Key Insights
- The CEO of Cryptoquant talks about important indicators and Bitcoin market sentiment.
- As market volatility wiped $410 Billion from the cryptocurrency market, Bitcoin fell 12% to $83.7K.
- At the summit on March 7, Trump is rumored to propose a zero capital gains tax on cryptocurrency.
- If Bitcoin breaks through the crucial support level at $78.6K, its price could drop to $70.1K.
Bitcoin market sentiment is currently moving slowly, according to Ki Young Ju, CEO of Cryptoquant, as key indicators display neutral readings and on-chain activity remains low.
As rumors about Trump administration tax relief plans increase, Bitcoin price continues to test key support levels.
Bitcoin Market Sentiment and Technical Indicators
According to Ki Young Ju, the Bitcoin market will grow slowly until the mood of the US economy improves.
The bull cycle is still intact, as evidenced by the neutrality of key indicators and the low level of on-chain activity.
The introduction of new mining rigs that seek to sustain the market over time has increased the fundamental strength of Bitcoin.
Furthermore, the market’s expectation that this cycle would end shocked all of the major players, including Trump, mining firms, whales, and TradFi institutions.
Ki Joung Ju underlined that there is no indication that the market intends for retail investors to participate.
The main forces influencing the movement of the Bitcoin price are institutional players and broader market sentiment.
Crypto Gains Tax Proposal Rumors Gather Traction
Furthermore, rumors that President Donald Trump might propose a tax plan that would encourage cryptocurrency investment in the US are still being circulated by social media users.
Trump’s team is reportedly considering a policy to remove capital gains taxes on cryptocurrency transactions made in the United States, according to several sources.
Nick O’Neil, a cryptocurrency influencer, stated on social media that Donald Trump will disclose this information at his next conference.
Legal professionals point out that congressional approval is required for such tax reform. Widespread interest in Bitcoin and other digital assets has returned because of this hypothetical proposal regarding their tax exemption.
Bitcoin Price Overview Based on Technical Chart
When writing, Bitcoin was trading at $87,876.00 which has increased by 0.70% over the past 24 hours. The market capitalization was around $1.74 Trillion and the 24-hour trading volume was $57.25 Billion.
The price of Bitcoin is currently trading within a crucial technical range after a recent decline. At $78,600 and $85,300, two significant support and resistance levels, the price is confined.
After falling below $78,600, analysts forecast that Bitcoin will drop to $73,400. Previously, the asset found support at $70,100, where a more significant decline in value could take place.
Most probably, the price of Bitcoin could rise to between $94,000 and $100,000 if buying momentum increases.
As traders await word on whether the rumored tax policy will be discussed at the March 7 summit, market analysts continue to exercise caution. If the no-capital-gains tax on crypto becomes a reality, it is very likely to spur a price increase.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
Mahsa Rezaei is a forward-thinking crypto journalist based in Tehran with a strong background in computer science and finance. Specializing in blockchain technology and its impact on Iran’s economic reforms, her investigative articles and in-depth analyses are widely read by tech enthusiasts and policy makers alike.