- Major cryptocurrencies suffered heavy losses on Saturday, Bitcoin dropped below $10,000.
- IRS has reportedly started sending out letters to more than 10,000 crypto investors.
- Both Ethereum and Bitcoin are trading near key levels according to Confluence Detector.
Following the news of the US Internal Revenue Services (IRS) having started to send out letters to more than 10,000 cryptocurrency investors to potentially penalise them over failure to properly report income forced the crypto market sentiment to turn sour this weekend.
Top-20 cryptocurrencies with regard to total market capitalization suffered heavy losses on Saturday and stayed relatively quiet on Monday as investors have taken a back seat while waiting for the next catalyst. In the meantime, this weekend saw more than $15 billion erased from the total market capitalization, which now stands at $264 billion according to the latest available data on CoinMarketCap.
Earlier this week, during an interview with CNBC, the United States Treasury Secretary, Steven Mnuchin, said that they were looking at all of the crypto assets and added that they will make sure to have a unified approach among regulators when introducing new rules and guidelines with an aim to mitigate the potential negative impact on the financial system. Commenting on Bitcoin as an investment tool, “I won’t be talking about Bitcoin in ten years, I can assure you that,” Mnuchin said. “I can assure will not be personally loaded up on Bitcoin.”
Now let’s take a look at the technical picture and identify the key technical levels revealed by the Confluence Detector for the top 3 cryptocurrencies.
BTC/USD seems to have found support near $9,500
After breaking below the key $9,900 area, Bitcoin extended its slide but seems to have found support at the $9,500 area, where the previous weekly low, middle-line of the 15-minute Bollinger Band and the previous 1-h low is located.
Below that level, the…