Category Archives: Bitcoin
The ABCs of bitcoin ATM regulation and compliance in the US – ATM Marketplace
If you are planning to operate a bitcoin ATM business in the U.S. where 60% of the world's bitcoin ATMs are located there's a lot more to consider than simply buying a kiosk from General Bytes, Genesis Coin or Lamassu. You need to stay compliant, both on the federal level and the state level.
However, the cost and the work involved in compliance may be more than some bitcoin ATM operators bargain for, especially if they are only operating one or two kiosks, so it pays to do your homework. What follows is a rundown on the basics, but you may want to set up your business first, according to one lawyer.
"We recommend that you form a corporation or an LLC and have the nuts and bolts of operating as a business down before you start talking about the specifics of bitcoin ATM regulations," Bill Repasky, a lawyer with Frost Brown Todd, a Louisville, Kentucky, law firm that provides legal counsel for bitcoin ATM operators, told ATM Marketplace in an interview.
When you are ready to roll, the federal level of regulations most directly applicable to bitcoin kiosk operators are spelled out in the Bank Secrecy Act, or BSA for short, a law requiring financial institutions to assist U.S. government agencies in detecting and preventing money laundering.
According to theFinancial Crimes Enforcement Network, the government agency tasked with interpreting the BSA, the definition of a financial institutionfits traditional banks, but alsoincludes several subcategories, including one known as a money-services business, or MSB.
A bitcoin ATM operator is considered an MSB, and all MSBs have to register with FinCEN. You won't need a lawyer for this part, said Repasky.It only takes about 20-30 minutes to fill out FinCEN form 107online. Just remember, you have to register within 180 days of establishing an MSB and renew every two years.
Once you register with FinCEN, you are obligated tocomply with the BSA. Among other things, that requires a bitcoin ATM operator to establish an anti-money laundering compliance program, which is a written document that explains your overall plan to thwart money laundering and the financing of terrorist activities.
As part of your AML compliance program, you need to appoint a dedicated AML compliance officer,the principal figure responsible for overseeing the effective development and implementation of you firm's AML program. You also have to maintain superior reporting and record-keeping capabilities to ensure that you are collecting the appropriate information for all transactions and filing the proper reports.
An integral part of any AML program is knowing who your customer is. Know-your-customer is the business process of identifying and verifying the identity of customers, so you can spot risky ones and prevent fraudulent transactions before they start.
In terms of reporting, BSA requires you to monitor customer transactions and file a currency transaction report for any transaction (daily aggregate amount)over $10,000. You also needto file a suspicious activity report for any transaction that might signify money laundering, tax evasion or other criminal activities.
"A suspicious activity could be something in the nature of structuring transactions at a bitcoin ATM that appear designed to evade the $10,000 CTR limit, or It could be a customer providing information that indicates that they are a person of interest to the U.S. government," Repasky explained.
Additionally, the Office of ForeignAssets Control, or OFAC,keeps a database of individuals acting for or on behalf of targeted countries. Included in your AML compliance report, you also need to outline how you are monitoring that list.
Your AML compliance program should also includehow you plan to train and retrain your staff on BSA/AML rules and procedures. Putting together a compliance program is a big job, one that will likely requirehire outside help.
"Typically a bitcoin ATM operator will work with an outside consultant or a lawyer to create the BSA compliance program,"Repasky said."Then they will begin contracting with vendors who can provide the necessary services to comply with the BSA programs, such as collecting information and running it throughthe OFAC list."
FinCEN governs BSA protocol and enforcement. However, various other agencies that are all part of the FinCEN operation have been assigned specific duties for enforcing compliance with the BSA, and for MSBs, the primary investigative authority is the IRS.In fact, the IRS has already made it clear that it is monitoring bitcoin ATM activity and looking into compliance.
"If you're a bitcoin ATM operator and someone is going to randomly select you for an audit, it is most certainly going to be the IRS," Repasky said."What we're seeing now is that the first round of IRS subpoenas have gone out to the bitcoin ATM operators asking for compliance documentation. They went out beginning in the spring and through the summer. They are requesting a boatload of information from the bitcoin ATM operators regarding their BSA programs."
Repasky believes that collecting that informationwill be an eye-opening experience for both bitcoin ATM operators and the IRS. Bitcoin ATM operators simply are not set up the same way as banks. They don't have the same resources, staff and record keeping abilities as large financial institutions, so keeping up with record keeping couldpose a challenge.
