Price Drops on Bear Pressure; IRS to Sweep Coinbase

Like many times before, weekend trading has pushed the price down a bit, bellow the $750 range we foresaw in our last update. The price took a steep dive on Sunday afternoon, at times even dropping as low as $718, but things have been recovering for the past 12 hours during which the price remained close to $730. As the market winds have been changing within the hour, the next path will be entirely up to whose side exerts the most pressure.

But apart from the price break, this weekend brought other interesting news from the Bitcoin world, especially to Scots. Starting tomorrow, November 22nd, Edinburgh will get its first ever Bitcoin ATM, courtesy of BTC ATM provider Alphavend. According to the press release, the machine is to be placed at the “No1 Currency” exchange at Queensferry St in the city, giving visitors a chance to buy both foreign currencies as well as Bitcoins. The buying limits at this ATM will be set at £5 – £1,000.

Bitcoin at $730; Buyers Return

The past 24 hours were pretty eventful for the Bitcoin trading market after bears took hold of the scene and pushed the price down early yesterday afternoon. After reaching a five-month record high of $755.01, the price came tumbling down to $718.20 on Sunday evening, triggered by a strong seller pressure. Yet, bulls were waiting for their turn and took over shortly afterwards, giving a steady push upwards.

The current volume chart shows high interest in Bitcoin trading, which is always a good sign for those hoping for another price increase. The volume is now at $160,975,000 but it has been increasing along with the price since yesterday evening. The market cap, on the other hand, is at $11.7 billion.

At present, the Bitcoin market is fully inclined towards buying and the overall signal from our technical analysis is a strong buy. Out of 12 technical oscillators 8 are in the buy zone, with 7 out of 12 moving averages showing the same trend. The SMA 100 is above the SMA 200 with a wide gap, showing that the likeliest course is to the upside. For the time being, the price seems to be headed upwards, but, as always, a close lookout for changes is advised.

IRS Asks Coinbase for User Data

The US Internal Revenue Service is on the lookout for people who use Bitcoins for tax evasion, the New York Times reports.  According to the news portal, the IRS have reached out to the biggest US Bitcoin exchange, Coinbase, seeking information on every customer who has bought Bitcoins between the periods of 2013 and 2015, after an agent found that Coinbase was involved in 2 out of 3 cases of Bitcoin tax evasion.

These findings, along with the high level of anonymity that Bitcoin offers, are the key reasons why the IRS is looking to inspect Coinbase’s records. Thus, their summon calls for the data of indeterminate number of John Does, on the grounds of suspicion that many other people were using the currency exchange for similar means. The revenue service is also claiming that they are certain the class of John Does they want inspected includes violators, as has been the case in the past.

Commenting on the summon, Juan Suarez, Coinbase’s lead legal counselor, said that even though Coinbase has a general policy of cooperating with the law, they still can’t allow for a “sweeping fishing expedition” as they are very worried about the privacy rights of their users and the finances they hold.

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