Daily crypto news alerts for 9th January, 2021

🗞Price Analysis: Bitcoin Cash (BCH) for 08/01/2021

Bitcoin's value has hit another all-time high of $40K, and as expected from other cryptocurrencies, including its hard fork, Bitcoin Cash [BCH] is also rising. However, the digital asset is now facing downward pressure as its price has dropped nearly 7% over the past 24 hours.

At the time of writing, BCH is trading at $417, but its lowest level has been quoted at $400 in line with the daily candle.

BCH/USD

The daily BCH chart described the rise in the price of the cryptocurrency within the upward channel. The uprising overcame various types of resistance, causing the BCH price to rise to a new high of $505.

As the BTC hard fork continues to trade above $400, it is witnessing pressure from sellers, which could give traders the opportunity to reduce the currency and profit from the pressure from sellers.

Argument

The Relative Strength Index has recently plunged into overbought areas compared to the selling it was witnessing at the time of writing. This pressure could have been caused by the $38k slump in bitcoin. This pressure on the BTC market could lead to further price reductions.

Awesome Oscillator has not yet reflected these changes in the market. During this time, strong green bars were visible, indicating strong buying in BCH, but as the red daily candle forms, the AO will reflect buying momentum and increased selling.

However, the development of the market remained bullish, as the moving average of 50 also remained well below the price level. Even if prices fall, the trend cannot be reversed when the time comes.

Conclusion

The Bitcoin Cash BCH market has noticed a decline in the value of digital assets in a bull market. This could give traders a short chance to profit on the next support at $384.

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🗞South Korea approves income tax on cryptocurrencies

From 2023, individuals in South Korea will be required to pay 20% income tax if their cryptocurrency trading profits exceed 2.5 million KRW.

As reported by Asia Today, the South Korean government has issued an amendment introducing a tax on profits from cryptocurrency trading starting in 2023. The amendment also introduces various additional taxes on capital gains with a progressive tax schedule on income from stocks.

Any cryptocurrency holder whose annual profit from trading in cryptoassets exceeds 2.5 million won (about $2,300) will pay a 20% tax. This threshold is much lower than for stocks, where only profits in excess of 50 million won ($46,000) would be taxed.

The value of cryptocurrencies that were owned by the owner prior to the entry into force of the new taxation regime will be valued either at the highest market price of the cryptoasset immediately prior to 2023, or at the actual acquisition price.

The proposed taxation system has been under development since the beginning of last year, but its adoption has been postponed several times. In November, the South Korean National Assembly Committee proposed to postpone the introduction of income tax on cryptocurrency activities until January 2022. This was due to the fact that local cryptocurrency exchanges will not have enough time to create the proper infrastructure for filing tax returns.

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🗞DeFi Protocol Warp Finance Prepares For Relaunch And Implements Chainlink Oracles

The recently hacked DeFi protocol Warp Finance is gearing up for a restart and integrates Chainlink oracles to prevent future possible fast credit attacks.

In mid-December, Warp Finance came under attack using quick loans. The hacker was able to withdraw stablecoins worth $7.7 million from the platform. According to the Warp Finance developers, the addition of Chainlink oracles will protect against similar attacks in the future.

The quick credit attack involves borrowing collateral and returning it in a single transaction after using it to manipulate the price. According to the Warp Finance team, security experts have determined that the main reason for the hack was a price oracle.

The problem was compounded by the fact that Warp Finance uses tokens from liquidity providers as collateral. This feature is one of the main arguments in favor of the protocol, as it allows income-generating tokens to be transferred as collateral, combining both the income from trading commissions and borrowers using the protocol.

According to DeFi "white hacker" Emiliano Bonassi, the protocol vulnerability was that the Warp Finance oracles miscalculated the base value of the pool tokens. The updated version of the protocol will use Chainlink price oracles for all critical functions, such as determining the value of the LP tokens used for collateral.

Earlier, Chainlink and its founder Sergey Nazarov have repeatedly stated the need for the widest possible use of price oracles in the cryptocurrency market. A Warp Finance spokesman commented on the situation and the question of why the protocol hasn't previously used Chainlink's decentralized oracles:

“The Uniswap oracles have been an option for many projects that need pricing information for different use cases. Thus, we launched the test phase of the project, like other lending platforms, with the possibility of updating later. "

The spokesperson also noted that a significant portion of DeFi projects do not use Chainlink and they believe that the protocol restart "will give our users a lot more confidence in the security of our application."

Warp Finance has also developed a compensation plan for hacked users and has recovered 75% of the stolen crypto assets as of the end of December .

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🗞Analysis of prices of Bitcoin, Ethereum, Ripple for 08/01/2021

Bitcoin price continued to rise yesterday and set a new record at around 42,000.00 USD.

BTC/USD

Yesterday, early in the morning, the BTC price rolled back to the hourly EMA55 level and, having found support there, buyers began to restore the price to the January high zone. By the middle of the day, the volume of purchases made it possible to overcome the 40,000 mark and continue the bull run.

In the afternoon, the absolute maximum was set at 42000.00 USD, after which a new wave of selling pulled the pair back to the unchanged support in the form of the hourly moving average EMA55, which took place around the 38000.00 USD mark.

Until this morning, the pair recovered only to the resistance of 40,000.00 USD, the trading volumes decreased, and the price cannot continue to recover to the zone of the renewed January maximum. We believe that the pair will spend the first half of the day in sideways consolidation with support at the level of average prices.

If by the end of the week the bears push the moving average, then a re-test of the support at 36300.00 USD is possible.

ETH/USD

Yesterday morning, a rather deep pullback of the ETH / USD pair (below EMA55) did not allow buyers to continue the growth of the ether price to a new January maximum.

The recovery got stuck around the 1275.00 USD mark and before the end of the day, sellers again brought the ETH price back below the hourly moving average.

Over the past night, the pair was able to recover above the level of average prices, but trading volumes are low and it looks like a narrowing sideways range is forming, which we talked about in yesterday's forecast...

XRP/USD

Yesterday, buyers made great efforts to pull the pair out of the $0.280 - $0.310 side channel. During the day, they managed to test the level of 0.345 USD, but by the end of the day the XRP price still rolled back to the upper border of the sideways range of 0.310 USD.

If the bears push through this support today, the pair will roll back to the two-hour moving average EMA55, which is around the 0.280 USD mark.

All prices are based on BitStamp data