Archive for the ‘Crypto Corner – Bitcoin, ETC’ Category

Bitcoin Creates Monster Bearish Reversal Pattern

Courtesy of Chris Kimble.

The chart looks at Bitcoin on a weekly basis over the past 6-years. The long-term trend remains up, as it continues to create higher lows inside of rising channel (1. This pattern has been taking place since the 2013 lows.

We applied Fibonacci retracement levels to the 2017 highs and 2018 lows. The rally off the 2018 lows saw Bitcoin hit its Fibonacci 50% retracement of the large decline.

While testing the key Fibonacci retracement level, it created a large bearish wick pattern (Bearish reversal pattern) at (2), while attempting to close above the 50% level.

In the short-term, it looks to be very important that Bitcoin remains above rising support at (3). If this support would fail to hold after this large bearish reversal pattern, odds increase that it will experience some selling pressure in the short term.

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The answer to forecasting Bitcoin may lie in artificial intelligence

 

The answer to forecasting Bitcoin may lie in artificial intelligence

With no physical form, the cryptocurrency Bitcoin is difficult to analyse and its trading patterns challenging to discern. Shutterstock

Courtesy of Nikola Gradojevic, University of Guelph

As Bitcoin tries to regain some of the lustre it held in late 2017 when it nearly reached US$20,000 in value, investors are still questioning how to predict such a volatile currency.

As a cryptocurrency, there is no physical form that gives Bitcoin value, so it is impossible to perform traditional fundamental analysis of the currency. Consequently, many investors track the so-called technical trading indicators (geometric patterns constructed from historical prices and trading volumes) in order to understand and predict Bitcoin’s future movement.

Some researchers have found success with large complicated models. But these sometimes have hundreds of variables (or predictors) and it is difficult to determine key factors or test the replicability of such approaches. It’s also hard to understand what factors really drive Bitcoin fluctuations on the market.

For over 20 years, I have been researching the applications of AI in finance. At the Lang School of Business and Economics at the University of Guelph, my co-author and former graduate student Robert Adcock and I created an artificial neural network (ANN) model to test the predictability of Bitcoin prices.

Predicting fluctuations

We used technical indicators called moving averages as predictors. Moving averages are constructed by averaging prices over a period of time (e.g. 50 or 200 days) and plotting them as a line along with the prices. The rationale for using moving averages is that if the price of Bitcoin today becomes greater or lower than the average price over the past 50 or 200 days, traders could expect the emergence of an upward or downward trend.

If Bitcoin is unpredictable, then our model is not expected to beat the random walk model — essentially, it is no better than guessing.

However, our model provided some very interesting results regarding Bitcoin’s predictability over time and during bouts of unusual volatility.


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Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

 

Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

The high seas are getting lower. dianemeise

Courtesy of Iwa Salami, University of East London

The 21st-century revolutionaries who have dominated cryptocurrencies are having to move over. Mainstream financial institutions are adopting these assets and the blockchain technology that enables them, in what is perhaps the most profound development since the birth of cryptocurrencies through the launch of bitcoin a decade ago.

JP Morgan Chase has been leading the way, having announced JPM Coin earlier this year, the first cryptocurrency issued by a big international bank. When trials begin in the coming months, each JPM Coin will be redeemable for one US dollar, protecting this cryptocurrency from the volatility characteristic of the likes of bitcoin.

One of the main reasons for JP Morgan launching these coins is to offer large corporate clients a way of making international payments in real time. This could gradually replace the current global interbank funds transfer network known as SWIFT, whose wire transfer payments can sometimes take a whole business day to settle.

A few weeks later, the IMF and World Bank jointly announced the launch of Learning Coin, a private blockchain and quasi-cryptocurrency designed to help them better understand the technology. Facebook, too, was reported to be interested in launching a cryptocurrency.

Meanwhile, financial firm 20|30 became the first company to float on a mainstream regulated trading platform using blockchains, when it issued shares in the form of “equity tokens” similar to a cryptocurrency on the London Stock Exchange.

It is all a far cry from the rationale for creating bitcoins and blockchains in the first place: to decentralise finance away from the dollar-dominated system of fiat currencies and to gradually render financial institutions obsolete.

