Bitcoin rebounds sharply to hit new highs again! And another split next year?

Hello everyone, BTC! The steady, meticulous trader guy as always@xi10jun1here.

Bitcoin, which dropped sharply around last week, has recovered significantly up to yesterday.

Is it another pattern like that? A big drop, a rebound, and a new high, that kind of thing.

※Continuing from the previous edition, there is an important notice for paid readers, so please read all the way down below.

※This column is designed so half of it is free to read, a conscience-striving setup. Of course, if you read the paid portion (updated weekly for 400 yen per month, i.e., about 80–100 yen per column), I would be very encouraged!

This Week’s Results (2017-11-10 to 2017-11-16)

First, as usual, the results. I will present the gains and losses first.

Last week (until 2017-11-09) assets: 52,059 yen
This week (until 2017-11-16) assets: 52,059 yen
Change: 0 yen

In the volatile movement after the crash, there were rebounds and sudden drops, but I kept taking small gains steadily.

When I see Bitcoin go up so much, I sometimes think, “If only I had held on...” But I’m more suited to this steady-trade approach, so I’ll aim for another 100,000 yen!

So this time I’ll talk about the buy signal that reappeared with Bitcoin’s large rebound.

A Strong S-shaped Rise After a Crash and Rebound!

This chart pattern is strong after all. (Note: the background of the CryptoWatch chart has changed again.)

This is the 1-hour chart from the 15th. After forming a double bottom, it’s been climbing steadily.

If it clears the recent high around 750,000 yen near the double bottom, that’s a long-entry point for the long term.

Next, let’s look at this chart on a 4-hour timeframe.

Yes, a clean S-shaped rise signal!

From a huge drop → rebound → S-shaped rise → new highs. That’s been Bitcoin’s price movement recently.

Yesterday’s ascent also follows this pattern.

Free Summary: How Long Will This Golden Pattern Last?

There is talk that Bitcoin may split again in January 2018, so the cryptocurrency world is buzzing once more.

While it’s exciting, with so many splits occurring, no one can predict future price movement.

Right now it’s rising. But if the split currencies become “the superior ones,” what will happen...?

So in this paid column, I’ll write about future prospects.

Paid Column Policy

Recently, fx-on sent a notice regarding “possible leakage of personal information due to unauthorized access.” As a result, credit card payments may be unavailable, which could prevent access to the paid portion of this column.

Therefore, for paid subscribers who use credit cards, I’d appreciate it if you could purchase via convenience store payment or bank transfer.

Thank you for your understanding.

End-of-Section 1: Latest Tax Information!

The National Tax Agency’s site has updated its latest legal view on Bitcoin.

That link is here →No.1524 Taxation when profits are made by using Bitcoin｜Income Tax｜National Tax Agency

According to it, profits obtained by using Bitcoin are deemed “miscellaneous income.”

So, for me and others who earn profits from margin trading, this is generally miscellaneous income. The article I’ve been citing in the end of article (→Settling Bitcoin Margin Trading (BTCFX) for Tax Declaration! Is it Comprehensive Taxation or Separate Taxation? | Investor Jun) was correct, but it seems you cannot offset losses. I wish they’d improved this a bit more...

Also, according to NewsPicks quotes from BitFlyer CEO Yuzo Kano (No.1524 Taxation when profits are made by using Bitcoin - NewsPicks), if you bought Bitcoin for 100,000 yen and used it to buy something worth 500,000 yen, the 400,000 yen difference is recognized as profit.

When using Bitcoin to purchase goods or services, if the price of Bitcoin at the time of payment is higher than at the time of purchase, that increase is recognized as profit. So the same applies when shopping with Bitcoin on FANCY, so be careful.

※Please note that laws and tax interpretations may change, which could affect how you file taxes or pay taxes. Before you file, be sure to check with your nearest tax office or a tax professional.

End-of-Section 2: Let’s Try Shopping with Bitcoin!

Actually, overseas e-commerce site “FANCY” allows you to purchase goods with Bitcoin! It’s a bit pricey shipping-wise, but you can find stylish items not seen in Japan.

For how to use FANCY, please refer to this blog post.

→FANCY (Fancy): Account creation, registration, settings, and the flow of purchasing goods explained | Investor Jun
→Buying (paying) with Bitcoin on FANCY | Investor Jun

※Free content ends here. The rest covers detailed analysis and future prospects, so it’s paid. If you want to read more, or if you’d like to support me with a donation-like subscription, I’d be very grateful. Thank you for your continued support!