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Just a day after Filecoin announced its much-awaited mainnet launch on the 15th of October at block 148,888, Binance revealed ending the zero-interest promotion for borrowing FIL  and its interest rate will be adjusted as per market requirements. This news comes just hours after Binance enabled Isolated Margin trading for FIL and two other assets.

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Notably, the zero-interest promotion for borrowing for the other two assets has not been cut short.

Price action lose steam

The decentralized storage system’s native FIL token noted an impressive three-digit rally even before the delayed mainnet launch. Following the footsteps of Kraken and Gemini, leading crypto platforms such as Binance and Coinbase flocked in as the network’s popularity bolstered. Since reaching a peak of $114.32, the token slashed more than half of the gains over the past 24-hours. Following this, FIL fell to a value of $52.86 at the time of writing.

The ongoing downside correction is showing no signs of stopping as it broke below the $60.00 support could have acted as a strong buy zone and subsequently pushed the price higher. An upside break to $65.00 and $70.00 resistance levels, does not seem likely. The Coinbase and Binance listing failed to provide further bullish swings for the FIL token.

Community members’ reaction

It’s not just the price that took a backseat. The soaring popularity and the cryptocurrency exchanges swarming in to list the coin did little help to alleviate the skeptical bunch of the community. Coingape had earlier reported that Bitcoin proponent, John Carvalho criticized and asked the community if someone could articulate the need for the token for the purpose of cloud storage.

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The latest price action of the token, however, has been the talk of the town. Talking about FIL’s downturn and significant losses, this is what Bitcoin maximalist ‘WhalePanda’ had to say

Will Harborne, the CEO of DiversiFi also echoed a similar sentiment and questioned who was buying the token in the first place. He went on to say that is “hard to tell” if Filecoin was being promoted purely because of the tech but not endorsing FIL, and who has juicy “advisor / early-investors allocations in the pre-sale”. In either way, Harborne believes that it was not helping the Filecoin ecosystem.

Despite a few mixed responses, several community members were looking forward to Filecoin’s mainnet launch. Erik Voorhees, the CEO of Shapeshift congratulated Filecoin’s parent company, Protocol Labs, and stated,

“Yeah, it’s got a boring name, but this is easily one of the most professionally built, carefully-executed, and *valuable* projects that has emerged from the ICO era.”

An exit scam?

But it was the main man of the Tron Fooundation’s, Justin Sun, whose comments created a buzz. He questioned if there was an exit scam of Filecoin and accused Filecoin project founder Juan Benet. He further alleged that FIL tokens were dumped to the exchanges without community consent and added that the investors in the exchange, especially United States investors, should make sure Benet is held responsible for this under the protection SEC Enforcement.

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Ketaki Dixit , 2020-10-16 15:08:31 ,

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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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