Bitcoin (BTC) Reject Lower Prices, IRS To Clarify On Basic Tax Issues

Dalmas Ngetich

1 year ago

3 mins read

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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

Fundamentals

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.”

Candlestick Arrangements

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.

Technical Indicator

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

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.