Archive for Cryptocurrencies – Page 2

How come crypto mining in Iran is so profitable?

By ForexNewsNow

Many don’t even consider Iran to be at the forefront of cryptocurrency adaptation, but in fact, it is the country that many believe, will be the first to introduce a nationalized cryptocurrency.

Yes, the middle eastern state is very friendly to the blockchain technology and even provides subsidies on electricity for using it as a mining source for cryptocurrencies.

When the crypto winter back in 2018 hit, nearly every large crypto mining company had to reduce its operations, lay off hundreds of staff and delay all of their expansion plans simply due to the price drops.

Iran was barely scratched however, the local crypto mining companies continued operations like anything had even happened. Many were curious as to what these companies were doing differently from others that generated them so many profits even during a recession of the crypto market.

The Iran energy subsidies

Iran is actually quite famous in the region for its subsidies on energy consumption. The state spends around $2 billion each year on energy so that the population has to dish out only a small fraction of the actual cost.

Electricity being the primary cost of operating a crypto mining company is actually a key player here. If the company does not have anything to worry about besides payrolls and maintenance, then it has a much larger margin for making profits.

Furthermore, the Iranian authorities were quite forgiving towards the mining companies, going as far as recognizing the industry as a legitimate part of the economy and providing all the benefits that regular corporations could use within the country.

However, that may soon change due to shifts in the political spectrum of the region. Tensions are beginning to rise between traditional financial companies and crypto mining firms due to the inequality in payments and the energy subsidies from Iran are also in danger from the US sanctions.

Future looks grim

Despite the fact that institutional interest in cryptocurrencies has been growing worldwide, there are very few partnerships being signed in Iran as we speak. Most of the countries that are leading the blockchain B2B agreements are in the West like the European Union and the United States of America.

Iran is quickly falling behind the scalability of the blockchain, but it also looks like they’re about to throw another wrench in the industry’s gears.

The Minister of Energy of Iran has announced that crypto mining companies should start paying real prices on their energy consumption and not benefit from the state subsidies.

Many thought that this was a personal vendetta against profitable companies, but in reality, it is a desperate measure to keep the country’s economy afloat in the long term.

The United States sanctions have hit hard against the Iranian economy and are bringing it down as we speak. The government simply cannot afford to continue its features any longer and needs to find ways to cut costs no matter how damaging they may be in the long long-term. The mid and short term economic stability is much more pressing for the authorities.

However, this could be the perfect time to implement an amendment like this, because the crypto market is back up again. The energy costs aren’t going to be as damaging to the companies anymore and they can also stay afloat while paying the full price for energy consumption.

Was it a personal vendetta though?

Despite the fact that the authorities try to avoid blaming US sanctions, many citizens and foreign experts already understand that it’s indeed the case. However, this may not be the only reason crypto mining companies may take a hit to their profitability.

You see, these companies have been enjoying relatively free operational procedures, without the government interfering in their inner circles too much. However, the Central Bank of Iran has already proposed that maybe it’s time to introduce a regulation on these companies and tax them accordingly.

The compiling costs in taxes, energy consumption and employee wages could finally bring down these behemoths, but that still remains to be seen.

Iran is still in the midst of discussing a national cryptocurrency in the future, which will be used as an alternative to their current rial.

This is obviously being done to safeguard the economy in the case of even harder US sanctions which have already done a number on rial’s exchange rate to the US Dollar.

Should the authorities go ahead with the national cryptocurrency idea, they will definitely need the help and guidance of their local crypto mining companies. Whether or not they get that guidance depends solely on what type of regulation they introduce.

By ForexNewsNow

 

Fibonacci Retracements Analysis 31.05.2019 (BITCOIN, ETHEREUM)

Article By RoboForex.com

BTCUSD, “Bitcoin vs US Dollar”

In the H4 chart, after the price had reach the retracement of 38.2%, there was a divergence on MACD, which may indicate a new correction. The key support level is the retracement of 23.6% at 6450.00. After completing the correction and breaking the high at 9089.70, BTCUSD may started a new rising wave to reach the retracement of 50.0% at 10170.00.

Bitcoin
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the H1 chart. BTCUSD is trading downwards to reach the retracement of 23.6% at 7810.00. The next downside targets may be the retracement of 38.2%, 50.0%, and 61.8% at 7020.00, 6370.00, and 5735.00.

BTCUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

ETHUSD, “Ethereum vs. US Dollar”

As we can see in the H4 chart, after ETHUSD had updated the previous high, there was a divergence on MACD, which may indicate a possible pullback or a trend reverse. By now, the price has already reached the retracement of 23.6% and may continue trading downwards. However, the mid-term rising tendency may yet continue. A new ascending impulse may be heading to break the high at 288.82 and reach the retracement of 38.2% at 367.00.

ETHUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

The H1 chart shows the targets of the current descending correction; the closest ones is the retracement of 38.2% at 234.70. The next targets may be the retracements of 50.0%, 61.8%, and 76.0% at 218.07, 201.00, and 180.95 respectively.

Ethereum
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Bitcoin explodes higher as bulls shift into higher gear

By Lukman Otunuga, Research Analyst, ForexTime

Bitcoin is positioned to remain a major talking point across financial markets this week after jumping as much as 10% yesterday to almost $9000.

With no industry news or reports behind the abrupt upside, the primary factor behind Bitcoin’s aggressive appreciation is likely based around price action. The technical picture suggests that the cryptocurrency remains heavily supported by the bullish ‘golden cross’ formation on the daily charts. This occurs when the 50-day simple moving average crosses above the 200-day moving average. With prices slowly approaching $9000, the path of least resistance certainly points north. A solid daily close above $9000 has the potential to open a clean path towards $10,000.

Pound lost in Brexit drama & chaos 

The past few days have certainly not been kind to the British Pound which remains one of the weakest G10 currencies.

Theresa May’s resignation is likely to add to the uncertainty over Brexit and what to expect in the coming months. With fears of a no-deal Brexit mounting by the day amid the drama, the British Pound remains fundamentally bearish. Technical traders will continue to watch how prices behave around 1.2620. A solid daily close below this point will signal a selloff towards 1.2500 in the short to medium term.

EURUSD hovers around 1.1200 

The Euro remains on standby below 1.1200 as investors digest the results of the European Parliament elections. With concerns over Italy’s budget denting appetite for the Euro, the EURUSD is positioned to trend lower.
Taking a look at the technical standpoint, the EURUSD remains bearish on the weekly charts as there have been consistently lower lows and lower highs. Sustained weakness below 1.1200 is likely to open a path towards 1.1100 and 1.1000, respectively.

Commodity spotlight – Gold 

Gold struggled for direction today with prices hovering around $1283 as sizzling US-China trade tensions and Brexit uncertainty sent investors rushing towards the Dollar. Although the precious metal got off to a slow start this week, bulls remain in control above $1280. Should this level prove to be reliable support, the next key point of interest for Gold may be found around the $1300 psychological level.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Bitcoin Stalls Near $8100

By TheTechnicalTraders.com

After an incredible 7+week rally in Bitcoin, from $3700 to above $8000, the current price action is setting up for what may become an extended Pennant/Flag formation with quite a bit of sideways trading ahead.

Our researchers believe the past 7+ weeks rally in Bitcoin was prompted by a shift away from risk in Asia/China and into more suitable protection assets.  Cryptos appear to be the easy choice for many as this rally coincided with the April 3rd through 6th US/China trade talks in Washington, DC (https://www.scmp.com/economy/china-economy/article/3004961/us-says-theres-still-significant-work-be-done-trade-talks).  It appears that many investors were preparing for a difficult deadline after the March 1st deadline for a deal was pushed back.  These early April trade talks may have been interpreted as a “do or die” effort from both sides.  Again, shortly after the May 1st US/China trade talks in Beijing, Bitcoin began another rally from the $5200 level all the way up to the $8000 level.

Our contacts, although we admit they are fairly limited in total quantity, have stated the sentiment from locals in China are very pessimistic on the US and President Trump.  A few of our contacts have recently stated they have been laid off or terminated from their jobs and, as we understand, locals have already started to react in a protectionist mode.  This happens when economies contract quickly.  Consumers attempt to protect their wealth and assets by moving any capital they have into something more efficient than their local markets – thus Cryptos.

