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Major Danish bank Saxo Bank has predicted that Asia will launch its own blockchain-based digital asset in its new report of smashing predictions for 2020.

The latest edition of “Outrageous Predictions” by Saxo Bank also forecasts that President Donald Trump will likely lose the 2020 elections, while Hungary will leave the European Union. The report was issued on Dec. 3, according to a tweet by the bank.

Saxo Bank claims that Asia will launch a new reserve asset in order to “confront a deepening trade rivalry and vulnerabilities from rising US threats to weaponise the US dollar and its control of global finances.”

Chinese renminbi will be “heavily prominent” 

Specifically, the bank predicts that the new asset, called the Asian Drawing Right, or ADR, will be issued by the Asian Infrastructure Investment Bank. The new digital asset will be “driven by blockchain technology” and based on regional central bank reserves, while its backing will be a basket of global currencies and gold.

While Chinese renminbi is forecasted to be “heavily prominent” in the ADR’s combination of currencies, the U.S. dollar is weighted at below 20%, according to Saxo Bank’s prediction. Total backing for the coin will be worth $2, making the ADR “the world’s largest currency unit,” according to the bank.

According to the forecast, the move is “clearly” aimed at reducing the impact of the U.S. dollar in regional trade and local economies. Blockchain technology will be implemented in order to provide stability of the money supply and tracking transactions in the ADR, Saxo Bank stated.

Saxo Bank is known for its crypto predictions

Saxo Bank’s Asian digital currency prediction for 2020 is not the first forecast by the bank associated with blockchain technology. In fact, the bank has made multiple predictions about the major cryptocurrency Bitcoin (BTC) and other crypto markets to date. 

In mid-April 2018, Saxo Bank predicted that cryptos will see a major bull market in Q2 2018. However, after a short bull trend in April, crypto markets saw a major bearish move throughout the second quarter.

In 2016, when Bitcoin was trading between $450 and $950, Saxo Bank predicted that Bitcoin will hit $2,100 in 2017. Eventually, Bitcoin hit its all-time high of $20,000 at the end of that year. 

Cointelegraph By Helen Partz , 2019-12-04 13:47:39 ,

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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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