Prominent Bitcoin Trader – Price is Heading Towards $100,000 in 2018

Prominent Bitcoin Trader - Price is Heading Towards $100,000 in 2018

Prominent Bitcoin Trader – Price is Heading Towards $100,000 in 2018

Earlier this week, prominent bitcoin trader and investor Tone Vays provided technical analysis on bitcoin’s short-term trend, major price correction following the nationwide ban on Chinese bitcoin exchanges, bitcoin’s swift recovery, and the long-term future of bitcoin.

The analysis of Vays demonstrated the potential of bitcoin price to surpass the $100,000 mark by the end of 2018, which would provide bitcoin a multi-trillion dollar market cap. For many years, financial analysts and researchers in both the cryptocurrency and banking sectors such as RT’s Keiser Report host Max Keiser emphasized the possibility of bitcoin to surpass $1 trillion in market cap if and when it succeeds in evolving into an alternative financial network against existing banking systems and financial institutions.

Prominent Bitcoin Trader - Price is Heading Towards $100,000 in 2018

Based on the exponential growth rate of bitcoin regarding userbase, adoption, developer activity, trading volumes and market cap, a long-term price target of $100,000 is possible to achieve, especially if leading institutional and retail investors continue to endorse, embrace and adopt bitcoin. In 2017 alone, $90 billion investment bank Goldman Sachs and Fidelity Investments with $2.13 trillion worth of assets under management expressed their optimism toward bitcoin.

In August, Fidelity CEO Abigail Johnson stated:

“But I am still a believer – and it’s no accident that I’m one of the few standing before you today from a large financial services firm that hasn’t given up on digital currencies.”

Johnson also revealed that the company has been experimenting with bitcoin through mining the digital currency and by providing a bitcoin investment platform to its clients. Last month, Fidelity partnered with Coinbase to enable Fidelity clients and portfolio managers to access their bitcoin wallets and accounts directly from the main Fidelity investment platform.

Goldman Sachs analysts further emphasized in a note to its clients and investors that bitcoin and the cryptocurrency market can no longer be ignored, even by institutional investors.

“The debate has shifted from the legitimacy of the ‘fiat of the Internet’ to how fast new entrants are raising funds,”

said Goldman Sachs. More to that, Goldman Sachs chief technician Sheba Jafari also offered technical analysis on bitcoin’s mid-term price trend, stating that he strongly believes bitcoin will surpass the $4,800 mark before the end of 2017.

said Goldman Sachs. More to that, Goldman Sachs chief technician Sheba Jafari also offered technical analysis on bitcoin’s mid-term price trend, stating that he strongly believes bitcoin will surpass the $4,800 mark before the end of 2017.

Already, two of the US market’s largest exchanges and bitcoin service providers Coinbase and Gemini have started to develop trading platforms for large-scale institutional investors, focusing on building a more robust and efficient investment channel which can provide sufficient liquidity for retail investors. Gemini entered into a strategic partnership with the Chicago Board Options Exchange (CBOE), the largest options exchange in the US, to serve instituitonal investors.

Gemini CEO Tyler Winklevoss stated:

“Gemini’s key concerns in the cryptocurrency ecosystem have always been security, compliance and regulatory oversight. By working with the team at CBOE, we are helping to make Bitcoin and other cryptocurrencies increasingly accessible to both retail and institutional investors.”

Upon securing a $100 million funding round at a valuation of $1.6 billion, Coinbase CEO Brian Armstrong also promised its users and investors to provide a platform for institutoinal investors in the US and overseas markets.

With an increasing number of instituitonal and retail investors showing interest in bitcoin and global mainstream adoption of bitcoin increasing generally, $100,000 is an achievable long-term target for bitcoin.

 

Author Joseph Young on 21/09/2017

 

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Wall Street Journal Argues Bitcoin Is “Probably worth Zero”, Joins Obituary List

Wall Street Journal Argues Bitcoin Is “Probably worth Zero”, Joins Obituary List

Wall Street Journal Argues Bitcoin Is “Probably worth Zero”, Joins Obituary List

One of the Wall Street Journal’s most read articles of the day implies that bitcoin’s volatility reveals that the cryptocurrency is “probably worth zero.” The author of the piece starts by stating that a borderless digital currency out of the government’s reach that allows for semi-anonymous transactions sounds good, but that he’s not really a bitcoin fan because of the small number of transactions it can handle, and the amount of power necessary to maintain the network.