This Weekly Bitcoin chart highlights areas that we believe our current support and resistance levels.  The $8000~8100 level goes all the way back to the February 2018 low.  This is a critical level for trading as it became a massive price support level back in 2018 – and eventually became critical resistance in July 2018.  Additional resistance is found near $9900.

 

This Daily Bitcoin chart highlights what we believe are the current Key Highs and Key Lows that will tell us if the next phase will be a continued rally or a breakdown in price.  The Key Low near $7480 must hold for any further upside price advance.  If $7480 is broken, we would expect the next Key Low price to be targeted (near $6200).  Otherwise, if another rally breaks out and price rallies above the Key High, then we could see an upside target range between $9200 to $9700 very quickly.

 

You can see from our BLUE CHANNEL levels on the lower indicator that we believe a Pennant/Flag formation may be setting up in Bitcoin right now.  This type of price rotation is not uncommon after a big move like we’ve seen already and it could be a fairly wide price rotation as this sideways Pennant/Flag pattern continues.  The current range between Key Highs and Key Lows is about $2000 – lots of room for trading/traders.

The key to understanding this move is the protectionist thinking of the people of China.  They are very likely attempting to move their capital into something that is not Chinese Yuan based and away from traditional holdings (Gold, Real Estate, Jewelry or other assets).  Eventually, we will likely see Gold/Silver follow the rally in Cryptos if fear continues to hit the markets.  Cryptos, although, appear to have executed the first leg of the “fear trade” originating from the breakdown in the US/China trade negotiations.

An additional word of warning should be that any resolution to the US/China trade talks over the next 60+ days could remove any long term support for this upside move in Cryptos.  Pay attention to the news cycles and what is happening in China, the EU and the rest of the world.  As fast as it went up, it could easily break down as news hits.

Lots of great price action unfold to take advantage of. Subscribers just closed out a 24% winner and another 3.46% as the markets prepare for a new move. If you want my trade signals and alerts be sure to check out my Wealth Trading Newsletter.

Chris Vermeulen – TheTechnicalTraders.com

 

 

Fibonacci Retracements Analysis 24.05.2019 (BITCOIN, ETHEREUM)

Article By RoboForex.com

BTCUSD, “Bitcoin vs US Dollar”

In the H4 chart, after reaching the long-term retracement of 38.2% at 8520.00, BTCUSD started a new pullback to the downside, which has already reached the retracement of 23.6%. The next downside targets may be the retracements of 38.2% and 50.0% at 6445.00 and 5849.00 respectively. After finishing this pullback, the price may resume trading upwards. If the instrument breaks the high at 8365.70, the pair may continue growing to reach the retracements of 38.2% and 50.0% at 8520.00 and 10170.00 respectively.

Bitcoin
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the H1 chart. BTCUSD is trading downwards to re-test the retracement of 23.6%. if the price breaks it, the instrument may continue falling towards the retracement of 38.2%.

BTCUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

ETHUSD, “Ethereum vs. US Dollar”

As we can see in the H4 chart, ETHUSD is forming another correction to the downside, which has already reached the retracement of 38.2%. The next targets may be the retracements of 50.0% and 61.8% at 213.13 and 197.52 respectively. After finishing the correction, the instrument may start a new rising wave to break the high at 279.90.

ETHUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

The H1 chart shows more detailed structure of the correction.

Ethereum

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Can Blockchain Change How We Compute Credit Scores?

This article was originally published by Uncapped Mortgage

Blockchain has been making people in the know reconsider the way they handle finances. Blockchain is basically a triple-entry accounting ledger that is part of a network. Each blockchain contains a copy of that ledger and every new record will be added to that ledger and each new record will be linked to the previous one. Each group of entries forms a block and since new records are linked to the record before that, it forms a chain. Hence, the name blockchain.

Credit score, on the other hand, is something that banks and other financial institutions judge your creditworthiness against. Meaning, if you have bad credit, either banks or any other financial institution will not approve your loan, or you will incur higher interests on your loan compared to someone with a good credit rating. Credit scoring bureaus often use your social security as your identity. If your identity is stolen and your credit ruined, it will be a nightmare to fix.

So how are these two connected, and more importantly, can blockchain actually affect how we compute credit scores?