"Often the smaller bitcoin ATM operators don't collect it, don't have the capacity to collect it, don't retain it and they will be in trouble, honestly," he said.
In every state that a bitcoin ATM operator conducts business, they need to look at the laws for acquiring a money transmitter license those laws varyfrom jurisdiction to jurisdiction, and are often in flux. Regardless, it's critical to maintain compliance.
"If you run an ATM in a state that requires a license, even if you do everything else correctly, but you don't have that license, it is a punishable, imprisonable federal offense," Repasky warned.
Some states have strict licensing requirements. New York, for instance, requires licensing for virtual currency through its BitLicense, created by the New York State Department of Financial Services. Other states have taken the initiative either through statute or regulatory interpretation to say that the act of transmitting money doesn't affect virtual currencies. And some have a blended program.
In Texas, for example, if you have a bitcoin ATM that is a standalone device, you probably do not need to have a Texas money transmitter license. But if your bitcoin ATM in Texas is connected to a virtual currency exchange then Texas requires a money transfer license.
"If you have to be licensed in your jurisdiction, then you need to look at what is required to be licensed. And that can be onerous from a financial and a compliance standpoint," Repasky said. "In some cases, it is actually the make-or-break decision on whether a bitcoin operator will operate in that state."
Obtainingstate license can take several months.In most cases, you will have to post a surety bond, whichis required so that, in the event the licensed money transmitter stops operating, there ismoney to cover any transactions that have not yet cleared.
The costs of staying compliant can add up quick. "Plan in advance before you drink one too many beers or wines and buy your kiosk and then suddenly, begin to see how much it's going to cost," Repasky said. "It's like what my wife always says about free pets: there's no such thing."
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The ABCs of bitcoin ATM regulation and compliance in the US - ATM Marketplace
Localethereum Becomes Localcryptos and Adds BTC Trading – Bitcoin News
P2P trading site Localethereum has rebranded to Localcryptos, allowing users to buy and sell both ETH and BTC without KYC. The platform has been providing peer to peer trading services for ethereum since 2017, but in a surprise announcement this week, the website revealed its new home, localcryptos.com and rolled out its P2P trading service and fiat onramp to bitcoin users. Visitors to Localethereum will now find themselves redirected to the new multi-currency site, in a move which will give rival P2P exchange Localbitcoins (LBC) pause for thought.
Also read: Traders Bemoan New Localbitcoins Identity Requirements
Localcryptos is painting a target on the back of Localbitcoins, placing itself in direct competition not only by offering BTC trades, but by making it possible for users to import their reputation score from one site to the other. The platform announced: When you join LocalCryptos, you can bring your profile reputation from LocalBitcoins. That way, you can keep your hard-earned reputation you dont need to start over.
By making it as simple as possible for LBC users to carry over their positive reputation, Localcryptos has fired the first shots in a new battlefront for the P2P exchange marketplace. Localcryptos also elaborated on what it considers to be a number of issues with the long running BTC onramp, of which security was at the top of the list. Localcryptos did not hold back on its criticisms of the longstanding exchange, writing: LocalBitcoins looks the same today as it did in 2012, and theres plenty wrong with it. Platforms like LocalBitcoins are centralized, custodial, and a far cry from private.
By comparison, Localcryptos is a non-custodial service where users retain their private keys, an advantage which will be welcomed by traders who are well aware of the fairly regular hacks and security breaches that centralized services fall foul of. The system in place on Localcryptos is similar to P2P bitcoin cash marketplace local.Bitcoin.com which launched earlier this year.
The escrow feature on Localcryptos is noncustodial, using ethereum smart contracts for ETH trades and P2WSH for bitcoin, so whatever crypto youre trading, the funds are never held on a centralized server at any point. For anyone interested in exactly how the decentralized bitcoin escrow service is achieved, Localcryptos goes into the nuts and bolts here.
As well as rolling out its service to bitcoiners, Localcryptos intends to extend its P2P trading service to other ERC20 tokens over time, and eventually plans to tackle non-fungible ERC721 tokens as well. P2P exchanges have often labored with low trade volumes and liquidity, an issue which news.Bitcoin.com recently covered in a report on decentralized exchange Bisq. If Localcryptos spreads itself too thin across too many tokens, theres the potential for liquidity issues to surface.
