- BTC bulls absorbing sell shocks
- IRS to clarify emerging concerns in their next update probably in Q3 2019
The IRS is set to issue another crypto tax guideline at a tentative time this year after five years of silence. That will better clarify their position as they address pressing queries around crypto valuation, forks, and Air Drops. Meanwhile, BTC is on a recovery path, adding 2.4 percent in 24 hours.
Bitcoin Price Analysis
Paying taxes is an obligation. It is mandatory and is a way of enabling governments to deliver better services. During this tax season, the US Internal Revenue Service (IRS) is doing everything they can to simplify the process of filing tax returns.
Since their last issue in 2014, there have been intervening questions that demand consultations. Note that the space is under constant evolution. In five years ICOs have sprung up, blockchains are splitting, and there are Air Drops to spur participation.
How these assets, classified as property by IRS, are valued and consequently taxed are pain points demanding timely solutions. Accordingly, the IRS is rising to the occasion and hopefully before the end of this tax season, around mid-October, they plan to update the crypto community on their latest deliberations.
In a letter to Rep. Tom Emmer, IRS Commissioner Charles P. Rettig said the new update would among other things clarify the position of the agency on sticky concerns like forks, Air Drops and proper valuation of crypto assets.
“I share your belief that taxpayers deserve clarity on basic issues related to the taxation of virtual currency transactions and have made it a priority of the IRS to issue guidance.”
At the time of writing, Bitcoin (BTC) is kicking back. It is absorbing sell pressure, adding 3.6 percent in the last day. All the same that is not an endorsement of bulls. From the chart, BTC is ranging against the USD, down 4.4 percent in the last week.
If anything, BTC is under pressure. However, as long as prices are trending above $7,500 in line with previous BTC/USD trade plan, bulls have a chance. If not, prices could end up tumbling to $6,600 or lower in a correction that could hurt holders.
Currently, the oscillation inside the $1,000 trade range is an opportunity for aggressive traders to ramp up while targeting $8,500. On the other hand, conservative traders waiting for crystal signals should be on the sidelines until after there is a satisfactory close above $8,500 or even $9,100 marking May high.
Like before, unless otherwise there is an upsurge, breaking free from this $1,000 trade range with caps at $8,500, trading volumes of May 30th will anchor this trade plan. At 31k, the candlestick is also broad. Breakouts above $8,500 or below $7,500 should be with high participation exceeding 31k or 47k of May 17th.
Chart courtesy of Trading View. Image Courtesy of Shutterstock