BTC price analysis – Correction after new all-time high?

A new all-time high of EUR 14,946.27 (USD 17,585.03) was reached between Thursday and Friday – but the price is currently falling.

Summary of the Bitcoin secret

The Bitcoin secret price has risen over the week as shown on: On 6 December, a rally to new all-time highs began, which ended in the night between 7 and 8 December – but the course plunged to bottomless ground a day later. The most important short-term resistance is EUR 14,946.27 (USD 17,585.03), the most important short-term support is EUR 10,896.25 (USD 12,819.98).

Apparently the crypto scene was good this year, after all St. Nikolaus experienced a price increase that was much steeper than the previous trend. This rally culminated in two peaks on 7 December early in the morning and late at night, the latter being the new all-time high of EUR 14,946.27 (USD 17,585.03). Since then, there has been a slight correction, a slight drop in the plateau and a dramatic fall in prices, which at times seemed to make up for all the gains made this week.

The MACD (second panel) is of course negative, as is the MACD line (blue) below the signal (orange).

The RSI (third panel) is at 21 and strongly oversold.

The analysis of movements on the 60min chart speaks bearish language, but one should keep in mind that the RSI is oversold. This may be a sign of a reversal. The most important support is described by the uptrend that took place before December 6th and currently stands at 10,896.25 EUR (12,819.98 USD). The most important resistance on the 60min chart is the all-time high at 14,946.27 EUR (17,585.03 USD).

The long-term development of the share price

Was that ascension now? Can we expect a dramatic correction? For an assessment, let’s look at the medium- and long-term price movements and first the 240min chart:

The medium-term chart is also characterized by an upward trend. Instead of the already discussed upward trend, the upward trend that has been observed since mid-November is shown here. We can see here that since the end of November the price has been behaving better than this upward trend. The price is still above the exponential moving average of the last two weeks, but the exponential moving average of the last week was tested.

The MACD is still positive, but the MACD line has dropped below the signal. The RSI stands at 40 and is bearish. In the medium term the situation is neutral to bearish. The most important support is described by the upward trend since mid-November, which is currently at 9,167.37 EUR (10,785.87 USD). Here, too, the resistance can be described by the all-time high, which is 14,635.15 EUR (17,218.99 USD) on the 240min chart.

Let’s close with a long-term view on the 1D chart:

In the long run, the price correction is significant, but not dramatic: The steep upward channel mentioned last week, here marked in light blue, has now been surpassed. The most recent correction tried to test the former resistance of the upward-channel.

The MACD is positive despite the recent correction, as is the MACD line above the signal. The RSI was in the overbought territory, but is now at 69.

Overall, the long-term outlook is bullish from a technical perspective. The most important support is described by the support of the new uptrend channel and is at 9,097.02 EUR (10,703.10 USD). The most important resistance is the all-time high on the 1D chart at 14,525.98 EUR (17,090.54 USD).

Opinion-ECHO: Blockchain becomes boring – in the best sense of the word

After the ups and downs of Bitcoin & Co. last year, the MIT Technology Review forecasts a „boring“ blockchain year 2019. Jed McCaleb still considers the crypto market to be overvalued and states that Stellar no longer looks at prices, but only at technology. This is „bullshit“ in most projects. John McAfee thinks the latter is tax-paying, which is why he reveals on Twitter that he hasn’t paid taxes in eight years. The opinion ECHO of the first calendar week 2019.

John McAfee makes no secret of his hatred of the Bitcoin formula

He has now announced on Twitter that he has not filed a tax return for eight years. The enfant terrible of the Bitcoin formula scene justifies this with five arguments:

Taxation is illegal.
I have already paid tens of millions and received Jack Sh*t in services.
I am done making money.
I live on cash from McAfee Inc.
My net income is negative.
McAfee is increasingly shooting himself into the U.S. Internal Revenue Service (IRS), which he feels persecuted by (for whatever reason).

I have not filed a tax return for 8 years. Why? 1: taxation is illegal. 2: I paid tens of millions already and received Jack Shit in services. 3. I’m done making money. I live off of cash from McAfee Inc. My net income is negative. But i am a prime target for the IRS. Here I am.

