It’s Tax Day in the U.S., with the month-delayed filing deadline now upon us. For cryptos, the news hasn’t been good. Bitcoin BTC (-9.88%) is heading up the first major correction in more than five months. Altcoins are following BTC’s lead, with Tron (-8.82%), Polkadot (-13.14%), and Dogecoin (-7.09%) selling off dramatically. Ripple XRP (-0.20%) is one of the more stable assets and holding firm near $1.50.
There’s no arguing that crypto values frequently react to rumors and innuendo. Is today’s tax deadline proving to be a market driver? Well, the answer to that question is a bit unclear. While it’s true that this year’s deadline is already priced into the markets, the U.S. Internal Revenue Service (IRS) has still sent a message to the cryptosphere. A new partnership between the IRS and cryptocurrency tax firm TaxBit has brought crypto taxation into the spotlight. Per the agreement, TaxBit is to lend its tools to the IRS for one year at a cost of $1 million. While this isn’t a pressing issue for 2021, high-profile crypto traders are well-advised to get ready for the IRS in 2022.
The past 72-hours have been no picnic for cryptocurrency bulls. For altcoins like Polkadot and Tron, values have fallen well off yearly highs.
Polkadot (DOT) And Tron (TRX) Down Big To Open The Week
Since last Wednesday, Polkadot has fallen beneath the key number of $40.00. Now a 4-hr double-bottom pattern ($32.56-$32.54) is quickly coming into view.
DOT/USD Trade Idea: If we see the DOT/USD continue to pull back, a buying opportunity may come into play in the coming 24-hours. Until elected, I’ll be looking to buy in from $33.00. With an initial stop loss at $29.00, this trade produces 12% ($4.00) on a bullish bounce from the $32.00-$30.00 area.
TRX/USD Trade Idea: For Tron, the $0.10 big-round-number is quickly coming into play. If sentiment remains negative, a long scalp from $0.1050 isn’t a bad way to trade the action. With an initial stop loss at $0.0950, this trade produces 10% ($0.01) on a standard 1:1 risk vs reward ratio.