Community

Presidential Hopeful Andrew Yang Plans to Regulate Crypto Industry

Democratic 2020 presidential candidate Andrew Yang has outlined how he plans to regulate the cryptocurrency industry.

Promise to promote legislation on cryptocurrencies

On Nov. 14, Yang, an entrepreneur, lawyer, philanthropist and a Democratic candidate in the 2020 United States presidential election, wrote in a Nov. 14 blog post on the tech industry that cryptocurrencies experience the levels of fraud that they do because of lack of adequate regulations. He said:

“Other countries, which are ahead of us on regulation, are leading in this new marketplace and dictating the rules that we’ll need to follow once we catch up.”

Existing market for crypto, existing problems in big tech

Yang explained that cryptocurrencies and digital assets already compose a great deal of economic activity. The governmental response has lagged. “A national framework for regulating these assets has failed to emerge, with several federal agencies claiming conflicting jurisdictions,” he said.

In his broader plan to regulate the tech industry and protect U.S. citizens from big tech companies “that are prioritizing profits over our well-being,” Yang promises to promote legislation on the crypto asset market space by defining what a token is, when a token is a security, and clarify the tax implications of owning, selling, and trading digital assets, among others.

Taking a stab at Congress for lack of basic knowledge of technology

Yang further pointed out that in order to effectively regulate innovative technologies like blockchain and cryptocurrencies, the U.S. government first needs to understand it.

Yang is referring to the Financial Services Committee, who questioned Facebook CEO Mark Zuckerberg for over six hours about the Libra Association and its planned Libra token. Yang said:

“It’s embarrassing to see the ignorance some members of Congress display when talking about technology, and anyone who watched Congress question Mark Zuckerberg is well aware of this. Without a base level of understanding, it’s unreasonable to expect proper regulation of major tech companies, or the drafting of legislation that addresses the critical technological issues that we’ll continue to face in artificial intelligence and cybersecurity.”

In August, Yang said that he plans implement blockchain-based mobile voting if he wins the 2020 United States presidential election, believing that American citizens should have the option of voting on a mobile device — with blockchain technology used for verification purposes.

Bitcoin Price Risks Falling Under $8.4K If the Bulls Don’t Step Up Now

Bitcoin (BTC) price is still retracing from the massive rally two weeks ago, which leads the sentiment to turn bearish. Several signs indicate that the price needs to reverse quite soon, or the whole upwards move is deleted from the charts.

Crypto market data. Source: Coin360

Crypto market data. Source: Coin360

Bitcoin loses 200-Day MA and EMA for the second time in 2019

The daily chart shows that the price of Bitcoin once again can’t hold support on the 200-Day Moving Average (MA) and Exponential Moving Average (EMA). Such a move often leads to a bearish bias among traders as the 200-Day MA and EMA are crucial indicators for bull/bear perspectives.

BTC USD daily chart. Source: TradingView

BTC USD daily chart. Source: TradingView

Alongside with a drop below the crucial moving averages, the price of Bitcoin wasn’t able to break the downward trendline. This trendline started at the top at nearly $14,000 in June.

Breaking the trendline would provide a vital sign for bullish perspectives on the market.  Additionally, the $7,300 level showed bottom signals with bullish divergences and a falling wedge structure, which resulted in the historic surge to $10,500.

However, this push couldn’t close above the crucial $9,500 resistance area and caused the price to retrace further downwards to the yellow zone. This yellow zone is classified as a potential support area since it previously served as resistance.

BTC USD 12-hour chart. Source: TradingView

BTC USD 12-hour chart. Source: TradingView

However, the price of Bitcoin is currently hanging on a few key levels. First, it’s the previous resistance area seen in October, which can become support if buyers step in here. But the price also retraced towards the golden ratio (0.618-0.65 Fibonacci level) of the whole upwards push from $7,300 to $10,500. This means that bulls must now step in to reverse the downward trend seen so far this month.

Macroview still showing a bullish trend

BTC USD weekly chart. Source: TradingView

BTC USD weekly chart. Source: TradingView

This current market cycle is still showing many similarities with the previous one, i.e. a breakout from the bear market, causing the price to move from $3,100 to $13,900. 

This parabolic move has led to a range-bound period and accumulation at higher levels suggesting that a breakout before the next halving is possible. 