Good, bad and ugly

Yet this space remains attractive to those seeking to undermine US financial hegemony. Iran and Russia are both looking at launching state-backed cryptocurrencies, in response to US threats to disconnect them from the SWIFT payments system. This would enable these countries to join other blockchain-based payment networks, with the…
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Bitcoin Soars Above $11k For First Time Since March 2018, Ether Tops $300

Courtesy of ZeroHedge

One day after we reported that Bitcoin futures traded above $10,000 as crypto derivatives markets "are gearing up towards another big weekend as bitcoin approaches $10k", not only did the spot price surge above $10,000 but just a few hours later – in a vivid replay of December 2017 – the cryptocurrency promptly took out $11,000 as well.

“The bounce back of Bitcoin has been fairly extraordinary,” said George McDonaugh, chief executive and co-founder of London-based blockchain and cryptocurrency investment firm KR1 Plc.

“Money didn’t leave the asset behind, it just sat on the sidelines waiting to get back in.”

Cryptos are a sea of green this morning after a big overnight session…

Source: Coin360

Volume spiked as Bitcoin surged past $10k…and accelerated above $11k – the highest since March 2018

Ethereum also spiked above $300…the highest since Aug 2018

In contrast with last year, Bloomberg notes that there are now signs of renewed mainstream interest in cryptocurrencies and the underlying blockchain technology, most prominently Facebook's Libra. The social-media giant is working with a broad group of partners from Visa to Uber to develop the system, which has already attracted attention and criticism from politicians raising privacy and security concerns.

image courtesy of CoinTelegraph

This lifts Crypto's total market cap above $333 billion, the highest since June 2018…

As CryptoSlate.com's Priyeshu Garg notes, while many were quick to dismiss the effect Libra could have on the broader crypto market, it seems that the highly-anticipated digital asset is already making waves throughout the industry. Despite the problems it faces -which include centralization and lack of privacy – Libra was still celebrated by some in the crypto community.

Garry Tan, the managing partner at Initialized Capital, said that Libra’s launch was a “big day” for the crypto industry, as it has the potential to transform the crypto market. Tan pointed out that Facebook has 2.4 billion users, while WhatsApp, the messaging giant owned by Facebook, has over 1.5 billion. Recent studies estimate the number of…
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House Financial Chair Tells Facebook to Halt Plans for Cryptocurrency

Courtesy of Pam Martens

Congresswoman Maxine Waters

Congresswoman Maxine Waters

In response to the stunning announcement from Facebook that it is planning to launch a cryptocurrency, Congresswoman Maxine Waters, the Chair of the House Financial Services Committee, issued the following statement yesterday:

“Facebook has data on billions of people and has repeatedly shown a disregard for the protection and careful use of this data. It has also exposed Americans to malicious and fake accounts from bad actors, including Russian intelligence and transnational traffickers. Facebook has also been fined large sums and remains under a Federal Trade Commission consent order for deceiving consumers and failing to keep consumer data private, and has also been sued by the government for violating fair housing laws on its advertising platform.

“With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked expansion and extending its reach into the lives of its users. The cryptocurrency market currently lacks a clear regulatory framework to provide strong protections for investors, consumers, and the economy. Regulators should see this as a wake-up call to get serious about the privacy and national security concerns, cybersecurity risks, and trading risks that are posed by cryptocurrencies. Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action. Facebook executives should also come before the Committee to provide testimony on these issues.”

Related Articles:

Facebook’s Experiment and its CIA Roots

Wall Street’s Banksters Are Clandestinely Trading the “Digital Gangster” Stock of Facebook

Is It Social Media or Corporate Surveillance? Facebook’s Business Model

Facebook Opens Door to More Federal Probes by Asking Banks for Data

Could Technology Doom Facebook, Koch Industries and JPMorgan Chase?

Hearings Show Facebook as a Media Company Using Deceptive Technology to Gain Unfair Advertising Advantage

Has Facebook and Cambridge Analytica Put Democracy at Risk in Both the U.S. and U.K.?

Wall Street’s $100 Million in Trading Profits in Facebook

Published originally at Wall Street on Parade. 