Bitcoin is scalable and can eventually reach and surpass VISA’s volume of, on average, about 2,000 transactions per second (tps). As CCN previously reported, SegWit’s activation on both the litecoin and bitcoin networks enables cross-network transaction swaps between the two cryptocurrencies, facilitating a host of other innovations, making it clear that, in the future, the problems that currently haunt the cryptocurrency won’t be there anymore.

The author then uses Gresham’s law, the principle that “bad money drives out good money” to argue against bitcoin. The article reads:

“Given the choice of spending inflationary government-issued money or something which holds its value, everyone would spend the bad paper stuff and hoard the bitcoin.”

In his argument, he says that no one wants to be the person that once bought two pizzas for 10,000 bitcoins, when the cryptocurrency was nearly worthless. The point being that if no one spends the currency while waiting for it to gain value, it will never really get established as a currency. Then again, no one in Venezuela wanted to see their currency’s value decrease, but the people didn’t have much of a say in that and, as such, were forced to use bitcoin to survive.

Then, unpacking the idea of bitcoin being based on illegal transactions, the author uses math done by Dan Davies, a bank analyst at Frontline Analysts in London, to assume that all drug dealing moves online, so as to get to $571 per bitcoin. The argument adds that drug dealers might put up with bitcoin’s current problems – which I addressed above – as laundering dollars is harder and more expensive than transacting in bitcoin.

Given that various studies already clarified that criminals aren’t using bitcoin that much, the value would be much lower, according to WSJ’s article. As such, the author concludes that bitcoin’s current price, of nearly $4,000, is mostly speculation and that JP Morgan’s Jamie Dimon was right to compare it to the 17th-century Dutch tulip bubble.

Basing the cryptocurrency on illegal activity neglects that hundreds, if not thousands, of legitimate businesses already accept bitcoin, so much so that it’s possible to live on bitcoin. Plus, the cryptocurrency is mostly used for legitimate purposes by those who simply want to be in charge of their own money, not those who have something to hide.

 

Bitcoin as Digital Gold

WSJ’s article goes on to imply that bitcoin’s true believers cling to the idea of it being digital gold that will maintain its value if a government currency collapses, and that this idea is supported by history’s examples of it happening.

The article points out that gold has had thousands of years and a history of being used to back fiat money to support its current position. Bitcoin has had less than a decade to prove its worth and most people just only heard of it. A recent study by YouGov revealed that 34% of Americans never even heard of bitcoin, and that 29% thought the cryptocurrency was just used to purchase illegal goods or services.

Still, bitcoin’s potential to replace gold led to a $5,500 price per coin, switching Thomson Reuters GFMS’ estimate of 2,155 metric tons of gold held in exchange-traded funds to the cryptocurrency. If bitcoin was to completely replace gold coins and bars, given GFMS’ supply estimate of 24,000 metric tons bought for investment in the past half-century, we would get $61,000 per coin.

Finally, the author states that bitcoin’s volatility can somewhat be explained by it either succeeding or failing in completely displacing gold, implying that the cryptocurrency is either extremely precious, or worthless. The article reads:

“Based on the simple choice between total success and failure, we can very roughly say that bitcoin at 70% of the gold ETF-derived price suggests a 70% of displacing so-called paper gold as society’s chosen emergency store of value, and a 6% chance of displacing physical gold. Even digital dreams should accept that is far too high.”

At the end of the day, bitcoin’s value, just like the value of other cryptocurrencies, depends on its users as it is the first free market backed currency, and its growth is consistent with its userbase increase. A quick look at Google Trends shows us that interested in the cryptocurrency is still surging.

At the end of the day WSJ’s article is just one more to add to the bitcoin obituary list.

