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Another week, another round of Crypto Tidbits. Bitcoin and other cryptocurrencies haven’t had the best of weeks. On Friday, BTC fell as low as $6,800, marking a 19% decline on the week. Altcoins posted similar losses, crushed under the pressure of a plunging Bitcoin.

Despite the bearish price action, the past week was still fundamentally positive for the cryptocurrency industry: Bakkt’s Bitcoin futures set a new volume record, Grayscale revealed that it wants to become an SEC reporting company, and Fidelity revealed that it has bagged a key Trust license for its digital assets business.

Related Reading: Crypto Tidbits: RBC May Embrace Bitcoin, China Bashes Cryptocurrency, Ethereum DeFi Booming

Bitcoin & Crypto Tidbits

  • Bitcoin Fixes This: German Bank Forces Negative Interest Rates: According to a report from RFI, the Raiffeisen cooperative bank in Fuerstenfeldbruck, near Munich, will now be levying a -0.5% annual rate on savers, from big to small. The outlet suggests that only new customers and deposits to the bank will be affected, though this move is the first of its kind regardless. This financial imbroglio comes shortly after a Denmark bank began to charge clients with over $111,000 in their bank accounts a 0.75% yearly fee. Hodlonaut, a legendary Bitcoin industry commentator, broke down why he believes negative interest rates are effectively the straw that will break the camel’s back. As he explained, your income is taxed, your assets are taxed, everything is with time taxed via inflation, and then you slowly watch your capital evaporate because of negative interest rates.
  • PBoC of Shanghai Confirms Crypto Sentiment: The Shanghai branch of the People’s Bank of China has just commented on crypto yet again. According to the announcement, published on Friday, the branch of the Chinese central bank has observed a resurgence in cryptocurrency-related speculation through ICOs, IEOs, STOs, and other capital-raising/token distribution methods. As such, the Chinese central bank asserted that it will continue to “monitor the virtual currency business activities within the jurisdiction,” which will be “disposed of immediately” if discovered.
  • China’s Virtual Currency Coming: Speaking of China, a top industry venture capitalist believes that she believes China’s digital asset will “definitely” launch “within the next six to twelve months.” The venture capitalist in question is Edith Yeung, partner of Proof of Capital — a blockchain-centric venture fund that has made investments in Binance, Blockstream, and Stellar according to its website
  • IRS Bitcoin & Crypto ATM Crackdown: An official of the U.S. Internal Revenue Service (IRS) says that his agency will begin a concerted effort to tackle the widespread adoption of Bitcoin ATMs. The tax agency’s Criminal Investigation Chief John Fort was cited in a recent Bloomberg Law report as stating the following:

    “We’re looking at those, and the ones that may or may not be connected to bank accounts […] In other words, if you can walk in, put cash in and get bitcoin out, obviously we’re interested potentially in the person using the kiosk and what the source of the funds is, but also in the operators of the kiosks.

  • Bitwise ETF Application Gets Second Look… For Some Reason: In October, Bitwise’s Bitcoin ETF application to the SEC wad denied, with the financial regulator issuing a 112-page order seemingly dismantling the entire crypto industry. Though, in a Federal Register document dated November 12th though published on November 18th, the SEC claimed that its five commissioners will (re)review the Bitcoin ETF application. The review does not mean that acceptance of the Bitcoin ETF application is imminent, though the public can comment on the rejection until December 18th.
  • Fidelity Secures Key License for Crypto Operations:  Just today, the New York State Department of Financial Services (NYDFS) granted Fidelity Digital Asset Services a trust license. In layman’s terms, this new license will give Fidelity’s cryptocurrency branch the permission to launch a cryptocurrency custody and trade execution platform for institutions and individual investors for New York residents — which is notable as this is where much of American wealth is managed, traded, and such.
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Nick Chong , 2019-11-23 21:00:19

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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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