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China’s state channel, CCTV released an investigative report on the state of Bitcoin (BTC) and crypto in the country on Nov. 18. According to translated tweets from Dovey Wan, Founding partner at Primitive Capital, the report warned citizens against investing in these “unregulated securities” terming them a “financial fraud and an illegal Ponzi scheme”.

The Chinese government has been in the news lately regarding issues blockchain and cryptocurrency. In October, the Chinese premier, Xi Jinping, gave a hearty embracing speech on blockchain setting the market ablaze as Bitcoin (BTC) crossed $10K. Later in the month, the top political party, China’s People’s Party (CPP) announced plans to start the integration of blockchain across government agencies in a bid to support the speech made by their leader.

The latest government entity to take a stand for blockchain is the official state news channel, CCTV, who ran a controversial investigative report on blockchain and cryptocurrencies on Nov. 18. While the report sided with blockchain, the sentiments on crypto were not all that positive.

CCTV report: “Crypto is an illegal Ponzi scheme”

In a thread of tweets, whereby Dovey highlighted the main points of the investigative report, (“Focus Report”), “blockchain not crypto” was the main backbone of the report. The report further goes on highlighting the evils of cryptocurrencies without specifically aiming at a particular coin.

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Furthermore the narrator of the report, goes on to make fun of the explosive ICOs, IEOs and other capital raising techniques in the blockchain space comparing them to broken ATM machines.

China’s insistent narrative on “blockchain not crypto”

China has consistently made statements on the possibility of launching a digital currency and integrating blockchain technology to its systems. Notwithstanding, the government recently removed BTC mining from a list of things it was set to ban. However, the overall feel from the government is an acceptance of the technology but a denial of crypto.

According to a rough translation, Xi said this on cryptocurrencies,

“Even though these [cryptocurrencies] seem to be lively and vibrant today, tomorrow they may all be on the list (of crime).”

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Cryptocurrency is an ‘illegal Ponzi scheme’, China’s state media report

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Cryptocurrency is an ‘illegal Ponzi scheme’, China’s state media report

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China’s state channel, CCTV released an investigative report on the state of Bitcoin (BTC) and crypto in the country on Nov. 18.

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Lujan Odera

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Coingape

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Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

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The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



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Lujan Odera , 2019-11-18 16:55:03 ,

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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.

Featured Image from Shutterstock


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

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