During the last few months, the same movements occurred as the $7,300 level was marked with similar bullish divergences. This also marked the “low range” of the range-bound period, marked green in the chart.

But does this mean further bullishness is warranted? No, because in the short-term, the price is retracing. However, this is a natural move for an asset that pushed 42% overnight on Oct. 25.

As long as the green area holds as support and the price is moving above the 100-Week MA and EMA, investors don’t have anything to worry about. In fact, a potential bullish cross of these two moving averages is likely to occur, which was also a bullish signal in the previous market cycle.

Total market cap copying the movements from February 2019?

Total crypto market capitalization daily chart. Source: Tradingview

Total crypto market capitalization daily chart. Source: Tradingview

This chart is showing a clear breakout of the cryptocurrency markets at the end of October, as the falling wedge broke upwards. The bullish divergences were similar to the breakout in December 2018, which marked the bottom of the bear market of 2018.

Right now, consolidation is needed and backtesting levels must flip to become support. As the chart shows, the red area around $220 billion must turn into support to continue the bullish trend.

Another similarity with February 2019 is that a significant retracement also occurred before continuing to the upside.

Smaller time frames show that downtrend remains

BTC USD 3-hour chart. Source: TradingView

BTC USD 3-hour chart. Source: TradingView

Smaller time frames still show that the downtrend since Nov. 5 is still intact. Additionally, previous support levels are now becoming resistance.

For example, $9,050 was broken as support, which caused the price to drop to the next support level at $8,700. This leads to a retest of the previous support at $9,050, only to confirm that it flipped to become resistance.

In downtrends, this is a continuous movement and, unfortunately for the bulls, this is still occurring on the smaller timeframes.

Bullish scenario

BTC USD bullish scenario. Source: TradingView

BTC USD bullish scenario. Source: TradingView

Therefore, bulls must break out of this downtrend, preferably with a double bottom confirmation or bullish divergences. After that, a breakout above $8,700 is needed in order to flip that resistance level into new support.

The yellow zone is crucial here and needs to hold (as this is also the golden ratio), followed by a clearcut break of the $8,800 area, preferably with high volume.

Bearish scenario

BTC USD bearish scenario. Source: TradingView

BTC USD bearish scenario. Source: TradingView

Nevertheless, as short-term momentum is still favoring bears, a continuation of the downtrend is more likely to occur. In this regard, a few scenarios are possible for a bearish outlook, which both lead to the same lower level.

In the first scenario, the price is unable to break out of this short downtrend and falls below the yellow zone and golden ratio. A potential bounce upwards could then provide a short opportunity. However, testing the green area around $7,400 is most likely to occur in such a move.

BTC USD second bearish scenario. Source: TradingView

BTC USD second bearish scenario. Source: TradingView

The second scenario has the same conclusion as the first one, but a different approach. Here, the price is able to break out of the downtrend but lacks volume and is not able to go beyond $8,700. Such a fakeout often leads to a sharp dump during which bounces will also provide some good opportunities for shorting.

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.

FinCEN Chief: US Will Strictly Enforce Anti-Money Laundering In Crypto

The United States Financial Crimes Enforcement Network (FinCEN) Director Kenneth Blanco said that Anti-Money Laundering (AML) laws will be strictly enforced in the world of cryptocurrencies.

On Nov. 15, Reuters reported that Blanco made it crystal clear that cryptocurrency companies engaged in money service businesses will have to comply with AML laws and share information about their customers.

Travel rule also applies to crypto

Speaking at a conference hosted by Chainalysis, a New York-based blockchain analysis company, Blanco told the audience that the so-called travel rule also applied to digital currencies and that the government expects crypto firms to comply. He said:

“It [travel rule] applies to CVCs [convertible virtual currencies] and we expect that you will comply, period. […] That’s what our expectation is. You will comply. I don’t know what the shock is. This is nothing new.”

In what has now become known as the travel rule, the Financial Action Task Force (FATF) guidelines require regulators and Virtual Asset Service Providers (VASPs) to collect and share personal data of transactions. The recommendation imposes the same standards on the cryptocurrency sector as are normally shouldered by the banking industry.

Blanco further pointed out that FinCEN has been conducting investigations that include compliance with the travel rule since 2014, adding that it is the most commonly cited violation among money service businesses engaged in digital currencies.