With cryptocurrency launch, Facebook sets its path toward becoming an independent nation

 

With cryptocurrency launch, Facebook sets its path toward becoming an independent nation

The world’s newest country? railway fx/Shutterstock.com

Courtesy of Jennifer Grygiel, Syracuse University

Facebook has announced a plan to launch a new cryptocurrency named the Libra, adding another layer to its efforts to dominate global communications and business. Backed by huge finance and technology companies including Visa, Spotify, eBay, PayPal and Uber – plus a ready-made user base of 2 billion people around the world – Facebook is positioned to pressure countries and central banks to cooperate with its reinvention of the global financial system.

In my view as a social media researcher and educator, Facebook CEO Mark Zuckerberg is clearly seeking to give his company even more political power on a global scale, despite the potential dangers to society at large. In a sense, he is declaring that he wants Facebook to become a virtual nation, populated by users, powered by a self-contained economy, and headed by a CEO – Zuckerberg himself – who is not even accountable to his shareholders.

Facebook hasn’t behaved responsibly in the past, and is still wrestling with significant public concerns – and investigations – about its privacy practices, information accuracy and targeted advertising. Therefore, it’s important to see through the hype. People must consider who is reshaping the world, and whether they are doing it in the best interests of humankind – or whether they are just seeking to benefit the new class of elite technology executives.

Humanity needs ethical leadership, and time to think through the potential repercussions of rapid technological change. That’s why, in my view, Facebook’s cryptocurrency should be blocked by financial regulators until its design has been proved to be safe for all of global society.

You might not want to trust this man. Anthony Quintano/Wikimedia Commons, CC BY

Understanding Libra

Technology companies are interested in a global currency that is native to the internet. That could allow companies like Facebook and Twitter to bring in more users…
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Facebook claims Libra offers economic empowerment to billions – an economist is skeptical

 

Facebook claims Libra offers economic empowerment to billions – an economist is skeptical

Courtesy of Jay L. Zagorsky, Boston University

Facebook is joining the cryptocurrency craze. Should we be concerned?

The social network site on June 18 said it’s launching a new cryptocurrency called Libra with the help of 27 partners, including MasterCard, Visa, ebay and Uber.

In simple terms, Libra is meant to replace the paper bills in your wallet or purse with a digital equivalent. But unlike other cryptocurrencies like bitcoin, Libra will be directly backed by assets.

The white paper describing the vision for this new currency is filled with laudable goals such as creating economic opportunity and advancing financial inclusion. But it will take time to completely understand the ramifications of Libra, which Facebook hopes to launch in 2020.

As a macroeconomist, I believe there are economic benefits to Facebook’s cryptocurrency – but also some big potential downsides.

The benefits of Libra

Existing cryptocurrencies are not tied to physical assets. This makes them immune to the whims of national governments but also makes them prone to speculative bubbles and flash crashes.

Libra, on the other hand, is going to be 100% backed by assets. Every unit of Libra currency will be backed by an equivalent basket of bank deposits and short-term government securities in various major currencies.

As a result, Libra will not suffer wild price fluctuations. And since it will be backed by a collection of international currencies and assets, it won’t be tied to the fortunes and policies of one country either.

Economist Friedrich Hayek believed in the decentralization of currency. The Mises Institute, CC BY

Another effect of being backed by assets is that it may help lower the risk of high inflation in countries across the world. Nobel Prize-winning economist Friedrich Hayek made this very point in his book “The Denationalisation of Money.” Hayek believed everyone would be better off if people could pick among different types of private money, like Libra, instead of using government-issued money. Hayek believed issuing private money would banish inflation…
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Cryptos Are Crashing As Asia Opens, Bitcoin Back Below $8k

Courtesy of ZeroHedge. View original post here.

Having survived the day's bloodbath in US tech stocks, cryptos are crashing in the early Asian session, apparently playing catch-down to the day's de-risking.

While no catalyst is immediately evident, there are some reports noting 13 large global banks are preparing to launch digital versions of major global currencies next year, though we suspect this drop was more algorithmic that fundamental-driven.

