Bitcoin appreciated over 9 percent on Thursday, reaching $4,000 for the first time in more than two weeks.

The Boss of all digital assets has lost most its value this year, falling about 80 percent from an all-time high last December.

Interesting statistics from a research made by the U.S.-based cybersecurity firm McAfee, indicated four million new mining malware threats, in the third quarter of 2018.

It was added that, cybercriminals have been using leveraging internet of things (IoT), a technical network of linked devices and systems for crypto mining, in an attempt to engage in illegal activities.

Through the same report, data showed that the number of malicious crypto-miners grew nearly 55 percent in Q3 of 2018, a figure that indirectly states that illegal activities are growing fast.

Then again, the question to be asked is, are we taking enough action to ensure activities in the crypto market are transparent or not?

It appears that in the US some people are working towards protecting investor’s funds.

Furthermore, very recently in December, the Virtual Currency Consumer Protection Act of 2018 and the “Virtual Currency Market and Regulatory Competitiveness Act” were introduced in the US.

The main objectives of these acts is, the creation of new regulations, which will prevent crypto-currency price manipulation.

These acts have not been enacted, they have only been introduced but they set the pathway for a more secure environment, as they aim to enlighten consumers on numerous ways, that price manipulation occurs and how it impacts the crypto sector as a whole.

In the UK, the tax agency has just released a comprehensive explanation of how it sees crypto assets and how individuals may be taxed on their holdings.

In a more detailed explanation, people who buy tokens as an investment, willing to wait for value appreciation, will have to pay capital gains tax when they sell the coins.

In a different situation, individuals who get tokens from their employers as a form of compensation, from mining, transaction fees or airdrops will be income taxed and they will pay national insurance contributions.

For the UK to take such actions, it indicates that many people are involved with the cyber coins and many are yet to be owners, in the near future.

What is the reason to setup all these tax obligations if the situation is not expanding and growing?

In our opinion, the indirect message we receive, is that the UK is ready to engage in such actions because the use of Digital coins, is rapidly entering the normal course of our life and so regulation and taxation should be enhanced, at the same time.

We support the opinion, that government and financial regulatory bodies have not been in line with the crypto assets industry advancement.

A lot a mistakes have been made during the past year and companies offering coins have not stood firm in protecting client interests.

Even though some actions have been taken to strengthen crypto activity controls and client’s awareness, the industry has been a major failure, as people have been scammed and robbed heavily.

However, giving up is not an option, as innovation comes after challenging times.

At the same time, we tend to learn a lot from mistakes, and mistakes help to improve us in the long run.

Bitcoin 1 Hour chart

Support: 3550 (S1), 3000 (S2), 2400 (S3)
Resistance: 4100 (R1), 4500 (R2), 4930 (R3)

Technically three issues should be pointed out:

  1. The first applies to the clear upward trendline incepted since the 14th of December which confirms our last week’s suspicions for an upward movement of the cryptocurrency. The prementioned trendline, predisposes for a bullish bias for Bitcoin in the near term, setting it as a base scenario. For our opinion to change, we would require the cryptocurrency to clearly break below it.
  2. The second applies to the RSI indicator in the 4 hour chart which, albeit breaking the reading of 70 at several instances, the price action was able to smoothen it out, providing the necessary space for prices to continue to grow.
  3. he third would be the inability of the cryptocurrency to break the 4100 (R1) resistance level at two instances, which creates doubts on whether the bulls could continue to dictate the pair’s direction.

Having said that, should the bulls continue to dictate the pair’s direction, we could see Bitcoin breaking the 4100 (R1) resistance line and aim for the 4500 (R2) resistance hurdle.

Should even the second resistance level be broken we could see the way opening for 4930 (R3) resistance area.

On the other hand should the bears take over, we could see the cryptocurrency’s price action, breaking the prementioned upward trendline and the 3550 (S1) support line, aiming for the round support level of 3000 (S2) and marking new record lows for the year.

Should even that be broken, it would clearly be at the lowest levels for 2018 and in such a scenario it could be paving the way for the 2400 (R3).