Anti-Money Laundering laws apply to everyone

In October, Blanco spoke at the University of Georgetown where he said that AML laws apply to everyone. Blanco pointed to the key objective of AML policy, which is obtaining information about who is involved in a given payment, saying:

“There is a reason you want to know … the person on the other side of that transaction — they might be dealing in some kind of illicit activity. Whether it’s opioids … or human smuggling on the other side … you want to know who that person is.”

Blanco told the audience at the time that it is not that hard to obtain that information. “All we’re asking for is name, address, account number, transaction, recipient, and amount,” he said, adding:

“So when you tell me you don’t know who’s on the other side, you’ve got a big problem. Because you are required to know, and that is what our expectation is going to be.”

Blockchain Firm Partners With Cannabis Data App to Create Research Project

A blockchain-based data marketplace, Measure Protocol, and a cannabis-oriented survey rewards app, Broccoli, will jointly establish a research community for cannabis users.

According to a Nov. 12 press release, the companies will use the new community to survey consumers, collect data and make reports dedicated to cannabis use and the industry. In doing so, the parties intend to discuss the benefits of cannabis, debunk or prove myths surrounding it, and make the collected information available to the public.

Phillip Olla, co-CEO of Audacia Bioscience, the company that stands behind Broccoli, said that blockchain technology will enable the firms to collect data about cannabis use in a transparent and credible manner, which will help bring cannabis into the mainstream.

Blockchain implementation in the cannabis industry

Other cannabis industry stakeholders have been applying blockchain to different aspects of their business. In late September, decentralized application-focused blockchain Aeternity revealed that it will use blockchain to track the supply chain of Montevideo-based medical and recreational cannabis producer Uruguay Can.

Blockchain tracking startup TruTrace Technologies Inc. partnered with Big Four auditing firm Deloitte to track cannabis using blockchain technology. The system is set to employ the technology to track the plant from seed to sale, in order to guarantee that customers and retailers know the history of the product.

Also, Australian Securities Exchange-listed firm Security Matters filed a patent application in the United States for a blockchain system to securely manage the cannabis supply chain. The proposed system could be applied to mark, track and manage the supply chain for cannabis plants, products and cannabis-derived ingredients.

Andreessen Horowitz Leads $25M Funding Round for Crypto Lending Startup

Venture capital firm Andreessen Horowitz has led a $25 million funding round for crypto lending startup Compound.

On Nov. 14, Fortune reported that Compound, a decentralized finance (DeFi) lending protocol, secured $25 million in an investment round led by Andreessen Horowitz’s a16z, with participation from other top investors including Paradigm, Bain Capital Ventures and Polychain Capital.

To integrate with crypto exchanges, custodians, wallets

Compound CEO and co-founder Robert Leshner said in an interview with Fortune that the company now has over $150 million in assets on its platform and that the fresh $25 million investment will go towards making the service more accessible to ordinary people. Andreessen Horowitz general partner Chris Dixon commented on the partnership: 

“Compound is a lending protocol that is open to anyone in the world, that disintermediates banks and allows anyone to earn interest on their money […] We’ve worked with Robert and his team for over two years and think they are world class technologists and entrepreneurs.”

The San Francisco-based startup is an automated crypto lending platform that has predominantly focussed on working with large-scale customers. However, Leshner mentioned that the company will soon start to cooperate with crypto exchanges, wallets and custodians for wider market expansion, so retail investors will also be able to use its services. 

Integration with these additional crypto platforms is planned to take place by the end of 2020. 

Andreessen Horowitz invests in Arweave

At the beginning of November, Arweave, a blockchain startup focused on permanent online data storage, attracted $5 million in another investment round led by Andreessen Horowitz’s a16z, with the participation of Union Square Ventures and Multicoin Capital.

‘Unknown Fund’ to Donate $75M in Bitcoin to Crypto, Anonymity-Focused Startups

An anonymous organization dubbed “Unknown Fund” is planning to give away $75 million in Bitcoin (BTC) to startups that are focused on anonymity and the protection of personal data.

In a press release on Nov. 13, the organization — which consists of “ordinary, anonymous people from different countries” —  said it will donate the money to startups which support the idea of anonymity and specifically operate in such fields as the protection of personal information, tools of anonymity, cryptocurrencies and blockchain.

