Bitcoin and Ethereum charts for April 01
- Bitcoin has once again fallen to the $ 44,000 level.
- The price of ethereum has been rising since yesterday, and we tested the $ 3,200 level again early this morning.
- As the new financial year, 22-23, begins, a new 30% tax on cryptocurrencies will take effect in India.
- According to global investment manager Van Eck, bitcoin and gold prices could soar to record highs if fiat currencies lose their dominance.
Bitcoin chart analysis
Bitcoin succumbed to pressure yesterday, and the bears took control of the price. Bitcoin has once again fallen to the $ 44,000 level. We are again below the MA20 and MA50 moving averages, and bearish pressure slowly increases. We are currently consolidating around the $ 45,000 level, and we need to monitor the situation from which we would get a concrete sign for the further movement of the trend. For the bearish option, we need continued negative consolidation. The first lower support is at the $ 42,000 level, and the additional support is in the MA200 moving average. A break below could take us up to a $ 40,000 psychological level. We need a new positive consolidation for the bullish option that would take us back to the previous resistance zone of about $ 48,000. A break above would help Bitcoin move to the next resistance zone around the $ 52,000 level.
Ethereum chart analysis
The price of ethereum has been rising since yesterday, and we tested the $ 3,200 level again early this morning. After that, we see a smaller recovery to $ 3,280, but bearish pressure is still evident on the chart. We are also testing the MA50 moving average, which gives us support from March 16. A break below MA50 would increase bearish pressure, and the first next lower support is at the $ 3,000 psychological level. The MA200 is in the $ 2850 price zone. We need to go back above the $ 3400 level for the bullish option. After that, the next target and potential resistance is at the $ 3,600 level from January 5. The January high zone is the next major resistance zone at the $ 3,800 level.
India and the cryptocurrency tax
As the new financial year, 22-23, begins, a new 30% tax on cryptocurrencies will take effect in India. However, the nation’s growing crypto industry is still awaiting appropriate regulations on digital assets. The Indian government seems to be delaying the introduction of a cryptocurrency bill in parliament. According to Bloomberg, the government does not plan to introduce any law on this soon.
The 30% tax on cryptocurrency profits is the highest tax bracket in the country. The same tax is imposed on lottery winnings. However, many lawmakers have already compared the gains from crypto trading to activities such as horse racing and lotteries. In addition, the country will also levy a 1% withholding tax (TDS) on transactions that are highly related to cryptocurrencies.
From now on, the Indian authorities are opting for a “wait and see” policy on this issue. According to Bloomberg, the nation will form a framework for regulating digital assets only after a global consensus emerges.
In January 2022, Prime Minister Narendra Modi, addressing the World Economic Forum, mentioned that the actions taken by any single country will not be enough to cope with the challenges of new technologies related to cryptocurrencies. The Reserve Bank of India has been a major critic of cryptocurrencies in the country.
Cryptocurrencies and their potential dominance
According to global investment manager Van Eck, bitcoin and gold prices could soar to record highs if fiat currencies lose their dominance.
The global financial basket has changed dramatically in recent years. The Covid-19 pandemic has stopped many companies. And while production was crippled, many central banks (including the Federal Reserve) printed colossal amounts of fiat to support the economy.
However, the endless printing of money has its consequences in many parts of the world. First, the inflation rate in the United States reached almost 8%, which is the highest number in decades.
The military conflict between Russia and Ukraine is another factor that has affected the global monetary network. Since Vladimir Putin announced his “special military operation”, the EU, the United States and many other countries have imposed financial sanctions on the largest nation on land. These embargoes have significantly damaged Russia, but they have also shaken the stability of international economic relations and global trade in fiat currencies.