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Malta-based cryptocurrency exchange Binance’s Shanghai office has abruptly closed its doors, several sources close to the matter told the Block.

According to the sources, the exchange’s Shanghai office was recently raided by local police where many of Binance’s executives and as many as 100 employees work.

Binance Refutes Claims

When reached for comment, a Binance spokesperson refuted the raid, saying that “we don’t have entities in China, most of us work remotely in China,” and that the exchange doesn’t have “a fixed office in Shanghai.”

Binance’s denial of the existence of a Chinese office comes despite The Block having seen photographs of the office as part of conversations with Binance representatives about the location in question.

Earlier this month rumors circulated that Binance was planning on opening an office not in Shanghai, but Beijing. These claims were dismissed by Founder and CEO  “CZ” Zhao Changpeng in an interview.

Furthermore, in a tweet yesterday, Zhao said that office and headquarters are outdated concepts and “time is moving on.” As of press time, we’re still trying to put the pieces together and determine how, if at all, these instances are connected. 

Update: Binance CFO Wei Zhou has said that this news is a nothing burger, writing on his private Twitter account that this is just a rumor that has no substance, before adding that no raid took place as there is no office.

Office and HQ are old concepts like SMS and MMS. Time is moving on…

Uncertainty in China

Last week, Binance was banned on China’s largest microblogging service — the Twitter-like Weibo — amid what appears to be fresh steps to crack down on digital currency trading.

A Binance spokeswoman said the account was shut down before Weibo issued the notice, and added that the social media platform didn’t give a reason. Binance is appealing the decision, she said.

At the same time, watchdogs in Shanghai issued notices calling for a cleanup of companies involved in cryptocurrency trading, while one in Beijing warned against illegal exchange operations.

This latest crackdown comes after President Xi Jinping urged the development of blockchain technologies last month, hailing it as one of the core technologies requiring China-led innovations.

While China is an avid supporter of blockchain — the central bank is working on its own digital currency — authorities have waged a two-year campaign to restrict crypto activities amid concerns like speculation, fraud, and capital flight.

In 2017, China ordered an end to exchange trading of digital currencies, but trades are still rampant through alternatives like over-the-counter (OTC) channels offered by exchanges Huobi and OKEx. Binance also recently started to host OTC yuan trading.

“We want to follow the recommendations very closely, and we want to promote the blockchain research and development,” Changpeng told Bloomberg last week about its China strategy.

“We just want to help where we can.”

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Thomas Delahunty , 2019-11-21 17:30:04

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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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