Victim of Alleged Ponzi Scheme Receives Death Threats From OneCoin Fans

Victim of Alleged Ponzi Scheme Receives Death Threats From OneCoin Fans

A victim of the alleged crypto pyramid scheme OneCoin is receiving threats of death and violence after speaking out against the scam project.

Glasgow-based Jen McAdam claims supporters of the alleged OneCoin pyramid scheme are sending her death threats, mainly through Facebook.

Death threats reported to the police

On Oct. 14, the BBC wrote that Jen McAdam, a duped OneCoin digital currency investor, reported a slew of messages she received, threatening her with death and violence, to the police in Scotland. McAdam claims that the threats are part of a coordinated attack by OneCoin supporters, adding:

“It is horrible, the abuse is vile and the threats feel very real to me, I’m always looking over my shoulder now. It is taking its toll on my health but I will not give up until me and the thousands of other OneCoin victims like me see some form of justice.”

McAdam, who is part of the Cryptoqueen BBC Sounds podcast, which investigates the alleged pyramid scheme, had invested thousands of dollars of her own money into the scheme. Later, she persuaded her family and friends to do the same, who together put in about $277,000. She said:

“I know through the different victims’ groups around the world that it is people just like me who are affected. They invested their life savings, they remortgaged homes and they convinced their friends and family to get involved and they feel as awful as I do about it all because we were all duped.”

McAdams added that there are around 70,000 OneCoin victims in the U.K., “but it feels as if they are being left behind, nobody here seems interested in this.”

Founders of OneCoin pyramid scheme arrested

Cointelegraph reported in March 2019, that a United States District Attorney had charged the founders of the international crypto Ponzi scheme that involved the marketing of the allegedly fraudulent digital currency OneCoin. The siblings and founders of OneCoin, Konstantin Ignatov and his sister Ruja Ignatova, were reportedly arrested on March 6, 2019, in Los Angeles. The siblings were accused of wire fraud, securities fraud and money laundering offenses.

Bitcoin Price Touches $8,400 While 0x Jumps 16%

Bitcoin Price Touches $8,400 While 0x Jumps 16%

Bitcoin has touched the $8,400 price mark, while most altcoins report positive gains; 0x is seeing daily gains of more than 16%.

Monday, Oct. 14 — Bitcoin (BTC) started the week with little to no movement in price, touching the $8,400 price mark, while most of the top-20 coins are reporting slight gains.

Market visualization. Source: Coin360

After a weekend of little excitement, the top-20 cryptocurrencies are mostly in the green. As Cointelegraph reported earlier, traders and institutional investors took the blame for Bitcoin reaching highs of $8,460 during the weekend before its sudden drop to $8,200. However, analysts told Cointelegraph that it was more likely the combined selloffs by significant bagholders that triggered the momentary market slump.

Today, the world’s most popular cryptocurrency traded from an intraday low of around $8,280 up to $8,400 before hitting its current trading price of $8,368, showing a subtle gain of around 1.1% in the past 24 hours. 

Bitcoin seven-day price chart. Source: Coin360

Ether (ETH), meanwhile, is holding ground above $186. The number one altcoin hit its intraday low at $181, while slowly crawling upwards to its current trading price, up 3.14% at press time.

Ether seven-day price chart. Source: Coin360

Ripple’s XRP and Stellar (XLM) are putting in a strong performance with gains over 6.5% over the past 24 hours. XRP is trading at about $0.295 per coin, while XLM is currently sitting at $0.065.

Ripple seven-day price chart. Source: Coin360

All of the top-20 coins are showing moderate gains in the past 24 hours, with the exception of Unus Sed Leo (LEO), down 1.74%. 

While not in the top-20 tokens by market capitalization, 0x (ZRX) has seen impressive gains of 16.17% over the past 24 hours to trade at $0.335 at press time.

The overall cryptocurrency market cap increased from $223.6 billion to $228 billion, with Bitcoin making up 66.48% of the total.

Keep track of top crypto markets in real time here

CME: Despite Pullback in Bitcoin Prices, Investor Interest Is Strong

CME: Despite Pullback in Bitcoin Prices, Investor Interest Is Strong

The Chicago Mercantile Exchange Group recently said that, despite the Bitcoin price drop, customer interest in CME Bitcoin futures remained strong.

The Chicago Mercantile Exchange (CME) Group recently tweeted that, despite the Bitcoin (BTC) price pullback, customer interest in CME Bitcoin futures remained strong during Q3 2019.

CME Bitcoin futures are up 61% vs Q3 2018

On Oct. 9, the CME Group took to Twitter to state that customer interest in CME Bitcoin futures remained strong during Q3 2019, with daily open interest (OI) of over 4,600 contracts, up 61% vs Q3 2018, because of the strong interest of institutional investors.

Open interest refers to the total number of outstanding derivative contracts that have not been settled, which rose to 4,629 contracts, up from 2,873 in Q3 of 2018. CME pointed out that this occurred despite the fact that Bitcoin has dropped almost 25% in price. 

