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The crypto asset known as Tron, has had its official Weibo account banned from the social media platform.

Could China be starting its crackdown on cryptocurrencies, now that the country is close to launching a cryptocurrency of its own, the DCEP?

Tron and Binance Weibo Accounts Shut Down for Violating Law

According to Chinese crypto influencer, Dovey Wan, the official Tron Weibo account – China’s version of Twitter – has been banned citing “violation of law and regulation.”

Related Reading | Chinese Interest in Bitcoin Remains High Post Crypto Rally According to Data

Shortly following the influencer’s tweet about the subject, the official Weibo account for cryptocurrency exchange Binance was also banned. As of this writing, however, the Weibo accounts for Binance CEO Changpeng Zhao, Binance CMO Yi He, and Tron founder Justin Sun, have not been affected by the regulation-related banning.

Wan also points out that the Weibo accounts of other crypto exchanges, such as Huobi Global and OKEX, along with Chinese altcoin accounts for NEO and Ontology appear to be “intact.”

Wan claims there is a “clear wall” but as to the reason behind that wall, it is anyone’s guess. However, the wall could be due to China launching a cryptocurrency of its own.

Could China’s DCEP Be Bad News For Crypto in the Region?

At the end of October, Chinese President Xi Jinping spoke out in support of blockchain technology, urging the country to ensure it is on the forefront of the developing tech frontier.

The nod of support send the cryptocurrency community buzzing on how this was bullish for crypto and Bitcoin, and it caused Bitcoin to surge, setting its third-largest gain in a 24-hour period in the asset’s young history. Chinese altcoins followed, spiking significantly after the news broke.

But reality may be setting it. Bitcoin has now collapsed to below $8,500, and China appears to be starting a crackdown of cryptocurrencies it views as a threat to its own developing technology, a native crypto asset the country has dubbed DCEP: Digital Currency Electronic Payment.

Related Reading | Why China’s Interest in Blockchain Will Ultimately Be Bad For Crypto

China already tightly controls its citizen’s access to the internet, as can be seen in the example with Weibo shutting down accounts due to “violation of law and regulation.” It’s often referred to as the Great Firewall of China, in reference to the country’s iconic tourist location.

While the community’s initial reaction was to applaud China’s support of crypto, in the end, the country’s interest in blockchain technology could ultimately be bad for the crypto market.

The People’s Bank of China has been developing DCEP for “5-6 years” and expects to roll out DCEP soon to commercial banks in the region to begin testing, before introducing the crypto asset to its citizens at scale.

Tony Spilotro , 2019-11-15 19:00:35

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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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