Bitcoin, Ether in bear market territory after declines

Bitcoin, Ether
in bear market territory
after declines

  Bitcoin is down about 30% over the past two weeks

Precipitous declines in prices for bitcoin and Ether in the wake of a potential crackdown on exchanges by Chinese authorities have shaved nearly $40 billion off the combined market capitalization of the cryptocurrencies over the past two weeks. The price of a single bitcoin BTCUSD, -11.25%  tumbled nearly 8% on Thursday to $3,565, and has fallen nine of the last 13 days. Unlike stocks and bonds, bitcoin trades every day without a set closing time.

Bitcoin is now down nearly 30% from its peak at above $5,000 on September 1. This is a second drop of this magnitude in less than three months. Between June and mid-July, bitcoin prices fell 33%, largely due to fears surrounding the eventual upgrade of bitcoin’s software code and branching out of the Bitcoin Cash. Still, bitcoin is up about 250% since the start of the year with a market cap of $59.3 billion.

The most recent bout of selling of bitcoin began when China’s regulators declared so-called initial coin offerings illegal, dealing a blow to all digital currencies. The selloff accelerated on Tuesday, after J.P. Morgan Chase CEO Jamie Dimon called the cryptocurrency a fraud that was “worse than the tulip bulbs” and that “won’t end well”. Meanwhile, BTCC, a bitcoin exchange, said its China-based exchange will end all operations on Sept. 30 following unverified reports that Chinese authorities are preparing to ban cryptocurrency exchanges.

Prices of Ether, a blockchain currency that trades on the Etherium platform, plunged 13% to $240 and is down nearly 40% from its peak at $393 on Sept. 1. Ether’s market cap is at $23.5 billion. Ehter prices appreciated at a much faster rate this year, with the digital currency still up 3,000% since the end of last year. Acceptance of digital currencies varies from country to country. While many developed countries in the West and Asia allow digital currencies to be accepted as payments and have rules about taxation of gains, some emerging countries view them as an illegal form of payment.

Namibia’s central bank recently issued a paper outlining its unfavorable view of cryptocurrencies. The bank said under national laws merchants in the country cannot accept digital currencies as payment for goods and services, while cryptocurrency exchanges were also not allowed. Some experts think the wider acceptance and government approval is not as certain as bitcoin investors expect. “The current pricing assumes massive adoption, and I don’t think governments will allow the amount of adoption that’s currently priced in,” said Mohamed El-Erian, chief economic adviser at Allianz Global Investors, on CNBC Wednesday morning.

Chuck Reynolds


Marketing Dept
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Bitcoin Price Drops Below $3,500, But Is Relief Rally In Sight?

 

 

The bitcoin-US dollar exchange (BTC/USD) rate fell

to a fresh four-week low of $3,413 this morning following reports that Shanghai-based bitcoin exchange BTCC will shut down its domestic trading operations effective September 30. As such, the announcement is the latest that supports the rumor regulators are preparing a formal ban on domestic bitcoin exchanges. Long liquidations in BTC markets have gathered pace amid fears that a confirmation from the People's Bank of China will follow over the next few days. According to data from CoinMarketCap, bitcoin's price has shed 11 percent over the last 24 hours. The drop seen today has taken the week-on-week losses to 24 percent. Month-on-month, the cryptocurrency is down 19 percent. Though driven lower by the bearish news flow, the sell-off should not come as a surprise as price action analysis favors the downside toward $3,000.

Let's have a look at new developments on the technical charts that corroborate the bearish view presented 24 hours ago.