Cointelegraph previously reported that CME is adding options to its Bitcoin futures contracts in the first quarter of 2020, pending regulatory review. The CME Group global head of equity index and alternative investment products, Tim McCourt, said at the time:

“Based on increasing client demand and robust growth in our Bitcoin futures markets, we believe the launch of options will provide our clients with additional flexibility to trade and hedge their bitcoin price risk.”

McCourt said trading had picked up for the Bitcoin futures, with May being a record month, where 34,000 futures contracts were traded, worth $1.3 billion and equivalent to 170,000 BTC. Meanwhile, institutional interest in CME Bitcoin futures peaked in early summer 2019, with a record 56 large open interest holders reported in July.

In an SCMP report, McCourt said that he expects futures trading volume to also come from miners seeking more precise exposures, and not just from traders, adding:

“While futures give you a one-for-one exposure […] an option gives you varying strike-price levels and can give you either downside protection or upside exposure at a fraction of the underlying price.”

CME has no plans for physically settled Bitcoin contracts

On Oct. 1, McCourt stated that CME has no current plans to launch physically settled Bitcoin contracts. Its current Bitcoin futures contracts are settled in cash and McCourt added that “the number one demand from customers has been for options on our futures” since the launch of its futures product.

Libra Association Holds Inaugural Meeting, Forms Board

Libra Association Holds Inaugural Meeting, Forms Board

The Libra Association has formed a five-member board and set ground rules for its governance today at a meeting in Switzerland.

The Libra Association, the governing body of Facebook’s proposed stablecoin, held its inaugural meeting today in Geneva, Switzerland. 

According to a report from Reuters on Oct. 14, the consortium reaffirmed their interest in creating a payments-oriented stablecoin that would be balanced by a basked of various, purportedly stable fiat currencies. 

Libra Association sets rules for governance

In addition to explicitly stating their interest in the project, the consortium’s 21 members also formed a five-member board and agreed to interim articles of association which, according to Swiss law, must describe how the organization will be governed. 

Most major decisions will reportedly require a majority vote of the ruling council, while proposed changes to membership or management of the reserve must pass by a two-thirds majority.

The five-member board comprises of Facebook’s David Marcus, representatives from non-profit Kiva Microfunds, PayU, venture capital firm Andreessen Horowitz and Xapo Holdings Limited.

Backers flee Libra Association

Today’s meeting in Geneva follows a spate of withdrawals from former consortium members. Earlier today, Booking Holdings, the owner of travel sites booking.com, priceline.com, agoda.com and Kayak, withdrew from the Libra Association.

Other major payments- and commerce-related firms have left the association, including Mastercard, Visa, eBay, Stripe and PayPal. According to Reuters, the only remaining payments firm in the Libra Association is Netherlands-based PayU, which purportedly does not operate in the United States, Canada and many areas in Africa and the Middle East.

Cause for optimism?

The Libra Association is apparently remaining optimistic about going ahead with the project. Dante Disparte, the head of policy and communications at Libra Association, told Reuters that the recent flight of major backers is “a correction; it’s not a setback.” However, Disparte further admitted that the coin could face delays as regulators continue to scrutinize the project. 

Earlier today, United States Treasury Secretary Steven Mnuchin said that the firms left Libra because it was not “up to par” with American Anti-Money Laundering standards. Mnuchin added that, if the project is not compliant when it launches, it could result in action from the Financial Crimes Enforcement Network, which is under the purview of the Treasury. 

Facebook CEO Mark Zuckerberg is slated to testify about the project before the House of Representatives Financial Services Committee at a hearing entitled “An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors.”

Dubai, Emirates NBD Sign MoU on Blockchain Trade Finance Solutions

Dubai, Emirates NBD Sign MoU on Blockchain Trade Finance Solutions

The Dubai Chamber of Commerce and Industry has signed a memorandum of understanding with Emirates NBD for blockchain-based trade finance.

The Dubai Chamber of Commerce and Industry (DCCI) has signed a memorandum of understanding (MoU) with Emirates NBD.

Middle Eastern news daily Saudi Gazette reported on Oct. 14 that the DCCI, which acts as an international business hub in Dubai, has signed an MoU with Dubai government-owned bank, Emirates NBD. 

The bank, which is one of the largest banking groups in the Middle East in terms of assets, will provide trade finance solutions for the Digital Silk Road, a Dubai 10X initiative, which uses blockchain technology to digitize trade processes in Dubai.

Dubai 10X is a program wherein various departments of government are tasked with researching and applying new and disruptive technologies to their administration and operations. 

Hamad Buamim, president and CEO of DCCI, reportedly said that the agreement with Emirates NBD is a major step forward for the initiative, adding:

“Trade finance remains one of the most important tools used today to facilitate international trade and commerce as it simplifies transactions for importers and exporters.”

The DCCI had signed an MoU at the beginning of July with the International Chamber of Commerce and Singapore-based blockchain startup Perlin to promote the adoption of blockchain trade solutions.