While McAfee is pestering the tax authorities in particular, Craig „Faketoshi“ Wright apparently feels increasingly annoyed by Altcoin supporters. Wright had to listen to some of them at least since the last Bitcoin Cash Hard Fork. Among other things, that the creation of Bitcoin Satoshi Vision was responsible for the tightening of the bear market. Before Wright set his Twitter account to „private“, he shot against crypto expert Andreas Antonopoulos:

„The renowned Shitcoin expert Andreas Antonopoulos is so far from understanding Bitcoin as one can be. The only thing [he] does right is spell Bitcoin right.“

Now Wright only allows opinions in his Safe Space that are consistent with his own. Chapeau!

Tom Lee: Dow Jones is in a midlife crisis

Bitcoin bull and Fundstrat CEO Tom Lee sees the Dow Jones in a midlife crisis. The US Federal Reserve is not completely uninvolved in this. Like President Trump, Lee is critical of the last increase in the key interest rate last December:

„I think the Fed has really undermined the liquid markets. This has really worsened the trade dynamic,

Lee said on CNBC.

What the whole thing has to do with a midlife crisis, however, Tom Lee left open. Rumours that the Dow Jones has bought a motorcycle and wants to start a new life with a much younger partner remain unconfirmed.

Election fraud passé? Thailand plans introduction of blockchain electoral system

A Thai organization close to the government is working on the development of a blockchain election system. The aim of the project is to be able to hold both national and regional elections in Thailand completely electronically in the near future.

However, there are still some hurdles for cryptosoft

As a „cryptosoft nation“ Thailand flew under the radar for a long time. The Southeast Asian country is making more and more efforts to into its administration. A crypto currency of its own is also being planned.

Now as Blockchain Voting Land. As the Bangkok Post reports, the Kingdom is striving for the nationwide implementation of a blockchain voting system. According to the report, the National Electronics Technology Center (NECTEC), which is in charge of the development of the electronic voting system, is making rapid technical progress.

The NECTEC is a government-related organisation under the auspices of the Ministry of Science.

The research goal of the project is „to reduce election fraud and preserve data integrity,“ Chalee Vorakulpipat, head of NECTEC’s cybersecurity division, told the Bangkok Post. Upon completion, his organization will deliver „a block-chain-based e-voting technology applicable to both national and regional elections […]“.

Secure, transparent, convenient, fast

The implementation of blockchain technology in electronic voting systems brings – besides the convenience of being able to cast the vote from the home computer – several advantages: Blockchain-based voting is therefore faster, cheaper and more secure than conventional voting systems. This is because data stored on the blockchain can be viewed transparently by all the instances involved, such as voters, candidates and election officials, and is stored in a forgery-proof manner.

Internet first
However, it is likely that some time will pass before the nationwide integration into „everyday electoral life“ takes place.

This is because the system requires reliable coverage with fast Internet throughout Thailand, preferably with the new 5G mobile communications standard, according to NECTEC. It is still completely unclear when this can be expected.

For this reason, the developers are initially striving for an extended test phase within a suitable framework. According to Quelle, provincial, municipal or university elections can be considered for the test runs.

Coinbase moves 5 billion US dollars in Bitcoin, Ethereum and Litecoin

The Bitcoin exchange Coinbase has moved a total of five billion US dollars in the crypto currencies Bitcoin, Ethereum and Litecoin in recent months to make its exchange more secure.

The aim of all these crypto trader movements was also to work on cold storage security for the crypto currencies:

„In our latest version, which was first introduced with Coinbase Custody and now takes over the entire cold storage at Coinbase, we start with a secure crypto trader basis. This has a strictly controlled and tested key generation. We are also expanding it with a globally distributed system for storing keys and approving transactions.“

What we already suspected has now been confirmed: The Bitcoin whale that has moved so many BTCs in recent weeks is called Coinbase. According to a blog post from the stock exchange, they were the largest movement in crypto currencies ever made. Accordingly it is said:

„Coinbase recently moved five percent of all BTCs, eight percent of all ETHs and 25 percent of all LTCs in circulation (among many other assets) in what we believe to be the largest crypto-migration in existence.

