Analysts Lays This Case for $3,500 Bitcoin Price By 2020’s Halving

After Bitcoin (BTC) rocketed from $3,000 to $14,000 in the span of six months, analysts have been sure that the cryptocurrency would never revisit the $3,000s again. Indeed, the logarithmic price curve that has contained the asset’s price action for the past decade predicts BTC will never again hit $3,000. But, there have been a few analyses projecting that it may only be a matter of time before such low levels are visited once again. And one of these recently gained some steam on Crypto Twitter. Could Bitcoin Revisit $3,000s By Halving? Analyst Fears So For some reason or another, so-called fractal analysis has gained much traction in the cryptocurrency space. This sees analysts overlay historical price action over current charts to try and predict what’s next. These analyses have worked well on multiple occasions. For instance, a fractal analyst from trader NebraskanGooner predicted Bitcoin’s decline from the $9,000s late last year to the $6,000s, then the latest recovery back to the $8,000s. This same fractal suggests a price drop will soon occur. Another fractal suggests the same. This fractal is one from cryptocurrency trader Haejin. They noted that Bitcoin’s price action since the $14,000 top in June is eerily reminiscent of that seen in the 2018 bear market, with both cycles seeing a downward price channel, an upward wedge-formed false breakout, declining volume, and signs of capitulation. Haejin then noted that if BTC follows the exact path it did in 2018, the price will soon collapse back to the $6,000s, then Bitcoin will capitulate in March or April to fall as low as $3,300 by the time of the halving. https://t.co/JhMTlE2zA1: Bitcoin Deja vu? Here is a Members only chart: Note the Inverse H&S on both fractals. Also the three wave ABC price constructs The downward price channelThe upward wedgeDeclining volumesPotential Capitulation Volume All within 4 months? Hmmm. pic.twitter.com/hXNN53PI7B — Haejin (@Haejin_Crypto) January 17, 2020   Related Reading: Ethereum’s Price is “Convincingly Bearish”: Here’s What Comes After 20% Week History Begs to Differ While this scary fractal says that Bitcoin will be back at the multi-year lows by the time of the halving in the middle of May, some say the opposite will take place. In fact, an analyst who called Bitcoin’s rally into the $8,000s when BTC was trading in the low-$7,000s at the start of January, said that the leading cryptocurrency could be at its previous all-time high just a month after the block reward reduction. Per previous reports from NewsBTC, prominent Bitcoin analyst Financial Survivalism released an extensive analysis on TradingView earlier this month that indicated BTC could hit $20,000 by July 1st, 2020, just six months away. Check out this post on @tradingview to learn why I think $BTC will retest all time highs by July 1, 2020. 🚀https://t.co/IK87UVVpmf — Financial Survivalism (@Sawcruhteez) January 9, 2020 Not to mention, simple historical price action analysis suggests there is about no way that Bitcoin will fall in any dramatic fashion as the halving nears. Per previous reports from NewsBTC, the four months before the halving to the event itself have been extremely bullish for Bitcoin in 2012 and in 2016, with BTC rallying higher into these events, gaining steam as investors try and front-run this shock to the emission dynamics of BTC. Related Reading: Elon Musk Just Dropped the Bitcoin Bomb On Twitter, Again In the four months prior to the first halving in 2012, the price of BTC rallied dozens of percent higher from $10 to around $14 by the time of the event; and in the four months prior to the second halving in 2016, the price of Bitcoin went effectively parabolic, running from $432 to $700. Bitcoin is about 120 days away from the halving. What was price action like 120 days prior to the first two halvings? Whether you believe its priced in or not, if past is prologue – volatility may be expected. pic.twitter.com/7peG6Ir0m4 — Nunya Bizniz (@Pladizow) January 10, 2020 Featured Image from Shutterstock The post appeared first on NewsBTC.

WisdomTree Grows a Stablecoin Today to Nurture a Crypto ETF Tomorrow

WisdomTree developing a stablecoin may signal a nascent competition among leading U.S. asset managers for dominance in the crypto sector.

The news that WisdomTree, a major asset manager with $63.8 billion in assets under its belt, plans to launch a regulated stablecoin — pending approval from the United States Securities and Exchange Commission — could be a significant development.

It would bring a unique combination of being an enterprise level and having financial regulatory experience to the stablecoin arena — and if talks with the SEC go well, perhaps even the first U.S.-regulated crypto exchange-traded fund.

The stablecoin will be pegged to a basket of assets such as gold, fiat currencies and government debt, Cointelegraph reported on Jan. 12. However, no formal application or proposals appear to have been filed with U.S. regulators yet.

A battle brewing?

This development may signal a nascent competition among leading U.S. asset managers for dominance in the crypto sector. WisdomTree told Financial News, which first reported the story, that it “is rushing to launch a regulated cryptocurrency in the U.S. to get ahead of industry giants BlackRock and Fidelity Investments in the digital currency space.”

“People are innovating,” Macrae Sykes, portfolio manager and analyst at Gabelli and Company, told Cointelegraph, adding that:

“Slowly, steadily we’re seeing more interest in Bitcoin among large asset managers like WisdomTree.”

Fidelity itself wrote in a Jan. 9 report that “while there are yet unanswered questions, its [Bitcoin’s] position is cemented, and its potential cannot be ignored.” In December, State Street Corp., a top-five asset manager, announced a digital asset pilot project with crypto exchange and custodian Gemini Trust. Jonathan Steinberg, founder and chief executive of WisdomTree, said during the announcement:

“You want to be early. We came to ETFs 13 years after State Street. This gives us an opportunity to be ahead of the State Streets, Fidelitys, on regulated stablecoins.”

Will a crypto ETF follow?

An exchange-traded fund is a basket of securities that are bought or sold through a brokerage firm on a stock exchange. WisdomTree specializes in ETFs and is the seventh-largest ETF provider in the U.S. It has been a leader in bringing ETF products to market, according to Sykes, who covers the firm as well as other asset managers — particularly its innovative Japan Hedged Equity Fund ETF (DXJ) and Europe Hedged Equity Fund (HEDJ). So, will a crypto ETF follow?

The firm itself has said a stablecoin is just a natural extension of its ETF business. In early December 2019, WisdomTree launched a physically backed Bitcoin exchange-traded product on Switzerland’s principal stock exchange.

Related: US Bitcoin Derivatives Market, Highlights of 2019

A stablecoin is usually tethered to a relatively stable underlying asset, like the U.S. dollar or gold, and its creation-redemption mechanism is similar to an ETF, which helps keep values close to the underlying asset. This could help, at least in theory, with solving a persistent crypto problem: price volatility.

Stablecoins like Gemini Dollar and Tether that are pegged one-to-one with the U.S. dollar generally trade at about $1.00. Luciano Somoza and Tammaro Terracciano also compared Facebook’s Libra proposed stablecoin to the financial instrument:

“[Libra] feels like dejà vu for anyone familiar with ETFs. The creation-redemption mechanism is the same and ARs (authorized resellers), as defined by Libra, operate like authorised participants in the ETF market.”

WisdomTree has acknowledged that the structure of stablecoins and ETFs are similar, but product users would differ. The firm’s stablecoin is expected to be used mostly by cryptocurrency traders. ETFs, by comparison, are often marketed to mainstream investors.

The SEC hurdle

Getting regulatory approval for a stablecoin or a crypto ETF is no easy matter. In the U.S., the SEC continues to place obstacles before the Libra stablecoin, and it hasn’t warmly welcomed crypto ETF applicants, either. More than a dozen ETF proposals have failed. Cameron and Tyler Winklevoss, the founders of Gemini, have been rejected twice.

Only this past week, Bitwise Asset Management requested the withdrawal of its SEC application for a Bitcoin ETF, “the second major ETF withdrawal in recent months following similar actions by VanEck,” as Cointelegraph reported.

It’s not hopeless

However, recent misfortunes do not mean that it’s impossible to get a crypto ETF approved. SEC Commissioner Robert J. Jackson Jr. told Roll Call last year that “eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so,”

On Jan. 13, ETF Trends CEO Lydon told CNBC’s ETF Edge that the chances of a Bitcoin ETF happening within the next year stood at 60%. Worth mentioning is that another participant on the program, DataTrek Research’s Nick Colas, gauged the probability at only 10%.

Related: The SEC Does Not Want Crypto ETFs — What Will It Take to Get Approval?