At present, however, with 100,000 users worldwide and 1,000 active users on any given day completing 200 trades, Localcryptos looks set to create another valuable decentralized gateway for BTC with minimal or no KYC. Coupled with the BCH marketplace available at local.Bitcoin.com, and bitcoiners bemoaning the loss of LBC have new platforms to turn to at last.
What are your thoughts on Localcryptos.com? Let us know in the comments section below.
Disclaimer: This article is for informational purposes only. It is not an offer, solicitation or a recommendation, endorsement, or sponsorship of any products, websites, software, services, or companies mentioned. 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.
Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see whats happening in the industry.
Kai's been manipulating words for a living since 2009 and bought his first bitcoin at $12. It's long gone. He's previously written whitepapers for blockchain startups and is especially interested in P2P exchanges and DNMs.
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Localethereum Becomes Localcryptos and Adds BTC Trading - Bitcoin News
Stock to Flow Analyst Sees Bitcoin Trading at $10,000 Before End of Year – CCN.com
In the last few days, bitcoin has been the subject of bearish calls. Many are calling a drop between $6,000 and $5,500.
Peter Brandt chimed in on the topic. The most followed trader on Twitter said that the head-and-shoulders top for bitcoin doesnt look valid. But the analyst painted a descending triangle breakdown and indicated a target of $3,905.
While bitcoin appears to be on a technical downtrend, PlanB believes that it is possible for the top cryptocurrency to regain its bullish composure. The analysts stock to flow model suggests that the recent selloff is a deviation.
The stock to flow (SF) model is a method used to predict the value of a commodity like gold or silver by determining the assets scarcity. The formula to determine scarcity or hardiness is simple. Get the amount of the precious metal in inventory and divide it by the amount mined or produced every year.
Among precious metals, gold has the highest stock to flow ratio. According to BayernLB, gold has an (SF) ratio of 58, which is significantly higher than the SF ratio of silver, palladium and platinum. Based on this model, golds market cap should be close to $10 trillion. Currently, the precious metal is worth $8 trillion.
While gold may be ahead of the curve, BayernLB predicts bitcoins SF ratio would make tremendous gains in six months. The model indicates that the top cryptocurrency would have a SF ratio of 53 after the May 2020 halving. That will put bitcoin at a $1 trillion market cap.
Using the stock to flow model, PlanB can forecast the price of bitcoin without using technical analysis. So far, the analysts model has been right on the money.
Bitcoins recent selloff has put the price (red dot) below the SF value (grey line). According to PlanB, bitcoin trading below the SF value a few months below the halving is unusual. Thus, it wont come as a shock if bitcoin bounced hard and traded above $10,000 before the end of the year.
Even after a brutal dump over the last few weeks, bitcoin is still up by over 94% year-to-date. Thats why Simon Peter, an analyst at eToro, also believes that the cryptocurrency will recover $10,000. The trader told CCN,
In terms of a price target for the end of the year, I feel well get back to a $10,000 level and probably stay around, or just above, that level by the end of December.
The analyst added,
There are a few reasons for this. Firstly, given the fall in price we saw last week, various technical indicators are pointing to an oversold bitcoin market, and thus the opportunity to acquire more of it is arguably more attractive.
Peters also said,
With global currencies potentially losing further purchasing power going forward, over the long term this could be great news for bitcoin. Investors could look to crypto to protect their wealth, which in turn, increases demand. This coupled with a decreasing supply could cause prices to push higher.
It appears that PlanB is not alone in seeing bitcoin trading above $10,000. Its possible that the move down to $6,500 is nothing but a deviation.
Disclaimer: The above should not be considered trading advice from CCN. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
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Stock to Flow Analyst Sees Bitcoin Trading at $10,000 Before End of Year - CCN.com
Bitcoin Price Recovers Above $7,000 But Markets Shiver in Extreme Fear – CCN.com
The Crypto Fear and Greed Index (CFGI) recently plummeted to its lowest value in months, signaling extreme levels of fear in the industry. The move comes after bitcoin dropped below $7,000, which brought out some of the most prominent crypto critics to spread fear, uncertainty, and doubt (FUD) around the market.
