liquidity guaranteed for 33 years, the Flasko presale is now underway and heating up.

Currently priced at just $0.05 per Flasko token, the price will likely go up soon. It’s best to get involved before it is too late, as early investors will have access to the most profitable investment options.

According to analyticsinsight.net, Flasko, “has the potential to replicate the returns of previous successful crypto projects,” and thus can be considered as “the most successful project of 2022.”

By Audy Castaneda

OpenSea’s New CFO Leaves Organization When IPO Preparation Is “Unfinished”

Audy Castañeda
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0
OpenSea’s New CFO Leaves Organization When IPO Preparation Is “Unfinished”

Brian Roberts, CFO of NFT Marketplace OpenSea, left the organization less than a year after joining.

Brian Roberts, former CFO of motor vehicle technology innovation giant Lyft, joined OpenSea in December 2021, marking ten months of active duty, leading and growing the finance team in the largest NFT market.

Following his departure, the firm’s vice president of finance, Justin Jow, will take over.

The information about Brian Roberts’s departure is mainly based on his update on LinkedIn, while he will proceed to serve as an advisor to the organization.

However, on his private Twitter at the time of creation, Brian Roberts has not removed his private CFO position at OpenSea.

He tweeted that, “Well, it’s time for me to come ashore from the ‘open seas.’ I am grateful for the opportunity and proud of many accomplishments, but none more so than the strength of the OpenSea finance team.”

The former Lyft CFO said he is “incredibly bullish on Web 3.0 and especially OpenSea. The company is building with its head down, and I assure you that the best is yet to come.”

Crypto Market Leaders on the Run

Earlier this year, OpenSea revealed that it was laying off 20% of its workforce due to the bear market effect.

Brian Roberts’ departure comes amid a wave of migration by many of the top leaders in the cryptocurrency market with increasing frequency.

In general, interest in NFTs and cryptocurrencies has dwindled due to the bear market and uncertainties surrounding the global economy. Amidst these events, many crypto companies have seen their executives resign, including Algorand, Alameda Research, Kraken, Celsius, etc.

In recent months, at least 10 executives have left their posts. Kraken’s Jesse Powell has announced a transition plan that will see him step down from his role as CEO. MicroStrategy’s Michael Saylor stepped down as CEO, and former FTX.US President Brett Harrison recently resigned.

Additionally, CEOs of bankrupt crypto firms, Alex Mashinksy, of crypto lender Celsius, and Dave Perril, of Bitcoin miner Compute North, stepped down from their posts.

While there are various reasons for resignation, ranging from bankruptcy to simple restructuring, the mass exodus of this group is probably due to the current market downturn.

Reasons for Leaving

The motives behind these moves may differ, but they all come at a time when the cryptocurrency industry is in significant decline. As for OpenSea, this is the third consecutive downsizing on the platform in the last two months, following a plan to cut 20% of workers, while co-founder Alex Atallah is determined to phase out to focus on new tasks.

According to DappRadar, OpenSea’s monthly volume is currently up 7% to $245 million. Additionally, the number of unique wallet addresses interacting with the protocol also dropped by 4.12% to 258.23k.

About OpenSea

Regarding the market in which OpenSea operates, the volume of NFT transactions has also decreased substantially since last year, with a sharp drop in the volume of transactions in OpenSea, above 30% in September 2022.

OpenSea is backed by well-known investment funds such as Paradigm and Coatue. Earlier this year, the company raised $300 million at a valuation of $13.3 billion. Immediately after the fundraising round, in order to expand its business and strengthen its place in the industry, OpenSea acquired Gem.xyz, an industry-leading NFT aggregation alternative. It also generated its own investment fund, which incubates the NFT ecosystem called OpenSea Enterprises.

By Audy Castaneda

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