 

Author: Francisco Memoria on 20/09/2017

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Bitcoin Mining Could be China’s Next Target – Why It Does Not Matter

Bitcoin Mining Could be China's Next Target - Why It Does Not Matter

Bitcoin Mining Could be China’s Next Target – Why It Does Not Matter

 

Several sources including the Wall Street Journal have reported that the Chinese government and its regulators may target bitcoin mining operators in the region following the imposition of a nationwide ban on cryptocurrency and bitcoin exchanges.

Experts in the cryptocurrency sector and mining industry including John McAfee strongly believe that the Chinese government will not order a crackdown on bitcoin mining centers and operators. As Cryptocoinsnews previously reported, McAfee revealed that Jihan Wu, the co-founder of Bitmain, the world’s largest bitcoin mining equipment manufacturer that is reportedly valued at billions of dollars, told McAfee in a meeting with Roger Ver that the Chinese government is not planning a ban on mining centers.

But, in a statement, ViaBTC CEO Haipo Yang explained that if the Chinese government decides to ban bitcoin mining centers and operators, it will be the end of the Chinese bitcoin mining industry. Yang wrote:

“Technically, China can’t ban bitcoin traffic, we have our own sync network. But if the Chinese government says mining is illegal, we are fucked.”

As Yang noted, it is possible for the Chinese government to target bitcoin mining operators in many methods. For instance, the Chinese government could decide to nationalize bitcoin mining centers and announce them as the property of the Chinese government.

For the Chinese mining industry, the crackdown on bitcoin mining by the government will lead to financial turmoil. More specifically, companies like Bitmain that recently secured multi-million dollar funding rounds will not be able to serve their biggest markets, which are domestic miners and mining centers.

Earlier today, through its a PBoC-owned financial news publication, PBoC researcher and Central University of Finance and Economics professor Huang Zhen explained that the central bank of China perceives bitcoin as a threat. More importantly, Zhen emphasized that the government plans to release a government-issued national digital currency in the future, as a rival currency to bitcoin.

If the intention of the government is to eliminate bitcoin in the Chinese market in order to promote and issue its own digital currency, the Chinese government will likely ban aspect of bitcoin. But, in contrary, if the Chinese government is not ready to release a digital currency of its own, it will re-instate bitcoin trading platforms and prevent from issuing any further restrictions and regulations on bitcoin miners.

“The central bank has set up a research group and a digital money research institute to explore the digitization of sovereign money. After this round of virtual money markets supervision, we expect under the auspices of the Chinese central bank to launch our own sovereign digital currency as soon as possible to help maintain China’s leadership in the development of global digital finance,” Zhen wrote.

Ultimately, even if the Chinese government does ban bitcoin mining centers and operations in China, in the mid-term, it will not pose a major threat to the global bitcoin mining industry primarily due to the emergence of multi-billion dollar Japanese conglomerates that are developing their own ASIC miners and manufacturing independent bitcoin mining equipment to mine the digital currency.

 

Author: Joseph Young on 19/09/2017

 

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Bitcoin Price Technical Analysis for 19th September – Can Bulls Keep It Up

Bitcoin Price Technical Analysis for 09/19/2017 – Can Bulls Keep It Up

Bitcoin Price Technical Analysis for 09/19/2017 – Can Bulls Keep It Up

Bitcoin price seems to have completed a large correction and is ready to resume its long-term uptrend.

 

Bitcoin Price Key Highlights

  • Bitcoin price has bounced off a long-term area of interest after its recent sharp drop, signaling that the uptrend could still resume.
  • Applying the Fib extension tool on this major correction could indicate how high bulls could take bitcoin from here.
  • Technical indicators on the daily time frame also suggest that the long-term climb could carry on.

Bitcoin price seems to have completed a large correction and is ready to resume its long-term uptrend.

 

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA on the daily chart, signaling that the path of least resistance is to the upside. The gap is also gradually widening to reflect strengthening bullish momentum. Also, the 100 SMA has recently held as dynamic support as it lined up with the rising trend line connecting the lows since April.

Stochastic has pulled up from the oversold region to show that buyers are regaining control of bitcoin price action. RSI is also turning higher and appears to be heading north so bitcoin could follow suit.