Peter Schiff, the CEO and chief global strategist of Euro Pacific Capital, entertained the idea that a head-and-shoulders pattern was developing on bitcoins chart, which could trigger a sell-off to $2,000. Meanwhile, Mark Dow, a former US Treasury and International Monetary Fund economist, affirmed that bitcoin was dying. And, Dr. Nouriel Roubini, a professor at New York Universitys Stern School of Business, called it the most useless and over-hyped technology ever.
Regardless of the pessimism, historical data shows that the current levels of fear could be a sign that the market will recover.
Over the last week, more than $56 billion were wiped off the cryptocurrency market cap. The massive downturn took many investors by surprise since the run-up to the bitcoin halving usually has a positive impact on the industry as a whole. But, this time around, BTC dropped nearly 23 percent to hit a low of $6,600 on Nov. 25.
The sudden nosedive turned the market sentiment into extreme fear, according to the Crypto Fear and Greed Index (CFGI).
This technical index evaluates the emotions and attitudes that investors have towards bitcoin. It takes into consideration several factors, including volatility, volume, social media, surveys, and market dominance. Then, the CFGI turns these viewpoints into a straightforward number. A value of 0 means extreme fear, while a value of 100 represents extreme greed.
At the moment, the CFGI is on a 21, which implies extreme levels of fear in the crypto market. This is the lowest value that this technical indicator had reached since Sept. 26, when it went into a 12.
Despite the current market sentiment, Warren Buffett, one of the top investors of all time, once said:
Be fearful when others are greedy, and greedy when others are fearful.
Based on historical data, this could be the case. Every time the CFGI goes into extreme fear, bitcoin tends to surge immediately after. On Oct. 24, for instance, this index was on a 20 indicating extreme fear, but the next day BTC skyrocketed over 40 percent to hit a high of $10,500.
According to the former senior market analyst at eToro, Mati Greenspan, the recent sell-off that the market went through triggered a massive amount of buy orders on Bitfinex, a cryptocurrency exchange headquartered in Hong Kong. He maintains that bitcoin buy positions hit their highest level since February.
It's very clear what the market thinks of this latest selloff!
Bitcoin buy positions (blue line) are at their highest level since February, while bitcoin sell positions (orange) are near their lowest level ever.
Data from @bitfinex displayed by @tradingview. pic.twitter.com/yaT0wQpGgs
Mati Greenspan (@MatiGreenspan) November 26, 2019
Along the same lines, the CEO of Three Arrows Capital, Su Zhu, believes that $6,775 was a key price point for bitcoin.
If this was bottom (6680~ish on normal venues, 6775 on bfx), then it has some similarities to the low 3k capitulation in that the low was fully absorbed by buy walls rather than culminating in a flash wick (as what happened in 2015)
Liquidity is a lot more efficient nowadays https://t.co/zSdiZU6mwe
Su Zhu (@zhusu) November 26, 2019
The economist Alex Kruger argued that the Crypto Fear and Greed Index is relatively accurate at pinpointing bottoms. Still, it does not take into consideration multiple factors that are crucial to determine the direction of the market. Therefore, time will tell whether the current state of extreme fear in the market could indeed estimate an upswing.
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Bitcoin Price Recovers Above $7,000 But Markets Shiver in Extreme Fear - CCN.com
Bitcoin Isnt Down Because of China, Its Down Because You Dont Need It – Forbes
BEIJING, Nov. 7, 2019 -- A visitor tours a display center of the National Big Data Comprehensive ... [+] Pilot Area in southwest China's Guizhou Province, May 22, 2019. (Photo by Ou Dongqu/Xinhua via Getty) (Xinhua/Ou Dongqu via Getty Images)
Crypto markets are not reeling this week because China is cracking down on Blockchain. Tokens have been getting slammed since the summer because most of them are unnecessary, and because the need for coins that may offer some utility is not as imminent as buyers thought it would be. This is most obvious with King Crypto, bitcoin, whose purported use-case as a store of value is not looking very compelling.
The risk-reward in bitcoin has always been an extreme one, which is why its biggest proponents/salespeople assigned astronomic price targets to it. Widespread adoption is an extremely low-probability event with an enormous payoff if the stars align. And lets be clear: the things that need to happen for the world to turn to bitcoin complete central bank impotence, widespread currency debasement, falling equity markets and the abandonment of traditional gold means betting on bitcoin is essentially betting against the house. Hence the short bankers, long bitcoin meme. To say bitcoin will offer a 100x return yet also say its a highly probabilistic event is inherently contradictory and hugely dishonest.