That same month, the DCCI entered another partnership with the Dubai International Financial Centre, Mashreq Bank and fintech firm Norbloc to launch a blockchain-based Know Your Customer data-sharing consortium in 2020.

Dubai real estate on the blockchain

In June, Cointelegraph reported that the Dubai Land Department and telecoms firm Etisalat signed an MoU concerning blockchain technology for real estate, with the intention to implement smart government standards and introduce paperless management and digital contracts for property transactions.

Price Analysis 14/10: BTC, ETH, XRP, BCH, LTC, EOS, BNB, BSV, XLM, TRX

Price Analysis 14/10: BTC, ETH, XRP, BCH, LTC, EOS, BNB, BSV, XLM, TRX

Most major cryptocurrencies are in a consolidation, which will soon result in a large directional move. How should traders be placed in order to benefit from it?

A draft report by the G7 group of nations outlined the risks associated with “global stablecoins.” The report said: “No stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed.” This report is likely to increase the troubles for Facebook’s Libra project.

Former Commodity Futures Trading Commission chairman Christopher Giancarlo believes that Libra and the prospects of central bank digital currencies will increase regulator’s intrusions into the crypto space. 

This can work as a double-edged sword. If regulators provide clarity, it is likely to attract large institutional players into the game, but if the regulators only look to stifle projects and create hurdles, crypto-sector growth could take longer than expected. 

Billionaire investor Tim Draper believes that with its borderless nature and decentralization, Bitcoin (BTC) will bring the world together. According to Draper,  it will change the way governments and politicians operate worldwide. He further goes on to say that “Bitcoin brought with it a few fundamental technologies that can accelerate our transformation from a tribal planet to a global one.”

In the short-term, regulatory uncertainty appears to be placing a cap on cryptocurrency prices. Let’s see if we spot any buy setups in the major cryptocurrencies.

BTC/USD

Bitcoin has been consolidating between $7,700 and $8,770 for the past few days. This shows a balance between both the bulls and the bears. Such phases of consolidation are often followed by a sharp directional move. 

If the price breaks out to the upside, it will indicate that the current consolidation period was used by the bulls to accumulate. On the other hand, if the price breaks down out of the range, it will indicate a period of distribution. It is difficult to predict the direction of the breakout, hence, it is best to enter after the Bitcoin makes a decisive move.

BTC/USD

If the bulls can push the price above the range, a move to the downtrend line of the symmetrical triangle is possible. A breakout of the downtrend line will signal the end of the correction and the start of a new uptrend.

Contrary to our assumption, if the bears sink the BTC/USD pair below the $7,700 to $7,337 support zone, it will be a huge negative. Such a move will delay the recovery and can extend the down move to $5,533, which is also at the  78.6% Fibonacci retracement level of the most recent rally. Therefore, aggressive traders who hold long positions can retain the stops at $7,700.

ETH/USD

Though Ether (ETH) fell below the support at $185, the bears could not capitalize on the advantage. The price has been trading just below $185 for the past three days. This shows that bulls are buying on minor dips and are not waiting for a deeper fall to make entries.

ETH/USD

The bulls will once again attempt to clear the overhead resistance zone of $185 to $196. If successful, a rally to $224 and possibly $235 is possible.

Conversely, if the bulls fail to scale the resistance zone, the bears will attempt to sink the ETH/USD pair to $164. A break below this support can drag the price to $152. Therefore, for now, aggressive traders can retain the stops on their long position at $160. We will suggest trailing the stops to $175 after the price rises above $200.

XRP/USD

XRP bounced off the moving averages on Oct. 12 and is currently attempting to break out of the overhead resistance at $0.29227. The 20-day EMA is slowly sloping upward and the RSI has climbed into positive territory, which shows that bulls have made a comeback.

If buyers can push the price above $0.29227 and sustain it, a rally to $0.34229 is probable. Traders can keep a stop loss on the long positions at $0.215. We would suggest trailing stops higher if the price moves northwards.

XRP/USD

Contrary to our expectation, if the bulls fail to sustain the price above $0.29227, the XRP/USD pair might remain range-bound between $0.220 to $0.29227 for a few more days. The downtrend will resume on a break below the critical support of $0.22.

BCH/USD

Bitcoin Cash (BCH) remains stuck inside the range of $203.36 to $236.07. The altcoin’s failure to even retest the breakdown level at the neckline is a negative sign. This shows a lack of urgency among the bulls to buy at the current levels. 

BCH/USD

The bears will now try to sink the BCH/USD pair below the low of $203.36. If successful, a drop to $166.98 is likely. On the other hand, if the bulls propel the price above $241.85, a pullback to the neckline is possible. 

A short-term trading opportunity will present itself for the aggressive traders on a breakout and close (UTC time) above $242. Until then, we remain neutral on the cryptocurrency.

LTC/USD

Litecoin (LTC) has not given up much ground after turning down from the 20-day EMA, which shows buying on dips. The bulls will again attempt to push the price above the 20-day EMA. If successful, a move to the downtrend line of the falling wedge pattern is likely.

A breakout of the downtrend line will be a positive sign and will indicate a change in trend. The next level to watch on the upside is $80.2731.