The next potential resistance is at the 38.2% extension just past the $4000 major psychological barrier. The 50% extension is at $4637, the 61.8% extension at the $5000 handle close to the record highs, and the 76.4% extension at $5464. The full extension is around the $6200 level.

Bitcoin 19th September

Market Factors

Chinese regulators have confirmed that they are stepping up their efforts to crack down on the cryptocurrency, following rumors that authorities are already shutting down exchanges in the country. However, investors seem to have moved on from this news as other markets like Japan and South Korea are taking majority of the market share and activity.

Meanwhile, the US dollar is giving up some ground to bitcoin price ahead of the FOMC decision, during which the central bank would likely keep rates on hold and downgrade growth forecasts on account of the recent hurricanes. A press conference will also follow and Yellen’s responses will be scrutinized as traders hunt for clues on December tightening.

Author Sarah Jenn on 4:23 am September 19, 2017

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Bitcoin Price Technical Analysis for 09/18/2017 – Chance to Short?

Bitcoin Price Technical Analysis for 09/18/2017 – Chance to Short?

Bitcoin Price Technical Analysis for 09/18/2017 – Chance to Short?

Bitcoin price is making a correction from its recent selloff, but it might be ready to resume the drop soon.

Bitcoin Price Key Highlights

  • Bitcoin price has been selling off in the past few days on reports that China has officially confirmed it would be shutting down exchanges.
  • A bearish channel can be seen on the 1-hour time frame and it’s currently showing a pullback opportunity.
  • Price is stalling at the top of the channel resistance but a higher pullback to the $4000 area of interest might be possible.
  • Bitcoin price is making a correction from its recent selloff, but it might be ready to resume the drop soon.

Technical Indicators Signals

The 100 SMA is below the longer-term 200 SMA on this time frame, so the path of least resistance is to the downside. The 200 SMA dynamic resistance lines up with the channel resistance around $3850 and the 61.8% Fibonacci retracement level, adding to its strength as a ceiling.

However, there’s also another area of interest located at the $4000 psychological level, which held as support in the past. This could serve as the line in the sand for this correction and a break past the level could indicate that buying pressure is back in the game.

Stochastic is still pointing up so there’s some bullish momentum left. RSI is also heading north so bitcoin price might follow suit. If the selloff resumes, bitcoin could drop to the swing low near $3000 or form new ones closer to the channel support at $2800.

Bitcoin Price Technical Analysis for 09/18/2017 – Chance to Short?

Market Factors

News that BTC China would be halting trading for its clients by the end of the month pretty much sealed the deal for speculations that the world’s largest bitcoin market would see a large drop in activity. Liquidation has been taking place for the most part of the previous week and this would likely carry on in the coming days.

As for the dollar, the focus has been on tax reform, which has been bullish for the fiat currency. Easing fears of a North Korea missile strike have also weighed on bitcoin price as this is often treated as digital gold during risk-off days. Meanwhile, the upcoming FOMC decision could still be a risk factor for BTCUSD as downbeat remarks could lead to a selloff for the dollar.
 

4:26 am September 18, 2017

Author Sarah Jenn

 

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U.S. Bill Would Ease Bitcoin Tax Regulations for Small Transactions

U.S. Bill Would Ease Bitcoin Tax Regulations for Small Transactions

U.S. Bill Would Ease Bitcoin Tax Regulations for Small Transactions

Two U.S. congressional representatives have introduced a bill that would reduce bitcoin tax reporting requirements. If the bill is signed into law, U.S. bitcoin users would no longer have to report transactions worth less than $600.

The Cryptocurrency Tax Fairness Act of 2017, introduced by Congressional Blockchain Caucus co-chairs Rep. Jared Polis (D-CO) and Rep. David Schweikert (R-AZ) is a bipartisan attempt to reduce the regulatory burden on people who use cryptocurrency to make small, everyday transactions and not solely as an investment vehicle.

Unfortunately, current laws classify bitcoin as “property” in all cases, meaning that U.S. residents have to pay capital gains taxes every time they make a cryptocurrency transaction, no matter how small. This bill would bring nuance to bitcoin tax regulations, ensuring that bitcoin is treated like a currency when used as one.