  • Yesterday's price drop was accompanied by the highest volume since July 20. This indicates that the sell-off has substance and corroborates the bearish bias.
  • Bitcoin closed below the 50-day moving average for the first time since July 20.
  • The 38.2 percent Fibonacci retracement level has been breached to the downside. The 50 percent Fibonacci retracement level stands at $3,398.
  • The chart above shows the 10-week simple moving average (SMA) is still sloping upwards, which indicates that the sell-off from the record high of $5,000 is a healthy technical correction. Moreover, at $5,000, the rally looked overstretched with the 10-week MA lagging significantly.
  • Confluence of key Fib levels is noted at the $3,400 levels [38.2 percent Fib retracement of the March low – September high and 50 percent Fib retracement of the July low – September high].
  • Bitcoin has already retracted close to 50 percent of the July–September rally. With the 1-hour and 4-hour RSI hovering in the oversold territory, the dips below the upward sloping 10-week SMA could be short lived.
  • A move higher to $3,750-3,800 cannot be ruled out before another round of sell-off unfolds.
  • In the long-term, BTC looks set to test $3,000 levels.   

Chuck Reynolds


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Bitcoin Drops Below $4,000 as Market Turns Uncertain

 

After mounting a modest recovery in the wake of rumored regulatory scrutiny,

the price of bitcoin is back below $4,000. The average price of bitcoin across global exchanges fell below $4,000 at roughly 3:15 UTC today, hitting a low not observed since September 10. The movement followed a period in which the bitcoin price repeatedly tested $4,000, but succeeded in staying above the barrier.

All in all, the move comes during an uncertain time for the cryptocurrency market, which has seen a period of sideways trading following a torrid first half in 2017. With the recent decline, the price of bitcoin is up just 1.7 percent over the last month, though it has still appreciated nearly 300% this year. Likewise, the broader cryptocurrency markets have seen similar activity, rising 3.4% over the last 30 days, but declining more than 17 percent from its highest point during the period, according to CoinMarketCap.

As for the current sentiment, continued rumors that China could move to close domestic order-book exchanges have no doubt concerned more casual investors (while providing opportunities for profit-taking from long-term bulls). Fanning the flames have been statements from notable community figures that appear to attest to the accuracy of the claims, though details on the primary sources for that information have not been forthcoming. China-based exchanges continue to operate normally at press time, indicating they have yet to be notified of any operational changes.

Chuck Reynolds


Marketing Dept
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Correction Not a Crash: Bitcoin Price Eyes $3,000 as Traders Take Profits

 

The bitcoin-US dollar exchange rate fell below $4,000 on Tuesday,

extending losses in the overnight trade to hit a three-week low of $3,781. At press time, the cryptocurrency is trading at $3,844 levels, which amounts to a 25% drop from the record high of $5,000 hit on September 2. Perhaps more notably, month-on-month, the BTC is now trading dead flat for the first time in since June. Rumor has it bitcoin is feeling the pinch of speculation that the Chinese government is launching a crackdown on exchanges. A few others are blaming JP Morgan CEO Jamie Dimon's scathing attack on bitcoin for the meltdown in the prices seen today. But, while these events could factors, neither explain the current market activity.

News that China is planning to ban exchange trading has been in the air since Friday. Following a drop to $4,000 over the weekend, BTC regained poise as Chinese government kept mum on the issue. Experts dismissed the idea that an exchange ban would be long run negative for bitcoin as over-the-counter market will continue to flourish. Thus, bitcoin regained bid and moved to $4,350-4,380 levels in the first two days of the week. Meanwhile, JP Morgan CEO Jamie Dimon's negative comments on bitcoin are hardly surprising. Investment banks have always been critical of the cyrptocurrencies. Moreover, JP Morgan is not a crypto bigwig, thus Dimon's comments are a big hit across the wires, but would hardly matter to bitcoin traders.

Euphoria not reached

As we analyze the current markets, it’s important to remember bull markets are built  on fear and skepticism, while major market tops are the product of extreme euphoria. Most investment banks have been and still call bitcoin a “scam.” Every week, we see some stock market expert drawing parallels between the bitcoin rally and stock market bubbles seen over the last 100 years. Thus, despite the 416% year-to-date gains in bitcoin, it is safe to say that there are no signs of Euphoria. In fact, the first sign of bitcoin nearing a major top would be investment banks boarding the cryptocurrency freight train. More likely then is that what we’re seeing now is a technical pull back. Following a stupendous rally, investors are looking for reasons to take profit.