New system to work with all crypto currencies

As the company further states, the new system makes it possible to secure crypto currencies of all kinds. In addition, the procedure had been planned for a long time. As Coinbase reports, the team had already agreed with the authorities, security teams and regulators before the great coin movement. It is said that this was the case:

„We started planning months before the actual movement and involved almost every Coinbase member in the process. We carried out risk assessments, developed monitoring plans and carried out test migrations until we were sure that the live migration would go smoothly.“

Speculative risk over Bitcoin whales was known
The operators were apparently aware that the movement could lead to speculation. According to Coinbase, the fear was that there might be uncertainty in the market. For security reasons, however, it was decided not to make the matter public:

„One of the risks we identified early on was the fact that our migration could be confused with a vulnerability or a large merchant preparing to sell a significant amount of crypto currencies. In any case, we were concerned that market uncertainty could lead to price fluctuations. On the other hand, we were concerned that too much attention would allow potential attackers to plan and execute attacks during the migration.“

The fact that the movement of coins has now come to an end could hardly have come at a better time. The crypto market is currently on the upswing and the Bitcoin exchange rate has now exceeded the US$ 4,100 mark.

Wash Trading – How stock exchanges cheat investors

Certain exchanges fake false trading volumes. Investor fraud can have far-reaching consequences.

Investors and ranking platforms face a Bitcoin loophole problem

Wash trading is the process by which financial products are bought and sold in a short period of time to simulate a high trading volume. A widespread Bitcoin loophole problem that has also taken its place in the crypto currency world: Because when stock exchanges engage in wash trading to falsely pretend liquidity, trust and security, it is primarily at the expense of investors. Investors‘ trust can then cause a lot of damage.

But let’s start all over again. When exchanges do wash trading, it’s like putting all the products in the refrigerator in front so that it looks full, even though everything behind it is empty. It’s pretended that there’s a strong trade in crypto currencies within an exchange platform, with only a few traders running this frame-up buy and sell game.

The reason is simple

Creating and implementing marketing and communication strategies and building a community is more expensive than building with Wash Trading. Because it is a narrow niche that the fake exchanges use there.

The platforms that create the rankings are torn back and forth. If they do not include the stock exchanges in their rankings, regulation will take place. This protects some investors, but undermines their own credibility. After all, who decides under what criteria and from when a stock exchange platform should better not be listed?

However, if the ranking websites decide to include all exchanges in the list based on volume, they can be reproached. This gives the fraudsters a platform that gives them even more reach for their fake business.

Bitcoin news: ICOs – The Developer’s Perspective

The next panel and the next day were ultimately dedicated to developers: In the panel, Max Kordek, CEO of Lisk, Henning Dietrich, a programmer and bestselling author, Peter Harris of Resonate and Remco Bloemen of Neufund discussed their experiences and backgrounds regarding ICOs. It was interesting to discuss the technical aspect of decentralized crowdfunding after the discussion of the regulatory framework.

The discussion also focused on what is meant by the term crypto-economy. Roughly speaking, it can be summarized that this bulky term can be understood as a technology-based economy. Inflation is of course a keyword here; different protocols permit deterministic inflation and deflation rates. However, this technology does not stand as an absolute monarch; only through consensus, the community’s agreement on certain aspects of technology, can the crypto-economy become effective.

Blockchain for investors – Bitcoin news projects introduce themselves

On the second day of the events organised by Bitcoin news, various projects had the opportunity to introduce themselves to an interested audience. With Neufund and Bitcoin news, two projects represented on the above-mentioned panels were present for a second time and were able to discuss their projects in more detail. Starbase and Dent were two other projects.

After the first day ICOs and decentralized crowdfunding were illuminated from different sides it was interesting to see how different projects want to revolutionize ICOs: Neufund sees itself as a decentralised investment ecosystem and Starbase as a service provider offering token funding as a service, i.e. organising an ICO for interested parties.

Bitnation’s Toni Lane presented the vision behind her project

A nation beyond existing borders, which exists on the internet and uses the blockchain for various tasks.

Mikko Linnamäki of DENT finally presented his project – a disruption of the mobile phone market – and above all his experiences with the organisation of an ICO. The humorous lecture, which dealt with trolls in slack channels, fanboys from South Korea and critics on bitcointalk, was a pleasant conclusion for the two evenings. Thanks to Sven Läpple and Astratum for these events on crypto-economy!

IOTA: Digital Identity and the Tangle

The IOTA Foundation has announced a new partnership. With this partnership, they want to further their efforts in the area of smart homes and digital identity. With IAMPASS, the areas of Digital Identity, Smart Cities and IOTAs Tangle will come together better.

Digital identity, Internet of Things and Smart Homes – these are probably the key words when it comes to our digital future. The fact that the IOTA Foundation with its Tangle wants to offer the technical infrastructure for this should be familiar to most people interested in cryptography by now. With a new partnership, this goal should now come a few bytes closer.

