A Million Bank Users Ask For Their Money, is Crypto a Viable Alternative?

Almost one million customers of an Indian bank are currently without access to the money they deposited with the institution. The incident serves as yet another reminder of the shortcomings of the current banking system and the potential improvements offered by crypto.
The bank in question has been under investigation for fraud and Mumbai police have arrested several of its executives. Customers have been only allowed to withdraw a maximum of $700 from accounts and many fear losing their life savings.
Indian Bank Fraud Highlights Advantages of Crypto
As reported by the BBC, protests over the harsh withdrawal limits imposed by India’s Punjab and Maharashtra Co-operative Bank have been going on for weeks now. The bank is suspected of fraud amounting to $600 million. Police arrested senior members of the institution in Mumbai, the financial heart of India, last month.

PMC #Bank: Indian customers protest after #fraud investigation launched. Nearly a million angry customers of #India's Punjab and Maharashtra Co-operative bank are panicking as they struggle to access their money. https://t.co/708JTmDQVI
— Carles Dijous (AAlb) (@carlesdijous) November 12, 2019

Since the arrests, restrictive withdrawal limits have been placed on bank customers. Customers have been only permitted to take out $700 of their own money. Many of those impacted say they fear losing everything they deposited at the bank.
The BBC published a video from the scene of the protests. Interviews with individuals impacted tell tales of heartbreak and injustice. One 77-year-old man told reporters that his entire life savings were in the bank. Meanwhile, another man spoke about how the fear of losing everything had impacted several more vulnerable individuals:
“Six people have lost their lives – one suicide and five people out of a heart attack. How long is our government going to really keep quiet?”
For the most part, people take banks for granted. Questions only arise about the amount of control they have over their users when something goes wrong. After all, a bank needs to grant permission to a customer for them to setup an account, deposit, transfer, or withdraw their own money. Of course, they usually do. However, in times of crisis, banks have a habit of being less forthcoming with customer funds. Crypto assets, meanwhile, do not require any such permissions.
With innovation in financial technology accelerating at a blistering pace, in part thanks to Bitcoin and crypto, such permissioned banking systems begin to look more authoritarian by the day. Whereas once it was difficult to conceive of a financial system not dependent on some trusted intermediary, cryptocurrency has opened the eyes of its still small user base to an alternative path. With incidents of banks exerting such control over users commonplace around the world, it is not hard to imagine this user base continuing to grow.
 
Related Reading: Analysts Expect Further Losses as Bitcoin Forms EMA Bear Cross
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Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

On Friday, the Bitcoin (BTC) market took a turn for the worst. The leading cryptocurrency, as reported by this outlet, tanked from $9,250 to $8,700 in a number of hours, with bulls running out of steam.
While the bearish pressure has stopped, with Bitcoin finding some support at $8,850 as the short-term downtrend has ended, analysts have asserted that the cryptocurrency market remains on thin ice. They claim that it may only be a matter of time before bears push the crypto to the low-$8,000s, and maybe even lower.
Related Reading: Crypto Tidbits: Bakkt’s Bitcoin Market Explodes, Huawei CEO Skeptical of Blockchain, FBI Wary of Cryptocurrency
Bitcoin May Slip Further, Analysts Warn
Popular Twitter analyst Neko recently observed that Bitcoin’s short-term four-hour candle chart remains rather bearish. In a recent tweet, he remarked that Bitcoin’s “bullish volume looks extremely weak” and that BTC has broken crucial support at $9,000, implying a drop further. He added that with Mondays typically being “bloody,” a drop to the $8,000 region is entirely possible.

$BTC H4- Short Term
Still not liking the price action with $XBT.
– Bullish volume looks extremely weak, I expect a drop down still
– Bloody Mondays are typical, which would coincide with this further drop
– HTF I am still bearish, not as much as before but still bearisih pic.twitter.com/hp6l6VyTWF
— NekoZ (@CryptoNekoZ) November 9, 2019

Neko isn’t the only analyst expecting more pain to be seen. Bloomberg reported that a strong bearish continuation is likely in the works in an article entitled “Bitcoin’s Break Below $9,000 Risks Erasing Xi-Inspired Rally,” Bloomberg wrote in reference to the chart below:
The GTI Vera Convergence Divergence Indicator shows a narrowing gap between the signal and vera lines, which suggests a trend change may be on the horizon. If this occurs, the largest digital currency could retest the lows seen before its rampant run following comments by China’s President Xi Jinping in October.