“Cryptocurrencies can be used for anything from buying a cup of coffee to paying for a car, to crowdfunding a new startup and more and more consumers are choosing to use this type of payment. To keep up with modern technology, we need to remove outdated restrictions on cryptocurrencies, like Bitcoin, and other methods of digital payment,” said Polis in a statement posted on his official website. “By cutting red tape and eliminating onerous reporting requirements, it will allow cryptocurrencies to further benefit consumers and help create good jobs.”

According to the U.S. Internal Revenue Service (IRS), most cryptocurrency users are already out of compliance with these laws. The tax agency says that only 802 people declared cryptocurrency transactions on their income tax returns in 2015. Consequently, the agency has contracted with blockchain-tracing firm Chainalysis to locate bitcoin tax cheats and has attempted to force bitcoin exchange Coinbase to reveal their customers’ personal information.

Of course, the Cryptocurrency Tax Fairness Act would not remove all reporting requirements for bitcoin transactions. Users will still have to pay the bitcoin tax on transactions larger than $600, which are more likely to be investment-related and thus subject to capital gains regulations.

That said, the legislative process is an arduous one, and many bills die before they even reach a vote. U.S. residents should demonstrate their support by contacting their representatives in Congress and asking to lend their support.

“Individuals all over the world are starting to use cryptocurrencies for small every day transactions, yet here in the States we have fallen behind and make cryptocurrency use more of a challenge than it needs to be,” added Schweikert. “With this simple legislative change, anyone can make digital payments to buy a newspaper or a bike without worrying about tax code challenges.”
 

Author: Josiah Wilmoth on 16/09/2017

 

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$11 Billion – 24-Hour Cryptocurrency Trading Volume Hits New Record

$11 Billion - 24-Hour Cryptocurrency Trading Volume Hits New Record

$11 Billion – 24-Hour Cryptocurrency Trading Volume Hits New Record

Cryptocurrency trading volume reached a new milestone on Friday, crossing $11 billion for the first time amid regulatory uncertainty in China.

Crypto Markets Post Record Volume

According to data obtained from CoinMarketCap, the combined 24-hour trading volume of all cryptocurrencies rose to $11.5 billion shortly after 16:00 UTC. The only other time daily trading volume has surpassed $10 billion was on August 19, when it briefly spiked to $10.5 billion


Cryptocurrency Trading Volume & Market Cap Chart from CoinMarketCap

Bitcoin topped the charts with $4.2 billion in volume, while ethereum and litecoin posted $1.9 billion and $1.5 billion, respectively. In all, 10 different currencies posted volume greater than $100 million.

$11 Billion - 24-Hour Cryptocurrency Trading Volume Hits New Record
Chart from CoinMarketCap

Bithumb and Bitfinex each handled about $1.5 billion in trades while Chinese bitcoin exchange OKCoin accounted for $750 million. Altogether, at least seven exchanges, including GDAX, Bittrex, Poloniex, and Huobi surpassed the $500 million mark (Volume had tapered off a bit by the time of writing, so it is possible Kraken and Coinone crossed $500 million earlier in the day).

Friday’s trading volume surge was caused by market volatility stemming from China’s crackdown on bitcoin exchanges. Yesterday, the markets crashed following reports that a bitcoin exchange ban was “certain” and BTCC’s subsequent announcement that it would shut down all trading services at the end of September. The markets continued to plunge Friday morning as Huobi and OKCoin were rumored to be meeting with regulators and two smaller exchanges–Yunbi and ViaBTC–also announced September closures.

However, later in the day OKCoin and Huobi issued concurrent statements that suggested they might continue providing cryptocurrency-to-cryptocurrency trading services. Both exchanges announced that they would close CNY trading pairs on October 31, but–unlike BTCC, Yunbi, and ViaBTC–they did not announce the suspension of “all trading.” Moreover, they indicated that they “expect to continue to provide Chinese users with [compliant] digital asset services.”

These announcements led to an immediate rally, and trading volume soared to a record level as the markets climbed back to $120 billion after dipping below $100 billion earlier in the day.

