The term wash sale refers to a transaction in which a person sells or trades a security at a loss and then re-purchases the same stock or security, or obtains a contract or option to do so, within 30 days before or after the date when the loss-generating investment was sold. This window of time account as a total of 61-day wait period. Another scenario that leads to a wash sale is when a person sells a security and then, during the 61-day waiting period, their spouse or a business they control purchases a substantially identical investment. Under Internal Revenue Service (IRS) regulations, a tax deduction for a loss on a securities sold in a wash sale is not allowed. This provision is known as the wash-sale rule. The rule is intended to discourage investors from making an investment loss in order to claim a tax deduction while effectively keeping their stake in the securities.
Today we take a look at the technicals for Bitcoin and Ethereum. The crypto market has been quiet for several months. On Friday we detected unusual dark pool activities (large block orders) in the Bitcoin Trust Fund and Ethereum Trust Fund, GBTC and ETHE respectively. When smart money know something, they place large orders in the dark pool exchanges, away from the public eye. By doing so, they are positioning themselves ahead of the crowds, in order to benefit from move that will follow, once the news or report is made public. However, dark pool activities do not tell us the direction of the next move. It only tell us that a large order(s) has been placed. Only a breakout (bullish) about a resistance level, or a breakdown (bearish) below a support level can confirm the direction of the next move. So, what can we expect next? Watch this video to find and to get the technical insights. Good trading! Trading Risk Disclaimer All the information shared is provided for educational