In other words, if a change in bull trend takes place, BTC is likely to fall to $7,300 once again, which is where Bitcoin was trading prior to Chinese leader President Xi lauding blockchain in a political setting.
Peter Schiff, a prominent gold bug, has thrown his weight behind this sentiment. After Friday’s drop, Schiff wrote that “it looks like the Bitcoin pump is finally over,” before adding that we should “get ready for the dump.” Schiff didn’t stop there. He later wrote that “Bitcoin is never going to hit $100,000,” seemingly in a bid to quash the hopes and dreams of industry hopefuls.
While Schiff didn’t explain his rationale in this latest tweet, he has been quoted as saying that BTC is an unreliable store of value and an improper investment, especially when pitted against precious metals.
Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?
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Bitcoin Stock-to-Flow Model is Massively Overhyped: Analyst

A financial forecasting tool that predicts bitcoin market cap would hit a trillion-dollar valuation is misleading, according to cryptocurrency analyst Alex Krüger.
The noted economist called Bitcoin’s Stock-to-Flow Model (S2F) “massively overhyped” as he criticized it for not assessing certain crucial parameters. In retrospective, S2F is a ratio of a commodity’s stock (the units in circulation) and its flow (the amount produced in a year). That said, the model specifically puts weight on the supply factors without dwelling aggressively on the demand side.
Stock to Flow (Scarcity) | Image credits: PlanB
S2F so far has been instrumental in predicting the prices of traditional assets like Gold and Silver. Quantitative analyst PlanB tested the same predictive mechanism on the bitcoin market in his paper published on March 23. He noted that bitcoin exhibited the same properties as that of traditional commodities: that of scarcity. He said it drives the value of every commodity, and bitcoin is no different. Excerpts from his blog:
“A statistically significant relationship between stock-to-flow and market value exists. The likelihood that the relationship between stock-to-flow and market value is caused by chance is close to zero.”
The Core Flaw
Krüger differed with PlanB in the way the latter stressed hugely on the supply-side factors but completely ignored the role the demand-side plays.
“Bitcoin is a demand-side story,” he said in a tweet. “Supply is fully deterministic. There are no supply-side shocks. Fixed total supply and diminishing supply growth are crucial because these drive demand. It is that simple. Demand is what matters most.”

Amazing how so many bring up S2F these days whenever anyone mentions bitcoin supply. I did not have S2F in mind when I wrote this tweet, and no, I don't think it is very important, it is massively over-hyped.
— Alex Krüger (@krugermacro) November 6, 2019

In his paper, PlanB briefly describes how bitcoin could attract $1 trillion into its market. Speculatively, he mentions that investors with exposure in gold, silver, or assets belonging to countries that are in socio-political and economic crisis, would more likely move their capital into bitcoin. Moreover, central banks’ dovish policies, such as rate cuts and quantitative easing, would further prompt investors to seek safety in safe-havens like bitcoin.
But Krüger sees it a justification by bulls to keep the bitcoin upward momentum alive. He said:
“The Stock to Flow model is to bulls, what the Tether Manipulation paper is to bears. Both based on fancy looking statistical models (more so the latter). Both are flawed. Doubt whoever believes in these extremes will change their minds. The mind believes what it wants to believe.”
Bitcoin S2F 99.6% Accurate So Far
Past performances do not predict future price actions. But that has not deterred S2F supporters from making a case in favor of it. One of the respondents to Krüger’s opinion pointed out how the bitcoin price has so far followed the PlanB’s model with 99.6 percent accuracy. Halving, a four-yearly event that cut bitcoin’s supply rate by half, also served as the biggest reason why the S2F model works as planned in the long run.
“S2f model is in my humble opinion very important since it indirectly reflects miners’ capacity to stay profitable,” said Maros Hajduk, president of BlockYard – a digital asset management fund. “Unprofitable miners=dead network=nothing else matters. There’s direct pressure on [the] price to rise because of the halving events.”
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Chinese are Not Coming to Bag Bitcoin: Analyst

The bitcoin price climbed by more than 40 percent after China’s President Xi Jinping endorsed blockchain technology in his speech on October 25. Global outlets were quick to correlate the two events, stating that investors [probably] increased their holdings in bitcoin, hoping that the Chinese people would also do the same by taking cues from Jinping’s blockchain support.
But, according to market analyst Alex Krüger, the benchmark cryptocurrency will have a difficult time attracting the Chinese population. The economist on Sunday noted that bitcoin corrected by as much as 14 percent after the last week’s price rally. And it has since trended horizontally, slowed down by less-than-expected volume. The price action does not prove that the Chinese are coming to bag bitcoin anytime soon.
“When markets experience a seismic shift, price, and volume rarely flat-line within a week,” said Krüger. “Instead, one would expect the price to trend for a while [at] high volume. It is what it is.”

Doesn't look like the Chinese are coming for bags anytime soon after all.
— Alex Krüger (@krugermacro) November 3, 2019

Dwindling Volume
Trading data aggregator Bitcoinity shows a similar picture. On October 25, the total bitcoin trades recorded across all the cryptocurrency exchanges were 126,032. The next day, when the bitcoin price surged by circa $600, the total trades too climbed to 207,608.  Nevertheless, the figures started declining thereafter, trending downwards as each day passed. The bitcoin price also started trending sideways within the same period – from October 28 until the press time, as shown in the chart below.
Bitcoin trade volume recorded since October 25 | Image credits: Bitcoinity
Krüger said the fall in bitcoin trade volumes did not show any drastic change in China’s sentiment towards the cryptocurrency. He added:
“If there were a seismic change bringing an important influx of new investors, then likely best to buy and hold and forget about trading in and out, and the sole question becomes “how big do I go in”. Hence why this matters. At least to me.”
Unconventional Markets
A large portion of bitcoin’s trading activities often lies outside the conventional cryptocurrency exchanges. Paxful, a web portal that allows people to exchange bitcoin for fiat directly, offered insights into how the cryptocurrency’s peer-to-peer volumes surged even before Jinping’s blockchain endorsement. As noted by Matt Ahiborg, a researcher associated with DLAB – a New York-based blockchain startup incubator, Chinese people were trading bitcoin at large, with weekly volumes touching even the 2 million Chinese Yuan (CNY) mark.
“CNY volume on Paxful has had three record-breaking weeks in a row. 90% of the volume is to buy Bitcoin from vendors on the platform and the top payment methods used are Alipay and Bank transfers.”

