19.09.201807:36 Forex Analysis & Reviews: Bitcoin analysis for 19/09/2018

According to the published draft, the Verkhovna Rada of Ukraine proposed a bill that would enter into force the tax on operations using cryptographic assets. The tax law, which was initiated by 23 civil servants, suggests a five-percent tax on natural and legal persons who use virtual currency assets, such as cryptocurrencies and tokens. From January 1, 2024, revenues from cryptographic operations from enterprises would be taxed at the rate of 18%, which is the basic rate of corporation tax in Ukraine. The new law aims to withdraw large amounts of operations from the shadow economy in order to increase state budget revenues by adding a completely new kind of income and to encourage the development of activities related to cryptography in Ukraine. Therefore, the introduction of virtual asset transactions into the legal field [will allow] to generate 1.27 billion hryvnias (43 million dollars) to the budget annually in 2019-2024.

At present, cryptocurrencies are not regulated in Ukraine. In May 2018, the head of the Ukrainian National Securities and Exchange Commission, Timur Khromaev, revealed that the commission would consider recognizing cryptocurrencies as a financial instrument, emphasizing the need for legal recognition of cryptocurrencies, which was then supported by the Financial Stability Board.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market has bounced from the technical support at the level of $6,179 and now is testing the level of $6,356. The price is moving inside of a small range established between this two levels and the market participants are waiting for a breakout. Due to the larger time frame trends, the expected breakout is to the downside. The next technical support is then seen at the level of $6,057 - $6,076.