Ana Paula Rabello and Taygra Martins spoke about Brazil and crypto regulation.

Rodrix Digital channel received Ana Paula Rabello, from the “Declaring Bitcoin” Blog, and Taygra Martins, Bachelor of Accounting Sciences and specialist in forex taxation, to talk about the situation in Brazil, in connection with cryptocurrencies and the regulatory environment.

The host of the channel, known as “Rodrix Digital”, explained that the issue of taxes on Bitcoin operations has recently come to the fore. The declaration has different processes depending on the exchange and the country in which it is operating.

“When we think of Bitcoin, the first advantages that come to mind are the freedom it gives us. Freedom that is accompanied by an anti-inflationary monetary rule”, said Rodrix Digital.

“These qualities, added to the fact that it is not geographically limited, make Bitcoin the leading medium of exchange when it comes to low cost. This usability of Bitcoin makes it very valuable. From there arises the possibility of obtaining a profit with it: with a sale and purchase operation,” he added later.

Buying an asset to sell it can trigger the profit-generating factor, a fiscal premise for tax collection, however, is it not moving enough to get rid of taxes?

Rabello’s Part of the Debate

Ana Paula Rabello, from the blog Declaring Bitcoin, in an interview with Rodrix Digital, highlighted that in Brazil, the Federal Revenue requires all investors in cryptocurrencies to declare their assets. In addition, all exchange houses in Brazil must declare to the IRS all transactions of their clients, even transactions below USD 1.

“In Brazil, since IN 1888, the Federal Revenue began to look at all transactions with cryptocurrencies of users in Brazil. This greatly affects the national market from the point of view of the taxpayer, or from the point of view of the companies; they, in turn, have to invest even more in technology to comply with the regulations”, she pointed out.

Martins’ Part of the Debate

Also present at the debate was Taygra Martins, Bachelor of Accounting Sciences and specialist in forex taxation, pointed out that the Brazilian Federal Revenue Service also created a tax for cryptocurrency transactions that, during a month, exceed USD 6,000.

She stressed that, in Brazil, if a user moves more than USD 6,000 on an exchange, adding all the purchase and sale orders, he is obliged to pay a tax and that this tax ends up being an obstacle for new users in the market.

“This is a market with new profit possibilities, but not reporting the tax correctly can make the penalty greater than the profit. So this drives many investors who fear this obligation away from the market,” she said.

She pointed out that the Brazilian Federal Revenue Service recently changed the rules in the country and now, in addition to Bitcoin and cryptocurrencies, users must declare possession even of NFTs or Axies from Axie Infinity.

“In Brazil, the freedom of cryptocurrencies is increasingly regulated by the government. There is no way to escape the lion here,” she concluded.

By Audy Castaneda

Behind the decreasing volatility, there are signs that the market is busy deciding the future direction of the Bitcoin price.

Bitcoin (BTC) starts a new week and a new quarter as if it were starting the a year afresh: just over $46,000. In what will seem like serious deja-vu for hodlers, the BTC/USD pair is pretty much at the same level as it was on Jan 1, 2022.

Price action has been quiet – too quiet, perhaps – in recent days, but behind the dwindling volatility, there are signs that the market is busy deciding on future direction.

From a macro to on-chain standpoint, there are plenty of signs to watch for in April. This happens in a context where Bitcoin holds its yearly opening price as support.

Cointelegraph examines five of these factors when it comes to BTC price developments over the new week.

Inflation Meets Printing of Fresh Money

Much has been made of the end of the post-crisis “easy money” period and the impact it will have on risky assets like Bitcoin. However, so far there is little sign that a fundamental change is taking place, while in Asia this week the opposite appears to be the case.

While more printing means more good times for risk assets, not even everyone agrees with the idea that the much-touted shrinking of balance sheets will last. Central banks, they say, will soon have no choice but to restart liquidity injections.

Spot Bulls Target $50,000

 The lack of volatility is the main talking point among Bitcoin traders and analysts as Monday progresses.