LTC/USD

Nevertheless, if the bears fail to break out of the 20-day EMA, a few more days of consolidation is likely. The LTC/USD pair will turn negative on a break below the recent lows of $50. We will wait for the price to break out and close (UTC time) above the downtrend line before turning positive.

EOS/USD

EOS has been trading close to the 20-day EMA for the past six days. Both moving averages have flattened out and the RSI is just below the midpoint. This shows a state of equilibrium between the bulls and bears.

EOS/USD

If the buyers can push the EOS/USD pair above the downtrend line and the 50-day SMA, it will indicate that the markets have rejected the breakdown below $3.1534. If the price sustains above the 50-day SMA, a rally to $4.24 and above it to $4.8719 is possible. Traders can initiate long positions as suggested in our earlier analysis.

However, if the bulls fail to scale above the 50-day SMA, the pair might remain range-bound for a few more days. It will turn negative on a break below the recent lows of $2.4001.

BNB/USD

Binance Coin (BNB) bounced off the previous resistance turned support of $16.4882 on Oct. 12. This shows the formation of a higher low in the short-term time frame. The 20-day EMA is flattening out and the RSI has risen above the midpoint, which suggests that the selling has subsided and the bulls are gradually making their presence felt.

BNB/USD

However, the relief rally is now likely to face stiff resistance at the 50-day SMA. If the bulls can push the BNB/USD pair above the 50-day SMA and the resistance line of the channel, it will signal the end of the downtrend. Therefore, we suggest a long position on a breakout and close (UTC time) above the channel with stops placed at $14. The target objective on the upside is $32.

Contrary to our assumption, if the pair turns down from the overhead resistance and plunges below $16.4882, a retest of $14.2555 will be on the cards. If this level also cracks, the downtrend will resume.

BSV/USD

Bitcoin SV (BSV) continues to trade in a tight range of $78.506-$90.40. This shows a balance between buyers and sellers. Neither party is confident about the next directional move, hence, they are playing it safe. 

BSV/USD

The longer the consolidation, the stronger the eventual breakout or breakdown from it will be. If the bulls succeed in breaking out of the range, a move to the 50-day SMA is possible. This is a stiff resistance to watch on the upside because the bulls have not been able to scale it since Jul. 11. Hence, a move above the 50-day SMA will signal a likely change in trend. 

Conversely, if the tight range resolves to the downside, a dip to the recent lows of $66.666 is likely. If this support also cracks, the BSV/USD pair will resume its downtrend. As the pair has been in a strong downtrend, we will wait for a reversal pattern to form before proposing a trade in it. 

XLM/USD

The dip in Stellar (XLM), in the past three days, could not challenge the immediate support of $0.055901, which shows that buyers are keen to enter on minor dips. The bulls will now try to push the price above the overhead resistance of $0.064886.

XLM/USD

If successful, a move to the downtrend line and above it to $0.088708 is possible. The moving averages have flattened out and the RSI has risen above 50, which suggests that bears are losing their grip. Therefore, traders can continue to protect their long positions with stops at $0.051. 

Our bullish view will be invalidated if the XLM/USD pair reverses direction from $0.064886 and plummets below $0.051014. However, we give this a low probability of occurring.

TRX/USD

Tron (TRX) is attempting to bounce off the moving averages, which is a positive sign. It shows that buyers are keen to defend the support. The price could gradually move up to the overhead resistance of $0.018660. This is an important level to watch out for because the price has repeatedly turned down from it.

TRX/USD

If the TRX/USD pair again reverses direction from $0.018660, a dip to the uptrend line and below it to the moving averages is likely. A breakdown of the moving averages can drag the price to $0.011240.

Conversely, if the pair can climb above $0.018660, it is likely to pick up momentum. The first target is $0.0256938 and above it $0.030. Therefore, traders can initiate long positions as suggested by us in an earlier analysis. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Europol: Crypto-Ransomware Remains Most Prominent Cyber Attack

Europol: Crypto-Ransomware Remains Most Prominent Cyber Attack

Europol released its 2019 Internet Organized Crime Threat Assessment report, which shows that crypto-ransomware remains a top threat.

The European Union Agency for Law Enforcement Cooperation (Europol) released its 2019 Internet Organized Crime Threat Assessment (IOCTA) report.

Crypto exchanges continue to be a magnet for hackers

On Oct. 9, Europol presented its IOCTA report of the cybercrime threat landscape. According to the EU-focused law-enforcement organization, cybercrime must be approached in a holistic sense, saying:

“Countering cybercrime is as much about its present forms as it is about future projections. New threats do not only arise from new technologies but, as is often demonstrated, come from known vulnerabilities in existing technologies.”

Europol’s fifth edition of its IOCTA report paints a troublesome picture and shows that cryptocurrency-ransomware remains the most prominent cyber attack that European cybercrime investigators are confronted with, followed closely by attacks that illegally acquire financial data, such as credit card information, online banking credentials or cryptocurrency wallets. The report adds:

“Cryptocurrency exchanges continue to be a magnet for financially motivated hacking groups. In 2018, over $1 billion in cryptocurrencies were stolen from exchanges and other platforms worldwide.”

