Bitcoin Drops 0.09% After Failing $109,000 Resistance Senator Lummis Calls For Crypto Tax Reform

Bitcoin has recently shown signs of weakness after failing to surpass a crucial resistance level near $109,000. According to chart analysis by Ali Martinez, Bitcoin encountered strong resistance at a descending trendline near $109,000, leading to a reversal and a pullback toward short-term support around $107,000. At the time of writing, Bitcoin is trading at $107,450.40, down 0.09% in the past 24 hours.

A significant concern for traders is the bearish crossover on the Stochastic RSI, which has historically preceded downward price movements. This "death cross" on the momentum oscillator aligns with the recent rejection and weakening Relative Strength Index (RSI). Unless Bitcoin can close firmly above $109,000, analysts suggest that the probability of a retracement toward the $100,000 support zone remains high. Current resistance is observed near $108,500.

In other news, U.S. Senator Cynthia Lummis is advocating for changes in how crypto mining and staking are taxed. She argues that current policies result in double taxation, once when individuals receive block rewards and again when those rewards are sold. Lummis believes this structure is outdated and harms U.S. competitiveness in the digital asset space. Her remarks come amid growing interest in regulatory clarity for cryptocurrencies. Lummis emphasized the need to support innovation while ensuring fair treatment for miners and stakers. She stated that reforming tax laws could help the U.S. become a leader in blockchain and Bitcoin development. Crypto industry stakeholders, who say the current system discourages growth, have been well-received by the call for tax reform.