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Chinese state media has reported that local companies seem to be claiming to be using blockchain technology to boost their stock prices. Multiple firms have made statements saying that they are exploring blockchain technology. However, only a handful can prove it.

The report is reminiscent of previous incidents outside of China. During the culmination of the 2017 bull run, companies enjoyed spectacular stock increases off the back of a supposed interest in blockchain technology.

The Hottest Tech in China: Blockchain Endorsement Inspires Fake Company Claims

According to a report in Chinese publication Global Times, the state-owned Xinhua News Agency has warned against companies fraudulently claiming to have adopted blockchain technology. More than 500 of the over 3,000 listed companies say that they are using or working on blockchain systems. However, only 40 of them can back up their claims.

Speaking with Global Times, an adviser for the China Securities Regulatory Commission, Dong Shaopeng, said that companies making such claims fraudulently could face reprimands from stock exchanges, including fines and delistings.

The apparent explosion in blockchain activity in China follows the government officially endorsing the technology last month. NewsBTC has reported on numerous developments in the nation since president Xi Jinping made statements encouraging the adoption of blockchain tech in October.

The Chinese media report is reminiscent of the case of Long Blockchain, formerly Long Island Iced Tea. In 2017, the latter company rebranded, claiming to have switched focus from beverages to blockchain. Its stock price immediately soared on the news.

However, it was revealed that the company had made little progress towards its blockchain ambitions. Later still, it was delisted from the Nasdaq stock exchange, before being branded a “pump and dump” scheme by the FBI.

The agency discovered that two individuals profited massively by trading the rebrand. The pair were previously under investigation for securities fraud involving another company, Kelvin Medical. Information linking Oliver Lindsay and Gannon Giguiere to Long Blockchain was found on an iPhone seized as part of the Kelvin Medical case.

Although there are large numbers of companies lacking evidence supporting their claims to be exploring blockchain technology in China today, there are many examples in which Chinese institutions and firms are indeed adopting the technology. The sudden state-level interest has prompted some in the cryptocurrency industry to claim that the endorsement is bullish for all things blockchain – including digital assets like Bitcoin.

Despite its new found interest in the technology underpinning them, the Chinese government is clearly much less keen on decentralised, public cryptocurrencies. It was repeatedly warned against public speculation on digital assets. In a report published last month, NewsBTC’s Tony Spilotro speculates on why the nation’s apparent new love of blockchain might not pan out so well for cryptocurrency after all.

 

Related Reading: Analyst: Bitcoin Price Can Reach $50k On Macroeconomic Uncertainty

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Rick D. , 2019-11-18 22:00:41

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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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