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Line-Yahoo Japan Merger Set to Shake up the Crypto Scene 101
Source: iStock/ngkaki

Japanese cryptocurrency enthusiasts are watching business developments with interest after Softbank, the financial group that owns over 48% of Yahoo Japan, admitted that it was in talks with the operator of the Line chat app over a potential merger.

Line has recently launched its Bitmax cryptocurrency exchange in Japan, and operates exchanges and blockchain business operations in a number of other Asian countries. The company claims it has 81 million monthly active users on its chat app, which features a Bitmax interface.

Yahoo Japan, meanwhile, is one of the biggest backers of rival exchange TaoTao, which launched in May this year.

Takumi Yuzawa, a Tokyo-based cryptocurrency investor and business owner, told, “Undoubtedly the merger is going to have a very big impact on the cryptocurrency scene here in Japan.”

And Yuzawa remarked,

“Let’s imagine that these companies end merging their cryptocurrency operations. In that case, we are either going to end up with one very big and powerful crypto player – or one of those companies might end up exiting the market, meaning we lose a player.”

Neither company has yet spoken about possibly cryptocurrency plans after the merger. However, talks are almost certainly ongoing regarding crypto business plans, after Nikkei claimed the parties had “entered the final stages” of negotiations.

Yahoo Japan is officially owned by Z Holdings, but Softbank holds a controlling stake in the company. The Yahoo Japan search engine and related apps have some 48 million monthly active users.

Line, meanwhile, is the brainchild of South Korean internet giant Naver, the country’s equivalent to Google.

Per Jiji, one merger option currently on the table is creating a 50-50 joint-owned company, which would result in the company operating two Financial Services Agency-licensed crypto exchanges.

In a scathing critique, Bloomberg writer Tim Culpan opined that Line has been “marching toward irrelevance since its dual Tokyo and New York initial public offerings three years ago,” and said the company’s move into the world of cryptocurrency was a sign of “desperation.”

Both companies have also developed extensive e-pay business operations, with Line’s Line Pay and Yahoo Japan’s PayPay already rolled out across the country. The latter has also been integrated with Ripple’s MoneyTap app, while Line Pay has been working with Visa on blockchain-powered cross-border payments and “alternative currency” transaction solutions.

Tim Alper , 2019-11-15 05:21:32 ,

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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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