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It is clear to see that momentum in the crypto industry is all coming from China at the moment. While the US is still fumbling with regulatory uncertainty, the red dragon is forging ahead with its own crypto and blockchain plans for a digital future.

Get Into Crypto or Lose Out

The US is in danger of falling behind as the race for crypto and digital supremacy heats up. A number of nations, mostly in Asia, have started research and development on their own central bank cryptocurrencies. The US meanwhile is in danger of getting left behind if it refuses to transition to the digital world.

Galaxy Digital founder and hedge fund manager Mike Novogratz stated that the US will lose the crypto and fintech race, and with it the reserve currency status;

“And if we don’t transition to a digital world that will change. We are way behind on a crypto USD.  China is coming. And coming fast. They are way ahead in fintech. Their President just publicly claimed his support to all things blockchain. We risk losing our reserve status”

Morgan Creek co-founder Anthony Pompliano added that future portfolios will be completely digital.

“In the future, portfolios will be 100% digital assets. Investors will have the same asset allocations, but they’ll hold digital stocks, digital bonds, digital currencies, and digital commodities.”

Blockchain and crypto momentum is all coming from China at the moment. The bullish signals were catalyzed by President Xi’s public endorsement of the technology a couple of weeks ago which caused a massive surge in BTC and crypto markets.

Just today Chinese state media headlined an article explaining Bitcoin to the masses. This is a major move from a regime that has been trying to quash all crypto trading and activity within its borders for the past two years.

Last week crypto mining was removed from an official list of industries that China’s National Development and Reform Commission (NDRC) intended to crack down on. Recent research also indicates that Asian exchanges are dominating crypto asset flows as the region shapes up as the industry leader.

Dollar Destruction

China’s dominance is just one aspect of how the US is falling behind. With its own economic woes such as galloping national debt, currently over $23 trillion and rising, and devaluation of the dollar, things are going from bad to worse.

The current banking system is completely unsustainable with the FED printing more money to bail out banks and encourage more borrowing and spending rather than saving.

With a president that advocates negative interest rates and a deepening debt crisis the dollar is only going one way. A crypto USD may be a lifeline to keep the currency afloat and stay in the game before China and the rest of the world race ahead leaving America in the digital dust.

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Martin Young , 2019-11-11 06:45:20

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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