One positive sign, according to Lydon, is that the SEC recently approved its first 1940 Investment Act-approved Bitcoin fund through the NYDIG Bitcoin Strategy Fund, a newly formed investment company that offers its shares for sale, though it has a limit of only $25 million. Lydon went on to add that the growing use of Bitcoin derivatives could help mitigate the BTC liquidity concerns that the SEC harbors.

“We’re still in the early stages,” Sykes told Cointelegraph. “We’re a long way from a regulatory framework that will embrace a Bitcoin ETF.” The continued fraud cases, the pump-and-dump flimflam and a fair bit of hype are slowing regulatory acceptance. The SEC remains concerned about potential market manipulation.

Infrastructure investments

Meanwhile, WisdomTree is also investing in crypto infrastructure projects. On Jan. 7, it announced its investment in the startup Securrency Inc., one of the top institutional-grade blockchain builders in the financial and regulatory space, Cointelegraph reported.

The basic idea seems to be that an ETF can be more efficiently managed on a blockchain platform, bringing ETFs to a broader range of investors and enhancing the investor user experience, the firm said.

Overall, the crypto sector has struggled to gain validation from both institutional investors and regulators, and for that reason asset-manager WisdomTree’s multi-front embrace of regulated cryptocurrency and blockchain infrastructure can only be viewed in a positive light.

Ethereum to Post Colossal 100% Rally as Market-Wide Bullishness Grows

Ethereum’s recent uptrend has allowed it to take a firm position within the $170 region, which marks a massive climb from ETH’s 2020 lows that currently sit at roughly $127. This massive climb has come about against a backdrop of immense bullishness throughout the aggregated crypto markets. One prominent analyst who predicted ETH’s ongoing climb while it was trading within the $130 region is now setting his sights on another massive rally that ultimately leads it to move towards $335. He believes that this rally could be fueled by a combination of further Bitcoin bullishness and residual strength from a recently broken descending triangle. Ethereum Gains Strong Foothold Within $170 Region as Bulls Roar  Ethereum is currently outperforming Bitcoin and is leading the altcoin markets higher, which comes after it was able to post a surge from its daily lows of $167. Since the start of 2020, Ethereum – like most other major altcoins – has put significant distance between its current prices and its recent lows within the $120 region. It is also important to note that this recent rally has significantly bolstered the cryptocurrency’s technical strength, as it marked a decisive breakout from a bullish descending wedge pattern that it was trading within since the summer months of 2019. Satoshi Flipper – a popular cryptocurrency analyst on Twitter – explained in a recent tweet that he believes Ethereum could now be positioned for an extension of its upwards momentum that leads it to surge another 90%, which would lead its USD price to $335. “Raising my #Ethereum target to $335,” he noted while referencing the chart seen below. Raising my #Ethereum target to $335$ETH/USDT pic.twitter.com/CIgPeo0vB5 — Satoshi Flipper (@SatoshiFlipper) January 18, 2020 Bitcoin’s Bullishness Likely to Fuel ETH’s Rally It is important to note that Satoshi Flipper does not believe that this rally will happen independent of Bitcoin and the aggregated crypto market, as he further goes on to note that Bitcoin’s potential bullishness throughout 2020 will fan the flames underlying ETH’s next parabolic rally. “Been telling you guys to buy $ETH after the bottom reversal – we started at $131 and it’s almost $180. If you believe the $BTC halving is not priced in like I do and that #Bitcoin is going to have a very bullish year, then you can be certain that #Ethereum will follow along,” he explained. Been telling you guys to buy $ETH after the bottom reversal – we started at $131 and it's almost $180. If you believe the $BTC halving is not priced in like I do and that #Bitcoin is going to have a very bullish year, then you can be certain that #Ethereum will follow along. https://t.co/KANqcEmpjh — Satoshi Flipper (@SatoshiFlipper) January 18, 2020 If Bitcoin breaches the resistance at $9,000 that bulls are currently contesting, it could open the gates for major altcoins like Ethereum to see parabolic upwards movements. Featured image from Shutterstock. The post appeared first on NewsBTC.

Crypto News From Japan: Jan. 13-17 in Review

Binance looks to expand in the country, a new working group assesses security token offerings, and more headlined news in Japan this past week.

This week’s news from Japan included additional comments against crypto trading from China, Binance’s potential involvement in Japan, positivity from the International Monetary Fund (IMF), more crypto exits from European Union (EU) regions, and stablecoin positivity from France.

Check out some of this week’s crypto and blockchain headlines, originally reported by Cointelegraph Japan.

China reaffirms its stance against crypto trading

Crypto-hostile China has once again confirmed its ban on crypto asset trading, according to comments from Beijing’s director of Financial Supervisory Administration Huo Xuewen.

"Virtual currencies cannot be used as legitimate digital currencies," Huo said to a Chinese news outlet on Jan 11, also adding that distributing and trading such assets is also unlawful.

"China does not allow cross-border cryptocurrency trading,” Huo continued. “No company can sell foreign cryptocurrencies in China and exchange cryptocurrencies with RMB.”

Binance aims to enter Japanese market through Tao Tao collaboration

Crypto exchange giant Binance is reportedly discussing collaborative terms with Z Holdings’ daughter company Z corporation, and Tao Tao, a digital asset trading platform in which Z corporation is invested. Z Holdings was previously known as Yahoo! Japan.

 The three entities are reportedly working on a deal that would result in a trading platform for citizens of Japan, in line with regulation.

New Japanese working group to consider security token offering regulations

As Cointelegraph Japan reported, on Jan. 16, the Japan STO Association has announced the formation of a new working group to develop guidance for regulating security token offerings in the country.

The new working group plans to focus on the mechanics of token operations, the functions of token holders, their use of blockchain, and their storage.

Crypto exchange Coincheck has begun distributing Stellar airdrop

Major Japanese crypto exchange Coincheck announced on Jan. 14 that they have begun distributing the 28 million Stellar XLM ($1.7 million) received in a 2017 airdrop.

Stellar, which launched in 2017, burned nearly $5 billion in tokens on Nov. 5. Shortly after, the token’s price rose substantially, only to slip for the next several months before seeing some gains in early January alongside a major bull market across the crypto world.

Source: Coin360

Source: Coin360

Crypto Employment Abounds With More Than 8,000 Jobs in 2020

During the last year, the cryptoconomy has picked up pace after a drawn out crypto winter. When market prices were low and startups were short on capital, a bunch of firms laid off employees in 2018. A year later, and digital currency companies are hiring.

Also read: Regulatory Roundup: EU-Wide Crypto Regulations, New Rules in Europe, US, Asia

Following Thousands of Lay Offs, Crypto Companies Start Hiring Again

Cryptocurrency and blockchain-related jobs are becoming more abundant these days as the industry seems to be recovering from last year’s price lows. During the North American Bitcoin Conference (TNABC), news.Bitcoin.com noted that there were at least six companies hiring in the exhibit halls. Searching online shows a great number of jobs are available on employment listing sites like Indeed, Monster, and Crypto-Careers.com.

Crypto Employment Abounds With More Than 8,000 Jobs in 2020

Crypto Employment Abounds With More Than 8,000 Jobs in 2020
The online employment search engine Indeed shows 521 cryptocurrency-related jobs and 1,938 blockchain careers available worldwide.

While searching worldwide for the term “cryptocurrency,” the job site Monster has 118 roles available. There are even more jobs available on Monster when searching the term “blockchain” – 2,558. The online employment search engine Indeed shows 521 cryptocurrency-related jobs and 1,938 blockchain careers available.

Crypto Employment Abounds With More Than 8,000 Jobs in 2020
The job site Monster has 118 crypto jobs available and 2,558 blockchain jobs globally.

Crypto-Careers.com shows 234 cryptocurrency job opportunities and 409 results for blockchain work. While perusing through all of the aforementioned job sites, the most wanted job within the cryptosphere right now is developers. All kinds of developers are needed from front end to back end, website designers, and engineers who can code with a variety of programming languages.

Crypto Employment Abounds With More Than 8,000 Jobs in 2020
Crypto-Career.com has 234 cryptocurrency jobs and 409 results for blockchain jobs worldwide.