Fighting the misuse of people’s personal data

The idea behind the donations is to fight the manipulation of people by politics, social media networks and other parties who collect individuals’ personal data, which Unkown Fund says has proved to be an “amazing and frightening” tool.

The project supposedly started on 4chan, an anonymous English-language imageboard, and claims to have the support of hacktivist group Anonymous, which it cites as saying:

“Now the main goal of large corporations is to collect as much information as possible about the personal lives of people, and then use it for their enrichment. And they do a great job of it by making ordinary people get poorer. We are ready to fight for change and protect people.”

The Unknown Fund argues that the deployment of blockchain technology and digital currencies could help protect people’s rights and freedoms, and eventually develop a new environment with a trustworthy monetary system.

Blockchain in personal data protection

Many industry players have questioned blockchain’s ability to ensure personal data protection. Speaking with Cointelegraph in August, Timothy Paolini, a board member at NYU Blockchain, stated:

“Blockchains are built around the principles of decentralization, removing the single point of failure risk (think Equifax servers) and cutting out unnecessary third parties by establishing a more direct, peer-to-peer network. This also maintains your privacy and control of your data from third-party apps as data rests at the protocol instead of the application layer.”

Deirdre K. Mulligan, an assistant professor at the University of California, Berkeley School of Information, argued that blockchains do not inherently protect your identity, as they can be manipulated by their architects to be centralized and non-anonymous. Mulligan stated:

“Companies can exert a lot of control over how they design an application, through its architecture, default settings, what it communicates in its privacy policies, and what it does in practice. The value for a consumer concerned about her privacy would depend on the blockchain application and the kind of data collected and processed by it.”

Swiss Stock Exchange SIX Lists Tezos-Based ETP With ‘Baking’

Switzerland’s main stock exchange SIX has listed a Tezos-based exchange-traded product (ETP) that enables investors to generate passive income.

Traded under the symbol AXTZ, the product is issued by fintech Amun AG in partnership with the Tezos Foundation. It went live for trading on Nov. 5.

Passive yield

According to an overview of the instrument, the ETP’s investment objective is both to provide exposure to the performance of Tezos while generating additional yield for investors through so-called “baking rewards.”

Similarly to other proof-of-stake (PoS)-based blockchains, Tezos investors are able to passively earn a form of “interest” by staking — depositing — their tokens to both maintain the network and earn rewards. 

“Baking” — a term specific to Tezos — enables stakeholders to participate in the staking and governance process by delegating their coins to a delegation service of their choice. 

Once delegated, these holdings are set in correlation with the total staking balance of the service, with rewards paid out accordingly once they have been released by the network.

According to Amun, the firm will charge a 2.5% fee on proceeds from the Amun Tezos ETP.

Underlying assets are reportedly secured and managed using Coinbase’s institution-grade Custody Platform and Amun says it holds 100% of the value of these assets in cold storage.

Reshaping the blockchain sector

This October, crypto broker Bitcoin Suisse partnered with Amun to launch a new Bitcoin (BTC) and Ether (ETH)-based ETP on the SIX exchange.

Amun AG now has a total of nine cryptocurrency ETP products listed on SIX, including an XRP-based ETP, among others. 

A recent research report from crypto exchange Binance  argued that with Ethereum’s expected switch to PoS, staking is poised to have a transformative impact on the crypto industry. 

The largest 10 crypto assets currently supporting — or due to support —  staking cumulatively represent a market capitalization of $25.8 billion, meaning that prospective staking dominance stands at roughly 10% of the total industry market capitalization.

Tron Founder Justin Sun Admits Investment in Crypto Exchange Poloniex

Tron (TRX) founder Justin Sun admitted to being one of the investors that recently acquired cryptocurrency exchange Poloniex from financial technology firm Circle.

Sun said he was one of the investors who acquired the trading platform in a livestream published by the official Poloniex Twitter profile on Nov. 12. Furthermore, he noted that the exchange operates independently from his firm, the Tron Foundation.

In October, Sun refuted reports suggesting that he is leading an investment group behind the acquisition of cryptocurrency exchange Poloniex. Following the acquisition, Poloniex spun out from Circle as an independent company. During the livestream, Sun claimed that the investors intend to help Poloniex grow. 

According to cryptocurrency market analytics platform Nomics, Poloniex is the 11th biggest cryptocurrency exchange by volume, processing $19.5 million over the 24 hours at press time. The website estimates that less than 1% of all the crypto trading volume takes place on Poloniex.

