- South Korea will soon start taxing income from cryptocurrency transactions.
- Bitcoin bulls defend $8,500 support, allowing for consolidation above $8,600.
The weekend session was quite impressive for the major cryptocurrencies. All of the top three coins Bitcoin, Ethereum and Ripple corrected to higher levels compared to those achieved in the bull-run last week. Bitcoin, for example, bullish overwhelmed the selling pressure at $9,000 to record a new January peak at $9,184. Ethereum’s recovery broke past $175 hurdle but fell short of $180. At the same time, Ripple scaled the levels above $0.24 but failed to sustain gains past $0.25.
Government of South Korea to impose a 20% tax on crypto gains
According to a local news outlet in South Korea, Pulse, the government is planning the introduction of a 20% tax on all income from the crypto transactions. The Ministry of Economy and Finance has directed the office of income tax to come up with a reviewed crypto taxation plan. There are rumors that the move will see income from cryptocurrencies referred to as other incomes as opposed to capital gains.
Bitcoin price update
Bitcoin reversed the weekend bullish trend back to test the support at $8,500. Attempts to forge another recovery continue to hit rocks at $8,750. BTC is exchanging hands at $8,668 amid increasing selling pressure.
For now, the price is supported by the 50 SMA on the 4-hour chart. Sunday’s support at $8,500 will continue to hold in the coming sessions on Monday. If the support target at $8,250 is broken, Bitcoin is likely to find refuge with the 100 SMA.
Ethereum almost touched $180 during the surge on Sunday. However, the bulls lost steam at $179. Moreover, a reversal saw the support areas at $175 and $170 give in to the selling pressure. Ethereum is currently trading $166 after a shallow recovery from the $160 key support level.
Ripple price update
Ripple is the most affected by the ongoing retreat among the three top cryptos. It is trading at $0.23029 after losing over 1% of its value on the day. The existing trend bearish suggests that the current affinity to declines could continue.