Europol further points out that different entities within the cryptocurrency ecosystem could be perceived as profitable targets for cybercriminals. The law enforcement agency believes that the trend of crimes is evolving to target cryptocurrencies and that more financially motivated cybercrime gangs will shift their focus to any entity with large holdings of cryptocurrency assets. Europol adds:

“Law enforcement must continue to build trust-based relationships with cryptocurrency-related businesses, academia, and other relevant private sector entities, to more effectively tackle issues posed by cryptocurrencies during investigations.”

Europol Shuts Down Counterfeiting Ring

Cointelegraph previously reported that Europol, together with the Portuguese police, had seized funds worth €70,000 ($77,200) in what they describe as one of the most advanced counterfeiting operations ever seen. Law enforcement succeeded in bringing down the ring, which sold fake notes on the dark web in return for Bitcoin (BTC).

Booking Holdings Leaves Facebook’s Libra Association

Booking Holdings Leaves Facebook’s Libra Association

Leading online travel company Booking Holdings has ditched the Libra Association, a non-profit Facebook established to pursue the promotion of its Libra stablecoin.

Leading online travel company Booking Holdings has ditched the Libra Association, the governing consortium of Facebook’s proposed Libra stablecoin.

Booking Holdings has thus become the latest in an array of companies that abandoned the project, leaving it with 21 founding members out of the initial 28 organizations, Bloomberg reported on Oct. 14.

A promising start

Booking Holdings — which stands behind travel sites booking.com, priceline.com, agoda.com and Kayak, among others — became a founding member of the Libra Association in June. In August, Booking Holdings CEO Glenn Fogel said that he believes that blockchain-based currencies will continue to grow and could become more popular.

At the time, Fogel predicted that cash will be rarely used in the future, adding that he sees the potential for a new form of global currency that is protected and secure:

“When Bitcoin became well known, many questioned its legitimacy, and while the jury is still out on the future of Bitcoin, I do believe currencies with a blockchain base will continue to surface and may become more widely accepted across the globe, especially outside the U.S., which has a well-accepted credit card payment system.”

Ahead of upcoming Mark Zuckerberg testimony

The move comes ahead of Facebook CEO Mark Zuckerberg’s testimony on Libra before the House of Representatives Financial Services Committee on Oct. 23. Announcing the meeting, Congresswoman Maxine Waters mentioned the draft bill “Keep Big Tech Out of Finance Act,” which is designed to ban large tech firms from getting licensed as financial institutions in the United States.

Previously, Calibra wallet CEO David Marcus testified before the House Financial Services Committee and the Senate Banking Committee in regard to Libra’s development and its features. Marcus claimed that Facebook intends to be compliant with the U.S. Financial Crimes Enforcement Network in distributing Libra.

However, some lawmakers met Marcus’ statements with skepticism and concern. Earlier today, U.S. Treasury Secretary Steven Mnuchin attributed the recent spate of firms abandoning Facebook’s Libra stablecoin project to regulatory concerns, although some industry stakeholders believe that policymakers pressured companies to leave the project.

FINRA Approves Grayscale’s Public Quote for Crypto Fund Shares

FINRA Approves Grayscale’s Public Quote for Crypto Fund Shares

Digital asset management fund Grayscale has received FINRA approval to publicly quote its diversified crypto fund GDLCF.

New York-based digital asset management fund Grayscale Investments has received regulatory approval to publicly quote the shares of its diversified cryptocurrency fund.

First publicly-quoted diversified crypto fund

Grayscale was approved by the United States Financial Industry Regulatory Authority (FINRA) to publicly quote its Grayscale Digital Large Cap Fund (GDLCF) on over-the-counter (OTC) markets, according to a press release on Oct. 14.

The recent approval purportedly enables the first publicly-quoted security based on a selection of digital currencies in the U.S., the firm stated. The shares will be available for purchase through investment accounts similar to other unregistered securities.

DTC-eligible shares

There will be no trading volume in the shares’ public quotation until they are eligible with the Depository Trust Company (DTC), one of the world’s largest securities depositories. According to the press release, Grayscale is expected to get the shares DTC-eligible in the near future.

The GDLCF comprises of several different major cryptocurrencies.  As of Sept. 30, 2019, the fund was over 80% Bitcoin (BTC), 9.9% Ethereum (ETH), 5.8% XRP, while Bitcoin Cash (BCH) and Litecoin (LTC) accounted for 2.2% and 1.8%, respectively. 

Grayscale added that DLC is not registered with the Securities and Exchange Commission and is not subject to disclosure and certain other requirements mandated by U.S. securities laws.

Grayscale is a subsidiary of major crypto venture capital company Digital Currency Group. The firm’s Grayscale’s Bitcoin Investment Trust, allegedly the sole Bitcoin investment trust in the U.S., reportedly surged 300% this year as of July.