[2/5] greater than LocalBitcoins. There are many reasons for the shift but the most apparent is due to inceased KYC/AML implemented by LB recently. Of note is that volumes across these two platforms still pales to 2017 and much P2P trading has migrated to other Chinese exchanges. pic.twitter.com/ls8YshEfi5
— Matt Ahlborg [UsefulTulips.org] (@MattAhlborg) October 29, 2019

Nevertheless, the massive buying sentiment in the Chinese bitcoin market did not sustain for too long on the global charts. Ahiborg asserted that it was due to people using the cryptocurrency as a tunnel, not a safe destination. Chinese bought dollar-denominated gift cards using bitcoin. Those products later resurfaced on the Chinese markets at a discount.
“Other evidence points to an international web of importing and exporting of goods purchased with these gift cards,” added Ahiborg.
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Fractal: Bitcoin Price to Surge Back Above $10,000 in Coming Weeks

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.
A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.
One fractal popularized by a well-known individual on Crypto Twitter suggests that BTC is ready to bound even higher in the coming weeks. In fact, the fractal suggests that it will only be a few weeks before Bitcoin retakes $10,000, then continues higher from there.
Related Reading: Institutions Accrue Bitcoin Long Positions as Price Looks to Break Past $9,300
Bitcoin Fractal Implies $10,000 Inbound
Recently, popular crypto commentator Starbust recently posted the chart below, depicting Bitcoin’s price action in mid-2017 — the middle phase of the last bull market. During the highlighted period, Bitcoin had found a local top at $3,000, retreated in a descending triangle, capitulated as low as $1,900, then shot higher in a massive spike to the upside, creating a bull flag.

That’s cool and all, but where does the fractal come in? You might be asking. Well, Starbust also posted this image, which shows Bitcoin’s price action from the peak in June to now. This period also saw BTC find a local top, retreat in a descending triangle, capitulate, then surge out of that capitulatory bottom to establish a bull flag.
Bitcoin playing out this fractal in full will see it rally to the upside to retake $10,000 and beyond in the coming weeks.

Related Reading: Crypto Market to Form Golden Cross as Bitcoin Gains Momentum Above $9k
Does This Have Credence?
Fractals alone, however, aren’t good enough to determine Bitcoin’s future price action. But there is a confluence of technical signals implying that strength is building for the leading cryptocurrency.
Trader Smokey recently argued that it makes no sense that traders have a strong bearish bias here. While he did admit that Bitcoin has yet to break above a trendline resistance and the weekly horizontal resistance of $9,600, he noted that BTC has decisively reclaimed $9,111 — a level which has been essential for the cryptocurrency since May.
What’s more, the buying volume on the reclamation of this key support was higher than it was on the breakdown, implying that bulls are attempting to assert control over the market.
Also, a trader going by HornHairs has noted that he likes the chances Bitcoin hits $14,000 before $7,000, highlighting how the cryptocurrency held above the one-month bullish breaker, the 0.618 Fibonacci Retracement of the entire cycle, the Point of Control as defined by the volume profile, and the yearly pivot point.
Related Reading: Bakkt Bitcoin Futures See Huge Week: Growing Institutional Interest
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Analyst: Bearish Bias Makes no Sense, Bitcoin Price Looks Strong

Late last month, Bitcoin (BTC) suddenly exploded higher. In under 24 hours, the leading cryptocurrency shot from $7,300 to $10,600 in a now-historic pump that caught countless traders slacking.
This move was decisively bullish, as it was, after all, the fourth-largest daily move in Bitcoin’s history, and the largest daily move in over seven years.
For some reason or another, however, a number of analysts have maintained a bearish attitude after this move. One trader, for instance, noted that Bitcoin’s three-day Relative Strength Index remains in “bear market” territory, while the recent move higher was a textbook signal for a downward trend continuation.
This bearish bias may be non-sensical though, according to SmokeyXBT, a well-followed trader.
Related Reading: Research Firm: Bitcoin Price Bottomed at $7,300, Recovery Possible
Bitcoin Bear Case Makes No Sense?
Smokey recently noted that he “isn’t quite sure how people can have a strong bias here.” While he did admit that Bitcoin has yet to break above a trendline resistance and the weekly horizontal resistance of $9,600, he noted that BTC has decisively reclaimed $9,111 — a level which has been essential for the cryptocurrency since May.
What’s more, the buying volume on the reclamation of this key support was higher than it was on the breakdown, implying that bulls are attempting to assert control over the market.

