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Blockchain analytics firm Chainalysis is reportedly letting go of 39 of its employees in order to become more profitable.

On Nov. 21, Coindesk reported that Chainalysis is cutting its workforce by nearly 20%, eliminating positions across the board to the tune of 39 employees laid off. According to Maddie Kennedy, Chainalysis’ director of communications, the research and development team had to bear the brunt of it.

Layoffs might come as a surprise

The staff cuts might come as something of a surprise as the New York-based blockchain analytics firm has experienced a number of positive announcements over the years. 

In September, the firm announced blockchain trading platform Bittrex’s deployment of its real-time transaction monitoring solution. In 2018, the vast majority of blockchain intelligence government deals were reportedly contracted to Chainalysis, which during that time had signed deals with government agencies totaling $5.3 million.

It is also well-known that the IRS used Chainalysis back in 2015 to assist them in its case against Coinbase, in which a United States federal judge ordered the crypto trading platform to report 14,355 users to the IRS.

However, Kennedy explained that the layoffs will further aid the company on its path to profitability and to pivot its resources into product teams and go-to-market strategies. She added:

“Market conditions necessitated early action […] The layoffs are a preemptive measure, meant to stave off the unexpected, including the possibility of an economic downturn […] We think that acting now is best for the long-term health of the business.”

FinCEN chief speaks at Chainalysis conference

In November, the United States Financial Crimes Enforcement Network (FinCEN) Director Kenneth Blanco spoke at a conference hosted by Chainalysis, where he told the audience that Anti-Money Laundering (AML) laws will be strictly enforced in the world of cryptocurrencies. Blanco also said that the so-called travel rule does apply to digital currencies and that the government expects crypto firms to comply.

Cointelegraph By Joeri Cant , 2019-11-22 00:59:00 ,

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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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