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Dec 03, 2019 at 10:43 // News

 Russia plans to ban Bitcoin

Last week on Friday, the Central Bank of the Russian Federation made a negative statement against Bitcoin (BTC) and other cryptocurrencies, stating that their fiat currency known as the ruble should be the country’s only legal tender instrument.

Even though the decision is not yet implemented, the Central Bank is very much willing to put to an end the use of BTC and any other cryptocurrency in the purchase of goods and services, because the financial institution believes that they have a negative impact on the economy due to their risky nature.

Banning Cryptocurrency

And as per a
report from RIA Novosti, a local news outlet, the financial watchdog revealed that the fiat currency Ruble is currently the only legal tender operating in the country, and they think that digital assets have massive risks such as being used in illegal activities like money laundering, funding terrorist groups, drug trading, funding LGBT groups, and carrying out exchange transactions because of high exchange rate fluctuations.

Before the event, there were rumors that Russia is planning to put a blanket ban on all existing virtual currency payments, but as we talk now, it has been confirmed that they would actually back any statutory verdict on the topic in question.

Regardless of that, not only the original cryptocurrency Bitcoin, but the whole digital asset business carrying out operations within Russian Federation is in a bit of aboveboard indeterminate state. Presently, there is no any single clear regulation about cryptocurrency mining or initial coin offering (ICOs) in Russia.

This effort will not make Russia to be the first country that is unfriendly to Bitcoin and other digital assets, other giant countries such as China, India also came up openly to bar the use and promotion of cryptocurrencies in their countries claiming that if they are given a platform to compete with the traditional money, they would make it depreciate in its value hence suffering economically.

Blockchain NOT Bitcoin

Furthermore, as Coinidol reported, these nations that banned the use of cryptocurrencies have further gone ahead to scare away investors and other traders threatening to fine or sentence them to prison if they are caught associating with Bitcoin.

Russia could be doing this in order to give space to its own state-owned stablecoin that is rumored to be underway. The government has even travelled an extra mile to study how other countries such as Petro, etc.have implemented some regulations on centralized tokens such as Petro.

However, just like the Chinese government, Russia is also in support of blockchain but not BTC. Even some higher institutes of education including St. Petersburg State University of Russia have started to introduce courses related to Blockchain and distributed ledger technology. By Coin Idol , 2019-12-03 12:43:00 ,

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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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