Monday, August 6, 2018

Japanese Crypto Exchanges File to Form Self-Regulatory Organization

Japanese Crypto Exchanges File to Form Self-Regulatory Organization

A group of Japanese cryptocurrency exchanges have formally submitted a detailed proposal to form a self-regulatory organization to the nation's Financial Services Agency (FSA).

The Japan Virtual Currency Exchange Association (JVCEA), which was formed by 16 exchanges in March and registered with the FSA in April, has applied to become a "certified fund settlement business association," the Asia Times reported Monday. This would effectively allow the JVCEA to impose self-regulatory rules on the cryptocurrency trading market as part of an effort to create stricter industry standards.

A working draft of the proposed rules in the nearly 100-page document would require cryptocurrency exchanges to regularly conduct audits, as well as prohibit certain anonymous cryptocurrencies from being traded such as monero or dash, Nikkei Asia reported last month.

Even more recently, the JVCEA said it also wished to limit the amount of borrowing when it came to margin trading, that is trading with borrowed money, to be at a maximum of four times an investor's original deposit, as previously reported by CoinDesk.

These are suggestions by the association aim to prevent repeats of troubling incidents such as the Coincheck hack in which an estimated $533 million was taken from the exchange's digital wallets.

It also follows from trends by Japan's Financial Services Agency themselves to crackdown on the cryptocurrency industry by more closely inspecting the activity of licensed cryptocurrency exchange operations, issuing "business improvement orders" aimed at enhancing internal-auditing and user-protection systems.

Documents image via Shutterstock

 

Article Source: http://www.coindesk.com
Goldman Sachs Is Reportedly Weighing a Crypto Custody Service

Goldman Sachs Is Reportedly Weighing a Crypto Custody Service

Having launched bitcoin futures trading in May, Goldman Sachs is now pondering the launch of a cryptocurrency custody service, according to Bloomberg.

In a report published Monday, the news service cites anonymous sources as saying that the investment bank is mulling the creation of a secure storage service aimed at crypto funds to help protect them against the risk of hacking.

So far, though, it seems the possibility is still being discussed and a launch date is not certain. The banking group told Bloomberg that, while it is investigating "various digital products," it hasn't yet made a decision on any product offering.

However, the sources indicated the service could eventually help Goldman Sachs open up other crypto-focused services, such as a brokerage.

The news comes just a month after major cryptocurrency exchange Coinbase launched its own custody service, aiming to serve institutions prepared to deposit over $10 million worth of digital assets. Other startups in the crypto space also offer to keep your assets safe for a fee, including BitGo which revealed it was courting Wall Street firms in May.

While previously Goldman Sachs has been largely skeptical about cryptos, warning investors in January that they were "in a bubble," the company said in May it would start trading bitcoin futures launched by Cboe and CME late last year.

At the time it said it would use its own money to trade bitcoin futures on behalf of its clients.

Bank deposit boxes image via Shutterstock

 

Article Source: http://www.coindesk.com
Blythe Masters Looks Beyond Finance for Next Wave of Blockchain Growth

Blythe Masters Looks Beyond Finance for Next Wave of Blockchain Growth

To hear Blythe Masters tell it, the time has come for Digital Asset (DA) to spread its wings and fly.

The distributed ledger technology (DLT) company she founded in 2014 is entering a new phase, heralded by, among other things, a partnership with Google Cloud to simplify and proliferate the tech.

To date, DA's strategy has stood out among the big enterprise blockchain players for its laser-like focus. Instead of spending a lot of time on consortiums, proofs-of-concept and the like, the New York-based company concentrated on landing the one big fish.

It achieved that goal late last year when the Australian Securities Exchange (ASX) officially hired DA to replace its creaky Clearing House Electronic Subregister System (CHESS), a multi-year project that's currently underway.

Now, having earned the rare distinction of a bona fide production customer, Masters' startup wants to foster an ecosystem around its Digital Asset Modeling Language (DAML), which is about to become available with a software development kit (SDK) via Google Cloud.

"Having spent three and a half years in the design-and-build phase, this is the 'open up and educate' phase and [the time to] build a community of channel partners and developers," Masters told CoinDesk.

This, in turn, will open a vast range of opportunities for DA, she said – both within the financial services industry where Masters spent most of her career and outside it.

"The application of this technology is by no means limited to the world's biggest market infrastructures," the former JPMorgan Chase executive said, adding:
"It goes well throughout financial services, well beyond capital markets and beyond financial services into all the other industries that have a vested interest in improving the efficiency of their workflow orchestration."