According to Indeed, Shapeshift is hiring a security engineer to help identify and mitigate risks for the firm. The job comes with full benefits and has a starting pay of around $80,000 to $120,000. Binance is hiring an Android developer to work for the company’s subsidiary Trust Wallet. The EOS-based Block.one is hiring out of Virginia and needs someone who can program in C++ and work on EOSIO blockchain software. The ICE-owned marketplace Bakkt which offers physically-settled bitcoin futures products is also hiring a blockchain developer.

Crypto Employment Abounds With More Than 8,000 Jobs in 2020
Shapeshift is hiring a security engineer and the job offers full benefits and starts at $80,000 to $120,000 per year.

There’s More Than 8,000 Crypto and Blockchain-Related Jobs Available in 2020

On the career website Linkedin, Fidelity Investments is looking to hire bitcoin mining engineers in multiple locations across the U.S. According to Blockchain.com, the company is hiring “numerous roles” and employees can work remotely. For Blockchain.com’s London, San Francisco, and Vilnius offices the firm is looking for an Android engineer, data scientist, and front end developer.

Crypto Employment Abounds With More Than 8,000 Jobs in 2020
The popular San Francisco exchange Coinbase is hiring a decent number of positions.

Browsing Crypto-Careers.com, Monster, Indeed, and Linkedin shows there’s a plethora of non-developer jobs. Employment opportunities consist of jobs like analysts, marketers, writers, journalists, product managers and consultants. For instance, the popular tech firm Cisco is hiring a blockchain consultant who understands computer networking technologies. Well known digital currency businesses like Bitgo, Coinbase, Square Crypto, Kraken, and the Bitcoin Depot are also hiring.

Crypto Employment Abounds With More Than 8,000 Jobs in 2020
Blockchain.com is looking for a bunch of new employees.

Even Bitcoin.com has listed a few unique cryptocurrency positions One particular position available is for a senior Javascript lead engineer. The person applying for the job can work remotely, but Bitcoin.com would prefer someone from New York or London. The applicant needs a minimum of three years developing cryptocurrencies and a passion for the decentralized crypto bitcoin cash. Additionally, the lead engineer is required to have more than eight years of experience with Javascript. At the time of writing, Bitcoin.com is looking to fill 10 positions with jobs like an advertising account executive, full-stack developer, head of DevOps, iOS developer, product designer, marketing manager, and a senior product manager. If you’re interested in working within the crypto industry check out Bitcoin.com’s employment opportunities today.

Crypto Employment Abounds With More Than 8,000 Jobs in 2020
Fidelity Investments is hiring bitcoin mining engineers all around the U.S.

Between the top four online employment websites, there are more than 8,000 cryptocurrency and blockchain jobs available today. There’s a wide variety of different employment opportunities but the developer job is by far the most in-demand and the highest-paid as well. The large number of crypto companies and financial institutions willing to hire right now is a stark contrast to the thousands of lay-offs during the crypto winter.

What do you think about the 8,000+ crypto and blockchain jobs available in 2020? Let us know what you think about this subject in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Image credits: Shutterstock, Indeed, Linkedin, Monster, Crypto-Careers.com, Fair Use, Wiki Commons, Bitcoin.com Careers, and Pixabay.


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The post Crypto Employment Abounds With More Than 8,000 Jobs in 2020 appeared first on Bitcoin News.

Bitcoin Bears Are “Emotionally Broken” as Whales Stack Massive Buy Orders

Bitcoin appears to be currently trading at a pivotal price region, as its reaction to the resistance it is facing at $9,000 could set the tone for where BTC trends in the weeks and months to come. Analysts are now noting that they widely expect Bitcoin’s reaction to this level to ultimately result in a bullish movement upwards, which comes as bears appear to be growing increasingly weak. Another factor that could aid Bitcoin in seeing further bullish momentum is the fact that whales have been stacking major Bitcoin buy orders, suggesting that bears would need a massive amount of selling pressure to spark a downwards movement. Bitcoin Hovers Just Beneath $9,000 as Bulls Build Strength At the time of writing, Bitcoin is trading just below $8,900, which is around where it has been trading at for the past several days and weeks. BTC’s ongoing bout of sideways trading just below its key resistance at $9,000 is a bullish sign, as it suggests that the crypto will soon see an extension of its recently incurred upwards momentum as bears fail to garner enough strength to catalyze any sort of notable rejection. In the near-term, analysts are eyeing an imminent break of this key near-term resistance level, with UB – a popular crypto analyst – noting that BTC may be poised for an imminent movement to $9,100. “$BTC – I’m long. Ethereum has broken out with little to no rejection from the Highs. HTF still looks good for continuation up. First area of interest is $9.1k,” he explained in a recent tweet, suggesting that BTC could follow in the tracks of ETH’s recent breakout. $BTC – I'm long. Ethereum has broken out with little to no rejection from the Highs. HTF still looks good for continuation up. First area of interest is $9.1k. #Bitcoin pic.twitter.com/YXRnaM65wL — UB (@CryptoUB) January 18, 2020 Analyst: Lack of BTC Sell Liquidity to Spark Major Upwards Movement Another important factor that should be considered in the near-term is that the majority of seller’s liquidity has shifted from $9,000 to $9,500, which comes as bulls have “emotionally broken” bears – according to analyst Jacob Canfield. “Bears have been emotionally broken at resistance. Most sell side liquidity is gone and moved to $9500. Binance whale still defending the long side with 400 $BTC. The most logical target for longs at this point. I don’t see anyone selling at $9,000 across any exchanges anymore,” he noted while pointing to the chart below. Bears have been emotionally broken at resistance. Most sell side liquidity is gone and moved to $9500. Binance whale still defending the long side with 400 $BTC. The most logical target for longs at this point. I don't see anyone selling at $9,000 across any exchanges anymore pic.twitter.com/mD9gKzcJoZ — Jacob Canfield (@JacobCanfield) January 18, 2020 Because whales are stacking BTC buy orders just below its current price and bears are retreating towards the mid-$9,000 region, it does appear that a massive upwards movement is imminent. Featured image from Shutterstock. The post appeared first on NewsBTC.

Is Central Asia the New Safe Haven for Crypto Mining Amid Iran-US Crisis?

Are cryptocurrency mining operations moving from Iran to Central Asia in pursuit of stable cheap energy grids?

Recently, the cryptocurrency mining community has been shaken with rumors of Chinese miners leaving Iran — where crypto mining is authorized as an industrial activity — for Central Asia. The move has ostensibly been taken in an attempt to find a new safe haven amid the tensions between the United States and Iran, as well as rising oil and energy prices.

Iran’s attraction for crypto mining operations lies in subsidized electricity rates — as of July, 0.7 cent per kilowatt-hour (kWh), — which had purportedly even prompted miners from mining centers such as China to relocate their operations to the country.

The welcoming environment for crypto mining farms also pertains to Iran’s effort to transform into a hub for digital currency and blockchain adoption in response to escalating economic sanctions imposed by the U.S.

Following the legalization of crypto mining in the country, the Ministry of Industry, Mine and Trade began issuing licenses for the activity, which resulted in a surging demand. The activity is also set to be subject to taxation like in any other industry, and miners who create their own mining facilities will get support from the government.

Crypto miners’ concerns

However, despite the government’s friendly approach to the industry and favorable conditions, cryptocurrency miners have a number of causes for concern.

Energy Minister Homayoon Ha’eri said that price is dependent on market factors such as fuel prices in the Persian Gulf. Last fall, the fuel price jump of upwards of 50% led to mass protests and demonstrations in about 100 towns of Iran, which prompted the government to temporarily restrict access to mobile Internet in several provinces. The move purportedly forced many miners to cease their operations.

At the time, Mostafa Rajabi, a spokesman of Iran’s Energy Ministry, also said that the government was going to revise existing regulations and eventually disconnect crypto mining facilities from the national electric supply network during peak hours of consumption in Iran, which span about 300 hours a year.

Moreover, Iran’s government announced plans to change electricity tariffs for miners, wherein miners would pay an average fixed sum of $0.08 per kWh at some times of the year, $0.04 per kWh during eight cold months of the year, and $0.16 per kWh in the remaining months, when power consumption increases across the country.

And now, the Iran-U.S. military crisis has gripped the cryptocurrency community as on Jan. 3 a U.S. drone stroke on a convoy traveling near Baghdad International Airport, killing Iranian major general Qasem Soleimani of the Islamic Revolutionary Guard Corps.

