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Managing partner of Primitive Ventures Dovey Wan believes that China’s rhetoric regarding cryptocurrencies could lead to a drop in the value of Bitcoin. The specialist writes this on her Twitter, accompanying the post with the phrase “Can’t wait to buy cheaper Bitcoin.”

The specialist augmented her position with conclusions from a report that was recently presented to Chinese viewers. In the issue, journalists presented real statistics on the use of blockchain in various Chinese companies. It turned out that only 10% of the declared 32 thousand organizations really use the technology.

At the same time, inspections of miners were initiated in the country, despite China’s recent official refusal to prosecute crypto miners. Recall that it is in China that most of the working computing equipment is connected to the Bitcoin network. Disabling Chinese crypto miners can adversely affect the current value of cryptocurrencies.

The popular crypto blogger dark pill agreed with the opinion that the rhetoric of the Chinese government can negatively affect the behavior of the cryptocurrency market.

It turns out that China is developing its own cryptocurrency and promoting the blockchain at the state level, but at the same time, it demonstrates a negative attitude towards classic digital assets.

A popular trader and investor, a blog under the nickname Crypto Rand, believes that in the near future, China will again threaten the Bitcoin ban.

Recall that earlier in the media there were repeatedly news about the PRC’s intention to introduce a ban on cryptocurrency mining and a number of other related areas. At the same time, the threats did not go into action, and therefore the “struggle” of China with the miners became an occasion for memes and jokes.

Recall that earlier Binance CEO Changpeng Zhao presented the opinion that the Chinese digital yuan will operate on the blockchain.


admin , 2019-11-20 10:56:19 ,

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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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