In the world of credit scores, there are three big players: Equifax, Experian, and TransUnion. These are the three main credit scoring bureaus used by many banks. In 2017, one of the “big three,” Equifax, was breached and personal data of millions of people including their social security numbers and tax identification numbers were compromised. Since credit scoring bureaus hold all their information centrally, any breaches like this will put millions of people’s information at risk. This is one of the major downfalls of the current credit scoring system.

Aside from that, credit scores are based on reputation and how you handled your previous debt. And since having a bad credit score can affect your access to formal financial institutions, even your employment and the chances of renting a place to live in, people across the globe who are underbanked or unbanked are currently on the losing end.

People also have very little insight into what’s happening with their credit data. And there is also very little that anyone can do to protect themselves from fraud or mistakes. The data collected by these bureaus are accessed by people usually only when they are applying for loans such as mortgages. And the credit reports they provide consumers are different from the credit reports they provide banks. The banks get more detailed reports thereby creating a power imbalance.

What blockchain can offer is a decentralized system. This means that there is better security over your sensitive data. This also means that it would be harder for people to provide false information and hide any financial indiscretions. This decentralized system will remove many of the barriers consumers have to accessing and controlling their credit reports. Consumers can give their entire credit history and not just the bits and pieces the credit bureaus provide. Blockchain can also empower the people who have no access to formal financial institutions and improve their lives and finances.

So can blockchain affect how we compute our credit scores? The answer is a resounding yes. Blockchain has the potential to provide fairer, more transparent, and more complete credit reports, therefore, affecting how credit scores are computed and viewed.

 

Fibonacci Retracements Analysis 17.05.2019 (BITCOIN, ETHEREUM)

Article By RoboForex.com

BTCUSD, “Bitcoin vs US Dollar”

In the H4 chart, BTCUSD is quickly getting closer towards the long-term retracement of 38.2% at 8510.00. At the moment, we ca see a short-term downtrend after the divergence, which has already reached the retracements of 50.0%. After finishing the correction, the pair may continue moving upwards. After breaking the current high at 8365.70, the instrument may reach the retracements of 38.2% and 50.0% at 8510.00 and 1017000 respectively.

BTCUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

The H1 chart shows more detailed structure of the correction. After reaching the retracement of 50.0%, the pair slowed down it decline. However, it may yet continue towards the retracements of 61.8% and 76.0% at 6245.00 and 5757.00 respectively.

BITCOIN
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

ETHUSD, “Ethereum vs. US Dollar”

As we can see in the H4 chart, ETHUSD is forming another correction after reaching the long-term retracement of 23.6%. The correction has already reached the retracement of 38.2%. After finishing the correction, the instrument may start a new rising wave to break the high at 279.90.

ETHEREUM
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the H1 chart, ETHUSD is being corrected downwards. The next downside targets may be the retracements of 50.0% and 61.8% at 213.13 and 197.52 respectively.

ETHUSD

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Bitcoin shines through market uncertainty; Uber shares sink

Article by ForexTime

Bitcoin bulls shifted into higher gear over the weekend , as prices surged to above $7550, levels not seen since August 2018.

With no major news factors behind the aggressive appreciation, the sharp $1000 jump over the weekend remains a mystery to investors. Although such explosive moves are nothing new in the volatile world of cryptocurrency, there is the coincidental view that the rally in Bitcoin has come around the same time as heightened US-China trade tensions have eroded risk sentiment. While it’s far too premature to suggest that Bitcoin has restored itself as a potential safe-haven asset for investors, the idea will attempt to pick up further momentum if the cryptocurrency continues to explode higher amid the risk-off conditions.

There is a likelihood that Bitcoin bulls are finding inspiration to jump into the market on the headlines of a rally in Bitcoin. The bullish ‘golden cross’ is already in play on the daily charts. This occurs when the 50-day simple moving average has crossed above the 200-day moving average. With prices punching above $7400 and currently trading around the $7000 region, bulls remain in the driving seat. A solid weekly close above $7400 may open the gates towards $8000 in the short to medium-term.

Source: Bloomberg Terminal

Uber shares tumble on debut

Uber shares have stumbled into the trading week, struggling to shake off the hangover from the company’s rough and rocky debut on the New York Stock Exchange last Friday.

Its shares closed down nearly 8% last week thanks to investor skepticism over the company’s unprofitability and general lack of risk appetite amid escalating US-China trade tensions.