Some classic but brief excitement around the weekly close fizzled out in a matter of hours, as the bears failed to strip the yearly open for support, according to data from Cointelegraph Markets Pro and TradingView.

Such data shows that BTC/USD is exactly where it was three months ago, but short-term price signals are already causing some to expect a continuation to the upside.

Buyers Withdraw their Coins from Exchanges in March

According to on-chain analytics firm Glassnode, there have been particular exits from exchanges in the past month: they have lost the equivalent of nearly 100,000 BTC.

In case investors are recreating fund-buying behavior from after the COVID-19 crash, the implications should be clear, but may take time to unfold. In 2020, although the BTC/USD pair recovered after falling 60% in days, it was not until Q4 that price behavior really started to change.

The Altseason

An unusual development has occurred when it comes to Bitcoin’s relationship with altcoins: the combined open interest and volume in the altcoin derivatives markets has surpassed that of Bitcoin for the first time in over a year.

This outlook is consistent with data that showed considerable inflows into altcoins last week, which one commentator says shows increased risk appetite among investors.

Hash Rate Reaches New All-Time High

Following the difficulty record of the Bitcoin network, the hash rate has reached new all-time highs.

This shows that miners believe in the long-term profitability of participating in the network. The hash rate is now at 223 exahashes per second (EH/s), according to the data resource MiningPoolStats.

Although this is only an estimate of the processing power dedicated by miners, the hash rate has never been higher and, according to its proponents, it will continue to grow regardless of outside attempts to “slow down” Bitcoin.

By Audy Castaneda

SOL price enters overbought territory, but history shows that bulls are not afraid of excessive Solana valuations.

Solana (SOL) jumped several times past a critical resistance level that had limited its recovery attempts during the November 2021-March 2022 price correction, raising hopes for more upside in April.

SOL price saw extreme pullbacks as it tested its descending trend line for several months in recent history. The SOL/USD pair fell 60% two months after reversing from said resistance level in December 2021. Similarly, it had fallen more than 40% in a similar pullback led by a sell-off near the price trendline in November 2021.

Solana flipped the resistance trendline as support (S/R flip) after breaking above it on March 30, accompanied by a spike in trading volume that showed traders’ conviction in the breakout move. In doing so, SOL price surged 25% to reach $135, putting the $150 psychological resistance level within reach.

Why is SOL (Technically) Bullish?

From a technical perspective, SOL’s breakout move above its downtrend line, along with a bullish crossover between its two key moving averages: the 20-day exponential moving average (20-day EMA; the green wave), and the 50 day EMA (the red wave).

The technical indicator, called the golden cross, occurs when an asset’s short-term moving average jumps above its long-term moving average. Traditional analysts consider this cross as a buy signal. For example, the 20-50 EMA crossover in August 2020 may have helped push SOL price by over 650% to over $267, in addition to other fundamental and technical catalysts. As such, the golden cross increases the probability that SOL will continue its rally as well as its break above the descending trendline resistance.

RSI Divergence

The upside outlook increases further if a technical fractal highlighted by Delphi Digital is to be believed.

The crypto research firm highlighted a correlation between SOL price and the combination of its two technical indicators: S/R change and Relative Strength Index (RSI) divergence.

In particular, the first time the Solana RSI jumped above 70, an “overbought” area, after a strong price uptrend, which also broke the falling trendline support of that period, SOL trended to continue to rally despite its RSI consolidating lower or sideways.

SOL rallied 378% after the first time its RSI broke above 70 in August 2021. Similarly, the RSI’s overbought period during May-June 2021 also coincided with Solana’s 268% bullish move. The fractals looked similar to how SOL has been working lately, Delphi Digital suggested.

Therefore, the SOL/USD pair could continue its uptrend when using the Fibonacci retracement levels, drawn between $261 and $77.50, which suggests that the intermediate upside target is $147 to $150.

Conversely, a pullback during or before testing the $147-$150 price range may result in the SOL retesting the $120 level as its interim support, with a possible drop towards the 20- and 50-day EMAs.

By Audy Castaneda