A dream for data collectors of the news spy

The Tangle will soon be the basis for a new identification system like the news spy. A dream for all data collectors: The vein patterns in the palm of the hand should be used to perfectly identify, register and digitally image people on the tangle. With IAMPASS all this should become possible – one expects a secure and no longer manipulable illustration of identity data.

IOTAs Tangle as basis for Smart Cities

In connection with Smart Cities, the project is still thinking ahead. A process called Masked Authenticiated Messaging will make it possible to recharge smart cars via the digital account. IOTA recently announced this in a blog post.

The advantages of a decentralized administration of identity are obvious. The distribution is moving away from centralized mountains of data to decentralized individual nodes that are designed to simplify identification.

Toan Nguyen, Director Business Development & Cloud Platform of IAMPASS:

„Distributed ledger technologies are becoming a key component of new initiatives in smart cities and digitization. This is especially true for data management and security. IOTA’s Tangle is particularly suitable for the emerging security applications for digital identity and personal data. Together, we expect the IOTA ecosystem and IAMPASS to help drive the next phase of digital identity management for high-security environments such as data centers and the smart city.“

So when IAMPASS‘ plans work out, it will soon be possible to identify yourself by the arrangement of veins on the palm of your hand, recharge your smart car and let it drive you into a fully networked smart home. (Provided the necessary small change is there).

Regulierungs-ECHO KW42 – A crypto currency for Hamburg?

In the past week, a lot has happened around the globe in terms of regulation. In our regulation ECHO we look back to the end of the week and summarize what was said, thought or decided when, where and by whom.

Germany: CDU Hamburg demands its own crypto currency

The Hamburg Christian Democrats are playing with the idea of their own crypto currency for the Hanseatic city. This was reported last week in the Hamburger Abendblatt with reference to the CDU member of parliament and spokesman for the digital economy, Carsten Ovens. According to him, the „Hamburg Coin“ has above all a marketing character. So far, however, the ruling SPD has not heard anything about this proposal.

Iran: US authority wants to slow down use of crypto in Iran
The use of crypto currencies has recently become more and more popular for companies in Iran. The reason for this lies in the trade sanctions of the USA against the country. These should be avoided with the use of crypto currencies. But this should now be an end. As the US authority against financial crime, the Financial Crimes Enforcement Network (FinCEN), announced, the use of crypto currencies in Iran is classified as „illegitimate and malicious“ and therefore wants to prevent it.

Hong Kong: New regulatory approach planned

The Hong Kong Securities and Futures Commission (SFC) would like to regulate crypto currencies more strongly in the jurisdiction. As chairman Carlson Tong Ka-shing revealed to the local media, the new regulation is intended to protect potential investors. However, this is not a policy of bans, as is the case in mainland China. Rather, one would like to design a well-regulated counter-model to the rest of the People’s Republic.

USA: Former CFTC chairman for ICO regulation as securities
Gary Gensler, former chairman of the US Commodity Futures Trading Commission (CFTC), has taken a stand on Initial Coin Offerings. Crypto currencies, which emerge from ICOs, were therefore generally considered securities in the USA. Basically, he is positive about crypto currencies and blockchain technology. However, he stresses the need for a regulatory framework for sustainable growth. In the past, Gensler had already classified Ether and XRP as securities.

Russia: Hackers in court over minings on government servers
A young Russian hacker was put on trial this week. He is accused of illegally mining crypto currencies. He is alleged to have used the computing power of servers operated by the Russian government for this purpose without permission. Local media report that the Russian domestic intelligence service FSB has become aware of the inconsistencies on Russian government servers. The 21-year-old hacker is now threatened with up to five years imprisonment.

USA: SEC sets up new department for dialogue with ICOs
The US Securities and Exchange Commission (SEC) has ordered the creation of a new department. The aim of this group is to improve coordination with crypto start-ups. In particular, it should make it easier for those who want to start an initial coin offering to comply with the legal framework. From now on, the Strategic Hub for Innovation and Financial Technology (FinHub) will act as a contact point for FinTech companies.

Japan: Tax committee to facilitate crypto taxation
The Japan Taxation Committee has discussed how to simplify the taxation of crypto currencies in the island state. Local media report that the current tax system is unnecessarily complex and discourages many Japanese citizens. The committee, which advises the government on tax issues, therefore wants to make it easier to include crypto currencies in tax returns. This would also create an even more crypto-friendly environment in Japan.