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Weekly Crypto Brief 30th July

Weekly Comment:Heading rapidly towards the end of July now and as if the weather hasn’t made everyone hot enough, Crypto holders who have been avoiding tax payments will also be heating up after the IRS warned holders that if they dodge payments, “stiff punishments” will be handed out.
The internal revenue service has begun mailing more than 10,000 letters to cryptocurrency holders warning of penalties if they fail to report income or pay tax on crypto transactions. The list of names appears to come from a database containing 13,000 account holders who have bought, sold, sent or received digital currency worth $20,000 or more between 2013 and 2015. Coinbase handed the data base over to the IRS in March 2018 under a federal court order. It is reported that Tax Lawyers have told clients that threats to bust cryptocurrency holders for tax evasion should be taken seriously.

Tron (TRX) founder Justin Sun has had a rocky week, after last week making an extensive list of denials, rejecting accusations of illegal fundraising, facilitating adult video transactions, gambling and money laundering. Not long after this he uploaded a live video from San Francisco in an attempt to clarify on reports that he had been banned from leaving China by the authorities. Billionaire Buffet was notified that the crypto lunch Sun had won had to be postponed last week as Justin blames kidney stones on not being able to go forward with it. To finish Sun’s week off he expressed an online apology for “over-marketing” but then soon after- deleted it. The recent drama which had unfolded over the week saw the price of Tron suffer losses of more than 9% over the week, falling further since.

Finally, Mark Zuckerbeg has been fighting an unstoppable battle in recent weeks after the announcement of Facebooks crypto currency project Libra.  Regulators in the US and outside have been questioning the security and protection surrounding the crypto project and Mark hasn’t backed down yet. On a conference call, he told investors that Facebook has changed and his company was no longer in the business of releasing products without prior warning. The CEO vowed its cryptocurrency would only debut when regulatory issues are ironed out, pushing a 2020 launch somewhat further away. This comes just before the CEO of Visa said no companies have officially joined the Libra foundation, as they have only signed a nonbinding letter of intent.

Have a great start to August!

 

 

Past Week Talking Points:

  • Iran recognizes Bitcoin and crypto as an official industry, MP says
  • Chinese alcohol wholesaler testing anti-counterfeiting blockchain solution
  • Huawei CEO: Why wait for Facebook? China can issue its own ‘Libra’
  • “Cryptocurrency will survive regardless of any one country. Most countries that try to ban bitcoin cause their citizens to want cryptocurrency more.” – Changpeng Zhao, Binance CEO
BTC Price:  $9,571

Last 7 Days: -5.79%  1month: -16.02%   12months: 24.76%Over the last week there was a number of bearish indicators that moved the price below the $10,400 pivot level and in an attempt for an upside correction back above $10,000 we saw $10,200 act as a strong level of resistance. Moreover there were two attempts this past week to clear this boundary but bulls failed to gain required momentum. As a result, there was a break below $10,000 and the price settled well below the 100 simple moving average. In more recent days we have seen BTC/USD trade blow the $9,500 support and forming a new swing low near $9,270, with an immediate resistance by $9,700 we can see a crucial bear trend line starting to take shape with a higher resistance of $10,290. This trend line coincides with the 100 SMA and the 50% Fib retracement level of the recent 11k to 9k drop, meaning it will not be easy for bulls to fight their way up the hill this time as resistance is placed by $10,300.  However a push through this could see a target of $11,000 and above. On the downside we can see $9,150 as a support level and with a fall through here we expect $8,550 likely to be the next key level.

BTC Volume:
22ndJuly: $16,334,414,913 (BTC Price of $10,343)
29thJuly: $14,800,761,599 (BTC Price of $9,504)
9% decrease in trading volume in the last 7 days

 

 

Last 7 Days Big Market Movers:
1        Dexter G         DXG            $0.536069           1462.85%
2        Proton Token  PTT             $0.003233           1098.95%
3        UnlimitedIP     UIP              $0.101612           497.75%
 

 

ETH Price: $211.71

Last 7 Days: 0.09%  1month: -27.89%  12 months: 51.20%ETH/USD formed a decent support base near the $200 level and later started an upside correction. It traded above the $210 and $215 resistance levels.  Furthermore, there was a break above the 24% Fib retracement level of the downward move from the $279 high to $191 low. On the upside it looks like there are resistance levels placed towards $225 and $230 and if bulls can get through the $235 barrier then we could see more of an upside soon. Looking downwards main support is resting at $200 and if we see a break below this support level then ETH could head back down towards $191 and accelerate losses in the coming sessions.

 

 

Market Cap. Dominance:

BTC: 64.5%
ETH: 8.5%
XRP:  5%

Other ALT-Coins: 22%

 

 

This newsletter is not intended and should not be construed as an offer, solicitation or recommendation to buy or sell any specific investments  or participate in any investment (or other) strategy.