Technical analysis of Bitcoin for 23.05.2019

Crypto Industry News:

The Israeli judge ruled that Bitcoin is capital, not currency, as reported by the local Globes news site. The decision is significant because it means that the profits from the sale of cryptocurrencies will now be subject to capital gains tax.

Noam Copel, who founded the Starup Blockchain DAV, bought Bitcoins in 2011 and sold two years later, making a profit of $ 2.9 million at today's rates. During the litigation, he claimed that Bitcoin should be treated as a foreign currency because exchange rate fluctuations are not taxed.

However, the Israeli tax office (ITA) argued differently - the organization put forward the idea that currencies must have some physical manifestations in accordance with the law of the country.

Judge Shmuel Bornstein ruled that Copel could not prove that Bitcoin fulfilled this requirement, nor that it could be used as a viable alternative to currency fiat when he sold the cryptocurrency six years ago. He pointed out, however, that the court's attitude may change - describing his ruling as "temporary".

In the current situation, the entrepreneur must pay a tax of USD 830,000 from earned profits, however, Copel has the option of appealing to the Israeli Supreme Court.

Technical Market Overview:

The BTC/USD pair has broken out of the narrow range and started the move lower as the technical support at the level of $6,584 has been violated. From the Elliott Wave Principle point of view, there is still wave C to the downside missing in order to complete the corrective cycle in wave 2, so the next target short-term for bears is seen at the level of $7,419

Weekly Pivot Points:

WR3 - $10,110

WR2- $9,180

WR1 - $8,627

Weekly Pivot - $7,705

WS1 - $7,135

WS2 - $6,315

WS3 - $5,743

Trading Recommendations:

The best trading strategy in the current market conditions is to sell the local pull-backs with a tight protective stop loss just above the high at the level of $8,309 in anticipation of the wave C of the overall corrective structure. Please pay attention to the technical support at the level of $7,584 as any violation of this level will accelerate the sell-off towards the next technical support at the level of $7,032.