According to Masters, there is "a lot of pent-up demand" for DA's technology which the cloud-based DAML SDK can start to meet and a "potential addressable market that is almost unmeasurable."

To give a sense of the breadth of this market, Masters rattled off a litany of new pastures for DA, including: healthcare and insurance claims; digital media rights; royalty streams; real estate; lending and collateral management within capital markets, derivatives post-trade, securities post-trade, reference data, supply chain, crypto wallet custody of assets and more.

However, Masters was careful to qualify this, acknowledging the fatigue felt in many corners following the blockchain hype of a few years ago.

"I think there was some fair criticism that blockchain was a technology solution looking for a problem to solve," she said. "But our approach has very much been to work with customers to identify the problem first and sometimes not to recommend a DLT solution."

'Web-paced innovation'


The DA team recently returned from San Francisco, where Masters and Shaul Kfir, DA's CTO, gave a talk on DLT partnerships at the Google Cloud Next conference.

The primary aim of the Google Cloud partnership is to make it easier for developers to deploy DA's tech, which Masters describes as "a mission to unleash web-paced innovation across multiple industries."

This means abstracting away the underlying complexity of the cryptography, the data architecture, the blockchain or DLT state engine, said Masters.

The Google Cloud-DA partnership appears to run deep as well as wide. To help drive the DAML platform-as-a-service (PaaS) program, DA has also welcomed former Google engineering executive AG Gangadhar to its board.

"We will start to see application development accelerate, some of which will be used in production but others will be useful to helping programmers test and iterate on applications that run on a distributed ledger platform like Digital Asset's," said Gangadhar.

And adding to the symbiosis, Google Cloud has joined DA's developer program private beta, giving Google Cloud developers access to DAML.

"The DLT space has garnered extraordinary enthusiasm and Google's developers and its customers are no less curious and motivated in this space than any others," said Masters.

It's now clear Google is getting serious about blockchain following candid comments last month from co-founder Sergey Brin that the search giant was playing catch up with the blockchain trend.

Google would not comment on the partnership or DLT generally, but an insider close to the DA-Google Cloud partnership confirmed to CoinDesk, "All of Google has access to the DAML SDK, and this includes Alphabet," Google's holding company, which has portfolio companies in a wide range of industries.

But not every influential figure in Mountain View is a blockchain convert. CoinDesk asked Google's chief internet evangelist, Vint Cerf, if he thought tokens could perhaps be used to incentivize users and align them with the goals of tech platforms.

Cerf, who was not commenting on the DA partnership but on cryptocurrency generally, replied in a curt email: "Not clear yet. It could just turn into a speculation like tulip bulbs and bitcoin."

Still, Masters said DA and Google share a common approach to solving engineering problems and "a focus on empowerment of enterprise customers, particularly in the workflow orchestration space that we have in common. So that is where the enthusiasm is coming from."

Maverick Masters


To be sure, DA is far from alone among enterprise blockchain vendors in trying to expanding its ecosystem.

For instance, IBM and Hyperledger are hard at work exploring what they can do with partnerships. Meanwhile, a recent announcement from banking blockchain consortium R3 talked up the potential for its Corda platform to be interoperable across a wide range of industries.

There has also been an increase in blockchain-as-a-service announcements of late. BlockApps Strato has also been welcomed onto Google Cloud, while Amazon Cloud Services (AWS) recently cemented a partnership with ethereum design studio Consensys in the form of the Kaleido project.

But Masters pointed out that DA has always charted its own course, adding that the company's strategy remains unchanged.

"It's where we always intended to focus," she said, referring to the new priority on building a developer ecosystem. "We just didn't approach it via the same avenue necessarily as everyone else."

Aside from ASX, other customers DA has publicly disclosed it is working with are the U.S. clearing and settlement giant DTCC and Dutch megabank ABN Amro.

Another thing enterprise blockchain watchers seem to be interested in is a possible amalgamation between private or permissioned DLTs and public chains, with their fluidity of tokenized assets.

Asked for her opinion on the nascent token economy and where it might bleed into the enterprise world, Masters said she is "not ruling out tokens by any means."

She agreed there is lots of good research and development work being done on this, but said the institutional use of enterprise tokens requires enterprise-grade command-and-control infrastructure.