Although the crisis arguably inspired some new respect for Bitcoin — whose price skyrocketed from $7,000 to nearly $8,500 supposedly due to the tensions between the two countries — and other cryptocurrencies, it, however, provoked an outflow of crypto miners from Iran.

Safe haven in Kazakhstan, Uzbekistan and Kyrgyzstan?

Chinese Bitcoin miners are now reportedly responsible for as much as 66% of the global BTC hash rate, which is likely to be a result of applying more advanced mining hardware. However, other leading crypto mining centers in the world include sites in the U.S, Russia and Kazakhstan.

Central Asian countries like Uzbekistan and Kyrgyzstan attract crypto miners with extremely low electricity tariffs as well, which makes them direct competitors to neighboring Iran. Under such conditions, Chinese miners are reportedly shifting their focus to these countries, especially given that they have developed more clear regulations towards the industry in recent years.

The situation in Uzbekistan

On Jan. 13, Uzbekistan’s National Agency for Project Management made it a priority to create a national cryptocurrency mining pool in a bid to consolidate the capacities of domestic and foreign miners at the national level.

As such, the agency intends to ensure the economic efficiency of crypto mining, boost the transparency and security of the industry, increase the efficiency of energy consumption in this area and increase the investment attractiveness of the country.

Still, the government of Uzbekistan ordered that cryptocurrency miners must pay three times more the existing electricity tariffs, which are now around $0.031 per kWh. Crypto trading remains legalized in the country, with participants enjoying tax breaks. However, foreign traders can only operate in the country if they create a local subsidiary in Uzbekistan.

To elaborate further on the matter, Cointelegraph reached out to Alan Dorjiyev, the head of the the Blockchain & Data Center Industry Development Association in Kazakhstan. Dorjiyev said that Uzbekistan’s approach to crypto mining is generally positive, although it is not the best place to operate a crypto mining facilities:

“Uzbekistan is overall positive towards mining. However the mining industry is centralised to one controlling body. It causes a lot of corruption when the government body decides to which miner they give electricity. Also this country has a deficit of power and high temperature during summer. Overall it is not the best place to do mining.”

...and in Kazakhstan?

Kazakhstan — where households pay $0.045 per kWh — is ostensibly developing legislation that will exempt crypto miners from tax obligations until the mined crypto is exchanged for fiat money. Specifically, the proposed law will establish the legal status of crypto mining as well as rules for its taxation. Dorjiyev commented on the matter:

“At this point in time, Kazakhstan government authorities have already created a very favorable climate for development of the industry. Their attitude is very friendly, industry is legal, banks are not closing accounts for mining companies. This industry has a multiplication economic effect on the economy as power stations are having new demand, grid is having more kWh to transmit, industrial companies are seeing increased demand for gas and coal.”

When asked about challenges crypto mining operators face in Kazakhstan, Dorjiyev stipulated that “the only challenge at the moment is building a low voltage infrastructure, so that miners can connect to the grid easier. At the moment miners are investing in electric infrastructure for lowering voltage from 110kv to 0,4kv.”

As for Kyrgyzstan, with the lowest power tariffs of $0.024 per kWh among the three countries, the country’s government submitted a draft law on amending the country’s tax code to introduce cryptocurrency mining taxation.

The Ministry of Economy of Kyrgyzstan seems to be exploring two possible options to implement taxes on cryptocurrency mining. The first option would be the taxation of income, while the second would be taxing expenses incurred during cryptocurrency mining.

Dorjiyev called Kyrgyzstan a very attractive place for crypto mining due to the electricity prices. At the same time, most of the energy power supplies in the country are generated by hydropower plants, which means that during the periods when the country suffers a deficit of water, crypto miners are limited in power supply.

Worth noting, Kyrgyzstan cut off power to 45 crypto mining firms as they had consumed more energy than three local regions combined in late September 2019. “The position of the government towards mining is not clear. Also, Kyrgyzstan is a country where most of the mining equipment is contraband,” Dorjiyev said.

Speaking about purported inflows of crypto mining machines from Iran to Kazakhstan, Dorjiyev also said that “no mining equipment is seen in Kazakhstan. My personal opinion is that most of the equipment in Iran doesn't have legal documentation, so it cannot be imported legally to Kazakhstan.” Dorjiyev concluded:

“Overall conditions for mining in Central Asia are truly favorable only in Kazakhstan. Mainly due to excess of electricity and overall openness of the economy towards investments in the IT sector. Plus, the draft of the new bill has already been passed to parliament, we expect it to be approved by June this year.”

Still, no official position toward crypto

While Uzbekistan, Kazakhstan and Kyrgyzstan are luring crypto mining operators promising favorable conditions, none of the countries has recognized digital currency as a legal tender or has an official position regarding digital assets.

Holders that are citizens of Uzbekistan can sell their current investments on two licensed exchanges after undergoing Know Your Customer procedures, ostensibly to avoid the possibility of money laundering. Any crypto assets whose origin cannot be proved are illegal to transfer or own in the country.

Cryptocurrencies were banned in Kyrgyzstan in July 2014 after the national bank warned it is illegal to use Bitcoin and other cryptocurrencies as a payment method.

The government of Kazakhstan has not developed an official position regarding cryptocurrencies. However, the Astana International Financial Center has reportedly created a special regime for cryptos under its own independent legislative prerogative.

Bitcoin on the Cusp of a Massive Rally as Analysts Closely Watch Monthly Close

Bitcoin’s firm uptrend throughout 2020 has now led it to reach a key near-term resistance level that its bulls are currently contesting. This has resulted in mixed feelings amongst analysts as to where BTC will go next. According to one prominent analyst, if bulls are able to push the cryptocurrency above this resistance level in the near-term, it will likely spark a violent upwards movement that sends it straight towards $9,500, which will put it just a stone’s throw away from $10,000. A rejection at $9,000, however, could spell serious trouble for the cryptocurrency, and signal that another firm mid-term downtrend is imminent. Bitcoin Pushes Up Against $9,000 as Bulls and Bears Reach an Impasse  At the time of writing, Bitcoin is trading up marginally at its current price of $8,900, which is around where it has been trading at for the past 24-hours. The cryptocurrency has tapped the $9,000 region on a few occasions over the past few days, with each visit to this level being closely followed by a slight sell-off that leads it down towards its current price levels. If Bitcoin is able to push above $9,000, FlibFlib – a highly respected cryptocurrency analyst on Twitter – explained that he will be closely watching for a movement up towards its previous weekly resistance at $9,555. “Previous weekly resistance @$9555 – Bring it home,” he said while referencing the chart seen below. Previous weekly resistance @$9555 – Bring it home $btc. pic.twitter.com/kKxlyvJ6V0 — fil₿fil₿ (@filbfilb) January 18, 2020 BTC’s Weekly Close Grows Increasingly Important If FlibFlib’s analysis does prove to be valid and Bitcoin pushes towards $9,500, it could mean that its recent uptrend will extend significantly further. The reason why BTC’s near-term price action is so critical for determining its future trend is that it is currently pushing up against resistance on its weekly chart, and a rejection here could mean further losses are inbound. “$BTC: If this is a bear market rally, it ends this month. If it’s a bull market rally you better be positioned. The monthly close is gonna be fun to observe, it’s either gonna be shattered bear or bull dreams,” DonAlt, another popular crypto analyst on Twitter, explained in a recent tweet. $BTC If this is a bear market rally, it ends this month.If it's a bull market rally you better be positioned. The monthly close is gonna be fun to observe, it's either gonna be shattered bear or bull dreams. pic.twitter.com/cYHyuYeyUs — DonAlt (@CryptoDonAlt) January 18, 2020 Because of this, how Bitcoin responds to its resistance at $9,000 could be the single key factor that sets the tone for just how significant this rally will be throughout the course of the new year. Featured image from Shutterstock. The post appeared first on NewsBTC.

