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Crypto market sentiment can be gauged by a number of different factors. In 2018 global regulators stomped all over ICOs which pretty much ended the altcoin run but this year it could be Bitcoin mining giants that signal a waning of interest.

Bitcoin Mining Giant Drops IPO Valuation

A few hours ago it was reported that Canaan Creative has reduced its expected IPO valuation to $100 million. Previous estimates were in the $200-$300 million range to this could be a signal that crypto market sentiment is cooling.

Industry insider Dovey Wan seems to think it does adding the ‘rekt alert’ tag to her post. The Chinese Bitcoin mining giant plans to launch its initial public offering later this month.

According to the official announcement the Hangzhou based company plans to raise $100 million by offering 10 million ADSs at a price range of $9 to $11. An American depositary share (ADS) is a USD denominated equity share of a foreign-based company available for purchase on an American stock exchange.

The announcement continued;

“At the midpoint of the proposed range, Canaan would command a fully diluted market value of $1.6 billion and an enterprise value of $1.4 billion.”

The valuation is way down from previous filings of $400 million in October and as much as $1.5 billion last year. Citi, China Renaissance and CMB International Capital are the joint bookrunners on the deal while Credit Suisse has been removed as lead bookrunner.

Canaan has plans to be listed on the Nasdaq under the ticker CAN, which would make it the first Chinese company to be publicly traded in the US. This is a large enough milestone regardless of the underwhelming valuation.

Crypto Sentiment Waning?

Crypto sentiment maybe waning in the US where regulators, bankers and politicians continue to stomp all over the industry with heavy boots but elsewhere it is still booming. Facebook has been largely responsible for this with its pugnacious plans to dominate the world’s finances through crypto.

China has been leading the headlines this month as it presses ahead with its blockchain drive. Venture capital, which is down on previous years, is slowly flowing back into the crypto ecosystem in the People’s Republic boosting home grown projects. Even state media has started to run articles on Bitcoin and blockchain in efforts to educate the masses before Beijing launches its own digital currency.

Asia seems to be leading the way at the moment as crypto sentiment remains high in the region. Singapore has positioned itself as a blockchain hub hosting countless crypto conferences this year and Asian exchanges dominate the flows of digital assets.

Despite Canaan’s lower than expected IPO valuation, crypto sentiment still appears to be strong apart from in the US which is in danger of falling behind as the technology advances as many industry experts have pointed out.

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Martin Young , 2019-11-14 05:00:44

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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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