"It won't be until the kind of controls you routinely expect around transactions and post-trade processing of a stock or bond today can also be produced for the transaction of a tokenized instrument – whether it's a stock or a bond or a cryptocurrency – that we will see widespread enterprise adoption of tokenized instruments that rely on public chain technologies."

Ever the hard-headed businessperson, Masters would not be drawn on the merits or otherwise of one DLT architecture versus another, but answered categorically all the same when she said:
"What I believe in is our technology. I don't mix philosophy or religion with technology. I believe in solving business problems using tech in a cost-effective and safe manner."

Blythe Masters mage via CoinDesk archives

 

Article Source: http://www.coindesk.com
Say Hello to SmartDrops: The New Way to Give Away Free Crypto

Say Hello to SmartDrops: The New Way to Give Away Free Crypto

Are airdrops useful?

While the jury's still out about the mechanism, used of late to massively distribute crypto tokens to those who already own cryptocurrencies, several industry observers and startups already believe it could be done better.

The concept of "smartdrops" seems to have garnered some attention after a July Medium post by Yeoman's Capital founder and long-time industry investor David Johnston. In it, Johnston encouraged blockchain startups to eschew what has become a standard approach to airdrops – dumping tokens to everybody with an ethereum address – for a more targeted approach.

In practice, Johnston told CoinDesk this means, "intelligently targeting the recipients of an airdrop and giving away a meaningful amount of value," with the objective of attracting real users to participate in "the early bootstrapping of a system."

And this newly minted alternative seems to be gaining steam.

For instance, there's already some precedence to this approach. In fact, Johnston says in his Medium post that he merely recorded best practices and gave "substance to this idea that a lot of people have," specifically pointing to projects Dfinity and Polymath as examples of projects that have conducted smartdrops.

Sure enough, in June, Dfinity announced plans to airdrop $35 million worth of its tokens to community members that undergo (and pass) a know-your-customer (KYC) and anti-money laundering (AML) verification process.

Likewise, new companies have emerged to facilitate these improved airdrops. Crypto token management company TRM Labs, for example, recently launched a platform (dubbed SmartDrops of course) that allows projects to distribute tokens to select users and offers issuers analytics.

Just like Johnston, it appears many crypto stakeholders have high hopes for the new and improved airdrop and think the method could resolve issues associated with other token distribution methods, namely initial coin offerings (ICOs) that have been under regulatory scrutiny and seen industry criticism since its explosion in use.

These projects often have a hard time attracting the "bootstrappers" Johnston refers to, and their tokens frequently become objects of speculation more so than objects of utility.

"Most airdrops are really about giving a token to speculative investors so that they'll go cash it out on an exchange. It's really about trying to demonstrate to exchanges, 'hey we've got a lot of wallets, we're going to bring you a lot of people, and so let us list our token on your exchange,'" Paul Hainsworth, the CEO of Open Garden, which will use the smartdrop model for the distribution of its OG tokens soon, told CoinDesk.

Summing up many observer's thoughts about the counterintuitive nature of such decisions, Hainsworth continued:
"We don't think that's a useful way to actually build your real network."

Prioritizing community


Adopting smartdrops as the primary means of token distribution would not necessarily render ICOs obsolete.

"I could still see a place for token sales, but it feels like they should be a lot later, after you've built a community, after you have a real software project," Johnston said.

That's because ultimately, Johnston continued, software projects are about building communities of users.

"It's critical to have a community and real software first because people become the victims of their own success," he said, adding:
"If they have a bunch of money, then they lose the discipline of having to deliver. Raising money wasn't the point; raising money was just a way of delivering the software."

Open Garden's Hainsworth is acutely aware of this.

As a result, Open Garden, a decentralized Wifi project backed by Future/Perfect Ventures, is taking "an inverted approach."

"We're launching the product, doing an airdrop to give people tokens so they can start using it in the network, demonstrating utility, and then once we have sufficient utility in the network, then we'll distribute our tokens to investors," Hainsworth told CoinDesk.

The airdrop will also coincide with the official launch of the project's live protocol, or mainnet, which according to Hainsworth is "built and ready to go."

Open Garden will distribute 1 billion OG tokens in an effort to encourage people to put its peer-to-peer internet sharing and retailing platform to use. Using mesh networking, the protocol, which is built on the stellar blockchain, enables individuals to sell and pay for internet connectivity with its native token, all within a smartphone app (currently only for Android).

Open Garden currently runs a messenger app called FireChat, which has 5 million users, and that is the initial market it will airdrop its tokens to.

