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In this week’s selected cryptocurrency- and blockchain-related news from Cointelegraph Japan, the Japanese financial regulator solidifies its policy of banning trusts that invest in crypto, more than 20 companies launch a consortium that aims to raise funds with security tokens, and Coincheck starts its automated cryptocurrency accumulation service, while it denies having had any previous knowledge about Stellar Lumens’ 55 billion token burn.

Here is the past week of cryptocurrency and blockchain news in review, as originally reported by Cointelegraph Japan.

FSA confirms ban on cryptocurrency investment trusts

The Japanese financial regulator, the Financial Services Agency (FSA), has solidified its policy of banning investment trusts that invest in cryptocurrencies. At the end of September the FSA announced a draft guideline, in which it stated that the composition and sale of investment trusts that invest in cryptocurrencies are “not appropriate”. Although the supervisory guideline is not a law, the FSA reportedly intends to restrict excessive funds from flowing into cryptocurrencies, aiming to “regulate before commercialization.”

Meanwhile, Kenji Fujimaki, a former member of the House of Councilors and economic critic, said that the cryptocurrency industry’s call for a change from comprehensive taxation of 55% to separate taxation of 20% is not necessarily delayed. He added that in case the FSA is willing to promote the development of cryptocurrencies, instead of banning monetary investment trusts, he would like to request the FSA to reform the national tax system itself.

Coincheck starts automated cryptocurrency accumulation service

Japanese cryptocurrency exchange Coincheck announced that it had begun offering Coincheck Tsumate, an automated cryptocurrency accumulation service, also known as the dollar-cost averaging method (DCA). Using the DCA method means that a customer purchases a fixed dollar amount of a cryptocurrency, such as Bitcoin (BTC), no matter what the price happens to be, at a certain date each month. Some claim that the dollar cost averaging method is the best strategy for Bitcoin investment.

Security token organization composed of more than 20 companies launches in Japan

More than 20 companies including Mitsubishi UFJ Financial Group, NTT, KDDI and the Mitsubishi Corporation have launched a consortium that aims to raise funds with security tokens.

The Mitsubishi UFJ will take the lead in building the platform for trading real estate, corporate bonds and intellectual property as digital securities, while blockchain development company LayerX will provide technical support.

The new blockchain-based platform, called Progmat, will handle various financial products. By using smart contracts, it will reportedly be possible to exchange tokens without going through a third party, aiming to automate the transfer of securities rights and settlement of funds.

The move is further aimed at developing rules for security tokens following the enforcement of the revised Financial Instruments and Exchange Act next spring. Mitsubishi UFJ intends to launch the trading platform in 2020, which will allow individuals and institutional investors to participate.

Coincheck denies any link to Stellar’s massive recent token burn

Cointelegraph Japan reported on Nov. 8 that Coincheck has denied any link between Stellar Lumens’ massive token burn conducted by the Stellar Development Foundation and Coincheck’s announcement that the exchange is about to list Stellar (XLM).

There has been a great deal of speculation that the Japanese crypto exchange Coincheck was aware of Stellar’s 55 billion XLM token burn at the time they announced the XLM listing on its exchange. However, Coincheck has now formally denied that they had any previous knowledge of the event.

Cointelegraph By Joeri Cant , 2019-11-10 02:53:00 ,

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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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