The chart above shows a bearish price RSI divergence on September 2 has been followed by:

  • Symmetrical triangle breakdown
  • Head and shoulders breakdown

The symmetrical triangle, which can also be referred to as a coil, usually forms during a trend as a continuation pattern. The pattern contains at least two lower highs and two higher lows. The “head and shoulders” is a reversal pattern that, when formed, signals a security (in this case bitcoin) is likely to move against the previous trend. The H&S neckline [line drawn from the left shoulder bottom and right shoulder bottom] support has been breached. A break below the neckline level has confirmed bullish-to-bearish trend reversal.

Scope for a drop to $3,000:
The H&S breakdown has opened doors for a sell-off to $3,000, which is the target as per the measured height method [difference between head and shoulder peak ($5,000) and neckline support ($4,000) is subtracted from the neckline support].

Corrective rally to be capped around $4,150 levels

The stochastic and the RSI are oversold, which is a condition in which the price of an underlying asset has fallen sharply due to market overreaction or panic selling. It is usually followed by a corrective rally. Thus, a brief correction to $4,150 [former neckline support will now act as a resistance] could be seen. Only a break above $4,400 [resistance offered by the trend line drawn from September 2 high and September 8 high] would revive the bullish view.

Chuck Reynolds


Marketing Dept
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Blockchain Providing Bridge for Unbanked, Lifting Global Economy

Blockchain Providing Bridge for Unbanked, Lifting Global Economy

 

With the increasing price of Bitcoin and Ethereum
bringing attention to Blockchain technology, corporations are researching ways the technology could be used to optimize their existing business processes.

More than $16 bln lost in identity thefts and frauds

Considering the billions of dollars lost in fraud and online identity thefts, one of the increasingly impactful areas for Blockchain technology is in securing payment transactions. With this goal in mind, a new Blockchain company called UTRUST is taking on the challenge of becoming the first online cryptocurrency payment platform to offer consumer protections.

Nuno Correia, CEO of UTRUST, says:

"We aim to create an infrastructure that provides the benefits of fast, secure, convenient, and inexpensive cryptocurrency transactions alongside the world’s first cryptocurrency payment protections. Our goal is to democratize the world of altcoins and Blockchain technology to ensure that anyone can benefit from instantaneous, transparent and cost-effective transactions, irrespective of where they live and [their] level of education."

Using digital currencies, UTRUST aims to provide access to the mainstream financial system for the growing unbanked population worldwide, which according to the World Economic Forum is around 2 bln. The company recently raised $1.5 mln in their pre-ICO.

Cryptocurrencies will be used as daily payment method

Currently, most users are treating cryptocurrencies as speculative assets rather than using them in daily life. Given the sector’s exponential growth and the way Blockchain technology is becoming increasingly mainstream, many are optimistic that digital currencies will be used more as a currency and less as a speculative asset. With the aid of platforms that help rebuild trust in online transactions, cryptocurrencies will likely gain more traction as a mainstream payment method.

Providing a bridge for the unbanked through cryptocurrencies

With 2.5 billion unbanked people worldwide to benefit from transacting with the mainstream financial system, it is estimated that Blockchain technology could result in 95 mln new jobs in emerging economies and provide a boost to these economies of up to $3.7 trln. Forbes contributor Nikolai Kuznetsov suggests that Blockchain has the ability to overcome current banking limitations, making it an ideal solution for the growing unbanked population in

developing countries.

“Unlike banks, no physical branch presence is needed for Blockchain to work. Since Blockchain operates on a distributed network, there’s no need for a complex and expensive private infrastructure to run. This saves on the costs that banks and telecom companies pass on to users through fees and other charges when using bank accounts or performing mobile transactions.”

