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Bitcoin (BTC) Price Prediction – August 14, 2020
Since yesterday Bitcoin has been on an upward move. Today, BTC/USD has risen from $11,123 to $11,829 at the time of writing. Last weekend, Bitcoin rallied above $12,000 but encountered a bearish reaction. The king coin crashed to $11,326 due to low volatility.
Resistance Levels: $10,000, $11, 000, $12,000
Support Levels: $7,000, $6,000, $5,000
Today, Bitcoin’s price has reached a striking distance to the $12,000 overhead resistance. There is a certainty of BTC breaking the $12,000 resistance. Bitcoin is above $11,800, a strong bounce above this support will propel price to rally above the resistance. Once price breaks the resistance level between $11,800- $12,000, the price movement will be accelerated to the first target at $13,000. After the first target, the momentum will extend to $15,000 high. However, according to bitcoinupapp.com a bearish scenario could have occurred if the market starts facing rejection at the $11,700 resistance. This can lead price to drop to as low as $11,200 or $11,100. Meanwhile, BTC is above 70% range of the daily stochastic. It indicates that price is in a strong bullish momentum.
A BOON for Bitcoin investors on a proposed tax cut from Donald Trump
In his bid for re-election for a second term in office, President Donald Trump has proposed a capital gains tax for Bitcoin. The relevance of the capital gain tax is that it will spur trading activity in the crypto market. A taxpayer with long term holding periods can sell their cryptos if the rate reduction is temporary. President Trump indicated that if Congress fails to approve this, he will index capital gains against inflation.
Nonetheless, today Bitcoin will be making the third attempt at the $12,000 overhead resistance. In the August 1 uptrend, a large candle body tested the 0.236 or 23.6% Fibonacci retracement level. This indicates that BTC will rise and reach a high of 4.236 Fibonacci extension level. This is equivalent to the $15,000 high.
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