First Mover: Bitcoin Price Drops on Biden’s Tax Plans
  Everything you need to make sense of the crypto markets and beyond By the CoinDesk Markets Team Edited by Lawrence Lewitinn, Managing Editor, Global Capital Markets April 23, 2021 Sponsored by  (Price data as of April 23 @11:00 UTC) If you were forwarded this newsletter and would like to receive it, sign up here.
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Market Moves by Omkar Godbole  Bitcoin Price Drops on Biden's Tax Plans
Bitcoin (BTC) slipped on Friday as reports of U.S. President Joe Biden mulling a tax hike on wealthy Americans drew stronger selling pressure in the spot market.
The biggest cryptocurrency traded well below the 100-day simple moving average support of $49,470 during the European hours, marking the first breakdown of the widely tracked technical line in six months and extending the recent sell-off from record highs above $64,000.
 Bitcoin prices breaking below its 50-day and 100-day movkng averages (Source: TradingView)
As per The New York Times, President Biden is planning to roughly double the tax on capital gains or proceeds earned from selling assets to 39.6% from 20%. The new rate will be applicable for people earning more than $1 million a year.
The news hit the wires late Thursday and tanked the U.S. equity markets, aggravating the weakness in bitcoin.
Bitcoin had dropped sharply from $60,000 to $52,148 early Sunday, taking the cryptocurrency below the 50-day SMA for the first time since October. While that move was largely derivatives-driven, the latest drop below $50,000 is likely a result of selling in the spot market. Bitcoin trades on major exchanges (Source: CoinMetrics)
The U.S.-based Coinbase exchange has seen big offers (blue) in the past 24 hours. Bitfinex sellers (green) appear to have played a role as well, according to data provided by Coin Metrics.
 Bitcoin: Exchange inflows (Source: Glassnode)
Further, exchanges witnessed a net inflow of 20,370 BTC on Wednesday, the highest since March 20, according to data source Glassnode. Investors typically move coins to exchanges when they want to liquidate their holdings.
According to Delta Exchange's Pankaj Balani, the market is likely to remain choppy till the end of June, and rallies could be short-lived. "It's a sell on the rise market for now," Balani said, a convincing move above $60,000 would revive the bullish bias.
Renewed whale buying may be needed to revive the animal spirits in the bitcoin market.
 Bitcoin whale entities (Source: Glassnode)
Bitcoin's bullish momentum has steadily weakened over the past two months alongside the near 10% drop in the whale entities – clusters of crypto wallet addresses held by a single network participant holding at least 1,000 bitcoin
For now, short-term technical studies appear to have rolled over in favor of the bears, and the negative bias would strengthen if prices find acceptance under the 100-day SMA.
Read the original story here: Bitcoin Price Drops Below 100-Day MA as Selling Picks Up on Biden's Tax Plans
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Technician's Take by Damanick Dantes Bitcoin Sell-Off Leaves Cryptocurrency in Weakening Short-Term Trend Bitcoin (BTC) broke below short-term support around $50,000 during Asia hours. The cryptocurrency was trading around $49,500 at press time and is now oversold on intraday charts, which could stabilize the decline.  The four-hour BTC chart shows resistance levels with oversold RSI (Source: TradingView)
Original story found here: Bitcoin Sell-Off Leaves Cryptocurrency in Weakening Short-Term Trend
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