By Anton Dzyatkovsky, CEO and co-founder of MicroMoney When two years ago I found from McKinsey & Company experts report that about 2 billion people across the globe today had no access to banking or other basic financial services, I was shocked. Not because it’s the obvious violation of human rights but because that’s mean… View Article
Archives for October 6, 2017
A new survey has been released showing significant levels of interest in blockchain among medical group executives.
Over the last week, the BTC-USD market has seen some major price swings. At one point, the price nearly reached $4500 only to see it pull back down to the low $4100s. And now, within two days, the price has topped back out in the low $4400s. There has been some major chop and seemingly erratic dumps and price hikes, but overall there seems to be a common upward trent within the macro market movements:
Figure 1: BTC-USD, 4-Hour Candles, Bitfinex, Macro Trend
Since the bottom of the bear run last month, bitcoin has seen several rallies that have continued along a generally positive trend. The figure above shows a trend of higher highs, higher lows and an upper/lower boundary that is converging. This type of price activity is called a rising wedge.
Coupled with this price growth is a trend of decreasing volume throughout the length of the wedge. A rising wedge is generally a bearish trend that shows weakening bullish pressure as each subsequent rally becomes smaller and smaller. As the price corrects, there are rallies that bring the price to new highs, but ultimately rally on smaller and smaller volume.
As of the time of this article, the latest rally has failed to make a new high in the low $4400s. A breakdown of this wedge could lead to a substantial price drop of approximately $500 below the point of breakdown. The approximate price target would be around $3700.
Although rising wedges are bearish in nature, that doesn’t mean new highs aren’t in store for bitcoin. The macro trend is currently showing a potential bearish move, but there is still some strength in the market. The market is currently trending above the 50 EMA and 200 EMA which, by many standards, is representative of a trending bullish market. Although the price is trending upward and the overall EMA signals are showing potential upward continuation, there are pretty clear signs of bullish exhaustion on the macro scale:
Figure 2: BTC-USD, 4-Hour Candles, Bitfinex, Bullish Exhaustion
As stated earlier, the rising wedge is paired with decreasing volume which is a clear giveaway that upward momentum is waning. To complement this exhaustion, the RSI and MACD are showing clear signs of bearish divergence in the current market and are demonstrating a lack of the bullish momentum necessary to sustain a bull market.
If the rising wedge breaks to the bottom, we can expect the support levels to lie on the Fibonacci Retracement values shown above. The ultimate price target of the rising wedge would have BTC-USD testing the 50% retracement values.
On a very, very macro scale, there are clear signs of overall bullish exhaustion since the beginning of its run from the low $1000s:
Figure 3: BTC-USD, 1-Week Candles, Bitfinex, Macro Bullish Exhaustion
Two very clear indicators of bullish momentum loss lie on the RSI and the MACD. The price of bitcoin has pushed to strong, new highs but it has left the momentum indicators weakening. The RSI is showing strong macro divergence, and the MACD is on the verge of flipping bearish for the first time since the ETF was denied back in April.
It’s not hard to argue that bitcoin has seen heavy price growth and needs a little room to breath. It is entirely possible the market won’t see any strong pullback and it may go sideways. However, in the event that a sustained market pulls the price down, we can expect to find support along the midline of the Bollinger Bands in the low $3000s. It’s important that the above chart and market implications of this macro divergence are occurring on candles that are one week. So, while this doesn’t mean the market will just suddenly plummet, it is important to understand that a substantial price drop could be in bitcoin’s future.
Even though I gave plenty of bearish arguments, it should be noted that these predictions are on a macro scale, and the immediate trend is showing strong support along the 50 and 200 EMAs. The market is bullish until proven otherwise. As the saying goes: “the trend is your friend.” Bitcoin has had one heck of a year so far, but I think it’s important to point out the clear signs of a macro bullish exhaustion:
Bitcoin is finding support and showing a bullish trend along the 50 and 200 EMAs.
On a macro level, the trend is pushing upward but is showing a potential bearish move if the market breaks out of the rising wedge identified in Figure 1.
A breakout of this wedge would have its price target in the $3700s.
Trading and investing in digital assets like bitcoin, bitcoin cash and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTC Media related sites do not necessarily reflect the opinion of BTC Media and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.
The post Bitcoin Price Analysis: There May Still Be Some Life in These Exhausted Bulls appeared first on Bitcoin Magazine.
A new syndicated loan marketplace backed by a group of major banks is set to be launched on top of R3’s Corda distributed ledger platform.
Russia isn’t happy that an alleged bitcoin money launderer is being extradited to the US following a court decision in Greece.
The Bank of England announced four new financial technology projects, including a proof-of-concept test for distributed ledger technologies.
For most individuals, investing in foreign property seems out of reach. The barriers, however, have far less to do with one’s income and more to do with issues around information, namely quality and verifiability. It is not just the cost of property but also the expense in hiring local advisers that makes foreign real estate a rich man’s game.
Blockchain technology has the potential to significantly lower these barriers, making property investment a viable option for a larger swathe of the population. In short, distributed ledgers can provide greater transparency into the availability, detail and oversight of properties in more inaccessible areas.
