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Representatives of the current financial system are inadvertently extolling the virtues of Bitcoin at a higher frequently than ever before. The latest is Deutsche Bank President Karl von Rohr, who states that current methods intended to stave off economic crisis are lessening in efficacy.

Von Rohr describes the current climate for the financial services industry as the most challenging time he can remember. He says that geopolitical uncertainties are already impacting the global economy as a decade of growth begins to slow.

Negative Interest Rates Don’t Work Forever and Bitcoin Doesn’t Punish Savers

In a recent “Future of Finance” conference hosted by Bloomberg in Frankfurt, the president and deputy chairman of Deutsche Bank AG Karl von Rohr joined those bankers making an inadvertent advertisement for Bitcoin. He stated that global financial stability is under increasing threat:

“At least I can hardly remember, in my 25 years in banking, a more challenging time for the financial services industry.”

Von Rohr cited instances of geopolitical tension as contributing to increased uncertainty and a  slowing of global growth. He mentioned uncertainty surrounding the US/China Trade War, the ongoing debacle that is Britain’s exit from the European Union, and civil unrest in various parts of the world.

The Deutsche Bank President says that in many areas of the world, there are clear signs of an economic slowdown, following a period of growth:

“In some major economies, the warning bells of a recession are ringing.”

With reference to Europe, Von Rohr says that the five years of negative interest rates aimed at promoting economic growth are fast becoming useless:

“With fears of a downturn mounting, we have reached a level where monetary policy is at serious risk of running out of means to cushion a real economic crisis.”

Von Rohr also mentions the impact of the “monetary experiment” of negative interest rates on savers. He states that Europeans have been losing 160 billion euros in interest payments each year thanks to the negative rates. The Deutsche Bank executive added:

“With inflation factored in, the result is a creeping erosion of our European customers’ assets.”

In a bank-created situation so hostile to those wishing to save rather than spend, it isn’t particularly difficult to see why Bitcoin might become more attractive to some. As an asset that is entirely unconnected to the current financial system and any national government, Bitcoin cannot be subject to changes to its monetary policy. In times of geopolitical uncertainty, such hard forms of money naturally become more attractive as a form of hedge.

Add negative interest rates, quantitative easing, and other measures intended to stimulate further growth, and the case for Bitcoin only gets stronger. Many commentators have pointed out Bitcoin’s utility as a way to avoid the potentially disastrous consequences of such policies.


Related Reading: Bitcoin Volume Profile Suggests Rally to Bring Price Past $20,000 is Near

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Rick D. , 2019-11-12 20:00:40

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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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