The launch of Uber on the stock market was one of the most highly anticipated additions since Facebook shares many years ago, but it is a surprise to see how unsuccessful the launch has been given the widespread popularity of the Uber brand globally.

Overall, it does appear that risk aversion will remain  the name of the game for financial markets further into the trading week as trade tensions, geopolitical risk factors and repeated concerns over global growth diminish risk appetite. Uber shares, like many other financial asset classes, are set to stay under a negative spotlight as investors instead favor safe-haven assets.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Fibonacci Retracements Analysis 10.05.2019 (BITCOIN, ETHEREUM)

Article By RoboForex.com

BTCUSD, “Bitcoin vs US Dollar”

As we can see in the H4 chart, BTCUSD is steadily growing towards the long-term retracement of 38.2%. The previous correction was very quick, the same as the new rising impulse, which has already broken the high and reached the post-correctional extension area between the retracements of 138.2% and 161.8%. At the same time, there is a divergence on MACD, which may indicate a possible trend reverse. The support level is at 5643.80.

Bitcoin
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the H1 chart, the uptrend is getting closer to reach the retracement of 38.2% at 6430.85. In the short-term, there price may start a pullback towards 6085.00.

BTCUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

ETHUSD, “Ethereum vs. US Dollar”

As we can see in the H4 chart, ETHUSD is forming another rising wave to test the long-term retracement of 23.6%. The main scenario implies that the instrument may break the high at 187.16 and then continue growing towards the post-correctional extension area between the retracements of 138.2% and 161.8% at 202.57 and 212.05 respectively. The support level is the local low at 146.70.

ETHEREUM
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the H1 chart, after finishing the short-term correction, ETHUSD is trading upwards. The closest target is the local low at 180.68. If the price breaks it, the instrument may continue growing to reach the post-correctional extension area between the retracements of 138.2% and 161.8% at 178.16 and 191.18 respectively. The local support level is at 163.50.

ETHUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Bitcoin Setting Up For Another Drop

By TheTechnicalTraders.com

Last year just days before the big Bitcoin breakdown we notified everyone publicly to get ready for a swift drop from $6000 to $4000 which played out perfectly within a few days. Our cycle system and technical analysis skills combined can pack a powerful punch and this one of those incredible moves where the stars aligned for us as traders.

October 12, 2018 – Post and Chart Here

 

We then further updated our followers in March of this year that a breakout was about to take place and a run to $6000 should take place. After that upside breakout move on April 8th, we posted this video further confirming $5800-$6000 was still the target.

Today/May Bitcoin appears to be setting up a broader top formation that suggests another move lower is about to unfold.

This first Daily chart highlights both support and resistance in Bitcoin.  The Resistance goes all the way back to July 2018 where a Three River Morning Star pattern set up a gap with a Doji Star formation.  This created the support level that was ultimately broken in November 2018.  Support formed near $4000 in early 2019 with similar types of gap formations.  This support level was ultimately broken in April 2019 with a move back up to resistance near $6000.

 

We believe the setup of the most recent price activity is setting up a classic three mountains top formation.  A weak price rotation prompting a downside price move right now could be a short term ultimately top with next support near $5000. We believe a fairly quick downside price move toward the $4400 level (or lower) – near support.

Once price move to near the $4400 price level, or lower, if the support level is broken, we could see the price of Bitcoin fall all the way towards the $3500 level or lower.  Fibonacci price theory suggests the failed high price move, near $7500, would represent a major failed high.  This failure suggests a move lower attempting to establish a new price low.  For this to happen, the price of Bitcoin would have to fall below $3000 which may sound crazy, but so was $20,000 bitcoin!

Watch for a reversal to unfold in the coming days, could be another opportunity to profit from another cryptocurrency collapse. Any failure of this breakdown/reversal move would suggest Bitcoin is setting up a new Pennant/Flag formation where the price will trade sideways before prompting a bigger breakout move.  We believe a price breakdown is about to unfold and we expect prices to fall below $4400 within 14 to 28 days.

If you want to become a technical trader and pull money from the markets during times when most others cannot be sure to join the Wealth Trading Newsletter today. Plus, for a few days only I’m giving away and shipping Free Silver Rounds to subscribers who join our select membership levels.

Chris Vermeulen – TheTechnicalTraders.com