Sun said that, while people new to crypto may have never heard of Poloniex, about two years ago it was one of the most popular cryptocurrency exchanges, stating:

“So Poloniex is definitely one of the […] biggest exchanges.”

News of Sun’s investment follows Tron listing

While Sun stated today that Poloniex will operate independently of the Tron Foundation, news of his investment in the platform follows close on the heels of Tron’s listing on Poloniex. As the exchange announced yesterday, customers could start posting limit orders for TRX/Bitcoin (BTC), TRX/Tether (USDT) and TRX/USD Coin (USDC).

The coin has not reacted significantly to the news and is up 1.46% over the last 24 hours to trade at $0.019 at press time, according to data from Coin360.

Ex-Fed Chair Greenspan: ‘No Point’ in Central Bank Digital Currencies

Alan Greenspan, the former chair of the United States Federal Reserve (Fed), has said there’s “no point” for central banks to issue their own digital currencies.

According to a CNBC report on Nov. 11, Greenspan made his comments during the annual economic outlook conference hosted by Chinese financial magazine Caijing.

No point in Libra either

Greenspan’s argument reportedly hinged on the fact that national fiat currencies are backed by sovereign credit — a provision that is exclusive to the nation-state and its institutional structure. 

Not even the tech behemoths in the age of FAANG’s ascendancy — an acronym for the world’s five most successful tech stocks, Facebook, Amazon, Apple, Netflix and Google — can compete with the depth and breadth of the U.S.’ financial markets, he argued. 

Greenspan said:

“The fundamental sovereign credit of the United States is far in excess of anything Facebook can imagine.”

Greenspan — a Ronald Reagan appointee — was at the helm of the Fed during the Black Monday stock market crash of 1987, the tech boom of the 1990s, the Mexican, Asian and Russian financial crises (1994, 1997, 1998, respectively) and the dot com bubble bust in 2000. 

With his 1987-2006 tenure thus spanning a period of serial crisis management and the Fed’s ever-more-spectacular dominance over the global financial system, TIME had run a now-notorious cover with a photo of Greenspan, Treasury Secretary Robert Rubin, and Undersecretary Lawrence Summers in 1999 dubbing them the “Committee to Save the World.”

In the wake of the historic 2008 financial crash, Greenspan’s reputation has taken a nosedive, he and his cohort accused of having cemented the policies that brought the global system to its heels.  

China and Tunisia already in the business

In an era of mounting Sino-American tensions, China’s central bank, the People’s Bank of China, is now widely expected to become the first major global economy to launch a central bank digital currency. 

Meanwhile, Tunisia has recently begun the process of digitizing the dinar and plans to issue a paper-backed CBDC on a blockchain network jointly managed with a Russian tech startup. 

In October, members of the U.S. House of Representatives Financial Services Committee addressed a letter to the incumbent Fed chair Jerome Powell inquiring into the prospects of issuing a USD CBDC. 

The lawmakers argued that the Fed has both the capacity and the mandate to establish a safer, more flexible and more stable monetary and financial system by developing a digital dollar.

Bobby Lee: $500K Bitcoin Price ‘Flippening’ of Gold Will Come by 2028

Bitcoin (BTC) will surpass the market cap of gold and could ultimately be worth $1 million, well-known industry figure Bobby Lee has said. 

In a series of tweets on Nov. 10, Lee, who co-founded Chinese cryptocurrency exchange BTCC and now runs a Bitcoin wallet startup, became the latest voice in the expanding debate on Bitcoin versus gold. 

Lee: BTC market cap to hit $8 trillion

Gold’s market cap is $8 trillion, while Bitcoin’s is just $160 billion. While around fifty times lower at present, Lee thinks a reversal could come as soon as 2028.

“I predict the #flippening will happen within 9 years and $BTC will shoot up past USD $500,000,” he wrote. 

Like many, Lee based his argument for Bitcoin’s success on its decreasing supply via block reward halvings. He noted that in the next decade, the amount of Bitcoin released to miners each block will halve three times. Lee added:

“By 20th year, daily new output will just be ~255 BTC — yearly inflation of less than 0.5%. More scarce than #gold!” 