But above and beyond just that, the team built a sort of insurance into the smartdrop to make certain that OG will be used to transact in the network and not for speculation.

Community members receiving the token will not be able to immediately cash out. Instead, they must first use the token for "its intended purpose" – things like turning their phones into hotspots, carrying out transactions and keeping the app installed for more than a month.

Pricing the drop


Yet, it's not enough just to give tokens to the "right" users.

One significant decision projects must make is the percentage of tokens to distribute and the price of those tokens. As previously reported by CoinDesk, fudging the numbers can jeopardize investors' trust and can even leave a project unable to meet token demand with supply.

According to Johnston, projects should focus on the percentage of tokens they plan to distribute, and to him, it should be with a "go big or go home" mentality.

"People today are airdropping 1 percent of their tokens, and it's not really meaningful," he said. "I think you have to do something more serious. Think about 25 percent of the tokens or 50 percent of the tokens or 60 percent of the tokens that'll go out to the community, so that the founders are a minority ... but they're not dominating the community."

After all, he added:
"If the community's bringing the majority of the value, then they should get a majority of the reward."

For its smartdrop, Open Garden plans to give away just under 5 percent of its total tokens (what Hainsworth said would be hundreds of dollars per participant) in a two-phase distribution. And while that's not in the double digits, like Johnston suggested, for a mature project with a substantial user base already, he told CoinDesk, that seemed like an appropriate amount.

Hainsworth told CoinDesk, the percentage of tokens the project decided to distribute was intended to enable circulation and liquidity within the network, because sharing internet connectivity requires the ability to carry out many micro-transactions (providers can even charge on the megabyte).

Determining the price of tokens is a more inexact science.

Open Garden has decided to launch its token at $0.01, which Hainsworth explained was related to the pricing from the last round of the private presale of its native tokens.

In the future, Johnston predicts that there will be other ways to determine token price, specifically involving the recently launched decentralized prediction market, Augur.

But until then, it's up to the projects themselves to determine what price will be just right.

"Our objective is to build real utility and become the first and largest consumer use of blockchain technology by the end of the year," Hainsworth said, optimistically, adding: "Honestly, this is how real companies operate."

Hanging orbs image via Unsplash

 

Article Source: http://www.coindesk.com
Robinhood Adds Ethereum Classic to Crypto Trading App

Robinhood Adds Ethereum Classic to Crypto Trading App

Robinhood announced Monday that its customers can now invest in ethereum classic (ETC), just a day before Coinbase adds the option too.

The company said in a blog post that the option went live today on its Robinhood Crypto app, adding that only those in the 19 U.S. states with access to the service can trade ETC at this time.

Users can also trade in bitcoin, ethereum, bitcoin cash, litecoin and dogecoin, "as well as track market data for 10 other cryptocurrencies," the post states.

As mentioned, crypto exchange Coinbase is also expected to launch support for ETC tomorrow.

The company announced last week that it had begun "final testing" for the cryptocurrency, and would begin accepting transfers in ETC on August 7. However, the new option will be opened up initially to users of Coinbase Pro and Coinbase Prime, and no customers will be able to trade in ETC immediately.

"We intend to allow 24–48 hours of transfers through Pro/Prime before opening the markets. In accordance with our Trading Rules, all ETC books will open in post-only for a minimum of 10 mins. Once sufficient liquidity is established, trading will then be enabled on Pro and Prime," the company explained.

Coinbase's consumer service will add the asset "only after they are listed on Coinbase Pro and Prime," the post added, continuing:
"We plan to add support for ETC on Coinbase Consumer when sufficient liquidity is established. We expect this to occur approximately 1–2 weeks after trading begins on Pro and Prime."

Moreover, while Coinbase Prime and Coinbase Pro customers who held ethereum prior to the 2016 fork will receive a credit for ethereum classic, retail customers will not, as ethereum was not supported until after the fork, the exchange said.

Coinbase first announced it was adding ethereum classic in June, saying the selection was consistent with its Digital Asset Framework. At the time, the listing announcement caused the token's price to jump 25 percent in 30 minutes to just over $16.

At press time, the token was trading at $17.72, according to the CoinDesk Market Center.

Trading chart image via Shutterstock

 

Article Source: http://www.coindesk.com
Bitmain Confirms New Crypto Mining Facility in Texas

Bitmain Confirms New Crypto Mining Facility in Texas

Bitcoin mining hardware giant Bitmain is officially setting up shop in Rockdale, Texas, and expects to launch mining operations early next year.