 

Author: Josiah Wilmoth on 15/09/2017

 

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Bitcoin Price Analysis – A perfect storm

Bitcoin-Price-Analysis-Sept-15-2017-Banner3

Bitcoin Price Analysis – A perfect storm

Bitcoin has dropped ~USD$400 in the past 24 hours, contributing to a ~USD$1450 drop in the past seven days. The leading cryptocurrency is down ~US$1150 Since the recent high of ~US$4950 on Sept 2nd, or nearly 30%. The lackluster performance can be attributed to both technical and fundamental factors.

On September 4th, China announced an outright ban of all ICOs, suggested refunding any collected funds in any ongoing crowd sales, and hinted at the shuttering of exchanges trading ICOs.

Earlier today, the oldest Bitcoin exchange in China, BTCC, announced it would end trading on September 30th. Competitors OKcoin and Huobi have yet to make announcements but they may also close their doors.

Needless to say, the market has reacted. Today marked the highest volume for a daily candle since Chinese exchange regulation in January, according to the BLX.

Not making a single clear statement, and therefore adding to fear, uncertainty, and doubt (FUD) is a classic move from the Chinese government and has occurred multiple times in the past.

The crackdown in China occurs in the context of an already overbought market. These conditions are almost identical to those in January, when the Chinese government reigned in Bitcoin exchange trading.

One high volume Bitcoin trader, who likes to protect their identity, had this to say about the situation. “I see regulations as a means of protecting the investor. During the 1920’s the United States stock markets were cesspools of corrupt insider trading, front running and taking advantage of the general population. The Securities Act of 1933 put an end to most of that, although many now a days would say otherwise, ending the so called ‘wild west of the stock markets’. Cryptocurrency, still in its infancy in my opinion, is just this; markets untamed a wild west ruled by non professional pundits and early adopters. I expect regulation will potentially be a good thing at first. However, coming into larger global adoption – I fear that cryptocurrencies as a whole will become just as easily manipulated, if not more, by the J.P. Morgans and Goldman Sachs’ of the world, as has been demonstrated during the tumultuous events of the past seven days.”

When fundamentals and technicals are united, the price move and reaction becomes amplified. So no, CEO of J.P Morgan Jamie Dimon’s comments this week didn’t crash Bitcoin. The market was due for a large correction after spending only eight days in the 3000 range.

Exchange traded volume has been led by USD. Tether (USDT) is pegged to the dollar, and has also seen a significant bump in volume. This suggests that traders are using USDT as a safe haven from the pullback.

CNY volume accounts for <18% of exchange traded volume globally, but it’s clear that Chinese regulators have rattled the markets. Bitcoin has been selling for a significant discount in Yuan (CNY) markets, compared to other pairs, suggesting an influx of CNY traders selling bitcoin. CNY traders buying bitcoin had been paying a premium as recently as June.

In light of the China exchange bans, pending or otherwise, we can expect OTC volume to increase significantly, just as it did following the increased regulatory focus from the Chinese government in January.

On a geopolitically related note, North Korea appears to be itching for attention on the world stage, having fired another missile over Japan. Should an offensive campaign, police action, or outright war arise in the region, we can expect a reaction from Bitcoin in some fashion.

There has also been a great deal of press around the potential large scale bitcoin acquisition by North Korea, including: bitcoin mining based on an uptick of internet activity in the region, hackers targeting cryptocurrency exchanges, and their involvement with the WannaCry virus. Despite all the press, it is difficult to prove the extent at which this is occurring without significant and in depth investigations on several fronts.

However, Japanese Yen (JPY) and South Korean Won (KRW) constitute 28% of global bitcoin trading. Should Bitcoin be seen as a safe haven asset in those regions, we can expect a bullish spike in price, lead by bitcoin trading for a premium in those markets.

Technical Analysis

On weeks like this one, with intense selling, it’s important to understand why the selling is occurring from a technical perspective.

On the weekly timeframe, there was building volume and RSI bearish divergence, which was confirmed last week. This meant that as price is rising, it is doing so on less volume and less momentum that it had previously. It was losing steam.

Divergences are considered lagging indicators and are difficult to trade off in isolation. Much like this divergence however, traders will watch the momentum fade and take action when they are certain of the direction.

