Bitcoin Cash Price Technical Analysis – BCH/USD Showing Positive Signs

Bitcoin Cash Price Technical Analysis BCH USD

Key Points

  • Bitcoin cash price is moving higher and it broke the $975 resistance against the US Dollar.
  • There was a break above a crucial bearish trend line with resistance at $975 on the hourly chart of the BCH/USD pair (data feed from Kraken).
  • The pair is currently trading just above the $1,050 level and the 100 hourly simple moving average.

Bitcoin cash price is showing positive signs against the US Dollar. BCH/USD could rise further if it stays above the $1,000 support level.

Bitcoin Cash Price Upside Move

There was a fresh upside wave initiated from the $841 swing low in bitcoin cash price against the US Dollar. The price moved higher and succeeded in breaking a major resistance at $925. It also made an upside move above the 23.6% Fib retracement level of the last decline from the $1,299 high to $841 low. It opened the doors for more gains and the price gained traction above $1,000.

More importantly, there was a break above a crucial bearish trend line with resistance at $975 on the hourly chart of the BCH/USD pair. Later, the pair succeeded in surpassing the $1,050 level and the 100 hourly simple moving average. However, it is currently facing resistance near the 50% Fib retracement level of the last decline from the $1,299 high to $841 low. On the upside, the next major resistance is around the $1,140 level, which was a support earlier.

Bitcoin Cash Price Technical Analysis BCH USD

On the downside, the price has to stay above the $1,000 level and the 100 hourly SMA. Should the price fails to stay above $1,000, it could move back in a bearish zone. The overall price action is positive as long as the price is above $1,000.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well above the 55 level.

Major Support Level – $1,000

Major Resistance Level – $1,140

Charts courtesy – Trading View

Source: Newsbtc


American Bar to IRS: Create Safe Harbor for Hard-Forked Cryptos

The Internal Revenue Service (IRS) needs to establish guidelines on how Americans can report gains from hard-forked cryptocurrencies, the American Bar Association Section of Taxation said Tuesday.

Section Chair Karen Hawkins wrote a letter noting that “several important developments in the cryptocurrency economy have taken place” since the IRS previously issued guidance on the federal income tax treatment of cryptocurrencies in 2014.

Specifically, Hawkins notes a lack of clarity as to how to address coins derived from hard forks, or instances where a blockchain software splits into competing versions. The letter advises the IRS to provide guidance “that offers a temporary rule, in the form a safe harbor” for affected taxpayers.

Hawkins wrote that such guidance would mean that taxpayers who owned coins created by hard forks in 2017 would be treated as having received the coin from a taxable event. However, the coin would have a value of $0 at the time of the fork.

Under these provisions, the holding period of the forked coin would start at the time of the hard fork. Such guidance would allow taxpayers opting to follow the safe-harbor guidance to be safe from understating their federal tax liability due to their forked coins.

The letter reads:

“This temporary rule has the benefit of encouraging consistency among taxpayers with respect to 2017 hard forks, avoiding difficult timing and valuation issues (including the ability of tax payers to benefit from hindsight depending on how the values fluctuated during 2017), and providing information to the service regarding holders of the original forked cryptocurrencies.”

The letter also notes that adopting the recommended guidance may mean that capital gains taxes, rather than income taxes, would apply to the forked coin holdings, but “it preserves the full value of the forked coin for taxation when the taxpayer sells it.”

The taxation of cryptocurrencies has been something of a point of contention since the IRS first announced that it would treat cryptocurrencies as property in 2014.

In January, major exchange and wallet provider Coinbase began reminding its customers to fulfill their crypto tax obligations and subsequently unveiled a tax calculator tool, which outlines users crypto capital gains and losses on its platform, last week.

Photo via Shutterstock

Source: Coindesk

Canadian Bitcoin Entrepreneur Slams BCH As ‘Scam’ During Parliamentary Testimony

Bitcoin (BTC) tech entrepreneur Jonathan Hamel appeared in front of Canada’s House of Commons Standard Committee on Finance yesterday, March 19, and declared: “Pay close attention, other cryptocurrencies are downright scams, like BCash [Bitcoin Cash (BCH)].”

Hamel first posted on Twitter about his upcoming testimony during a Parliamentary cryptocurrency discussion, without mentioning BCH:

However, Hamel had then posted on Reddit prior to giving the crypto testimony, writing, “Spoiler: I’m gonna say ‘Bcash is a scam’ and it’s gonna be archived forever in the Parliamentary records (not a blockchain but still…) Donations are welcome,” followed by a crypto wallet address and a picture of his Bitcoin patterned socks.

Hamel’s Reddit comment sparked backlash in the Reddit community, with some users seeing his inclusion of an, albeit attempting to be humorous, request for donations as crossing an ethical line. Reddit user TheGreatMuffin wrote,

“Asking for donations for a statement you made while a government hearing is kinda undermining the expertise of your whole talk, in the eyes of the listeners and media.. You are aware you are out in public here?

I appreciate straightforwardness but asking for donations on a public forum for a statement made on a governmental hearing is really not smart at all.”

The debate between Bitcoin and Bitcoin Cash, a well-known fork that took place in August 2017 and is touted by crypto personas like Roger Ver, came to a head in late February when BTC transaction fees dipped below the price of BCH — lower transaction fees being one of BCH’s reported main advantages over BTC.

Reddit user ambivalentasf*** added a perspective about the BTC v. BCH debate to the previous Reddit comments:

“Not to mention the fact that in terms of any governing body trying to distinguish between legitimate tech and true scams, Bcash does not clearly distinguish itself as a ‘scam’ while leaving Bitcoin legit. Both Bitcoin and Bcash are susceptible to influence by bad actors with enough capital to create a wake. So while assumptions being made about the motivations of actors like Roger Ver might be correct, if you seek to have the government recognize a forked chain of Bitcoin as a scam, how do you anticipate they are going to evaluate the parent technology from which Bcash forked?

The point is there is nothing inherent to Bcash protocol that makes it a ‘scam’ while Bitcoin is not.”

Photo via Shutterstock

Source: Cointelegraph