Not quite sure still how people can have a strong bearish bias here. Yes, we haven't broken the trendline resistance + the weekly res around 9600. BUT, we reclaimed 9111 + volume on the reclaim > volume on the breakdown
Maybe I'm just completely stupid but this isn't bearish imo pic.twitter.com/JKiRys5fzt
— Smokey (@SmokeyXBT) November 3, 2019

 
Related Reading: Analyst: Bitcoin May See 30% Rally to $12,000 as Price Breaks Out
Smokey isn’t the only analyst thinking that Bitcoin is looking strong after holding in the low-$9,000s for days now. The Crypto Dog recently quipped that  Bitcoin “looks like a launchpad.” Backing his quip, Dog looked to two resistance levels, which BTC has established over the past week. Recently, the cryptocurrency quietly broke above them, showing that the longs are starting to gain control.
Related Reading: Institutions Accrue Bitcoin Long Positions as Price Looks to Break Past $9,300
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Ethereum Enters Buy Zone as Analysts Expect ETH Price Boom

Ethereum (ETH) hasn’t done too hot over recent months. Ever since Bitcoin (BTC) started rallying earlier this year, altcoins across the board have suffered, falling against the market leader.
However, ETH is purportedly in the thick of a buy zone. Simultaneously, a number of analysts have claimed that the second-largest cryptocurrency is ready to head higher in the coming weeks and months. This confluence may present a solid buying opportunity.
Related Reading: Institutions Accrue Bitcoin Long Positions as Price Looks to Break Past $9,300
Ethereum In Key Buy Zone
If you’ve followed financial markets at all, you know that the 200-day moving average is important. This level, according to analysts across industries and time, is indicative of an asset’s trend. And according to a new analyst, it may be a viable way to determine when it is time to buy a cryptocurrency.
Bitcoin trader BitDealer recently noted that ETH is likely in a medium-term to long-term buying zone when it is 10 points below its 200-day moving average. Right now, Ethereum is in that zone, trading at $181.2 — some $30 lower than the technical level, which currently sits at $213.0.

Marked on the charts:When BTC price is 100pts or more below the daily 200MAWhen ETH price is 10pts or more below the daily 200MA
Simple but pretty interesting. Looks like good places to buy BTC & ETH. pic.twitter.com/9RjvUy0hf6
— ₿itDealer (@Bitdealer_) November 3, 2019

Related Reading: Analyst: Bitcoin May See 30% Rally to $12,000 as Price Breaks Out
Upward Momentum Building
While ETH may be in a good buying zone, do the technicals or fundamentals support price appreciation?
According to some analysts, decidedly so.
Brave New Coin’s Josh Olszewicz recently noted that the cryptocurrency’s recent consolidation in the $180 price region has allowed ETH to print a bullish chart pattern, an ascending triangle — a signal that often implies bullish trend continuation for the asset in question. He notes that a measured move for this triangle would be a 15% rally to $215 over the coming weeks.

4h $ETH
asc tri pic.twitter.com/QgcPx1c7ZC
— Josh Olszewicz (@CarpeNoctom) October 29, 2019

This came shortly after Olszewicz argued that he expects ETH’s price to see an edge-to-edge Ichimoku Cloud move from $183 to $260 — a 40% move higher. While this seems crazy, the recent move has made the charts of many cryptocurrencies bullish once again.
On the fundamental side of the cryptocurrency, Ethereum’s decentralized finance (DeFi) ecosystem has continued to swell, recently establishing a new all-time high in terms of how much ETH is locked up in DeFi applications.  Also, Ethereum’s next system-wide upgrade, Istanbul, will be activating on the mainnet likely during the week of December 4th.
Related Reading: Research Firm: Bitcoin Price Bottomed at $7,300, Recovery Possible
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Institutions Accrue Bitcoin Long Positions as Price Looks to Break Past $9,300

As Bitcoin (BTC) has entered a launchpad-like state, finding itself in a lull as sentiment is beginning to trend positive again, institutions have started to accrue long positions of the cryptocurrency. This may imply that the crypto market is about to see its next leg higher.
Related Reading: Crypto Tidbits: Bitcoin Stuck In $9,000s, Starbucks Cryptocurrency Payments, Canada’s BTC Fund
CME Institutional Users go Long
According to a recent analysis by cryptocurrency analytics firm Skew Markets, institutional longs on the Chicago Mercantile Exchange’s Bitcoin futures market has hit a one-month high, reaching around 1,300 BTC worth of contracts. This is up by over five times from the bottom near 250 BTC seen in late-September.
Skew added that institutions are now net long 880 BTC contracts, compared to 660 BTC the previous week, as short positions have fallen because institutions are likely expecting a breakout in the upward direction.