The market is now realizing this. As the global economic slowdown of the last nine months shows signs of stabilization and the Federal Reserve sees no need for more interest-rate cuts, the case for bitcoin is taking body blows. None of the stories about adoption are turning out, big tech giants from Facebook to Google are doing everything possible to dominate electronic pay and finance, and projects designed to make bitcoin a means of exchange are either slow, fruitless, or both.
In short, the house does not look like its in a losing position just yet. And so bitcoin is getting killed. Sure, the U.S. and China could have a major fallout, get into a currency war, and Chinese citizens could rush to crypto as a way to get money out of the system. Thats why bitcoin will never be worthless, and why every investor should watch its price action, but that scenario is looking way, way further away from reality than the cryptoknights had so many believe.
Bitcoins violent moves are a factor of the speculative nature described above. Because its probability of success is low, it is closer to a roulette wheel than any traditional asset class. Average people were lured into the bitcoin sales pitch in 2017 when the economy was tearing hot, cash flow was heavy, stocks were churning out huge gains, and people could afford to take a gamble. Why not roll the dice?
Now those buyers are losing faith in their chances of winning, and are using this years rally to get out. As the fundamental reason for owning bitcoin as a store of value also loses luster amid a stabilizing economic situation, the true believers may start bailing out too. If it continues, it should be a warning sign to more traditional investors who made a similar bet in gold, and maybe even those who ran to Treasury bonds as a hedge against chaos, too.
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Bitcoin Isnt Down Because of China, Its Down Because You Dont Need It - Forbes
Bitcoin Prices Fall To Their Lowest Since May – Forbes
Bitcoin declined to nearly $6,600 tonight, falling to its lowest point since May.
Bitcoin prices declined over the last 24 hours, hitting their lowest price in more than six months.
The digital currency reached $6,616.24 shortly before 8:45 p.m. EST, CoinDesk data shows.
At this point, the cryptocurrency had fallen more than 35% from its recent high of more than $10,000 in October and over 50% from its 2019 high of nearly $14,000 reached in June, additional CoinDesk figures reveal.
Bitcoins price remains under pressure, especially as the China-hype-driven speculative surge unraveled, said Joe DiPasquale, CEO of cryptocurrency hedge fund managerBitBull Capital.
Moreover, the recent China-Binance FUD also dampened market sentiments considerably, he added.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Michael Conn, founder and managing partner of financial services firm Quail Creek Ventures, also weighed in.
Though there are still rumours in the market about a Chinese crackdown on Binances offices in Shanghai, I think the majority of the pressure is from bears, with little support to the upside right now, he stated.
Going forward, the digital currency may be in for additional downside, according to technical analysis provided by Jon Pearlstone, publisher of the newsletterCryptoPatterns.
While there are a few key technical indicators that continue to show potential for upside, for now bears have the edge, he stated.
The next targets would be a test of support at $6500 then $5000, added Pearlstone.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.
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Bitcoin Prices Fall To Their Lowest Since May - Forbes
As Bitcoin, Ethereum, Ripples XRP, And Litecoin Lose Billions, This One Small Coin Has More Than Doubled – Forbes
The bitcoin and cryptocurrency market has lost a combined $170 billion since its year-to-date high set in June, with major tokens ethereum, Ripple's XRP, and litecoin all falling steeply.
The bitcoin price has almost halved, dropping from almost $14,000 to trade at around $7,600 today (though some heavyweight crypto investors remain upbeat).
However, one relatively minor cryptocurrency, chainlink, has more than doubled since June, jumping from around $1 to $2.55 after the company behind the token revealed a raft of partnerships and deals to use its technology.
After rallying hard earlier this year, the bitcoin price has been stuck on a downward trend for the ... [+] last few months, dragging the likes of ethereum, Ripple's XRP, and litecoin with it.
The chainlink token, which trades under the name link, began the year at $0.25, climbing to highs of around $4 per link token, before falling back along with the wider bitcoin and cryptocurrency market.
Chainlink is currently the 14th most valuable cryptocurrency by market capitalization, according to CoinMarketCap data, which counts bitcoin, ethereum, Ripple's XRP, bitcoin cash, and litecoin as the respective top five (excluding so-called stablecoin tether).
Chainlink, an ethereum token that powers the Chainlink decentralized oracle network allowing smart contracts on ethereum to connect to external data sources, APIs, and payment systems, has managed to stage a strong recovery since the late summer sell-off, breaking away from the wider bitcoin and crypto market, which has been falling steadily.
