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The Chinese technology capital of Shenzhen issued a warning against illegal activities concerning cryptocurrencies.

Local finance news outlet Eastmoney reported on Nov. 21 also that Shenzhen’s Leading Group for Remediation of Internet Finance Risks will investigate and collect evidence on illegal activities involving cryptocurrencies

The crypto ban improved safety, says official body

The Leading Group warning states that, since China banned local exchanges and initial coin offerings (ICOs) from operating in 2017, the illegal activities associated with cryptocurrencies and financial risks were greatly reduced.

Still, the regulator notes that the recent endorsement of blockchain technology by the central government reinvigorated cryptocurrency speculation. Alongside increased speculation, the number of cryptocurrency-related illegal activities in the country have also purportedly ramped up.

The warning cites the issuance of crypto assets, ICOs, fictional uses of technology, fundraising in fiat or crypto and cryptocurrency exchanges as examples of illicit activity in the industry. 

After accumulating evidence, the regulator plans to undertake enforcement actions against such activities according to the “Announcement on Preventing the Risk of Subsidy Issuance of Financing.”

China is currently dealing with the increased public interest in cryptocurrencies and blockchain following President Xi Jinping’s official endorsement of blockchain tech development.

As Cointelegraph recently reported, Chinese state media said that there are around 32,000 companies in China that claim to use blockchain technology, but most of them are capitalizing on the hype to promote their company. In reality, only 10% of firms that claim to use blockchain tech actually deploy it, CCTV states.

Cointelegraph By Adrian Zmudzinski , 2019-11-21 15:02:00 ,

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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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