Institutional longs at CME – one month high
Could we see a breakout soon > 1.5k BTC? pic.twitter.com/y9SmywwVE0
— skew (@skew_markets) November 2, 2019

Institutions, as defined by the CME, are pension funds, endowments, insurance companies, mutual funds and those portfolio/investment managers whose clients are predominantly institutional.
Shortly after Skew revealed that institutional longs are rising, it added that Bakkt’s Bitcoin futures market recently saw total open interest cross $1 million with ramping-up volumes.
While some argue that institutions know no more about Bitcoin’s directionality than retail investors like you or I, some have argued that this is untrue. As reported by NewsBTC previously, popular crypto trader Romano argued that institutions using the CME “have a good track record for the right directional trade,” having shorted BTC ahead of the Bakkt launch and the subsequent crash.
Bitcoin Bull Case Grows
This change in institutional attitude, of course, comes after Bitcoin’s historic rally from $7,300 to $10,500 last month, which rekindled sentiment that crypto is in the midst of a raging bull market.
Funnily enough, there are some technical trends that support this. For instance, a Brave New Coin analyst noted that the Alligator indicator, when applied to Bitcoin’s chart, has flashed its first long entry in a while. He added that the cryptocurrency has recently broken above a triangle, implying a measured move to the $11,300 to $12,300 range, where the middle line of one of the analyst’s pitchfork channels lies.
Also, a trader going by HornHairs has found that Bitcoin has closed the month of October extremely strong. He remarked in a recent tweet that with Bitcoin bouncing strong and holding above the one-month bullish breaker, the 0.618 Fibonacci Retracement of the entire cycle, the Point of Control as defined by the volume profile, and the yearly pivot, BTC is leaning rather bullish.
Related Reading: Analyst: Bitcoin May See 30% Rally to $12,000 as Price Breaks Out
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Bitcoin Looks to Close CME Gap in $8,000s As Bearish Confluence Builds

Once again, true to the nature of this purgatory phase in the crypto markets, Bitcoin (BTC) has been relatively flat over the past 24 hours. According to Coin Market Cap, the leading cryptocurrency is up a mere 1% in the past 24 hours — effectively nothing when you factor in this market’s often immense volatility.
Related Reading: Bitcoin Looks Like a “Launchpad” as Analysts Anticipate Volatile November
While Bitcoin’s recent consolidation outlined above hasn’t been bearish per se, the lack of price action has purportedly allowed a number of bearish technical trends to form, implying that BTC may see a short-term pullback to potentially fill the CME futures gap in the $8,000s.
Bitcoin Stochastic Flashes Bearish
According to CryptoHamster, Bitcoin’s Stochastic indicator, which is an oscillating “momentum indicator comparing a particular closing price of a security to a range of its prices over a certain period of time (Investopedia),” is showing that BTC is leaning bearish in the short run.

Bitcoin price and Stochastic oscillator: bearish crossovers on many time frames – 1h, 2h, 3h, 4h (even 1D, but not less clear). Alarming confluence. $BTC $BTCUSD #bitcoin pic.twitter.com/Yasvf1ld7S
— CryptoHamster (@CryptoHamsterIO) November 2, 2019

He noted that the indicator recently saw an array of bearish crossover on an array of time frames — the one-hour, two-hour, three-hour, four-hour, and even the one-day. The analyst quipped that this confluence is “alarming.”
Indeed, it will imply that the bullish momentum that Bitcoin has seen over recent days is coming to a close, implying a drawdown in coming trading sessions.
That’s far from the end of it. As reported by NewsBTC previously, an analyst going by James recently drew attention to an array of reasons why it may be logical to be bearish on Bitcoin. He noted that BTC’s three-day Relative Strength Index remains in “bear market” territory, while the recent move higher was a textbook signal for a trend continuation. He added that there also exists two hidden bearish divergences on the one-day chart, implying a further breakdown.
Related Reading: Crypto Tidbits: Bitcoin Stuck In $9,000s, Starbucks Cryptocurrency Payments, Canada’s BTC Fund
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Bakkt Bitcoin Futures See Huge Week: Growing Institutional Interest

It seems that the now-infamous China pump of 2019 has awoken something in Bakkt’s Bitcoin futures. On the day of the jaw-dropping 42% pump last week, the exchange’s futures saw more than $10 million worth of volume traded, a new all-time high for the fledgling market. 
Since then, this volume has persisted. This growth, however, cannot be conclusively pinned to the news that Chinese President Xi Jinping had endorsed blockchain technologies, which led to growth in BTC, blockchain stocks, and other assets tied to this space.
Related Reading: Crypto Market to Form Golden Cross as Bitcoin Gains Momentum Above $9k
Bitcoin Futures Market Swelling Again
According to a report from Bakkt Volume Bot, a Twitter robot dedicated to following trends in its namesake’s Bitcoin market, the past week has been undeniably strong for Bakkt. Again, since last Friday’s absolutely monumental surge from $7,300, the volume has persisted, trading millions of dollars worth of contracts a day, rather than under $1 million worth.

Daily summary of Friday's Bakkt Bitcoin Monthly Futures:
Traded contracts: 623 (+81%) Day before: 345 All time high: 1183
Follow @BakktBot for realtime updates. pic.twitter.com/OmG8AEClUk
— Bakkt Volume Bot (@BakktBot) November 2, 2019

