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Looking at the daily chart, BTC is still located within the descending channel. If the cryptocurrency cannot reach and fix at the $7,700 level, then the next bearish mark will be a move towards $6,000. If such a scenario comes true, then this level might be achieved during the first days of January 2020.
If the pattern is valid, Bitcoin price may have closed a daily candle outside of the pattern, suggesting that a breakdown is imminent. If a breakdown occurs, the bear pennant could have a measured target of as low as $4,600. Reaching such a low would nearly erase all of Bitcoin’s gains throughout the calendar year thus far, and take the asset back to prices not seen since April of this year.
BTC/USD BitStamp 4-Hour Chart
For the past five days, Bitcoin was trading between $7300 to $7600. Despite a fake-out that reached the mentioned resistance area of $7700, Bitcoin was trading inside a descending channel, which can be seen on the following 4-hour chart. Adding negative indication coming on behalf of the Relative Strength Index (the RSI), as of now, it looks like Bitcoin would like to retest the $7000 area once again.
Charles Hwang, a managing member of the hedge fund Lightning Capital, predicts the price of BTC will trade between $20,000 and $50,000 following next May’s block reward halving. Hwang, who also serves as an adjunct professor at Baruch College, published a post to medium explaining what he calls the coming “bitcoin squeeze.” The hedge fund manager argues that bitcoin’s price has historically responded to halving events in a predictable manner,
Courtesy GMO, Predicted returns from stock and bonds for the next seven years
In the low-interest-rate environment that has characterized the post-GFC era, stock markets have soared to all-time highs, in part, as a result of the TINA Effect–There Is No Alternative. As consensus mounts that both equity and debt products face a prolonged period of sluggish returns, crypto assets could enjoy the same TINA benefits.
As a matter of fact, in the last half a decade, the US SEC, the body responsible for implementing the federal securities laws as well as regulating electronic securities markets in the US, has denied and suspended its decision on the activities of around five cryptocurrency proposals from several giant companies, frequently referring to its apprehensions about the fundamental nature of the digital asset plug market.
Some exchanges are taking steps to reduce charges, fees and spreads. After all there is already an associated network fee to pay so why should users of cryptocurrencies pay more to enrich the owners of exchanges. Poloniex is one that has offered zero fee trading until the end of the year but it remains to be seen yet if it will continue the practice into 2020. There are a few other smaller players that have also taken up this initiative but it is really time that the industry behemoths follow suit if they’re seriously interested in crypto adoption above their bottom lines.
Key events charted against the bitcoin price and searches for bitcoin on Google
2019 has been a historic year for cryptocurrency and blockchain technology. Global state leaders such as President of the People’s Republic of China Xi Jinping and the President of the United States Donald Trump have made public statements addressing the dynamics of this revolutionary tech. Traditional tech companies such as messaging app giant Telegram and social media giant Facebook have made bold promises to integrate crypto into their line of products and services.
For example, you’d like to invest in bitcoin by buying 1 BTC at a price of $7,000. To buy it on classic exchange you would need to pay the amount of $7,000. When Bitcoin Price goes up 1% (and now 1 BTC trades at $7,070) you’ll receive profit of 70$ if you’ll sell your 1 BTC now. Thus, you have made $70 from your original investment of $7,000.
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Repo rates surged in September with very little warning | Source: Reuters
- The repo market was front and center in September when rates spiked well beyond the Federal Reserve’s target range.
- The Fed has been conducting liquidity operations to reduce the stress, though analysts believe that the overnight lending market will face more issues into the year-end.
- The enormous stress faced by the repo market could drive the Fed to officially start QE4.
The repo market has been relatively quiet since September when rates suddenly surged. The obscure yet vital aspect of America’s financial system grabbed headlines after interest rates spiked to 8%. The Federal Reserve was alarmed because the overnight repo rates stood at 2% a week before.
Today, Santander’s head of Digital Investment Banking, John Whelan opined that the bank has successfully redeemed the bond. According to Whelan, this “unequivocally proves that a debt security can be managed through its full lifecycle on a blockchain (public in this case).”
Whelan went ahead to provide the links to the transactions on etherscan which show that with this end-to-end blockchain bond, Santander was both the investor and the issuer.
Whale Alert, the twitter account that monitors huge cryptocurrency transactions, noted that this bond had accrued a quarterly interest to the tune of $99,000.
Miner capitulation happens when Bitcoin mining ceases to be profitable. When miners sell off their holdings and turn off their rigs, it can accelerate a bear market.
Some crypto prognosticators say smaller miners may capitulate after the next Bitcoin halving, which cuts their mining rewards in half in May of 2020.
Analysts are still very divided on whether or not Bitcoin’s upcoming halving has been priced into the cryptocurrency’s market value.
MATIC/BTC 1-month chart. Source: Coinmarketcap | According to data from Coinmarketcap, MATIC/BTC reached a high of 562 satoshis on Monday, before diving to lows of just 195 satoshis. Despite a subsequent correction above the 200 satoshi mark, the pair was still trading down 50% at press time on Tuesday.
Ethereum (ETH) based cryptocurrency payment network Matic has described as “baseless” claims it manipulated the price of its token after it crashed 60% in minutes. In a blog post on Dec. 10, executives addressed community participants who saw the value of the project’s in-house MATIC token lose most of its value hours before.
China is arguably the biggest bitcoin haven in the world. Home to two of the world’s largest crypto miners in Canaan Creative and Bitmain, the country has become rather “kind” and open-minded when it comes to digital currency despite several steps to seemingly shut them out before. Among the maneuvers taken to prevent crypto from getting “too big” were declaring initial coin offerings (ICOs) and foreign exchanges illegal in 2017 and 2018 respectively.