On Oct. 9, Grayscale’s director of sales and business development Rayhaneh Sharif-Askary claimed that the interest of institutional investors in cryptocurrencies doubled in Q2 2019.

Bitcoin Price: 2 Key Indicators Suggest Accumulation Underway Below $10K

Bitcoin Price: 2 Key Indicators Suggest Accumulation Underway Below $10K

On-chain data and Bitcoin’s on-balance volume indicator (OBV) suggest retail and institutional investors are quietly accumulating more BTC.

Bitcoin (BTC) finished a volatile week at $8,282 which is a 5% increase for the week but still 6% away from the highs of over $8,800. This morning, Bitcoin took another knock at opening, trading slightly lower alongside the rest of the cryptocurrency market and traditional markets.

XRP has thus far bucked the trend and is up 3% at the time of writing. With Bitcoin’s move out of the consolidation being hammered back last week, we will take a look at what may have been behind the rejection and what is likely to happen this week.

Daily crypto market data. Source: Coin360

Daily crypto market data. Source: Coin360

BTC USD weekly chart. Source: TradingView​​​​​​​

BTC USD weekly chart. Source: TradingView

Bitcoin price was strongly supported by the 100 week moving average (WMA) which bounced the price back up towards $9,000 last week, before falling short of both the $9k handle and the major resistance at $9,500. There are now clearly defined battle lines drawn, with Bitcoin sitting closer to the lows of the weekly support rather than towards the highs.

On a macro level, while continuing to trade below the 20 WMA, Bitcoin favours the bears medium term with the 100 WMA being the last line of defence. The Moving Average Convergence Divergence (MACD) shows momentum continues to favour the downside although the histogram is showing signs of flattening out. 

The present trading range around $8,000 is of relatively high volume interest as shown by the high Volume Profile Visible Range (VPVR) node down the right hand side of the chart which shows the amount of volume traded at a given price.

If this level fails to hold, the next stop is likely to be the mid to low $6,000s with the 200 WMA being the last line of defense in the mid $4,000s.

Generally, the lower time frames are more useful in helping to identify what is most likely to occur over the next few weeks. 

BTC USD daily chart. Source: TradingView

BTC USD daily chart. Source: TradingView

A closer look at the daily chart reveals that Bitcoin is clearly being held back by the 200 DMA having broken out of a fairly well established trading range between $7,800 and $8,500. Bitcoin also briefly tested and broke through the 200 DMA before being smacked back down below $8,500.

The looming concern for bulls is the so called death cross of the 50 and 200 DMA which is on track to occur before the end of the month. The MACD is trending upwards but the histogram shows that the trend is not particularly strong, which implies that there is not much momentum to break the cluster of resistance overhead.

BTC USD 4-hour chart. Source: TradingView

 BTC USD 4-hour chart. Source: TradingView

The 4 hour Bitcoin chart clearly shows the rejection at the 200 DMA off the back of a strong bounce back into the range of $8150 – $8450 where the majority of buying and selling interest exists.

The bulls will need to maintain the upper 50% of the range and defend the $8,150 level to generate enough momentum to retest the rising 200 DMA which will be critical in the next couple of weeks. Another retest of the 200 DMA would imply that it could be weakening as a point of resistance so this would be an interesting development.

Bullish case 

The 200 DMA is rising rapidly and continues to be an area which the bulls want to test. The chart shows that a higher high and a higher low were put in last week which is also a bullish sign. Another test of the rapidly rising 200 DMA could be in store should the bulls maintain the $8,150 level. 

The VPVR illustrates that there is not a lot of volume in the $9,000 range so a push to this level could result in a similarly fast move to that which was seen on the way down and is somewhat reminiscent of the volume void above $4,000 earlier in the year. 

Bitcoin’s On Balance Volume indicator (OBV) on the 4 hour chart continues to show that the cumulative buying volume is outweighing that of the selling volume within this consolidation period. This is atypical of an accumulation period.

BTC USD 4-hour chart. Source: TradingView

BTC USD 4-hour chart. Source: TradingView

This idea is somewhat supported by data from Glassnode and the findings shows a large increase in the number of Bitcoin wallets holding 1000 BTC or more.

 Bitcoin Addresses Holding > 1000 BTC. Source: Glassnode.com” src=”https://s3.cointelegraph.com/storage/uploads/view/d7a9a145009ced076c21bafd76ad0fce.png” title=”Bitcoin Addresses Holding > 1000 BTC. Source: Glassnode.com”></p>
<p dir=Bitcoin Addresses Holding > 1000 BTC. Source: Glassnode.com

The data interestingly shows that since Q4 2018, there have been significant increases in this metric which were unseen in the 2017 bull market. This implies that high net worth individuals and possibly institutions are accumulating rather than retail speculators.

Furthermore, there was largely sideways action in this metric once Bitcoin hit $9,000 on the way up during 2019 with some small profit taking visibly took place. It should be noted that since the breakdown from $10,000, there has been around a 10% increase in the number of wallets with large volume holdings.