These Simple Factors Suggest Ethereum Will Soon See a Major Bull Movement

Ethereum has been outperforming Bitcoin over the past 24-hours, posting a massive upwards movement that has allowed it to secure a position within the $170 region, which marks a notable climb from ETH’s recent lows around $120 that were set in the final weeks of 2019 Analysts are now noting that they anticipate Ethereum’s upwards momentum to continue strong in the coming days and weeks, with a few key technical factors enhancing the cryptocurrency’s near-term potential. Ethereum Breaks Out of Bullish Pennant as Analyst Watch for Further Upside At the time of writing, Ethereum is trading up just under 3% at its current price of $174, which marks a notable climb from its weekly lows of $144 and a slight climb from its daily lows of $167. Ethereum is also outperforming Bitcoin at the moment by roughly 2.5%, and this trend may continue strong in the near-term as the crypto begins building incredible technical strength. One such example of a bullish technical formation that ETH is currently breaking out of is the bullish pennant that it had formed over a multi-day time frame, with its horizontal boundary existing at 0.0195, which is just a hair beneath its current price. “ETH looks hungry,” Jonny Moe, a popular cryptocurrency analyst on Twitter, explained in a tweet from yesterday evening while pointing to the aforementioned technical formation. $ETH looks hungry pic.twitter.com/mfD0FXAXFF — Jonny Moe (@JonnyMoeTrades) January 18, 2020 If Ethereum is able to sustain its break above the upper boundary of this formation, it could soon see significantly further upside. ETH Is Close to Breaking Above a Key Multi-Year Resistance Another factor that could provide Ethereum with some near-term upside is the fact that it is currently on the cusp of breaking above a key multi-year resistance that has been guiding its price lower since early-2018. Teddy, another popular crypto analyst on Twitter, has been referencing this trendline as a source of his macro-ETH bearishness for quite a while, but he is now noting that if Ethereum closes above this line on its weekly candle chart, he will grow bullish on the crypto. “Historically I have been bearish, as I was looking at lowest support for a mega-galactic-long entry. However, if we were to close WEEKLY above a 2 year resistance I will start to long at long SWING entries on retraces – till then a bit skeptical,” he explained. #ETHEREUM | $ETH Historically I have been bearish, as I was looking at lowest support for a mega-galactic-long entry (🚀) __ However, if we were to close WEEKLY above a 2 year resistance I will start to long at long SWING entries on retraces – till then a bit sceptical. pic.twitter.com/shQLOH0GTW — TEDDY ⛓💡 (@teddycleps) January 18, 2020 How Ethereum reacts to this level in the coming few days could provide significant intelligence as to where it will trend throughout the rest of 2020. Featured image from Shutterstock. The post appeared first on NewsBTC.

What’s Next For Bitcoin’s Price? Analyst Who Predicted 35% Crash Says This

Earlier this year, in late-September, prominent Bitcoin analyst Filb Filb posted this chart below, showing that he expects for BTC to jump by dozens of percent to near $10,000, then collapse by 35% to the low-$6,000s to interact with the “miners bottom range.” While some laughed this off as pure bearish sentiment at the time, Filb Filb’s prediction was proven to be nearly 100% accurate, with Bitcoin surging past $10,000 in a temporary vertical relief rally, then crashing the mid-$6,000s just earlier this month. He managed to predict Bitcoin’s trajectory months in advance, something quite difficult for any trader due this market’s volatility. The same analyst is back again, issuing his latest forecast for the leading cryptocurrency. Related Reading: Ethereum’s Price is “Convincingly Bearish”: Here’s What Comes After 20% Week Bitcoin to Hit $9,555 Soon Filb Filb recently noted that Bitcoin is preparing to make a raid on the previous resistance level of $9,555, noting that this is where the price of the cryptocurrency topped in October and early-November in the wake of the now-infamous 40% “China pump.” BTC reaching this level, which would satisfy textbook market trends of assets visiting support and resistance levels multiple times before establishing a direction, would require it to rally by 7% from the current price of $8,850. Previous weekly resistance @$9555 – Bring it home $btc. pic.twitter.com/kKxlyvJ6V0 — fil₿fil₿ (@filbfilb) January 18, 2020 Not the Only Bull Filb Filb isn’t the only prominent analyst who is bullish on Bitcoin. Aside from Filb Filb, there are few traders that have been as accurate on BTC as Dave the Wave. In the middle of 2019, he claimed that he expects for BTC to drop by dozens of percent to bottom in the mid-$6,000s, which it did months later. Mind you, he made this harrowing prediction when investors were high on life, claiming that $20,000 and beyond was imminent. Related Reading: Research Firm: 3 Use Cases Could Send Bitcoin To $1 Trillion Dave recently issued his next prediction, saying that BTC is preparing to break higher than it already has, drawing attention to the below chart which shows BTC is trading in a clear uptrend. Per his analysis, the cryptocurrency’s price will likely surge another 32 percent to $11,500 by the middle of February—just four weeks away. Pennant starting to look more likely with price staying high here. Freebie from my alts page… pic.twitter.com/IZQAJIrgf0 — dave the wave (@davthewave) January 17, 2020 Backing this prediction, Dave looked to a confluence of factors: Bitcoin recently broke above a descending channel that has constrained price action for more than six months, marking a large win for bulls. BTC rallying to $11,500 would satisfy a historical chart pattern. The weekly Moving Average Convergence Divergence (MACD) is starting to trend higher once again, which was a signal seen in 2015/2016 as BTC moved from a bear market to bull. Related Reading: Bitcoin Price Signal That Preceded 4,000% Rally Forms Again, and It’s Huge for BTC Featured Image from Shutterstock The post appeared first on NewsBTC.

New Guidelines Subject Canadian Crypto Exchanges to Securities Laws

New Regulatory Guidance Subjects Crypto Exchanges in Canada to Securities Laws

Canadian regulators have issued new guidance determining when current securities legislation applies to operations conducted by cryptocurrency exchanges. According to the clarifications in the document, many domestic and foreign entities serving Canadian users, for example those that provide custodial services, will have to abide by the country’s securities laws and act like securities dealers.

Also read: Canadian Company Commissions 3 Bitcoin Mining Units to Restart Oil Well

CSA Tries to Explain When Cryptos Are Securities

The Canadian Securities Administrators (CSA), a council of the regulatory bodies of Canada’s provinces and territories, published on Thursday Staff Notice 21-327 Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets. The legal interpretation, which comes after a consultation paper proposed a framework for crypto asset trading platforms in March, is supposed to help operators identify situations where Canadian securities laws may or may not apply to their activities.

New Guidelines Subject Canadian Crypto Exchanges to Securities Laws

The CSA explains that in certain cases crypto assets clearly represent securities. A tokenized security, for instance, carries rights that are traditionally attached to common shares such as voting rights and rights to receive dividends, the organization notes. A crypto asset can also be a derivative, the CSA remarks, like when a token provides an option to acquire an asset in the future. The regulator points out:

Securities legislation may apply to platforms that facilitate the buying and selling of crypto assets that are commodities, because the user’s contractual right to the crypto asset may itself constitute a derivative, a security or both.

The agency notes that the relevant determination will depend on the specifics, including “the obligations and intention to provide immediate delivery of the crypto asset.” Trading platforms would not be subject to securities legislation if “the underlying crypto asset itself is not a security or derivative,” or when the contract for the purchase, sale or delivery results in an obligation to make immediate delivery of the asset to the user.

In an attempt to define what constitutes ‘immediate delivery,’ however, the CSA admits there is no “bright-line test” to determine whether a contract or an instrument results in an obligation to make and take immediate delivery of a crypto asset. At the same time, a crypto transaction may be subject to securities laws if it does not clearly result in such an obligation.

The CSA staff will examine the terms of the contractual arrangements between crypto exchanges and their users as well as their typical commercial practices to establish if they create an obligation for immediate transfer of ownership, possession and control of crypto assets. The organization which coordinates the regulation of capital markets across Canada also details:

As part of this analysis, we will consider whether the platform and the user intend, at the time the contract or instrument is entered into, to make and take delivery of the crypto asset on which the contract or instrument is based.

Custodial Platforms to Operate as Securities Dealers

Then there’s the question of how to establish not only whether but also when exactly a crypto asset has been delivered. According to the guide, an immediate delivery occurs when ownership, possession and control is immediately transferred by the exchange and the user is afterwards free to deal with the asset without further participation of the platform. Also, the exchange must not retain any security interest or other legal right to the asset and the user should not be exposed to any risks related to the platform in the future.

New Guidelines Subject Canadian Crypto Exchanges to Securities Laws

Relations with exchanges, domestic and foreign, providing custodial services will be subject to securities regulations as there’s no obligation for immediate delivery of the assets to a user-controlled wallet. Clients remain reliant on the platform and exposed to insolvency, fraud, and other risks on its part. This means that following the new guidance, many of the hundreds of crypto exchanges operating globally will have to apply and be licensed as securities dealers to work in Canada, if they maintain their current business models, the Globe and Mail noted in an article.