Chuck Reynolds


Marketing Dept
Contributor
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Russia May Become World Leader in Blockchain Technology Adoption in 2018

Russia May Become World Leader in Blockchain Technology Adoption in 2018

 

Russia could become a world leader in the adoption

of the blockchain technology next year, Chairman of Russia’s Vnesheconombank (VEB) Sergey Gorkov told Sputnik on Saturday, stressing that the mass use of the technology will take place in 2019-2020.MOSCOW (Sputnik) — Gorkov said that the blockchain technology will be implemented in Russia by 2020."We did not expect such an upsurge of interest [in the blockchain], technologies, I believe, will become a reality in 2017-2018,… 2018 will be the year of 'trial and error,' while 2019-2020 — a real period of implementation," he said. Gorkov noted that the VEB would prepare directions for the development of blockchain in October and was also negotiating with Rostelecom telecommunications operator and the Russian Post on the possibility of using the technology.

With Cryptocurrencies on Rise Worldwide, Has Fine Art Finally Got the Picture?"We have created a group at the level of the Russian government on the introduction of blockchain, no other country in the world has it. I believe that in 2018 Russia could become a leader in the adoption of the blockchain technology," Gorkov pointed out.

Blockchain technology is a distributed database, all replicas of which are regularly updated to add the information about all new transactions. Every time a transaction occurs, it is encrypted in a block, which is then sent out to all network users. Each block has a time-stamp and a reference to the previous block, which allows to establish the sequence of transactions. The data is therefore transparent and very difficult to change, which makes it a helpful security solution for any distribution or transaction processes.

Chuck Reynolds


Marketing Dept
Contributor
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Essential Inbound Marketing Strategies for Every Startup

Essential Inbound Marketing Strategies for Every Startup

 

Inbound marketing has become increasingly popular

in the marketing and advertising world for the last several years, and it's no surprise why. While traditional outbound ad campaigns attempt to persuade unfamiliar audiences with sales-y messages, "inbound" campaigns focus on the value they can provide users. And that prompts those users to naturally gravitate to those business when the need arises. Generally, inbound marketing strategies are less expensive, hold a wider range of benefits and, over the long term, will generate a higher rate of return. So, if these benefits resonate with you, consider the following inbound marketing strategies, which are among the most popular. At this point, they're essential for all new startups:

On-site content marketing.

On-site content marketing is useful in a number of ways. Not only does new content drive new readers to your site, it keeps your existing readers and customers engaged with your brand, allowing you to maximize client retention. You'll have to provide highly detailed, original and valuable content, which isn't always easy or straightforward; but, with a steady stream of high-quality content, you'll find that the advantages can be enormous. Content marketing also provides syndication fuel to your social media and email campaigns and boosts your search rankings (more on this momentarily). In a recent survey I conducted, of 357 marketers, 93 percent of respondents said they planned to increase or keep their on-site content marketing budgets the same. That's pretty high praise for the power of on-site content!

Off-site content marketing.

Your off-site content marketing campaign will function in a similar manner, prompting you to provide well-written, targeted, valuable content, but instead of publishing it on your own site, you'll be publishing it on another site (hopefully, a major media publication!). The advantage here is the opportunity to gain visibility with new audiences, who may not have heard of you otherwise. You'll get referral traffic, and your brand reputation will steadily grow as you work your way up to bigger and better publishers. Here's an article I recently wrote to help entrepreneurs get started with off-site content marketing: "5 Ways to Get Media Coverage as a Startup."

Search engine optimization (SEO).

On-site and off-site content marketing will provide you substantial fuel for increasing your search visibility. On-site content attracts inbound links, while off-site content directly builds links to your site. The more high-quality, valuable inbound links your website has, the higher it will rank in search engines. In fact, a recent report from Google noted that two of the top three ranking factors in the algorithm were content and inbound links. But there are other, more technical components to SEO you'll need to implement to boost your inbound traffic from search engines. These include optimizing for mobile devices, improving site speed and targeting strategic niche keyword phrases. It's a time-intensive strategy, but it pays off in spades.