Of course, a daily volume average of $7 million over the past week isn’t stellar, especially seeing that this market sees hundreds of millions worth of trades a day, but it’s a start — a step in the right direction, so to speak.
It isn’t only Bakkt’s market that is signaling increased institutional interest. As reported by NewsBTC previously, as of mid-October, institutions had increasing open Bitcoin positions on the CME’s market. Institutional accounts — pension funds, endowments, insurance companies, mutual funds & portfolio/investment managers with institutional clients — in fact, had 1,100 BTC worth of open contracts as of the time of the article’s publishing.
Related Reading: Analyst: Bitcoin More Likely to Surge 50% to $14,000 Than Fall
ICE CEO Optimistic About Bakkt’s
Bakkt’s strong week comes as the chief executive of the Intercontinental Exchange (ICE), the firm behind the New York Stock Exchange and much of the crypto upstart’s operations, made an optimistic comment.
According to fellow industry publication The Block, in the financial institution’s latest earnings call, Jeffrey Sprecher noted in response to a question regarding Bakkt that there is high institutional demand for Bitcoin derivatives products, as that is a way to gain exposure to Bitcoin in a way that is compliant with U.S. regulators:
“All [kinds] of financial institutions are talking to us and looking at this and trying to figure out where this fits and what the global regulators are going to think about this and so on and so forth. So there’s a tremendous amount of dialogue around it.”
Related Reading: Bitcoin Monthly Candle to Close Around $9,300: Bullish or Bearish?
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Bitcoin Price Fails to Push Higher: Analysts Now Wary of Return to Bear

Since topping at $10,500 last week, Bitcoin (BTC) has been in a relative state of calm, trading within a tight range between $9,000 and $9,500. Despite this consolidation above the 200-day moving average, which many analysts would call more bullish than bearish, some fear that the crypto market’s charts are flashing warning signs. They claim that a decline from here is likely.
Related Reading: Bullish for Bitcoin? Analyst Warns of Growing Motives for Global De-Dollarisation
Bitcoin Flashes Warning Signs 
An analyst going by James recently drew attention to an array of reasons why it may be logical to be bearish on Bitcoin. He noted that BTC’s three-day Relative Strength Index remains in “bear market” territory, while the recent move higher was a textbook signal for a trend continuation. He added that there also exists two hidden bearish divergences on the one-day chart, implying a further breakdown.

A friend asked me today.. "Why are you so bearish brother?"
Answer: pic.twitter.com/G3GIsoAM1X
— James (@coinzada) November 1, 2019

Dave the Wave has corroborated this sentiment. He noted that the Histogram has begun to contract on the daily, while the one-day Moving Average Convergence Divergence (MACD) has started to roll over. This implies that the medium-term trend is “down.”  

Histogram contracting on the daily, MACD rolling over, medium trend still down… but not for long. pic.twitter.com/cuIcsTvHVw
— dave the wave (@davthewave) November 1, 2019

Related Reading: Ethereum May Be Gearing Up for Bullish Movement as On-Chain Volume Declines
Bull Case Slowly Building
While Bitcoin may soon be susceptible to a short-term drop, one that may bring it back to the $7,000 range, the case for a long-term bullish trend is starting to be realized yet again.
As reported by this very outlet previously, popular analyst Filb Filb noted that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.
Filb’s chart depicts that after the last time the 50-week crossed above the 100-week, Bitcoin rallied for months straight, surging to fresh highs month in, month out. Historical precedence would suggest the same is about to happen… again.
Also, trader HornHairs has noted that he “likes the chance we hit $14,000 before $7,000.” But why, exactly, does the trader expect Bitcoin to surge higher by 55% from the current price of $9,200 over the alternative scenario of a collapse to $7,000.
Well, it has much to do with where Bitcoin has just bounced from and where it closed October. He remarked in a recent tweet that with Bitcoin bouncing strong and holding above the one-month bullish breaker, the 0.618 Fibonacci Retracement of the entire cycle, the Point of Control as defined by the volume profile, and the yearly pivot, BTC is leaning rather bullish.

$BTC Monthly confluence
+1M bullish breaker+.618 retracement+Volume Profile HVN/PoC+Yearly Pivot+Inside bar fakeout
I like the chances we hit $14,000 before $7,000. pic.twitter.com/0l1VlDAmA0
— HornHairs (@CryptoHornHairs) October 31, 2019

Related Reading: Bitcoin Monthly Candle to Close Around $9,300: Bullish or Bearish?
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Will China Ban Crypto for Capital Control? Expert on the Politics Behind Digital Currency

“What will happen to my freedom to build wealth, my secrets and safety?” one user asked on Chinese social media platforms in the apprehension of the digital currency. 
China’s digital currency plans have far-reaching implications. The idea that began with Bitcoin’s and crypto’s rise five years ago is now shaping out to be a gigantic political move. Over these five years, China has filed over 50 patents related to blockchain technology and cryptocurrency.
Their blockchain-based currency is close to completion, but reportedly, anti-money laundering concerns are yet to be overcome.
Capital Control over Decentralization
The digital currency will enable the Chinese Government to establish absolute control over the monetary transactions in the country.
Keyu Jin, professor of economics at the London School of Economics, told the media,
“There’s a consensus around the world among central bank governors and governments at large that they want to have control of money and money supply and the seigniorage that comes along with it,” he added, “But over-obsessive control and governance is probably more unique to China than anything else.”
Hence, while cash or money will work seamlessly like physical pieces of paper money, this time, the Government will be able to surveil everything.
According to Mu Changchun, head of the Chinese central bank’s digital currency research institute, China will adopt a two prone approach: anonymous payments and “classified supervision.” He noted in his last address,
 “Once we analyze these transactions, use big data and data mining technology and conduct identity comparisons, we will be able to find the culprits.”
Moreover, the Chinese Government is also likely to prohibit the exchange of Digital Yuan to other cryptocurrencies or stablecoins. For example, recently in August, Mu had noted that,
“Just imagine, if we acquiesce, that yuan can be converted into Libra, there will definitely be a massive currency exchange, triggering yuan depreciation.”
Will China go the extremes of banning crypto altogether?
Furthermore, digital wallets will be the new bank accounts for individuals. Hence, it would necessarily take control off of the banks on their lending powers. While commercial banks would still play an important role, the politics behind it would create additional barriers to entry.
The Chinese Digital currency plan threatens not only political control but also the future of cryptocurrencies in China.
Although China is promoting ‘blockchain,’ it could still go on and ban cryptocurrencies altogether to maintain capital control of PBoC. hence, killing the idea of decentralized money with it. Moreover, other nations might be motivated to release their digital versions as well.
Dovey Wan, however, expressed optimism for Bitcoin around these sentiments,

