Japan Considering to Cut Crypto Tax Rate from 55% to 20% 🙏

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📅 Today

🔍️ Market Outlook

• Overall Bias - Cautious 🙏 

• BTC broke the key $62,400 level, but failed to re-test and hold it as support.

• The 200 Daily Moving Average at $62,000 is now a crucial level to monitor for Bitcoin.

• A failure to hold this price as support would mean more consolidation for BTC.

• BTC also got rejected off it’s bull-market support band (20 Week SMA & 21 Week EMA)

• It is wise to not take any new leveraged positions till BTC closes above this band, and till BTC dominance reverses it’s uptrend.

• A weekly close above $62,000 would mean that the bulls are trying to show some strength.

• However, if this level is lost on the weekly close, bears would be in control once again.

Japan Considers Lowering Crypto Tax 😅 

Japan could be looking to soon significantly lower its cryptocurrency tax rate from the current 55% to a flat 20%.

This move is aimed at making things easier for investors and fixing the complicated and unfair tax situation around digital assets.

The Financial Services Agency (FSA) is behind this push, arguing that crypto should be treated like other financial assets instead of lumped under miscellaneous income.

A new unified tax rate at 20% could boost crypto investment in Japan significantly. Lowering taxes often encourages participation in the market, leading to greater innovation and development.

Crypto Hacks Continue 🙏 

In August, the crypto market saw a staggering $310.9 million lost to various exploits, hacks, and scams.

Despite recovering $10.3 million in digital assets, the net loss stood at $300.6 million, marking the second-highest monthly loss in 2024.

Phishing attacks rose by 215%, with an unfortunate user losing over $55 million in a phishing scam.

With this, the crypto industry has seen $1.21 billion worth of digital assets lost to hacks and rug pulls since the start of the year.

📕 Educational

September Seasonality Insights for Bitcoin & US Stocks 🔍

👉 September has historically the worst performing year for BTC, with average returns of ~ -5%.

👉 Q3 has been the worst performing quarter for BTC.

👉 Q4 has generally been quite bullish for BTC.

👉 August and September have been the weakest months for the S&P 500 since 1950, with average returns of -0.6% and -0.7% respectively.

👉 The Dow Jones Industrial Average has declined by an average of 1% in September over the past 100 years.

With all the above data, if history is any indication, BTC could see some more correction in September, before it starts it’s ascend in Q4 2024.

📊 Resource of the day

📈 Chart of the day

Rationale & Confluences

• $2.5-$3 is a great accumulation zone.

• 850 day accumulation range low support.

• Weekly discount zone.

• Macro horizontal support.

• Look out for reversal candlestick patterns at range lows for entry.

• Look out for bullish RSI divergence on higher timeframes for more confluence.

• Source : Cointraction

🤣 Meme of the day

That concludes our update for today!

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Disclaimer : None of the content shared in the newsletter is financial advise. Always do your own research and analysis before investing.