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The National Development and Reform Commission (NDRC), an economic planning agency under the State Council of China, presented the final version of the “Industrial Structure Adjustment Guidance Catalog”. According to the document, which will enter into force on January 1, 2020, the PRC refuses to prosecute miners and combat crypto mining.

According to the participants of the crypto community, the news will positively affect the position of the cryptocurrency.

The famous cryptographer Nick Szabo, whom many consider the creator of BTC, drew attention to the fact that the decision of the China authorities is not the equivalent of the full legalization of cryptocurrency mining in the country. The popular crypto blogger WhalePanda, on the contrary, believes that the decree legitimized the activities of miners in China.

whale panda

What Has Changed?

In the final version of the document, the agency crossed out Bitcoin mining and other operations related to virtual currency mining from the category of industries that should be abolished in China. The latest version of the document was introduced in 2011. The new option has become its replacement.

Recall that the previous edition of the list of industries subject to promotion, liquidation or restrictions was published by the NDRC team this spring. In it, department experts decided that mining bitcoin and other cryptocurrencies should be prohibited in the country. However, the deadline for the execution of the decision was not indicated. A negative attitude to mining by the Chinese authorities could affect the position of the cryptocurrency since most of the bitcoin computing power is located in China.

According to commentators on the network, a change in attitude towards mining by the Chinese regulator is associated with the choice of the PRC strategy for engaging blockchain at the state level. It is noteworthy that technology has become the basis for the identification of smart cities in the country. Also, China recently created a regulatory authority to certify fintech products and passed a cryptography law.

Recall that at the moment the country is preparing to issue its own cryptocurrency. Work in the indicated direction has a positive effect on the behavior of shares of Chinese fintech companies.


admin , 2019-11-06 07:50:21 ,

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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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