The firm confirmed Monday that it is investing $500 million over the next seven years into a new blockchain data center in the U.S. state as part of its "strategic investment and expansion plans within North America." The facility will employ 400 residents, and Bitmain also intends to launch educational and training programs for potential employees.

Rumors that Bitmain would open the facility first emerged last month when a local newspaper reported that the company was taking over a former aluminum smelting facility, according to the Dallas News. However, public officials said they could not speak about the project at the time.

That being said, the newspaper described the new bitcoin mining operation as "the worst-kept secret in the Rockdale area."

The Chinese mining firm, valued at approximately $12 billion, had already posted preliminary job openings for the move on online employment listings website Indeed.com.

Bitmain's Rockdale operations joins its planned Washington state facility. This past April, Bitmain received approval for a land lease to set up mining operations in the state, though it faced a backlash from some local residents skeptical about crypto mining, with one claiming it "creates wealth for the owner with no trickle down."

Beyond expanding operations in the U.S., Bitmain is also reportedly looking to open offices in Brazil, having already successfully created several international bases in which to carry out bitcoin mining operations in both Switzerland and Israel.

Mining image via Shutterstock

 

Article Source: http://www.coindesk.com
Biotech Giant Plans to Securely Share Genetic Data on a Blockchain

Biotech Giant Plans to Securely Share Genetic Data on a Blockchain

A publicly traded biotech giant based in South Korea is turning to blockchain to allow it to share genetic data without risk of hacking or infringement of patients' privacy.

Macrogen, a DNA sequencing service provider with headquarters in Seoul, said in a press release on Monday that it is working with Big Data firm Bigster to develop a blockchain network for the distribution of genomic information, which is slated for completion by June 2019.

In the medical field, according to the release, genomic data is used for customized patient diagnosis and treatment, while the pharmaceutical industry can use it for the development of new drugs and therapeutic agents.

Yet, despite the high utilization value of DNA data within healthcare, it is not widely shared due to the sensitive nature of the information to patients and the risk of privacy breaches.

Yang Kap-seok, CEO of Macrogen, commented in the release:
"Despite the fact that genomic data is widely used, it has not been easy to share it because of the problem of personal information protection. With the blockchain platform we seek to build this time, we expect to create an ecosystem that can freely distribute genetic data."

To that end, the firms plan a system based on a consortium blockchain model that will only allow invited parties – such as pharmaceutical firms, research institutes, hospitals and genetic analysis startups – to run as nodes on the decentralized network, limiting who can access the data.

Macrogen is not the only technology giant looking to apply blockchain tech within the genomics industry.

As far back as 2014, an Israeli startup called DNA.Bits announced plans to store genetic and medical record data using blockchain technology.

And, as previously reported by CoinDesk, a patent application filed by Intel indicated that the hardware firm is exploring ways to take advantage of the energy generated during cryptocurrency mining to sequence DNA.

DNA sequence image via Shutterstock

 

Article Source: http://www.coindesk.com
Researchers Build Blockchain Electricity Exchange They Say Cuts Waste

Researchers Build Blockchain Electricity Exchange They Say Cuts Waste

Researchers from one of the top universities in China say they have developed a decentralized exchange, not for crypto assets, but for unused power

A patent application filed by team from China's Fudan University in January and revealed on Friday sets out the workings of a blockchain-based electricity exchange that assigns power sellers and buyers as nodes on the network and allows them to securely trade unused electricity without a third-party intermediary.

Using the network, nodes can broadcast requests for sales or purchases, after which smart contracts will connect matching requests, based on data such as volume and price, and then trigger transactions – a mechanism similar to that of a decentralized crypto exchange.

The effort is a response to the growing supply of renewable energy in China, especially solar power generated by households, which is often generated in excess of demand in some regions.

The researchers write:
"Households then have no other choices but to let the unused solar power go to waste because they don't have a direct way of exchanging electricity."

To facilitate transactions over the decentralized network, a digital currency would be used between buyers and sellers, the patent application explained.

Although it's not clear which digital asset(s) the platform might use, the system has so far been made to built on two blockchain systems, according to the Fudan team.

"This idea can be achieved in either a public, private or a consortium blockchain. And in this case, the system has been developed on IBM's Hyperledger platform as well as the ethereum blockchain, to make electricity tradeable and shareable within a community," the document states.

