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New German Law Might Allow Banks to Store, Trade Crypto 101
Source: iStock/Meinzahn

Germany’s federal parliament Bundestag has reportedly passed a bill that is to allow the country’s banks to store and sell cryptocurrencies next year. However, the legislation is awaiting the approval of the Bundesrat, the parliament’s chamber that represents Germany’s 16 federal states.

The latest development comes as Germany’s banking sector reported a 31% decrease in profits last year, and analysts from the Moody’s credit rating agency are expecting German banks’ profitability to further drop as net interest income falls, as reported by the Financial Times.

Meanwhile, the final version of the bill goes well beyond the initial draft, reported major German business daily Handelsblatt. Should it be implemented in its current form, the legislation will not require banks to use the services of external custodians or special subsidiaries to store cryptocurrencies, but they will be able to provide their own storage capacities.

The bill fuels optimism amid some crypto industry representatives. Sven Hildebrandt, Partner for Corporate and Business Development at local firm Distributed Ledger Consulting, said the legislation could make Germany a “crypto-heaven”, and the German lawmakers are “playing a pioneering role” in the field of crypto regulation.

In contrast, critical voices from some public authorities and political parties point to the additional risks that should be mitigated by German banks before they offer crypto to customers.

Niels Nauhauser, a financial expert at a consumer consulting organization in Baden-Württemberg, a state in southwest Germany, said that, contrary to special bond offerings in which banks are required to inform their customers on related costs and provide them with key investor information, this is not the case in direct sales of cryptocurrencies.

Fabio de Masi, a lawmaker for the opposition Left Party (Die Linke), commented that Germany’s financial supervisory authority BaFin should analyze how banks will respond to the additional cyber-security risks related to storing cryptocurrencies.

As recently reported by, Germany is likely to cement its place as the most crypto-friendly state in the EU, while adoption among the general German public is also set to grow over the next few years. There’s already a significant base of early users from which further adoption could be driven, while the country is estimated to increasingly see the tokenization of fiat currencies and securities.

Meanwhile, also as reported, one German bank has an original way to teach its clients about the world’s most popular cryptocurrency, Bitcoin (BTC). It needs only two old-school things to accomplish this: a pen and a paper.

Jarosław Adamowski , 2019-11-29 14:25:23 ,

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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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