The majority of these coins were accumulated with a lower average cost than current prices, likely holding an average somewhere in the $5,000 range. Therefore, it seems unlikely that they will be on the brink of capitulation anytime soon and are taking this price decline as an opportunity to acquire more market exposure 

This is a positive sign for the bulls given that there has been no obvious accumulation spike since the one which preceded the break from $4,000 to 5,000, meaning that there is interest again from big players. On the flip side, the accumulation began in Q4 2018, following a significant sell off to the low $3,000s.

The conclusion here is that there is buying interest again in this range, but it does not mean that it will prop up Bitcoin’s price. Any further liquidity offered by another decline Is likely to be met with similar buying interest.

Bearish scenario

Despite the accumulation narrative being strong, it bears little impact on the impending issue in the market, which is the convergence of the 50 and 200 DMA which are on track to meet by the final week of October. The 50 DMA is also tracking the diagonal resistance which has now held Bitcoin down for several months. 

BTC USD 4-hour chart. Source: TradingView 

BTC USD 4-hour chart. Source: TradingView 

Failure to break through this convergence of resistance would see calls for this move to be bear flag or ascending wedge and this would open the door to the $6,000 level. A failure to respond here would then open the door to retesting the 200 DMA and any trading below this point might induce calls for a prolonged bear market.

Looking forward

Overall, there are signs that buyers are looking for opportunities with big players becoming very interested in the retracement from the 2019 high. Maintaining price above $8,000 and another retest of the quickly rising 200 DMA is the main task for the bulls. 

Currently, the bears are looking to take advantage of any signs of weakness if prices dip below $8,000. There is around 2 weeks remaining at the most before this market makes a definitive move for Q4 2019.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

LiquidApps Releases Horizontal Blockchain Scaling Solution

LiquidApps Releases Horizontal Blockchain Scaling Solution

LiquidApps has introduced a new blockchain scalability solution that can increase the decentralized processing power and capacity available to DApps developers.

Blockchain development firm LiquidApps has introduced a new blockchain scalability solution for decentralized application (DApps) developers.

The new service called vCPU aims to scale blockchain processing power horizontally, which provides more computing power per action than native blockchains, according to a press release shared with Cointelegraph on Oct. 14. 

LiquidApps states that vertical blockchain scaling creates a barrier to entry for potential miners and block producers, as it requires the validation of nodes to add more capacity.

More power to developers

VCPU ostensibly allows developers to access a greater supply of decentralized computation as it tasks DApp service providers (DSPs) to read on-chain requests, perform processing and return results to the requesting DApp, which compares them on chain to remove incorrect data and prevent collusion.

One of the major features of vCPU is that it enables DApps to choose the level of trustlessness more appropriate and suitable for the requirements of a specific use case. LiquidApps names a range of potential examples of vCPU deployment, including tamper-resistant analyses of criminal evidence, securing data-based prediction models for elections, and unbiased distribution or partitioning of resources or land.

Achieving mass adoption

LiquidApps states in the release that “building DApps that are indistinguishable from traditional applications in terms of usability and speed is a prerequisite to mass adoption of blockchain technology.”

As Cointelegraph reported previously in a dedicated analysis, whether a user’s experience is joining a blockchain’s network, interacting with a DApp during a prime-time rush, or breaking out from a centralized walled garden, the experience must be intuitive in order to achieve mass-market adoption.

US Treasury Secretary Says Firms Left Libra Due to Compliance Issues

US Treasury Secretary Says Firms Left Libra Due to Compliance Issues

U.S. Treasury Secretary Mnuchin said that firms are abandoning Libra due to its current inability to meet Anti-Money Laundering standards.

United States Treasury Secretary Steven Mnuchin has attributed the recent spate of firms abandoning Facebook’s Libra stablecoin project to regulatory concerns.

On CNBC’s Squawk Box on Oct. 14, Mnuchin stated that companies are abandoning the Libra project because it is “not up to par” with American Anti-Money Laundering standards, saying:

“If they don’t meet the standards of our money-laundering standards and the standards that we have at FinCEN, we would take enforcement actions against them. I think they realized that they are not ready, they are not up to par and I assume some of the partners got concerned and dropped out until they meet those standards.”

A demarche to the Libra Association

Mnuchin’s statement comes a few days after Visa, eBay, Stripe and Mastercard all announced that they are dropping out of the Libra Association, the stablecoin’s governing body, saying that they had chosen to redirect their focus for the time being.

Prior to that, major payment processor PayPal announced its withdrawal from Libra, as regulators continue to scrutinize the project. A spokesperson for the firm told Cointelegraph that it officially left the association, adding:

“We remain supportive of Libra’s aspirations and look forward to continued dialogue on ways to work together in the future. Facebook has been a longstanding and valued strategic partner to PayPal, and we will continue to partner with and support Facebook in various capacities.”

At the same time, Coinbase CEO Brian Armstrong criticized U.S. senators for asking Stripe, Mastercard and Visa to leave Libra. “Something feels very un-American about this. Two senators writing to Visa, Mastercard, and Stripe to ask them to withdraw from Libra,” Armstrong wrote.