Source: Coin360

The entire crypto space is down 8-12%…

With Bitcoin back below $8000 and oddly attracted lower to Nasdaq's collapse…

However, as CoinTelegraph reports, macro strategists remain bullish, despite the recent overnight crashes (many of which appear to synchronize around the Korean morning).  The following factors have been mentioned in recent weeks as potential catalysts for an increase in bitcoin’s price:

  1. Rise in institutional demand, as seen in the drastic increase in Bitcoin Investment Trust (GBTC) premium.

  2. The entrance of major financial institutions such as Fidelity, Etrade and TD Ameritrade.

  3. Scheduled block reward halving of bitcoin in May 2020.

  4. A noticeable improvement in the infrastructure supporting the asset class.

  5. Rising institutional demand, triggering the recovery of retail interest.

Technical analysts in the crypto sector, such as Josh Rager and Cred, foresee $8,200 as a crucial support level that could prevent the asset from dropping to the $7,000 region once again.

The last time bitcoin’s price dropped below $7,000 was in a flash crash on March 17, when it fell to $6,400, triggered by the unexpected sell-off of 5,000 BTC on Bitstamp, which then led to the mass liquidation of contracts on BitMEX.

Bitcoin has since demonstrated strong momentum, with signs of “fear of missing out” (FOMO) among investors, creating a vertical rally to the upside.

Cred told Cointelegraph in an interview that, as long as the $8,200 support level is defended, a rise to $9,600 remains a realistic target and a high time frame resistance level.


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Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

 

Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

File 20190514 60557 38cbgs.jpg?ixlib=rb 1.1

The high seas are getting lower. dianemeise

Courtesy of Iwa Salami, University of East London

The 21st-century revolutionaries who have dominated cryptocurrencies are having to move over. Mainstream financial institutions are adopting these assets and the blockchain technology that enables them, in what is perhaps the most profound development since the birth of cryptocurrencies through the launch of bitcoin a decade ago.

JP Morgan Chase has been leading the way, having announced JPM Coin earlier this year, the first cryptocurrency issued by a big international bank. When trials begin in the coming months, each JPM Coin will be redeemable for one US dollar, protecting this cryptocurrency from the volatility characteristic of the likes of bitcoin.

One of the main reasons for JP Morgan launching these coins is to offer large corporate clients a way of making international payments in real time. This could gradually replace the current global interbank funds transfer network known as SWIFT, whose wire transfer payments can sometimes take a whole business day to settle.

A few weeks later, the IMF and World Bank jointly announced the launch of Learning Coin, a private blockchain and quasi-cryptocurrency designed to help them better understand the technology. Facebook, too, was reported to be interested in launching a cryptocurrency.

Meanwhile, financial firm 20|30 became the first company to float on a mainstream regulated trading platform using blockchains, when it issued shares in the form of “equity tokens” similar to a cryptocurrency on the London Stock Exchange.

It is all a far cry from the rationale for creating bitcoins and blockchains in the first place: to decentralise finance away from the dollar-dominated system of fiat currencies and to gradually render financial institutions obsolete.

Good, bad and ugly

Yet this space remains attractive to those seeking to undermine US financial hegemony. Iran and Russia are both looking at launching state-backed cryptocurrencies, in response to US threats to disconnect them from the SWIFT payments system. This would enable these countries to join other blockchain-based payment networks, with the…
continue reading





Why Bitcoin Just Doubled

 

Why Bitcoin Just Doubled

Courtesy of 

Today on the mini pod I asked my friend, fellow advisor and crypto currency expert Tyrone Ross. We talked about what’s happening, who is buying and what the next catalyst might be.

You can listen below…

Make sure to subscribe to The Compound Show on iTunes or Spotify

Or – enable our Alexa skill here – “Alexa, play the Compound show!”

Here. 

 





 
 
 

Zero Hedge

Yuan Extends Losses After China Macro Data Disappoints

Courtesy of ZeroHedge View original post here.

China's yuan extended its early losses, testing down to the fix after headline economic data disappointed across the board.

  • Industrial Production rose just 5.6% YTD YoY (below the +5.7% exp and down from +5.8% prior)

  • Retail Sales rose just 7.5% YoY (below the +7.9% exp and down from +7.6% prior)

  • Fixed Asset Investments rose just 5.5% YTD YoY (below the +5.7% exp and down from +5.7% prior)

  • Property Investment rose just 10.5% YTD YoY (down from +1...