Bearish Divergences on the weekly chart have historically had significant pullbacks. Note that RSI divergences should be seen from the body of the candle, not the wick, because RSI is calculated at the close of the candle.

There have also been several hidden bullish divergences on the weekly chart, signaling weakening bearish sentiment. A hidden bullish divergence occurs when price makes a higher low on increased momentum. This means that in spite of increased momentum, price was unable to make a lower low.

This pattern has occurred several times on the weekly chart, and was a signal for strong bullish trend continuation. Should selling continue over the next week, there is the potential for another hidden bullish divergence.

When looking for strong high probability support, look no further than the Ichimoku Cloud. The Kijun (red) represents complete mean reversion of the historic prices over the past 30 periods. This zone is currently holding as support at the time of this article. Additionally, there is an incredibly small, but existing hidden bullish divergence should this zone hold.

Another indicator to use when looking for support is the Pitchfork (PF). They provide diagonals that can be thought of as a potential reversal zones or support/resistance lines. The upper diagonal zones being ‘most overbought,’ or the top bounds of the trend, and the lower diagonal zones being ‘most oversold,’ or the bottom bounds of the trend.
 

Based on the longstanding PF, beginning in 2015, there is potential for increased selling down to the median line, ~USD$2800. This zone also represents support from the previous ATH made earlier this year.

There is another noteworthy pattern developing on a shorter timeframe, the fifteen minute chart, a bullish three drives pattern with a growing volume and RSI bullish divergence.

Lastly, we are approaching a rollover date on the OKcoin quarterly futures. Although the alternating top/bottom price pattern between quarterly futures contracts began to get much looser on the most recent rally to ~USD$5000, volatility surrounding the contract dates is not unusual. With a potential touch of the 200EMA on the daily chart, this may very well represent an interim bottom until December, when another bull run may occur.

Conclusion

A perfect storm of technical weakness and Chinese regulatory belt tightening, neither of which was fully priced in until at least today. Once regulations are finalized and FUD is abated, we can expect a strong rally, similar to that in January of this year. Technicals are already showing signs of bearish momentum weakening, with support targets holding on the daily close. Interestingly, this drop has been timed almost perfectly with the open of a new quarterly futures contract on OKcoin. Although the volume on the daily candle is the highest it’s been all year, we’ve yet to see a strong capitulation wick, signaling the end of the pullback.

 

Author Josh Olszewicz , 15 Sep 2017 – Bitcoin Price Analysis, Opinion, Technical

 

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John McAfee challenges Jamie Dimon’s bitcoin skepticism

John McAfee challenges Jamie Dimon's bitcoin skepticism

John McAfee challenges Jamie Dimon's bitcoin skepticism

  • McAfee challenged Dimon's assertion that bitcoin is a "fraud" that will eventually blow up.
  • Miners invest "massive" amounts of supercomputing power and electricity in creating bitcoins, McAfee on CNBC's "Fast Money."

John McAfee on Wednesday challenged JPMorgan CEO Jamie Dimon's skepticism of bitcoin.

Dimon on Tuesday called bitcoin a "fraud" that will eventually blow up. McAfee, whose company MGT Capital Investments mines the cryptocurrency, said he respects Dimon and people in his position "are not idiots," but he challenged Dimon's criticism.

"You called bitcoin a fraud," McAfee told CNBC's "Fast Money" on Wednesday. "I'm a bitcoin miner. We create bitcoins. It costs over $1,000 per coin to create a bitcoin. What does it cost to create a U.S. dollar? Which one is the fraud? Because it costs whatever the paper costs, but it costs me and other miners over $1,000 per coin. It's called proof of work."

Miners invest "massive" amounts of supercomputing power and electricity in creating bitcoins, McAfee said. Surely then, there is value in creating a bitcoin, he added.

Bitcoin has faced scrutiny because it is highly volatile. The cryptocurrency was last trading Wednesday evening at more than $3,870.

"And the fact that bitcoin is consistently growing in its use and its value has to say something," McAfee said. "Sure it will rise and fall as all new technologies are. But at the same time, it is certainly not a fraud."