The notice issued by the CSA contains many abstract statements such as “focus on substance over form,” “typical commercial practice,” and “intention to make and take immediate delivery.” This highlights how difficult it is to produce clear definitions and apply the traditional set of terms and rules to the trading and exchange of cryptocurrencies and other crypto-related activities. The regulator acknowledges that “new fintech businesses may not fit neatly into the existing framework” and invites such companies to join its regulatory sandbox. Participants in the initiative will enjoy a faster application process for exemptive relief from Canada’s securities law requirements, the CSA promises.

What do you think of Canada’s new regulatory guidance regarding the application of securities laws to crypto trading? Share your thoughts on the subject in the comments section below.


Images courtesy of Shutterstock.


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How Bitcoin, Crypto Prices Correlate With Network Parameters

bitcoin correlation
There is now enough data to link Bitcoin and crypto price movements to easily quantifiable network parameters. Bitcoin’s Transactions Show Highest Correlation to Prices Transaction counts, active addresses, and price action show a connection for some coins, which explains heightened activity during rallies. A recent report by Longhash suggests some coins may reveal the intentions of their holders, based on on-chain activity. The correlations are visible both for a longer historical time frame and for the past two years when specific price movements were also reflected in transaction counts. Bitcoin (BTC) reveals the strongest relationship between on-chain transactions and price action. The connection is both long-term and historical but also linked to the latest rallies and price slides. “Both the number of transactions and the number of active addresses appear to correlate fairly positively with its price. This makes sense, of course — the more people are using and transacting with Bitcoin, the higher we might logically expect the price to be,” commented Longhash. Bitcoin daily transactions also picked up from January 1, when they fell to a low of 250,000 per day. As the prices moved up to a higher range, Bitcoin on-chain transactions are now closer to 350,000 per day. A similar relationship is seen for Litecoin (LTC), which is widely represented on exchanges. Both coins can be moved between markets for arbitrage. Additionally, heightened activity may be related to realizing profits. Ethereum (ETH) shows heightened transactions, though with a weaker correlation to market prices. Token Transactions Rarely Reveal Price Trends But beyond classical “coins”, tokens show a different picture. For networks like TRON (TRX), there is almost no correlation, or only very slight one, between price action and transactions. TRX tokens may be moved without fees, leading to high-count transactions, which are not always linked to using exchanges. For Binance Coin (BNB), there is also an inverse correlation between token movements and price action. The reason for this is that BNB, like other native exchange tokens, is mostly used within the Binance ecosystem, for trading or other fees and investment activities. For that reason, BNB is not always stored on personal wallets, and actually resides within the exchange. Longhash warns not to rely on transaction count levels for price action. For Bitcoin, rapid selling also leads to temporarily heightened transactions. Additionally, not all BTC price action relies on physically moving coins, as futures markets often don’t require a Bitcoin collateral or physical delivery. What do you think about price and transaction count correlations on various crypto blockchains? Share your thoughts in the comments section below! Image via Shutterstock The post appeared first on Bitcoinist.com.

Bitcoin Price Ready to Push Above Key Resistance to Hit $10,000

Bitcoin price is managing to hold $8,800 support, which means the recent upward trend can continue to $9.4K and $10K targets next.

Bitcoin (BTC) price sees a tremendous start of the year as it surged 25% year-to-date. Not only has Bitcoin been flourishing over the past few weeks, but altcoins have also been following along. Will Bitcoin continue the upward momentum, or is it a temporary top close?

Crypto market daily performance. Source: Coin360

Crypto market daily performance. Source: Coin360

Bitcoin breaks the 7-month downtrend

The price of Bitcoin broke through the downtrend a few weeks ago, which marked the possible end of the downwards pressure. The slight test of $7,600 confirmed this breakout, after which price continued to rally towards $9,000.

BTC USDT 12-hour chart. Source: TradingView

BTC USDT 12-hour chart. Source: TradingView

The price of Bitcoin broke above $8,200 and rallied towards $9,000. This level is currently providing a barrier to go through and is the next resistance.

BTC USDT 4-hour chart. Source: TradingView

BTC USDT 4-hour chart. Source: TradingView

The 4-hour chart is showing a similar move upwards. Remarkably, the $8,600 level instantly flipped to become support in the past few days, after which the price of Bitcoin continued to rally towards $9,000.

The occurrence of a possible bearish divergence is currently showing up on the charts. However, to confirm this bearish divergence, the price of Bitcoin needs to drop below $8,800.

But, $8,800 is currently holding, and the price has been moving in a tight range between $8,800 and $9,000. Thus, a breakout in the coming days looks likely. The question remains to which side this breakout will happen and what are the targets?

Total market capitalization breaks downtrend too

The total market capitalization has also broken the downtrend upwards and is currently hovering around $248 billion.

Total market capitalization cryptocurrency chart. Source: TradingView

Total market capitalization cryptocurrency chart. Source: TradingView

As the recent article showed, the next resistance is at $247-248 billion. The green zone at $195 billion became support, after which price continued to rally. A similar flip occurred at $207 billion, which led to the breakout of the downtrend.

The next resistance shows at $247-248 billion (our current price level) as that level supported during the summer period of 2019. This level should typically be where traders who are anticipating a breakdown to short or sell their positions. Breaking through this level would put the next targets at $268 and $350 billion.

Total market capitalization cryptocurrency 3-day chart. Source: TradingView

Total market capitalization cryptocurrency 3-day chart. Source: TradingView

The total market capitalization chart often shows a brighter view than the Bitcoin chart alone. The chart shows that the market capitalization bounced off a significant trendline. This trendline could define the support and trend for the coming years.

Aside from that, the $173 billion levels showed support and marked a bottom, after which the market capitalization rallied to the next resistance of $250 billion as discussed above. A breakthrough would generally lead to the continuation of this trend towards $350 billion.

Altcoin market capitalization looks identical to February 2019

Total altcoin market capitalization. Source: TradingView

Total altcoin market capitalization. Source: TradingView

The altcoin market capitalization is showing similarities with February 2019. The total altcoin market capitalization hovered below the support of $48 billion in that period, after which the breakout led to a surge of 190% in the months after.

A similar structure is shown in the recent chart. The total market capitalization had support at $52 billion, after which a break and flip of $58 billion caused a rally to the next resistance. The next resistance is the price level of $80 billion, where the current altcoin market capitalization is hovering.

If the altcoin market capitalization breaks through this zone, the next targets are found at $92 billion and $130 billion, which would mean that this market cap is at the same level as it was during the summer of 2019.

Bitcoin Dominance on the edge of breaking down

Bitcoin dominance chart. Source: TradingView

Bitcoin dominance chart. Source: TradingView

The chart of the Bitcoin dominance is showing signs of a potential breakdown. If the dominance of Bitcoin drops below 67%, a continuation of that drop towards 60% is likely to occur. Such a dropdown would lead altcoins to outperform Bitcoin.

The top of the Bitcoin dominance chart is displaying bearish divergences, which usually means a trend reversal. Similar signs were shown at the top in September 2018.

The bullish scenario for Bitcoin

BTC USD bullish scenario. Source: TradingView

BTC USD bullish scenario. Source: TradingView

The momentum is currently upwards, so the bullish scenario is likely. Based on the recent price movements, holding $8,800 is essential for continuation towards the upside.

If $8,800 holds as support, a breakthrough of the $9,000 level is likely to occur. The next resistance levels which I’m targeting are $9,400 and $10,000.

Overall, Bitcoin started to rally since $6,400, so the upwards continuation will be stopped at some point to consolidate. That’s the main thing I’m expecting in the coming weeks from Bitcoin. If Bitcoin breaks upwards again, it’s most likely to start ranging between $9,000-$10,000 for some time in preparation for the next push upwards.

Where do we establish that range? At this point, it’s not certain as we don’t have full confirmation of any short-term trend reversal, and the price is still looking to push upwards. If the price of Bitcoin breaks through $10,000, then FOMO (fear of missing out) could come back into the market, triggering the price to go towards $11,600.