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Phil's Favorites

Black Hole Investing

 

Black Hole Investing

Courtesy of John Mauldin, Thoughts from the Frontline 

Scientists say the rules change in a cosmic “black hole” at what astrophysicists call the event horizon. How do they know that? Not by observation, since what happens in there is, by definition, un-seeable. They infer it from the surroundings, which say that the mathematics of the universe as we understand them change at the event horizon.

Or maybe not. One theory says we are all inside a black hole right now. That could possibly explain a few things about central bank policy. ...



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The Technical Traders

Crude Oil Setting Up For A Downside Price Rotation

Courtesy of Technical Traders

Crude Oil has been trading in a fairly narrow range since mid-August – between $52 and $57 ppb.  Our Adaptive Dynamic Learning (ADL) predictive modeling system suggested the downside price move in late July/early August was expected and the current support aligns very well with our ADL predictions of higher price rotation throughout most of September/October.  Please take a minute to review the original research post below :

July 10, 2019: ...



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Insider Scoop

The Street Reacts To Kroger's Q2 With Mixed Takeaways

Courtesy of Benzinga

Kroger Co (NYSE: KR) reported second-quarter results that came in better than expected. The earnings beat may have been overshadowed by management's decision to remove its prior guidance of $400 million in incremental EBIT by fiscal 2021.

Q2 A Mix Of Positives And Negativ...

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Chart School

Dow to 38,000 by 2022

Courtesy of Read the Ticker

President Trump said the Dow would be 10,000 points higher if it was not for the FED. In truth if the Dow breaks to new all time highs the next stop is 38,000 and he may be proven correct. Is there an election on? 

Of course who knows? But lets continue. 

The fundamentals behind this may be:

  • A good deal with China.
  • The FED turning on easy money with further rate cuts (very strange with a market near all time highs). FOMC Sept 17th well tell us more.
  • The above turbo charging stock buy backs.
  • Off shore money running out of foreign equity markets in to US markets (see note1).

Note1: Of course this has happened before, one particular time was just before O...



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Kimble Charting Solutions

Bond Yields Due For Rally After Declining More Than 1987 Stock Crash

Courtesy of Chris Kimble

U.S. Treasury Bond Yields – 2, 5, 10, 30 Year Durations

The past year has seen treasury bond yields decline sharply, yet in an orderly fashion.

This has spurred recession concerns for much of 2019. Needless to say, it’s a confusing time for investors.

In today’s chart of the day, we look at a longer-term view of the 2, 5, 10, and 30-year treasury bond yields.

Short to long term bond yields are all testing 7 to 10-year support levels as momentum is at the lowest levels in a decade.

A yield rally is likely due across the board after a recent decline that was bigger than the stock crash in 1987!

If yields fail to ral...



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Lee's Free Thinking

Nonfarm Payrolls Not Seasonally Adjusted Tell the Real Story - Unspinning Wall Street™

Courtesy of Lee Adler

Not seasonally adjusted nonfarm payrolls, that is, the actual numbers, give us a truer picture of the jobs market than the seasonally adjusted garbage that Wall Street spews.

Friday’s seasonally adjusted nonfarm payrolls jobs headline numbers disappointed investors with slower than expected growth. But was it really that bad?

Here’s How The Street Spun It – Wall Street Journal Modest August Job Growth Shows Economy Expanding, but Slowly

Employers added 130,000 nonfarm jobs, jobless rate held steady at 3.7%

U.S. employment grew only modestly in August, suggesting that a global economic slowdown isn’t driving the U.S. into recession but has dente...



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Digital Currencies

China Crypto Miners Wiped Out By Flood; Bitcoin Hash Rate Hits ATHs

Courtesy of ZeroHedge View original post here.

Last week, a devastating rainstorm in China's Sichuan province triggered mudslides, forcing local hydropower plants and cryptocurrency miners to halt operations, reported CoinDesk.

Torrential rains flooded some parts of Sichuan's mountainous Aba prefecture last Monday, with mudslides seen across 17 counties in the area, according to local government posts on Weibo. 

One of the worst-hit areas was Wenchuan county, ...



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Biotech

The Big Pharma Takeover of Medical Cannabis

Reminder: We are available to chat with Members, comments are found below each post.

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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