Crypto Industry News:

From August 2019, Brazilian citizens are required to report their cryptographic transactions to the national tax authority, the Department of Federal Revenue (RFB).

Transactions with cryptocurrencies, such as Bitcoin, must be reported to the RFB in accordance with the rules set out in the 1888 normative manual introduced in May 2019. As reported by the national public agency Agencia Brasil, the new measure applies to individuals, companies and brokerage houses and covers all types of activities related to cryptography, including the purchase and sale of cryptocurrencies, as well as donations, barter, deposits, withdrawals and others.

Entities are to provide monthly reports by the end of each subsequent month if crypto transactions have taken place. According to the rules, local cryptographic exchanges will have to inform RFB about all operations regardless of value. However, those who use foreign exchanges, intermediaries or make peer-to-peer transactions in crypto, will have to report transactions if the monthly amount exceeds 30,000 Brazilian real ($ 7,800).

Penalties range from 1.5% to 3% of the amount of unreported transaction.

Those who do not report on cryptographic transactions will face penalties ranging from 100 to 500 realities in Brazil or from 25 to 130 dollars. According to Agencia Brasil, RFB is also authorized to collect from 1.5% to 3% of the amount of the unpaid transaction as a penalty.

RFB believes that the digital currency market in Brazil has more investors than the second oldest stock exchange in Brazil, B3, which reportedly has around 800,000 customers. The authority intends to combat illegal activities such as money laundering, tax evasion and financing of terrorism.

Technical Market Overview:

The BTC/USD pair has bounced from the level of $9,049 after the corrective cycle in the wave Z of wave 2 had been completed. The bulls have broken above all of the key technical resistance levels located at $10,166 and $11,068 and now are testing the 61% of the Fibonacci retracement of the lase wave down at the level of $11,548. The positive and strong momentum supports the short-term bullish outlook and if the level of $11,548 is violated, then the next target is seen at the level of $11,855.

Weekly Pivot Points:

WR3 - $13,750

WR2 - $12,333

WR1 - $11,817

Weekly Pivot - $10,382

WS1 - $9,882

WS2 - $8,441

WS3 - $7,9485

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are being treated as a correction inside of the uptrend. The larger degree WXY correction might have been completed and the market might be ready for another impulsive wave up.