Announced this summer, Libra would ostensibly serve as a payment instrument for the user base of Facebook and its associated services like Instagram. Since its announcement, it has been the subject of scrutiny from regulators and lawmakers, who are concerned about its possible effect on global trade, finance and monetary sovereignty.

UK Real Estate Firm Accepts Bitcoin for Sale of 150-Year-Old Church

UK Real Estate Firm Accepts Bitcoin for Sale of 150-Year-Old Church

A British real estate firm is accepting Bitcoin for the sale of a 150-year-old church that was converted into residential property.

A 150-year-old English church is being sold for $1.5 million with the vendor accepting payment in Bitcoin (BTC).

Vendor is willing to receive payment in Bitcoin

According to a listing on Rightmove, a major British online real estate portal and property website, a vendor put an 18th-century church converted into a seven-bedroom character property up for sale and is willing to accept Bitcoin as payment.

While the property unit is priced at 1.2 million British pounds ($1.5 million), the final price in Bitcoin is to be agreed and confirmed with the vendor and will depend on the market price of Bitcoin at the time of sale, the listing notes. At press time, the sale price is worth 182.34 Bitcoins.

Built in 1871, the converted residential property is the former St. Laurence’s Church in County Durham. 

Earlier this year, Cointelegraph reported that major Bitcoin-oriented real estate project Aston Plaza was pausing its operations, while previous reports claimed that the construction of the $325 million venture was stopped in January 2018. According to the Aston Plaza website, the venture still offers studios as well as one- and two-bedroom apartments that can be bought with Bitcoin.

U.K. and payments in crypto

The U.K. has been friendly to crypto-powered payments, according to recent reports. Last week, major local crypto wallet and debit card service firm Cryptopay announced the launch of transfers with the British pound through the Faster Payments Scheme, which purportedly eliminated euro conversion charges.

In April 2019, the U.K.’s largest travel management company, Corporate Traveller, announced that it started accepting Bitcoin for payments, noting that the firm is not concerned with Bitcoin’s price volatility, as received crypto is converted directly into British pounds.

Singapore Shipping Association to Deploy Blockchain for Ship Registration

Singapore Shipping Association to Deploy Blockchain for Ship Registration

The Singapore Shipping Association, the International Chamber of Commerce and blockchain firm Perlin are jointly working on an e-registry for ships.

The Singapore Shipping Association (SSA), the International Chamber of Commerce (ICC) and blockchain firm Perlin are jointly working on an e-registry for the ship registration and renewal process.

Running on self-executing smart contracts

The International E-Registry of Ships (IERS) system is based on Perlin’s Wavelet, an open ledger for writing decentralized WebAssembly applications, financial daily Business Times reported on Oct. 14. The blockchain e-register will run on self-executing smart contracts, purportedly reducing time, costs and occurrence of errors in the registration process.

The initiative found favor with the Maritime and Port Authority of Singapore, which is testing the registration process with the system. If the system proves to be successful in Singapore, the ICC will bid for global adoption of IERS standards in the industry.

Some rise, some fall

The market for blockchain-powered solutions has become highly demanded in the maritime sector. In late August, Thailand’s Customs Department announced it would use IBM’s Tradelens blockchain solution. The platform is expected to streamline operations by managing shipment tracking and information sharing in Thai ports.

Maritime shipping firms Ocean Network Express and Hapag-Lloyd joined blockchain tracking platform TradeLens in July. The platform aims to cut paperwork, associated costs and time in the logistics industry — which reportedly accounted for $4 trillion at the time — with over 80% of the goods carried by the ocean shipping sector.

However, some blockchain shipping initiatives fell short of initial aspirations, with blockchain shipping startup 300cubits suspending operations of its booking module and the circulation of its TEU token in October. Low transaction volume — with only a couple hundred containers using the system — made the operation unfruitful.

Electrum Bitcoin Wallet to Support Lightning Network in Next Release

Electrum Bitcoin Wallet to Support Lightning Network in Next Release

Major Bitcoin wallet software Electrum will feature an in-house developed implementation of scalability solution Lightning Network in its next release.

The next release of major Bitcoin (BTC) wallet software Electrum will support off-chain scalability solution Lightning Network (LN).

The Electrum official Twitter account announced the upcoming LN integration in a tweet sent on Oct. 14. The tweet announced:

“The next release of Electrum will support Lightning payments. Our lightning node implementation has been merged into Electrum’s master branch.”

Electrum also confirmed that the wallet will employ a new implementation developed in-house, written in Python.

High hopes for Lightning Network

Lightning Network is believed by many Bitcoin proponents to be the solution to the network’s scalability limitations. Recently, the chief strategy officer at Bitcoin technology firm Blockstream has said that the current block size capacity may not even be needed in the future if off-chain scaling solutions such as Lightning become widely used.

That being said, the current LN implementations are still experimental and bugs are still being uncovered. 

As Cointelegraph reported at the end of September, at the time LN developer Rusty Russel has published the full disclosure of the network’s vulnerability discovered in August, which — if exploited — could lead to theft of funds.