Crypto Industry News:
In less than a month, the draft law on mining cryptocurrencies in the Russian parliament lost several key points, such as the obligation for mining operators to enter into a special register and a yearly tax amnesty for all who registered. The previous project would lead to losses of the federal budget.
A new draft of the law "On mining in the Russian Federation" of May 20 appeared in the database of the lower house of the Russian parliament - the State Duma. The document contains some significant changes compared to the previous version, presented on April 29.
While the content remains essentially unchanged, the new draft lacks a subsection on the register of mining operators that companies would need to sign up to in order to continue their work. In the latest version, cryptocurrency mining companies should register as a sole owner or self-employed to start their business. The companies would follow the standard corporate registration procedure.
The latest revision removed the promise of a tax amnesty in the first year of registration. The grace period was to be applied to the customs clearance of mining equipment, all profits made before the law was passed, and possible violations of the strict limits on money transfers abroad, which were adopted by the Russian government on March 8. According to local media, the legal department of the Duma in its assessment of the project criticized the initiatives regarding registration and tax amnesty, saying that they could "lead to costs in the federal budget."
On April 7, the head of the State Duma's financial markets committee, Anatoly Aksakov, revealed that changes to the federal tax code regarding cryptocurrencies are expected to enter into force by the end of the summer parliamentary session. It is not known if they would contain any mining specifications.
Technical Market Outlook:
The BTC/USD bulls keep trying to bounce higher and so far successfully bounced from the range lower level seen at $28,980 again. The local high was made at the level of $31,190, but bulls are not that keen to continue the bounce anymore as the move up had ended with a Pin Bar candlestick formation. The weak and negative momentum supports the short-term bearish outlook with a new target for bears seen even at the level of $20,000. The market keeps making lower lows and lower highs on the H4 time frame chart, so the down trend is intact. The first indication of the deeper correction would be a clear breakout above the range high located at the level of $32,870.
Weekly Pivot Points:
WR3 - $33,847
WR2 - $32,649
WR1 - $31,169
Weekly Pivot - $29,902
WS1 - $28,296
WS2 - $27,028
WS3 - $25,668
The down trend on the H4, Daily and Weekly time frames continues. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The key long term technical support is seen at the round psychological level of $20,000.