Bitcoin (BTC) Price Prediction – May 12, 2021
Since May 1, BTC/USD has been fluctuating between $54,000 and $60,000 price levels. Buyers retested the $60,000 overhead resistance twice. On Each retest, the market would fall to the $54,000 low. This has been the price action since March 13, when Bitcoin first attained the $60,000 psychological price level. The breakout above $60,000 overhead resistance and the sustenance of the bullish momentum will determine the second round of upside momentum.
Resistance Levels: $65,000, $70,000, $75,000
Support Levels: $50,000, $45,000, $40,000
Today, the BTC price has broken and closed above the moving averages. The implication is that the market will rise to retest the $60,000 overhead resistance. This is possible if the buyers reclaim the $58,000 crucial support level. In some cases, buyers will find penetration difficult at this level. At other times, the bulls will break this level but the bullish momentum will dry up above the $60,000 high. This has been the bullish scenario since March 13. The bottom line is that Bitcoin lacks buyers at higher price levels. For about two months, BTC/USD has been unable to overcome the $60,000 overhead resistance. If buyers succeed above the $60,000 high, it will signal the resumption of upside momentum.
Hungary Plans to Reduce Bitcoin Tax Cut as Part of Economic Recovery Program
Cryptocurrency investors in Hungary will be having tax relief soon. This is coming as lawmakers seek to make the central European country more competitive in the wake of the COVID-19 pandemic. Lawmakers are planning to cut taxes on Bitcoin gains in half, possibly as early as 2022. The Finance Minister Mihály Varga has indicated the government’s stimulus program for 2022. Given the post-COVID-19 relief efforts, lawmakers are also considering reducing taxes on cryptocurrency trading to 15% of income. The previous tax rate was 30.5%. The purpose of tax reduction is to make Hungary a competitive jurisdiction concerning crypto-based capital gains taxes.
Following the recent breakdown on May 10, the bulls bought the dips as Bitcoin resumed an upward move. BTC price is facing a minor resistance above the $57,000 support. Meanwhile, a retraced candle body tested the 50% Fibonacci retracement level. This retracement indicates that Bitcoin will rise to 2.0 Fibonacci extension or the high of $63,501.40.