Some of chainlink's recent gains could be due to its efforts to expand into China just as China's president Xi Jinping has revealed the country will work to widely incorporate blockchain technology over coming years.
In April, the Chainlink organization hired a Chinese community manager.
Last month, Chainlink teamed up with Binance, the world's largest bitcoin and cryptocurrency exchange by volume, to develop blockchain and smart contract-based so-called decentralized finance products, including lending, derivatives, and decentralized exchanges.
Back in June, the Chainlink organization began working with search giant Google and enterprise software company Oracle to help bridge their legacy payment systems and databases using blockchain technology.
Elsewhere, OpenLaw, which is developing decentralized peer-to-peer legal agreements, started working with the Chainlink organization in April on its smart legal contracts.
The chainlink price is up almost 700% over the last 12 months, compared to bitcoin's 75% rise over ... [+] the same period.
Some analysts have, meanwhile, been talking up chainlink's prospects.
"Id be lying if I said I havent been watching chainlink incredibly closely," Eric Thies, a popular bitcoin and cryptocurrency analyst on Twitter, told crypto news outlet CCN.
"I noticed a similar structure to ethereums price behavior in 2016 or, dare I say, bitcoin between 2011 and 2012. I wouldnt be surprised to see link hovering around $10 and making it to the top 10 cryptocurrencies in CoinMarketCap by mid-2020."
Other crypto watchers have though warned chainlink investors that the token's bull run could be coming to an end.
"Anything can happen, [chainlink] often defies gravity," bitcoin and crypto trader Scott Melker said via Twitter alongside technical charts and analysis of the chainlink price. "But never bad to take profit if you have the chance."
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As Bitcoin, Ethereum, Ripples XRP, And Litecoin Lose Billions, This One Small Coin Has More Than Doubled - Forbes
Bitcoin Price Could Drop To $6,000 Before Bullish Run, Analyst Says – International Business Times
Dropping below $8,000, Bitcoin (BTC) has not regained much of what it lost on Friday's trading and had even fallento $6,735 (as of press time). Now, analysts are predicting for things to get a little worse for BTC before it gets better -- a further drop to $6,000.
Analyst Filbfilb, who recently got a mention from Tony Vays and Willy Woo in a Youtube discussion because of his accurate annual Bitcoin price outlook, calls for a BTC bottom at $6,000.
His analysis points to a descending channel that bounded BTC's prices since July. The chart shows that BTC is at the bottom of the channel and that a bounce off is likely to occur. Filbfilb also pointed out that Bitcoin had broken down the descending triangle at $9,550, and the trendline he drew from the July 18 low that measures that same height of the triangle extends to a technical target of $6,166.
BeingCrypto contributor Valdin Tahiri also noted that the $6,000 price is underpinned by a very long support line that was established since 2011 on a logarithmic chart.
Another analyst, CryptoWelson, sees the same price area as a point for reversal, and he thinks it's likely to occur before the year ends.
He tweeted, "#Bitcoinlooks primed for bottoming out within 2019. After rejecting the resistance I discussed in my earlier calls (above 10k), we've seen the markets drop a lot."
"We're now entering the 6K range, which I am confident in the bottom! Make sure to accumulate for the next bull run."
The support zone that CryptoWelson highlighted marks an area -- the $6,000 price range -- where BTC had consolidated and had bounced off in the past.
Dave the wave, another popular analyts, utilized a similar descending channel for his prediction and offered buying zones within the $5,800-$6,800 price range.
He tweeted, "You wouldn't want to wait for price to dip below the channel - it was red last time. You'd want to be averaging in, if you've dry powder, with price in the channel now that is green."
"Blood in the streets, red in the buy zone, now is the time to buy... if you have any dry powder that is..."
Bitcoin fell below the $5,000 mark on Monday, reaching it lowest price point since October 2017. Here, a visual representation of the digital cryptocurrency bitcoin is seen alongside U.S. dollars in London, Dec. 7, 2017. Photo: Dan Kitwood/Getty Images
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Bitcoin Price Could Drop To $6,000 Before Bullish Run, Analyst Says - International Business Times
Bitcoin Analyst Identifies $6000 as a Likely Bottom – BeInCrypto
TheBitcoin price appears very close to reaching a bottom. A confluence of support areas suggests that the bottom will occur near $6000.