The bearish scenario for Bitcoin

BTC USD bearish scenario. Source: TradingView

BTC USD bearish scenario. Source: TradingView

As stated previously, bearish scenarios are only bearish scenarios for short-term purposes, where the price generally needs to establish a range. Usually, bouncing from a new support level would lead towards a continuation in the trend, which has been upwards over the past weeks.

Resistances are found at $9,000 and $9,400. If the price of Bitcoin can’t break through $9,000 and drops below $8,800, bearish divergences on short timeframes confirm a short-term trend reversal and the main target would then become $8,250. If that doesn’t hold, the next destination for support is $7,600.

A similar perspective is given if $9,400 doesn’t break upwards (through which Bitcoin makes a blow-off top). Targets for the retracement would then still be $8,250 and $7,600 as the main support zones.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Next Bitcoin Price ATH to Fall in the $75k-$85k Range

next bitcoin price ath
With the crypto community awaiting Bitcoin’s next price ATH, Blockroots CEO warns that they might be disappointed if they expect BTC to hit $100k or more. Next Bitcoin Price ATH May Not be as High as Expected Bitcoin has been a hot topic ever since it started a massive bull run in late 2017, which led the coin to its all-time high (ATH) at $20,000. As everyone knows by now, the coin saw a massive drop after that, eventually reaching only $3,200 as its lowest point in the last three years. After the bearish 2018, the following year started showing signs of recovery, taking Bitcoin price almost to $14k by June 22, 2019. The coin then saw another drop, nearly cutting its price in half. However, the beginning of 2020 brought another surge that returned investors’ hope that this might be the year when BTC finally exceeds all previous milestones and goes as high up as to $100k, or more. While this is a popular opinion, Blackroots’ CEO, Josh Rager, disagrees with it. Rager recently made his expectations known on Twitter, admitting that it may be an ‘unpopular opinion,’ but he sees it as more realistic. In his recent tweet, he stated that Bitcoin’s next price peak will likely not be as high as people expect it to be. Despite the fact that numerous analysts have proposed prices from $100k to $300k — and some even suggested $1 million. Rager, on the other hand, claims that the simple rate of return shows the bottom to peak return reduces by 20% per cycle. With that in mind, he expects that Bitcoin’s next price ATH will only be between $75k and $80k. $BTC Unpopular Opinion: The next Bitcoin peak high will not be as high as most people think Lots of analysis out there point from $100k to $300k to $1M Simple rate of return will show you bottom to peak return reduces by around 20% each cycle IMO, next high hits $75k to $85k pic.twitter.com/EoWZqcWfbe — Josh Rager 📈 (@Josh_Rager) January 17, 2020 He further warned investors who are waiting for $100k or $1 million before taking profits, stating that they should not let greed get the best of them this time. According to Rager, once Bitcoin gets all over media and leaves Crypto Twitter, that will probably mean that it had reached its peak and that it will only go downhill from there. Just a word of caution for some of you who wait until $100k to $1M Bitcoin to take profits Don't let greed get the best of you this time When you see Bitcoin all over media and everyone outside CT talking about crypto, it's likely the top in, whether that's $50k, $75k, or $100k — Josh Rager 📈 (@Josh_Rager) January 17, 2020 He said that this may happen at any time, regardless of the price. It may happen at $50k, $75k, or $100k, according to Rager. Is a halving-inspired bull run on its way? 2020 is expected to be a big year for crypto, and especially for Bitcoin. BTC will see block rewards halving in only a few months, which will impact supply and demand in a way where a significant price increase is a very likely result. This will be Bitcoin’s third block reward halving, and if it ends up being anything like previous ones, it has excellent chances of inspiring another bull run. As some may remember, the first halving took BTC price from $12.31 to $994, which was a 7,976% growth. When the second halving came, the Bitcoin price surged from $650 to nearly $20,000. Of course, this did not happen overnight, and it took months for the coin to reach its current ATH. However, it is also worth noting that cryptos were still mostly unknown back then. Right now, countries around the world are working on regulating crypto, with some of them even developing their own cryptocurrencies. All that is left now is to wait for the halving to arrive, and to see who is right regarding the future of BTC price — Rager, or analysts who foresaw the price hitting somewhere between $100k and $1m. Do you think that Rager is right, or do you see it surging much higher than $75k? Join the discussion in the comments below, and let us know what you think. Image via Shutterstock,  Twitter @Josh_Rager The post appeared first on Bitcoinist.com.

Ethereum 2.0 Testnet Attracts 22,000 Validators

ethereum 2.0 validators
One of the broadest testnets for Ethereum 2.0 is advancing, already attracting 22,000 validators. The shift to proof-of-stake is still left for the future, but there are signs of incipient and growing interest. Largest Testnet for Ethereum 2.0 Starts Attracting Stakers Ethereum (ETH) has not moved as fast from mining to staking as previously promised. Instead, the network has taken a series of smaller steps. At the same time, entities interested in the ETH economics have tried to remain a step ahead, by testing the staking mechanisms offered. Prysmatic Labs has launched one of the largest testnets, outpacing single-client tests. The testnet launched this January 9, and immediately saw a pickup in reported validators. “Just saw nearly 100% participation from over 22k active validators on the world’s first boneless ETH2 testnet,” said Preston van Loon, a developer at Prysmatic, cited by Trustnodes. “These are 22k validating keys. It’s probably between 5 to 10 individual operators. Maybe more, but it’s hard to tell who controls keys and who’s just an observer,” he said. According to Raul Jordan, Prysmatic has launched the largest testnet so far, encouraging for the future of the second-largest crypto network. I just published Eth 2.0 Dev Update #42 — ‘Mainnet-Capable Testnet + Now Hiring!’ https://t.co/6lFOIlwcjd @prylabs #Ethereum, largest eth2 public testnet been live for 4 days — Raul Jordan (@raulitojordan) January 13, 2020 At the testnet level, Prysmatic has called for hackers to try and exploit the network. Moving to Ethereum 2.0 on an actual live network will be a high-stakes event, affecting a wide ecosystem of games, finance, and exchange apps. But the exact number of participants is in fact lower. This shows that moving to staking, Ethereum supporters may be quite a few at the beginning. The move to staking will displace the already well-developed mining ecosystem for Ethash rigs. Staking May Lock Up 10M ETH Based on rough estimates by Vitalik Buterin, moving to a staking model may lock up around 10 million ETH. Annualized inflation will increase slightly for ETH, and the annualized interest rate maybe around 6%. Still, the network will have to find a sweet spot for the number of stakers. The ETH rewards for staking will be variable, and the more ETH is staked, the fewer rewards will be proportionately distributed. This approach should discourage large-scale “whales” to take away most of the rewards while being overly influential. Ethereum 2.0 has been announced over a year ago, and based on the most optimistic predictions, a launch may arrive within six months. However, skeptics allow for more delays. Despite the interest in testing the staking mechanism, there are still doubts miners may end up working on an alternative blockchain, posing special dangers for decentralized finance apps, which hinge their token value on a stable, reliable Ethereum network. ETH traded at $169.73 after the most recent price recovery, getting close to its pre-crash level of stability around $180. What do you think about the shift to Ethereum 2.0? Share your thoughts in the comments section below! Images via Shutterstock, Twitter: @raulitojordan The post appeared first on Bitcoinist.com.

FATF Holds Global Forum to Discuss Crypto Supervision

FATF Holds Global Forum to Discuss Crypto Supervision

The Financial Action Task Force (FATF) and over 50 delegations involved in crypto supervision recently gathered to discuss how to regulate crypto assets and related service providers. While examining three key areas, they stressed the importance of international cooperation, citing that cryptocurrencies are global products.

Also read: Regulation Roundup: EU-Wide Crypto Regulations, New Rules in Europe, US, Asia

FATF-Led Discussion on Crypto Supervision

The Financial Action Task Force held a “supervisors’ forum” in France last week to discuss crypto asset supervision. The aim of the forum was “to promote more effective supervision by national authorities” in the area of crypto assets and related service providers. The FATF is an intergovernmental organization with a focus on developing policies to combat money laundering and terrorism financing. Supervisors are designated authorities or non-public bodies with compliance responsibilities of each country.

According to the FATF, this event was the first opportunity for regulators to discuss how to implement new measures for crypto assets and related service providers since it finalized them in June 2019. Attendees included 135 representatives from over 50 delegations involved in virtual asset supervision, the FATF detailed, elaborating:

Supervisors play an important role in ensuring that regulated entities, such as banks and financial institutions, implement the FATF’s standards to detect and prevent money laundering and terrorist financing.