Money printing could take BTC to $1 million

His arguments chime with predictions by a well-established model charting the Bitcoin price — Stock-to-Flow. The product of social media analyst PlanB, the instrument likewise uses Bitcoin’s new supply versus its existing stock to forecast its future value. 

As Cointelegraph reported, calculations call for a BTC/USD price of just $8,300 until the next halving in May 2020. After that, however, the situation should change rapidly, with $100,000 coming around two years later

Lee also joined PlanB in predicting far higher Bitcoin prices in the latter part of the next decade or beyond. While the former thinks a $1 million price tag is possible in the event of global money printing continuing, PlanB noted that money printing could ultimately stop the Stock-to-Flow model from working.

“I would be happy if the model holds for 1 or 2 or maybe 3 more halvings. Especially since BTC is measured in $ … who knows what happens with $ if the FED keeps doing more QE (money printing),” he said in a Twitter exchange late last month. 

Bitcoiners battle gold believers

The idea of Bitcoin usurping gold as an alternative store of value still has its major detractors. Among the most vocal is Peter Schiff, the gold bug who has become infamous for his social media slighting of both Bitcoin and its proponents. 

Last week, Schiff argued that China potentially backing its state-issued digital currency with gold was a “bearish” sign for Bitcoin. 

Prior to that, he forecast BTC/USD never reaching $50,000, while gold would pass $5,000. 

Equally vocal about Bitcoin meanwhile is Max Keiser, the RT host who continues to argue for the cryptocurrency’s supremacy on mainstream media. 

In an episode of his Keiser Report last week, he said that Bitcoin’s self-settling ability automatically made it more suitable for transactions than either gold or fiat currency.

Are Bitcoin and Other Cryptos Back in a Bear Market After Latest Drop?

On Nov. 8, Bitcoin corrected from $9,200 to $8,650, causing the market sentiment to shift from greed to fear once more. 

The correction came after one of the biggest surges in the history of Bitcoin (BTC), which makes the sentiment shift curious. Let’s take a look at the market overview and analyze the charts.

Crypto Market Daily Data View

Crypto Market Daily Data View. Source: Coin360

Bitcoin loses 200-Day Moving Average as a key indicator

The recent correction made Bitcoin price lose the 200-Day Moving Average (MA), which is a key indicator for many traders and investors who rely on it to determine bear/bull market cycles. 

BTC USD 1-day chartBTC USD 1-day chart. Source: TradingView 

Remarkably, the price surged above the 200-Day MA, hovered below the resistance at $9,400-9,600 and retraced back down to the next horizontal support level at $8,600-8,800, which is also the 200-Day Exponential Moving Average (EMA), another narrative and indicator. 

At this level, the price is seemingly finding support, at least for the time being. 

However, the 200-Day MA was lost by this correction, causing the sentiment to shift from greed to fear. The reasoning for this comes from historical data, which shows that Bitcoin never dropped below this indicator in recent market cycles (example: 2016 to December 2017). 

Key indicators still taking shape

Of course, as the famous saying goes: Past performance is no guarantee of future results. 

The indicators are still forming if this is the beginning of a new bull market cycle. In other words, the price still has to find support on EMAs/MAs, which can then become leading indicators. 

Previous examples of comparisons with earlier market cycles didn’t hold up either, which were the 21-Week MA and the maximum correction of 40% that Bitcoin has seen in any bull market (the recent drawdown was 47%). 

From that perspective, analyzing the macro view is definitely more helpful instead of drawing comparisons to historical movements, especially on shorter timeframes. 

BTC USD 12-hour chart

BTC USD 12-hour chart. Source: TradingView

As seen in the chart, the price moved towards important horizontal support and one of the few areas that must hold to sustain a bull market. 

The price has been moving in a downward channel since the top in June, which means that the price is bearish in the near-term, though the price of Bitcoin is still up 187% since December 2018.

It is essential that one of these green zones around $8,600-8,800 holds as support. Though a wick towards $8,300 can still occur as a backtest of that support level. Dropping below this mark, on the other hand, would cause the price to lose the trendline and likely result in a new low under $7,300. 

But if Bitcoin manages to hold these levels, a support/resistance flip will come into play and a bullish breakout in December may occur. The target to aim for then is $10,800. 

Total market capitalization show bottom signals

Total Crypto Market Capitalization 1-day chartTotal Crypto Market Capitalization 1-day chart. Source: Tradingview

The total market capitalization still shows bottom signals displaying the first bullish divergence on the daily since the low in December 2018. Moreover, a breakout of the falling wedge also occurred with support confirmation in the green area, which is the $180-200 billion level.