Even though yesterday the market experienced a rapid decrease, the current trading pattern and long-term support lines indicate that Bitcoin should be close to reaching a bottom.
Additionally, yesterdays decrease has not dissuaded investors to enter the market. On November 22, Bakkt reached a new all-time high at a volume of $13.4 million. This happened through the handling of 1863 Bitcoin contracts.
Therefore, if Bakkt is reaching such levels in a bearish market, the next bull run could bring extraordinary numbers.
As for when the bull market might begin, crypto trader and analyst @filbfilb tweeted the sole chart which he believes is the best one to predict the current market movement.
He is using a descending channel that shows the price bouncing on the support line.
Lets take a closer look at this channel and see where a reversal might occur.
Looking at the Bitcoin price movement, we can indeed see a descending channel in place since the June 24 high. Due to the presence of several wicks, the support and resistance lines could follow slightly different slopes.
Additionally, outlining a wave count we can see that the price is likely in the fifth and final wave of a 3-3-5 correction.
It is possible that the correction end near $6000, at the support line of this channel and previous support area.
The $6000 target also coincides with the long-term logarithmic support line in place since 2011.
There is a confluence of support from both the line and the channel right at $6000.
Looking closer at the movement, we can see that the price has found support above the 50-week moving average (MA).
While a decrease to $6000 would take the price below this MA, it would be right above the 200-week MA. We could see a scenario similar to that in January 2019 when the price bounced at the support line and the 200-week MA, which were at the exact same level.
Finally, the daily RSI gives us an interesting development.
First, it has reached oversold values. Every time it has done so previously, an upward move ensued.
Additionally, there is bullish divergence inside the oversold levels. The only time this happened was during the December 2018 low.
To conclude, the Bitcoin price is trading inside a descending channel. There are several strong support areas at $6000, making it a very likely place to initiate a reversal. This view is supported by the readings from the RSI and previous price history.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Twitter, TradingView.
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Bitcoin Analyst Identifies $6000 as a Likely Bottom - BeInCrypto
Bitcoin Is Dying, for at Least the 378th Time to Date – BeInCrypto
Bitcoin and leading cryptocurrency prices have taken a major hit over the last couple of days. As you might expect, there are no shortage of volunteers to deliver its last rites given the recent volatility.
Over the last 24 hours, Bitcoin has shed around $14 billion from its total market capitalization. This has brought the price down to around $7,180 at the time of writing.
Altcoins have generally fared worse in percentage terms. Ether and Bitcoin Cash have dropped by around 11.95 percent over the last 24-hours, and Litecoin by more than 10 percent.
As has become tradition, the sudden drops in prices have been accompanied by proud declarations of Bitcoins death. The latest is from Mark Dow, a global macro trader, author, and former policy economist at the US Treasury and IMF.
Typically, as in the above case, those most eager to write Bitcoin off after violent moves to the downside are those with closest connections to the existing financial system. Dow has also been a consistent critic of the cryptocurrency himself over the years. In 2013, he tweeted:
Bitcoins history is littered with so-called Bitcoin Obituaries. In fact, they have become so common that 99Bitcoins hosts a page dedicated to them. So far, Bitcoin has apparently been on deaths door (or through it) a total of 377 times.
There has been at least one news article published on the cryptocurrencys demise every year since 2010. The latest listed on the site was delivered by US entrepreneur and investor Jim Rogers via Portfolio Wealth Globals YouTube channel. No doubt, there will be more in the works given the recent Bitcoin volatility.
Yet, despite the number of deaths that have punctuated its short life, Bitcoin remains. It still functions as it did yesterday, last week, or last year. People used it and will continue to use it at much lower prices than it has recently fallen to.
If Bitcoin is here to replace the entire central banking system, as many believe it is, it will obviously not be a quick and easy transition. This will be a multi-decade story if it does happen at all. Bitcoin is software at the end of the day. It has no company to promote it and stands opposed to the most powerful industry on the planet. Hiccups in price are to be expected in such a small, uncertain, but growing market. They have also been a constant throughout Bitcoins history. To write Bitcoin off because of such is about as naive as believing that a peaceful overthrow of the worlds central banks will be done and dusted in a couple of years.
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Bitcoin Is Dying, for at Least the 378th Time to Date - BeInCrypto