A FATF supervisors’ forum.

3 Key Areas Discussed

The event’s participants shared their knowledge and experience in supervising and regulating virtual assets and virtual asset service providers (VASPs). They discussed three main topics, starting with the lessons learned so far from countries that have already established a regulatory framework for cryptocurrencies and VASPs.

The second topic concerns common issues when drafting VASP laws and regulations. Representatives shared their approach to developing an AML/CFT regime for VASPs in their jurisdictions and outlined how they were implementing the FATF’s recommendations. The third topic discussed was about the tools, skills, procedures, and technology needed to effectively supervise VASPs. The FATF remarked:

The importance of international cooperation was also highlighted, as virtual assets are inherently global products.

The supervisors and regulators identified a number of areas that need further action which they plan to discuss at the next FATF Plenary and other supervisors’ meetings to be held in May.

Implementing the FATF Standards

The supervisors’ forum is an initiative of the Chinese Presidency of the FATF to promote more effective supervision by national authorities. Two have been held so far, the first of which was held in November 2019 in Sanya, China. It focused on the effectiveness of supervision without discussing crypto assets.

FATF Holds Global Supervisors' Forum to Discuss Crypto Supervision
The FATF’s explanation from its crypto guidance.

The FATF issued guidance for crypto assets and VASPs in June 2019, with the support of the G20 countries. The money-laundering watchdog subsequently revised its assessment methodology. It sets out how the FATF will determine whether countries have successfully implemented its recommendations and are regulating the crypto sector. The FATF’s rules apply both when cryptocurrencies are exchanged for fiat currencies and for other digital assets.

The challenge now is for countries and affected entities to effectively implement its recommendations, the FATF affirmed. By bringing together practitioners from around the world, the organization explained that it “is beginning to develop a global knowledge base on ‘what works’ in supervising virtual assets,” adding:

This will help ensure a consistent global approach to supervision and will help the VASP sector adjust to the new regulatory environment.

A FATF meeting.

While acknowledging that implementing its requirements will be challenging for the crypto sector, the FATF believes that “it will ultimately increase trust in blockchain technology as the backbone behind a robust and viable means to transfer value.” Noting that adopting its rules will “ensure transparency of virtual asset transactions and keep funds with links to crime and terrorism out of the cryptosphere,” the money laundering watchdog declared:

Countries need to implement the FATF’s measures, and soon … The FATF will evaluate next steps in June 2020.

Do you think the FATF’s recommendations are good for the crypto industry? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Images courtesy of Shutterstock and FATF.


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‘Weak Hands Are Out’ — Trader Who Called $20K Bitcoin Top Calls Bottom

Progress in 2020 has turned Bitcoin bullish, says Brandt, who now recommends potential investors hold up to 20% of their portfolio in the cryptocurrency.

Bitcoin (BTC) investors who are waiting for a price dip to even $6,000 have “missed” their opportunity already, veteran trader Peter Brandt says.

In a market discussion with Cointelegraph on Jan. 17, the 40-year market stalwart said that contrary to what some believe, BTC/USD has already hit its floor.

Brandt: “The weak hands are out”

“They all now want to sit and buy a break back to $6,000 or $5,000 and they’ve missed the bottom — and during that bottom, I think you had a lot of people accumulate with strong hands,” he summarized.

Brandt continued:

“The weak hands are out; the strong hands own it.”

As a long-time Bitcoin advocate, Brandt was continuing a bullish streak he began on social media earlier this month.

As Cointelegraph reported, his personal sentiment has undergone a change since late 2019 — as recently as December, he had warned there remained a chance for Bitcoin to put in lower lows in 2020 thanks to novice investors he described as “cryptocultists.”

In early 2018, one month after Bitcoin reached its all-time highs of $20,000, Brandt warned markets would not be going any higher, and that an 80% retracement was likely. BTC/USD hit local lows of $3,100 — 84.5% lower — a year later.

Now, however, the danger has subsided, Brandt suggested, in comments echoed in the discussion by fellow trader Alessio Rastani.

“Anybody” should have 10-20% BTC portfolio

“I think anybody who is interested in what Bitcoin has to offer has to have at least 10-20% of an ownership position relative to the capital that they could commit to Bitcoin in a bigger perspective,” he advised.

Bitcoin has sealed monthly gains of around 35%, with 2020 progress alone at 25%. Markets reached local highs of $9,000 on Friday, before encountering resistance, which coincides with the 200-day moving average price, something which has historically stifled bullish progress.

The latest statistics meanwhile suggest that interest in Bitcoin extends beyond lay consumers — volume surges on futures markets signal institutional commitment as well, commentators have said.

Cointelegraph regularly produces Market Discussions, Interviews and Documentaries. To watch more of our videos, subscribe to Cointelegraph’s YouTube channel.

When a Tesla Car Becomes a Bitcoin Node…

bitcoin node in tesla
Bitcoin users recently decided to try using their Tesla electric car as a full BTC node, and it worked. Tesla Electric Car becomes a full Bitcoin node Electric cars and digital currencies are not usually two things that people would think to connect in any way, but they do have a few things in common. Both are considered emerging technologies that can make the world a better place. Both are also becoming increasingly popular around the world. However, according to a recent video that was posted by some members of the Bitcoin community, they may establish an even deeper connection. The video in question shows that Tesla cars can also be used for running Bitcoin. Crypto fans used the car’s onboard computer system to turn the electric vehicle into a Bitcoin full node. Downloading full blocks to this @Tesla pic.twitter.com/j4L84QycxX — bcoin (@Bcoin) January 16, 2020 As unlikely as it sounds, the attempt was actually successful, and its success was ensured by a project called Bcoin. This is a project that seeks out the alternative implementation of the Bitcoin protocol, which can be used to run a node on any machine. As a result, the Bitcoin network briefly had an entire car, helping with the process of running the world’s largest digital currency. Why Running a BTC node on Tesla is a bad idea Of course, while this was quite a unique way of presenting the Bcoin project, as well as Tesla’s capabilities — running a Bitcoin node via the Tesla car is probably not the best idea. As many already know, running a Bitcoin node requires a lot in terms of resources, including processing power. Not to mention the fact that the computer that is used for running a node needs to download and process Bitcoin blockchain’s data, which could dangerously interfere with the UX experience of the car’s computer. Not a good idea! Two problems… 1) Memory & processing concerns that could impact UX2) Wear on internal storage. Honestly, my biggest concern. #Tesla is known to have issues with memory module lifespan due to limited read/write cycles. — Brandy Lee Camacho (@brandylee79) January 17, 2020 Furthermore, Tesla car’s memory modules were already known for being problematic due to limited read/write cycles, and using the car for running a blockchain node is likely to interfere with them further. However, according to Bcoin’s developers, they were familiar with these problems. In fact, their website even features a warning that reads: “This will use a lot of your bandwidth, CPU, and potentially disk space.” In other words, they likely did not try to run their new car node for very long, just long enough to record a video and prove to the world that it was possible. While this is the first time that a car was turned into a Bitcoin node, it is not the first time that the crypto community tried to use non-PC devices for running a full node. In fact, one experiment revealed that Raspberry Pi single-board computers are pretty good when it comes to syncing the blockchain. Another thing to remember is one thing that Twitter and Tesla have in common, which would be the car maker’s CEO, Elon Musk, who is well known for his presence on Twitter. So far, Musk did not share his thoughts on this experiment. He also never admitted to being a crypto investor, although he started dropping crypto references in his tweets quite often in the last several months. On one occasion, he stated that Bitcoin is ‘quite brilliant,’ and on another, he said that ‘Ethereum deserves some merit.’ He even revealed that Dogecoin is likely his favorite coin. What are your thoughts on using Tesla cars for running a Bitcoin full node? Let us know in the comments below. Image via Twitter: @Bcoin, @brandylee79 The post appeared first on Bitcoinist.com.

Are Attacks Between Rival Blockchains About to Rise?

It's no secret that rival blockchain networks, or to be more precise, the people behind the projects, don't like each other. The Bitcoin community rags on Ethereum, while the EOS community rags on Tron, and so on, in a seemingly endless chain of barbs, criticisms and mockery. But does the war of words between cryptos ever spill over into something more aggressive and