Chinese gov is always pro-Blockchain as a neutral database management tech
As for Bitcoin, IMO CCP will happily HODL it (as a new form of forex), and control retail fiat on-ramp to avoid capital flight
Their source of BTC? – many confiscated Bitcoin ponzi by the police
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) November 1, 2019

Apart from the efficiency of transactions, a borderless network of payments is another aspect of cryptocurrencies. While it poses threats such as money laundering and terrorist financing, economic globalization has numerous benefits as well.
Do you think that countries are more likely to adopt decentralized currencies or follow China’s pursuit of capital control? Please share your views with us. 
The post Will China Ban Crypto for Capital Control? Expert on the Politics Behind Digital Currency appeared first on Coingape.
Source: CoinGape

Argentina’s Central Bank Bans Certain Bitcoin Purchases as Economy Flails

If you’ve followed the macroeconomic or Bitcoin news cycle over the past few months, you’ve likely heard and seen the qualms of Argentina.
The South American country has been going through a bout of political and economic turmoil, which has culminated in rapidly-increasing inflation and a tumultuous stock market. In short, it is unlikely that holding Argentine pesos or local assets is sustainable. Hence, many have looked to alternative assets, like Bitcoin and U.S. dollars. But, the Central Bank of Argentina is picking up on this.
Related Reading: Crypto Market to Form Golden Cross as Bitcoin Gains Momentum Above $9k
Argentina Effectively Bans Bitcoin & U.S. Dollar Purchases
According to a report from CoinTelegraph’s Brazil branch, the nation’s central bank wrote in a recent message that purchasing cryptocurrencies with certain payments are banned. The payment method in question is credit cards, with the bank writing:
“Acquisition of Bitcoin and cryptocurrencies: It is prohibited to purchase BTC with this payment method. The only remaining alternative for this investment is to do so with funds transferred from a bank account.”
Argentina’s central bank claims that this is being done to preserve the integrity of the country’s foreign exchange reserves.
This comes shortly after the Argentinian monetary authority revealed that it will only be allowing individuals Argentinians to purchase $200 per month on the legal market. Previously, individuals were allowed to purchase up to $10,000 a month.

#Argentina's Central Bank has just lowered the #Dollar currency purchases from $10,000/month to $200/month.
It's time for #Bitcoin. The only way to bring monetary sovereignty back to the people. pic.twitter.com/oix0WH2UOF
— Crypto Rand (@crypto_rand) October 29, 2019

Other Solutions
While Bitcoin is unavailable to be purchased through credit card solutions, the cryptocurrency can be bought through alternative means, namely platforms like LocalBitcoins and Paxful, which are focused on providing peer-to-peer exchange through alternative payment means like cash and gift cards.
It seems that locals have taken notice of these platforms. According to Coin.dance, Argentina’s LocalBitcoins market has seen near-record volumes over the past few weeks.
Related Reading: Analyst: Bitcoin More Likely to Surge 50% to $14,000 Than Fall
This is for good reason. Bitcoin transactions cannot be censored, can be sent around the world to anyone in minutes, and are cheap when compared to the bank wire system that exists in the fiat system. Also, BTC isn’t able to be hyperinflated, as there exists a strict 21 million coin supply cap.
Bitcoin Not a Proper Solution? 
Sure, the adoption of Bitcoin and cryptocurrencies makes sense fundamentally — they are presumably more stable, an easier way to transact, and more global than the Argentine peso. But, there is no guarantee that Argentinians across the country are embracing cryptocurrencies.
Argentinian-American crypto-macro researcher Alex Krüger said as Argentina’s economy was flailing earlier this year that his peers back at home weren’t buying Bitcoin. He wrote in Twitter threads that Bitcoin awareness in the South American nation is “extremely low”. And thus, the idea that Argentines are rushing to scoop up Bitcoin with their life savings doesn’t make much sense.
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Bitcoin Plunges By $300 in Minutes as Bearish Sentiment Mounts