Tokenization makes real estate investments more liquid and divisible among a greater number of people — an attribute that greatly reduces transaction costs and increases economies of scale.
The various levels of complexity are the reason why foreign real estate investors often resort to hiring local advisers. The costs incurred in hiring local advisers or services can add up to more than the actual property.
As business lawyer, economist and Brickblock adviser Dr. Wolfgang Richter notes, “The various fees make it unfeasible for people to invest small amounts; thus, investing is only advantageous for those with a lot of capital.”
The decentralized, fluid and incorruptible nature of blockchain technology may present a solution to the barriers that aspiring property investors are confronted with.
Providing a Trusted, Verifiable Source of Data by Demystifying Information
As it stands, one of the greatest challenges for potential investors is understanding whether a property is appropriate for investment.
Investors may see a property they like — but how can they understand whether the financial, cultural and security prospects of the surrounding area fit their risk profile? And how can they trust that the information is even correct? Ensuring the accuracy of data and overcoming language barriers makes this process extremely difficult.
The same goes for valuations — how verifiable are they? How is a potential buyer who hasn’t set foot in the country meant to ensure that the current value is fair?
Companies and advisers interested in widening their client pool to international investors can collect, store and present critical information to individuals in a clear and transparent fashion. According to Richter, this information includes “a thorough description of the assets, including a valuation by an external expert, as well as documentation that demonstrates a credible management structure.”
In essence, the distributed ledger eliminates much of the complexity of compiling, verifying and ensuring the integrity of real estate data.
Eliminating the Need for Costly Trustee and Company Structures
Most trustee and company structures exist solely to hold and maintain records. Ensuring that the appropriate data is filed, maintained and accurate — especially as requirements differ across each country — requires extensive resources.
However, with blockchain technology, all data concerning the investment deal and ongoing valuation can be stored in a decentralized database where it can’t be altered or manipulated.
Between not having to pay high marketing fees for documentation and additional costs to store and verify information, investors have more cash to park in their investments.
Reducing the Need for Local Finances and Administration
Tokenization enables real estate investments to be divided and translated into digital tokens. Tokens can be distributed and traded between investors without any need to transfer into local currency.
The ability to buy and sell property via tokens eliminates the need for local bank accounts, which often require a high initial deposit from foreign individuals or are outright impossible to open due to residence requirements. Thanks to the nature of borderless cryptocurrencies, the size of local documentation is vastly reduced — further lowering administration costs. In addition, follow-up transactions for investors can be handled easily because of the liquid nature of the tokens and because of the transparency afforded by the distributed ledger.
Transforming Real Estate Into a More Liquid Asset
Tokenization also turns a somewhat illiquid asset into a highly liquid one. Tokens can be traded or liquidated much more easily and rapidly than an individual property or shares in a typical real estate fund.
Opening Up Accessibility to a Wider Variety of Foreign Real Estate
Dividing up a real estate investment into smaller-sized tokens not only makes it more cost-effective to invest in foreign property, but also enables investors to deploy their capital across more properties. As the amount required to invest can be low, individuals can spread out risk by investing in a variety of tokenized real estate offerings.
A blockchain-backed platform investing in foreign real estate is nascent, not exotic. As companies or advisers build up track records, grading systems aligned to the data in the distributed ledger can help individuals evaluate the risk associated with specific offerings. Investors will be able to gauge the aptitude of potential real estate investments as easily as they do stocks or bonds.
“Regulation will help this process along,” says Richter. Of course, regulators are still getting their heads around the necessary oversight for tokenization structures. There are also questions about tax issues. Yet, as Richter notes, “There are already structures available based on other types of existing offerings which can provide guidance.”
All in all, blockchain technology stands to open up a wider variety of foreign real estate assets to a larger proportion of the population. While some may feel that investing in property may not make sense for those with less capital than today’s investors, the reality is that real estate — like other real assets — can help offset volatile currencies or inflation. It’s a proposition that many individuals have found themselves excluded from. As with many other areas of finance, blockchain technology stands to make it more inclusive.
This is a guest post by Jakob Drzazga. Opinions expressed are his own and do not necessarily reflect those of BTC Media or Bitcoin Magazine.
The post Op Ed: A Roadmap For How the Blockchain Can Open Up Foreign Property Investment appeared first on Bitcoin Magazine.
NEOUSD TECHNICAL ANALYSIS Today’s chart is still contained within yesterday’s Hi-Los of $33.89 and $28.60. From the look of things, there is some buying pressure after yesterday’s bull candlestick. Going into NFP later today, we expect volatility either to the upside especially if NFP numbers disappoint investors and that will entirely be a fundamental event. … Continue reading Altcoin Analysis for 06-10-2017: NEO, DASH, IOTA, XMR and NEM
The post Altcoin Analysis for 06-10-2017: NEO, DASH, IOTA, XMR and NEM appeared first on NEWSBTC.
Two security specialists are uniting to build a new security solution for financial institutions working with cryptocurrency.
Pushback from the SEC has derailed another effort to create a derivatives ETF tied to bitcoin, public records show.