Read the full patent application below:

Fudan University Patent Application by CoinDesk on Scribd




Solar panels image via Shutterstock

 

Article Source: http://www.coindesk.com
Indian State Partners with Mahindra to Build 'Blockchain District'

Indian State Partners with Mahindra to Build 'Blockchain District'

A state government in India is working with a multinational IT services giant to build a district within the state capital dedicated to blockchain startups.

The IT department of the Telangana state government on Friday signed a Memorandum of Understanding (MoU) with Tech Mahindra, a publicly listed firm with headquarters in India, that will see the two teaming up to build what they claim will be the country's first "blockchain district."

Economic Times reported that the blockchain district will occupy an area inside Hyderabad – the state's capital city – with physical buildings to house and incubate blockchain startups from India as part of the government's push to advance the tech's development.

According to business news outlet Inc24, the state government will be primarily responsible for building the infrastructure of the new district and providing policy and regulatory support for blockchain startups.

Tech Mahindra, on the other hand, will offer expertise focused on blockchain ecosystem and technological skills. According to an announcement on Friday, Tech Mahindra is also working on developing a blockchain platform tailor-made for startups in the country, called Eleven01 protocol.

As previously reported by CoinDesk, the IT giant has also been working with overseas blockchain startups to bring solutions to the Indian market.

The blockchain district marks the latest effort by an Indian state to advance blockchain development with government-backed initiatives.

Telangana's neighboring state of Andhra Pradesh previously signed an agreement with a fund to start development of a blockchain ecosystem as part of the state's Fintech Valley Vizag initiative.

Meanwhile, both Andhra Pradesh and Telangana have also been exploring blockchain technology to digitally rework their land registries, as previously reported by CoinDesk.

Hyderabad image via Shutterstock

 

Article Source: http://www.coindesk.com
Below $7K: Bitcoin Price Looks Indecisive After 19-Day Low

Below $7K: Bitcoin Price Looks Indecisive After 19-Day Low

Bitcoin's (BTC) price is trading in an indecisive manner after hitting 19-day lows below $6,900 on Sunday, but could pick up a bid on acceptance above $7,100, technical studies indicate.

The leading cryptocurrency fell to $6,890 on Bitfinex yesterday – its lowest level since July 17 – before ending the day (as per UTC) on a flat note at $7,025.

The price action indicates BTC lacks clear bias, but could also be considered a sign of bearish exhaustion, as the prices have already made a 21 percent slide from the recent high of $8,507.

If the bulls are able to push prices above Sunday's high of $7,090, then a minor corrective rally could be in the offing. On the other hand, a slide below the previous day's low of $6,890 would revive the bearish view.

At press time, BTC is trading at $6,975 – down 0.80 percent on a 24-hour basis.

Daily chart


Daily chart

The above chart shows, BTC created a doji candle (marking indecision) on Sunday at the 50-day moving average (MA) support, making today's close (as per UTC) pivotal.

A bull doji reversal would be confirmed if BTC closes today (as per UTC) above $7,090 (Sunday's doji candle high). In this case, a corrective rally to the 100-day MA, currently located at $7,474, could be seen.

Meanwhile, a close (as per UTC) below $6,890 (Sunday's doji candle low) would signal a continuation of the sell-off from the July high of $8,507.

If the bulls fail to force a rally soon, the focus would quickly shift back to the bearish factors: downward sloping 5-day and 10-day MAs, the breach of the key support of 100-day MA last week and a bearish relative strength index (RSI).

Further, BTC's close proximity to the all-important inverse head-and-shoulders neckline support (former resistance) of $6,820 is another big reason why the bulls need to make a quick comeback.

A move below $6,820 would invalidate the bearish-to-bullish trend change confirmed by the inverse head-and-shoulders breakout on July 17 and would shift risk in favor of a drop below the rising trendline (yellow dotted line).

Weekly chart


Weekly chart

As seen on the above chart, the long-term bullish view has been invalidated by BTC's close at $7,025 yesterday.

BTC closed above the falling channel resistance in the previous week, *seeming to confirm* a long-run bearish-to-bullish trend change. However, the breakout ended up being a bull trap [comma] as the cryptocurrency fell back inside the channel last week, invalidating the long-term bullish outlook

View



  • BTC could rise back to 100-day MA of $7,474 if prices close today above $7,090. That said, the short-term bias would remain bearish as long as the 5-day and 10-day MAs are trending south.

  • A close today below $6,890 would increase the risk of a drop below the key rising trendline support, currently seen at $6,700.


Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; Charts by Trading View

 

Article Source: http://www.coindesk.com