McAfee made a lewd bet on Twitter earlier this summer that bitcoin would reach $500,000 within three years. On Wednesday, he said people called bitcoin a bubble that was bursting at one point, and then it smashed their expectations. Plus, the long-term trend of bitcoin has been consistently up, McAfee added.

McAfee is known for his pioneering McAfee Security antivirus software products, now part of Intel, as well as his extreme comments to the media and run-ins with the law. In July, McAfee settled a lawsuit with Intel over his right to use his name on other products. He agreed not to use his name, trademark his name or use certain phrases including his name.

Author: Angelica LaVito
News Associate for CNBC

 

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Bankers’ mistrust of bitcoin is still the greatest argument for it

Bankers' mistrust of bitcoin is still the greatest argument for it

Bankers’ mistrust of bitcoin is still the greatest argument for it

Earlier on Tuesday, at different conferences around New York, JPMorgan Chase chief executive Jamie Dimon took aim at bitcoin, calling the cryptocurrency “a fraud” and “worse than tulip bulbs.”

This skepticism by one of Wall Street’s titans, and its reflection in many offices and hallways in top financial services companies, is perhaps one of the strongest cases for bitcoin’s lasting importance.

Let’s be clear, Dimon’s firm is one of the chief architects of the global financial crisis that led to the interest in a somewhat arcane cryptocurrency in the first place. There would be no bitcoin without Jamie Dimon — and in some ways he’s right to fear its rise.

As a Vanity Fair piece revealed last week, JPMorgan Chase paid out $13 billion (with a “b”) to the U.S. government because of its role in the financial crisis and the mortgage security fiasco that almost destroyed the U.S. economy.

The story quotes an unfiled complaint that was sealed as part of the settlement with the Department of Justice.

“By this action,” the draft complaint begins, “the United States seeks to recover civil penalties” against JPMorgan Chase and its investment banking arm “for a fraudulent and deceptive scheme to package and sell residential mortgage-backed securities” that the bank “knew contained a material amount of materially defective loans.” As the unfiled complaint continued, “JPMorgan knowingly securitized and sold billions of dollars of mortgage loans that were originated in material violation of underwriting guidelines and law.” (When reached for comments and responses to the various allegations in Wagner’s unfiled brief, a spokesperson for JPMorgan Chase told me, “These allegations have been addressed, resolved, or refuted years ago.”)

Whatever irrational exuberance may be attributed to bitcoin’s current froth, it’s hardly a fraud. What it does is get rid of the need for potentially unscrupulous middlemen who thrive and profit on asymmetric information.

Bitcoin does away with this by presenting an immutable ledger. The value of things are recorded, agreed upon, and irrefutable. Which means that shenanigans of the kind that brought down the housing bubble are less likely to occur.

Perhaps bitcoin itself is overvalued, but it’s not the house of cards that Dimon’s employees blew over in 2008.

While the near sacramental disputes in the cryptocurrency community over bitcoin and bitcoin cash or ethereum vs. ethereum classic do the entire industry no favors, they’re the arguments of individuals who want to untether financial services from the chicanery of misanthropic sociopaths who thrive on their ability to cheat systems.

The favorite refrain of Wall St. may be “it’s only illegal if I get caught”… and while cryptocurrencies are unregulated, they are — for the most part — transparent.
 

Again, the Vanity Fair report is illustrative.

At Dimon’s “insistence,” the unfiled complaint asserts, “JPMorgan formulated an exit strategy to divest itself” of the riskiest pieces of mortgage-backed securities that had been accumulating on its balance sheet. But, Wagner writes in the draft complaint, “despite knowledge at the highest levels that underwriting had deteriorated across the industry and early payment defaults were spiking, JPMorgan continued to purchase and securitize subprime loans without addressing the known breakdown of its due diligence practices and without disclosing its knowledge to investors.” This is pretty much the exact same thing that Goldman Sachs did leading up to the financial crisis, a practice for which the bank was roundly criticized.

Dimon may say that he’s not advising anyone to ‘go short’ on bitcoin, but if Wall Street keeps up its criticism, my advice may be to go long.

 

Author: Jonathan Shieber (@jshieber

 

Posted By David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

David