 Social media marketing.

Organic social media marketing has taken its fair share of hits, but it remains one of the most effective strategies for generating new visibility. You have the power to engage with almost anyone in the world through social media, gradually building up a loyal audience (as long as you're consistently providing valuable insights and material).

Throw your on-site and off-site content into syndication here, and your followers will have even more reason to stick around. Alone, social media can generate a steady stream of traffic to your site, and build your brand, but its real power is amplifying the effects of your other inbound marketing strategies. According to the same survey referenced earlier, 65 percent of respondents — the highest percentage across 10 marketing strategies included in the survey — said they believed that social media marketing was poised to become even more effective in the next five years.

Influencer marketing.

Influencer marketing is relatively simple in concept, but it's a little more difficult to carry out practically. The idea is to target "influencers" in your industry –these are thought leaders, movers, and shakers who hold the best reputations and the biggest portions of audiences in your niche. By working with these influencers on joint content projects or even just innocuous exchanges on social media, you'll cross-pollinate your audiences (oftentimes for mutual benefit), and earn a better reputation by proxy.

The hardest part is identifying the influencers most likely to benefit your brand and persuading them to engage with your campaign. Influencer marketing seems to be the most cutting-edge strategy on this list, evidenced by the highest percentage of marketers (38 percent) agreeing to a statement on the survey — in this case saying they were "not currently using this strategy, but plan[ned] to in the future."

Email newsletters.

I hesitated to include email newsletters on this list, since email marketing in general might be considered an outbound strategy. However, email newsletters usually revolve around the provision of content to subscribers, increasing their loyalty and retention while simultaneously setting up a recurring traffic stream back to your site. Because your content is providing value to your readers and subscribers, and you're not just using it as a way to advertise your products and services, it can be considered a form of inbound marketing. Additionally, email marketing may be a relatively low-hanging fruit: In the survey, email marketing was reported as the second-easiest tactic to perform, but one that provided the fifth-highest ROI of the ten strategies included.

Personal branding.

Finally, personal branding may be used in conjunction with almost any of the strategies above. For example, you might have some of your upper-level team members post more on-site content and reach out to major publications for guest-posting opportunities, or even to become contributors in order to fuel an off-site content strategy.

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to Learn more about -Inbound Marketing.

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Bitcoin Cash Price Nears $1,000 as Breakout Continues

Following the all-time highs set over the last week, bitcoin has been trading sideways for the last 48 hours, and prices are fluctuating in the $4,050 to $4,200 range. Prices for the asset across global exchanges averaged $4,109 at press time, having opened the session at $4,206 and achieved a high of $4,208 at roughly 8:00 UTC, according to CoinDesk's Bitcoin Price Index.

The question everyone will be wondering now is, will the price go up or down when the next big movement kicks off? For that we'll just have to wait and see, but a Goldman Sachs analyst said, on August 14, that bitcoin could rise as high as $4,800 in the current bull market. Elsewhere, the new bitcoin alternative, bitcoin cash, shocked observers briefly yesterday by setting its own all-time high of around $1,091, according to data from CoinMarketCap.

Since being created in a fork of the bitcoin blockchain on August 1, prices had been for the greater part steady around $300. However, a breakout on August 17 saw enthusiastic trading – at South Korea exchanges, in particular – that took the digital asset to its previously unseen heights. In the hours since, bitcoin cash prices have dropped somewhat and now hover close to the $800 mark. Overall, the market is still trending up, with the market capitalization across all cryptocurrencies currently at $146 billion – down slightly from a record high of $147.2 billion set at around 8:00 UTC this morning.

Re-posted content from Chuck Reynolds

Jon Bowler
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