The cryptocurrency market rebounded from the weekend’s losses as Asian markets regained love on Monday, but it’s hard to say if the rebound is sustainable given the large losses in the market and the constellation. negative risk last week. Almost all of the major coins were in the Red Territory early in the morning due to continued moderate activity.
The renewed optimism in the market likely stems from growing skepticism about whether US President Joe Biden’s capital gains tax hike can get past the US Congress hurdle. More information below.
Bitcoin (BTC) is consolidating around US $ 52,000 and gaining momentum towards US $ 54,000 which has been a key support and resistance level for the past 7 days. There is a chance of a further increase above $ 54,000 if he manages to remove the major resistance. During the last ten days, this territory has been tested several times. Its price action has mostly hovered in that range, except for the sharp drop to $ 47,000 at some point on Friday, while open interest in Bitcoin futures also remains constant. If the downtrend is back, $ 50,000 also appears to be a key short-term resistance level based on the In / out of the money blockchain data metric.
Ethereum (ETC) has jumped nearly 13% from the morning low and appears relatively stable between $ 2,400 and $ 2,500. Dogecoin (DOGE) is the only underperforming relative to the percentage gains of other peers and struggling to gain support.
Bitcoin (BTC) is changing hands at US $ 52,100 now. Among the 9 other variable-priced digital currencies in the Big 10, Ether (ETH) just under US $ 2,460 (up from US $ 2.2.00 on Sunday), Ripple (XRP) US $ 1.13 , Binance Coin (BNB) US $ 530, cardano (ADA) near US $ 1.20, Dogecoin (DOGE) US $ 0.26, ChainLink (Link) US $ 34, Stellar (XLM) $ 0.44, Litecoin (LTC) US $ 240 and Vechain (VET) US $ 0.18.
With the market filled with foam, recent market volatility shows how those who ran with their emotions and exited the market have been blinded by how quickly it has recovered.
At the same time, the risk of a continuation of the decline and the downtrend remains probable. Much has been said about how the wealthy will be affected by the doubling of the country’s capital gains tax rate by US President Joe Biden, from 20% to nearly by 40%.
This would mean that residents of New York and California who earn more than US $ 1 million in capital gains would have more than 52% in taxes.
However, there appears to be growing skepticism as to whether these changes can actually pass the US Congress or what will ultimately be passed by Congress. Some Democrats, not to mention most Republicans, are likely to oppose the proposed large increase.
However, uncertainty is uncertainty and it will not be over until it is over which will keep the market uneasy for the next few weeks.