Over the past 30 minutes, Bitcoin (BTC) has plunged by $300 from $9,515 to $9,200. As such, the cryptocurrency is now trading 3% down on the day. While this wasn’t a decisively bearish move in and of itself, a sentiment that “the rally is over” is starting to bubble in trading circles.
Related Reading: Coffee for Crypto? ICE to Launch Bitcoin Consumer App with Starbucks
Bearish Bitcoin Analyses Rack Up
This move comes as bearish Bitcoin analyses have begun to reappear on Twitter, despite the historical 42% move that the leading cryptocurrency saw on the weekend.
As reported by NewsBTC previously, analyst Velvet noted that Bitcoin’s recent surge upward hasn’t convinced him that a crypto market rally to fresh all-time highs isn’t inbound. They argued that their analysis indicates Bitcoin may be trading in a textbook bearish pattern defined by prominent historical technician Richard Wyckoff.
As Velvet pointed out, the recent rally, according to Wyckoff’s studies, might just be a “throwback” to a bull trend before an eventual breakdown, defined as a “markdown” by the analyst.

$BTC #BTC #BTCUSD
I'm not convinced with this weekly close guys, I'm sorry for not being bullish like everyone else. I guess somebody has to be the bear right? or at least have a Conservative approach
Here is something to keep in mind among all the bullish and hopium charts pic.twitter.com/pNWo6PIO9Y
— 𝓥𝓮𝓵𝓿𝓮𝓽 丝绒 (@888Velvet) October 28, 2019

Their analysis indicates that the target of the downside move could be closer to where Bitcoin broke out of its accumulation range, near $5,800.
Velvet isn’t the only one spouting bearish analysis. Crypto Walker argued that BTC is still trending in descending channel, having been rejected in a high-volume move at resistance. He added that with the “death cross” still formed and there having been a large “drop in open interest,” he remains bearish.

$BTC daily
The descending channel is still intact. High volume rejection at resistance. Price dumped below 100MA again. Death cross 50/200MA. Huge drop in open interest during the recent pump.
I remain bearish for now but open to switch bias if I see a bullish consolidation. pic.twitter.com/355fNPOjF0
— Crypto Walker (@cryptoWalk3r) October 28, 2019

Bullish Above $8,000
Although there is a growing level of sentiment hinting at an impending correction for Bitcoin, popular macro and crypto analyst Alex Krüger has kept it simple. In a recent tweet, he remarked that Bitcoin’s chart remains bullish as long as the cryptocurrency remains above the $8,000 to $8,200 region — some 15% lower than the current price point of $9,300.

$BTC. Chart. Bullish. Invalidation: 8200-8000. pic.twitter.com/jJWoGGUZqj
— Alex Krüger (@krugermacro) October 28, 2019

He remarked in an earlier tweet that a loss of the abovementioned region will render the recent Bitcoin bull move “dead,” and thus lead to a continuation “lower,” presumably below the multi-month low of $7,300 established late last week.
Related Reading: Analyst: Bitcoin May Target $8,900 After Being Rejected at Key Resistance
 
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This Crypto Related Stock Surged 67% after Xi Jinping’s Blockchain Push

Hong Kong investors increased their exposure in a blockchain firm after China’s premier Xi Jinping endorsed the technology in his Friday speech.
The stock value of Pantronics Holdings Limited (1611:HK), a Hong Kong-based electronic product manufacturing firm, climbed by up to 67.10 percent on Monday. The company did not display any concrete fundamentals that could push its stock price exponentially except its relationship with a cryptocurrency exchange.
Singapore-based Huobi Global, in August 2018, had acquired 74 percent of stakes in Pantronics in a reverse takeover. The exchange, at the time of the acquisition, hinted that it would utilize Pantronics to create equipment for a new blockchain-enabled phone targeting cryptocurrency traders created by the Whole Network, a startup which attracted investment from Huobi’s venture capital arm in 2018.
Pump and Dump on HKEX
The cross-connections between Pantronics and Huobi helped the former attract bulls during the early morning trade. Its stock price surged to as high as 6.50 points on Monday from Friday’s close of 3.89 points. Most notably, the rate opened on Monday at a much higher level than Friday’s close of 5.80, showing that investors had already processed Xi Jinping’s favorable comments on the blockchain technology before the Hong Kong Exchange opened after the weekend.
Huobi’s relative gains from China’s President Xi Jinping’s favorable comments on blockchain | Image credits: TradingView.com
Nevertheless, the Pantronics stock failed to hold up to the enormous profits for too long. Its price started slipping shortly after the HKEX market open – from about 0940 Local Time. The move eventually led Pantronics to establish a Session low down 29.23 percent from its Session high, indicating that the hype was fading.
The company’s overall daily gains were, however, up by 20.82 percent at the time of this writing.
Selfie with Xi Jinping
The same pump-and-dump scenario was visible in the share prices of Meitu (1357:HK). The Chinese photo editor firm, which is creating a blockchain-based facial recognition system, registered a 31 percent spike after the HKEX open; but, its gain began negating in the after hours. As of 1530 Local Time, the price had plunged by 18.06 percent from its intraday peak.
“It’s all because of Xi,” said Pan Shaochang of Dongwu Securities, “but the talk around blockchain is all conceptual. There’s still a long way to go to actually bring it to fruition at an individual and enterprise level.”
“Still, the growth potential is huge”, the equity analyst said.
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