On the other hand, the significant order block around $260 billion is still acting as a heavy resistance, similar to Bitcoin at the $9,600 level. 

Total crypto market capitalization 4-hour chart

Total crypto market capitalization 4-hour chart. Source: Tradingview

Lower time frame charts show similar signals as the higher timeframe charts. No clear breakthrough in the red order block and resistance area as the price cleared the smaller resistance zone at $220-225 billion. 

While there hasn’t been any backtest of this level yet — there’s a good chance it is now likely to occur. As long as the market is able to hold this important support level at $220-225 billion, resistance could again flip into support and start aiming for higher grounds (potentially breaking $260 billion and aiming for $350 billion).

Altcoin market cap consolidating on higher grounds

Total Altcoin Market Capitalization 1-day chart

Total Altcoin Market Capitalization 1-day chart. Source: Tradingview

The altcoin market capitalization is also becoming interesting as it shows the completion of a 4-month downtrend. This breakout is similar to the movements the market has seen prior to this year when a major downtrend was broken in January as well. 

What followed after the breakout? A period of range-bound movements, which can also be seen as accumulation. Similar movements can also be seen here as the market is moving inside a narrow range, suggesting that a big move is in the works.

It is crucial for altcoin market capitalization to hold the $66 billion level as an important marker and support. Losing that level would give space to movements below $50 billion and would delete the trend of higher lows — an essential pattern for a bull market. 

If the $66 billion level holds, the target of $90 billion will be key to watch for in the upcoming weeks. 

Is Bitcoin dominance ready for a breakdown?

Bitcoin Dominance 1-day chart

Bitcoin Dominance 1-day chart. Source: Tradingview

Interestingly enough, while Bitcoin is correcting, Ether (ETH) has been showing strong signals in the ETH/BTC pair. Ether price action is also indicating that Bitcoin dominance is faltering, though it’s still not looking completely bearish yet. 

Trendlines have a lower effect on the Bitcoin dominance chart, so for full confirmation of downwards bias, it has to break below 68% dominance. If that occurs, likely targets are then 62-63%. 

Crypto winter coming or autumn shakeout?

So is the cryptocurrency market back in a bear market with Bitcoin losing the 200-Day MA? 

The simple answer is no.

Macro wise, the market has been moving upwards all year and actually provided a significant return since January. However, some key levels have to hold in order to sustain the macro bullish perspective. In other words, Bitcoin going below $7,300 would be a bearish sign for the entire crypto market. 

Holding above $8,300 would renew bullish sentiment and likely create a potential “buy the dip” scenario in which BTC can then make its move towards $11,000 and higher. 

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.

Bakkt Bitcoin Futures Daily Trading Volume Hits New Record — $15M

Bitcoin (BTC) futures daily volumes on digital asset platform Bakkt have hit a new all-time high, with 1,741 futures traded on Nov. 9.

Bakkt announced the new record, stating: 

“Today we set a new daily record of 1,756 Bakkt Bitcoin Futures contracts traded.”

Volume spike coincides with Bitcoin price dip

Twitter account dedicated to Bakkt futures trading volume data, Bakkt Volume Bot, also pointed out the development on Nov. 8. 

Additionally, the daily volume of 1,741 (about $15.5 million) represents a 109% increase over the 834 contracts traded the day before with each contract being equivalent to one Bitcoin.

Bakkt daily volume graph

Bakkt daily volume graph. Source: Bakkt Volume Bot

The new record volume coincides with a sharp Bitcoin price decrease, falling under $9,000. The last reported Bakkt contract trading price as of press time is $8,895.

Bakkt’s volume rising month over month

Bakkt physically settled monthly Bitcoin trading volumes have been steadily rising since its launch. In October, its volumes have hit a new all-time high with 452 contracts traded

Notably, on Oct. 26, Bakkt traded 1,183 Bitcoin futures contracts after registering a staggering 257% volume increase in 24 hours. This also coincided with a major price move that sent BTC over $10,000.

As Cointelegraph reported earlier this week, Bakkt is also on its way to set a new monthly trading volume record. The company is also expected to launch the first regulated Bitcoin options contract on Dec. 9.