Bitcoin price is once again in free-fall mode after the crypto asset set a record for its third-largest gain in a 24-hour period on the heels of news that China would support blockchain technologies like what Bitcoin is built on.

The bullish move erased any remaining fear left in the market, and revived bullish sentiment. But with sentiment still so positive, the first-ever cryptocurrency may need to experience more downside to bring sentiment to levels of extreme fear before a rebound is possible.

Markets are cyclical, and speculative markets like Bitcoin and other cryptocurrencies are driven in large part by greed and fear. Its led to the development of a market sentiment index that assigns a number score rating where the market currently is in terms of emotional and mental state.

Related Reading | Bitcoin Market Cycle: Is This Complacency, Or A New Hope?

During powerful rallies, investors become irrationally exuberant, greedy, and hopeful, further driving up the value of assets like Bitcoin as speculation and hype run wild. These signs usually signal a top is in or close. But on the way down, that greed turns into anger, depression, and fear, and typically signals that a local bottom is close and a rebound is near.

According to that fear and greed index, the market is currently at a 38 out of a possible 100 and has just tipped the scales to favor fear after first being bullish and then spending a period of time at neutral.

The lack of extreme fear in the market could suggest that Bitcoins downtrend isnt over, and more fear is necessary for long term HODLers to be shaken out before the next mark up phase.

Bitcoin price is currently trading at roughly $8,500 after a massive spike from lows around $7,400 pushed the price of Bitcoin as high as $10,500 setting a record for the third-largest single-day gain in the assets short history. However, that powerful rally was rejected and the asset has since retraced most of the gains it saw during the historic spike.

Related Reading | Uncommon Bitcoin Metric Suggests Massive Profit Taking Is Underway

For Bitcoin price to reach levels of extreme fear, a new low may be necessary one lower than where bulls defended $7,400 just last month. Alternatively, a push higher here could tip the scales back in favor of greed on the index.

For the market to truly become bullish, a higher high will need to be set and close a daily candle above $10,500. Such a close would be a signal that Bitcoins short-term downtrend may finally be over and a return to a bull run could be next.

If not, extreme fear will likely result before a bull market can start once again for Bitcoin and other cryptocurrencies.

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Crypto Market Fear Index Suggests Bitcoin Price Has Further To Fall - newsBTC

One of the main competitors of P2P Bitcoin (BTC) exchange LocalBitcoins has taken even more of its market share as the Finnish company seeks regulatory compliance.

In a blog post on Nov. 19, LocalCryptos, formerly LocalEthereum, said it had completed the pivotal step of adding support for Bitcoin as well as Ether (ETH).

The platform is a one-stop shop for fiat-to-crypto ramps worldwide, beginning with BTC and ETH, the blog post reads, describing the move as a large milestone.

In the future, more cryptocurrencies will join its offering:

LocalCryptos will list some of the most popular Ethereum-based tokens over time. Well develop a new smart contract to handle ERC20s, and, in the more distant future, ERC721s.

The move comes roughly a week after LocalBitcoins announced its registration with regulators in its home country of Finland. Part of a multi-year scheme to formalize its compliance, LocalBitcoins is now an official virtual currency provider in the eyes of the Finnish Financial Supervisory Authority or FIN-FSA.

As Cointelegraph reported, the platforms metamorphosis has alienated many users, who found they were no longer able to transact anonymously.

Executives had incrementally phased out ways of trading on LocalBitcoins without revealing ones identity, with cash trades now banned and ID submission obligatory.

By contrast, LocalCryptos stays away from such requirements, operating as a non-custodial resource under which no financial liability is taken on.

The setup allows the platform to retain features that LocalBitcoins has shunned. When cash trades disappeared, LocalCryptos turned the decision into a PR opportunity on social media.

Other operators in the space, such as Bisq, also saw a surge in popularity during the change, which occurred in June this year.

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LocalEthereum Adds Bitcoin as LocalBitcoins Bows to Finland Regulators - Cointelegraph

Swiss-based email service, ProtonMail, has revealed on Nov. 16 that it hasnt cashed in any of the Bitcoin (BTC) it has accepted as payment for its premium service in years.

The tweet was in response to a customer who complained that he felt guilty for spending Bitcoin ion a ProtonMail invoice instead of holding or hodling it for the long-term.

The exchange came about following a tweet from the CCO of digital gift card retailer BitRefill, urging Bitcoiners, Please do not put your Bitcoin to work.

This prompted one follower to reply that they had paid my ProtonMail invoice with BTC Im feeling secure and HODL guilty all at once.

In an attempt to soothe the customers HODL guilt, ProtonMail responded that it would hold the Bitcoin on the customers behalf, noting that it actually doesnt sell the BTC and havent for years.

While the option to pay for a premium ProtonMail account in BTC is not obvious for new account holders, it is possible for existing email customers, even those using the free option who wish to upgrade.

ProtonMail also accepts Bitcoin donations and has thus far seen over 200 BTC or almost $2 million at todays prices go into its wallet. The service also considered launching an ICO back in July 2018, thought these plans were seemingly shelved.

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ProtonMail Reveals Its Been HODLing Its Bitcoin Payments for Years - Cointelegraph

The Bitcoin price has initiated a downward move, which has put into play a bearish medium-term scenario in which the price could drop to $7000.

Cryptocurrency analyst and trader @murocrypto stated that theBitcoin price structure suggests that we are in a bearish market. He outlined the closest support area at $7000.

Lets take a closer look at the Bitcoin price movement along with technical indicators and decide where the price will go to next.

Since June 26, the Bitcoin price had been trading inside a symmetrical triangle. The price broke down from this pattern on September 24.

Afterward, the Bitcoin price initiated a rapid upward move on October 25. While this was initially seen as the beginning of a new uptrend, signaling that the bottom is in, the subsequent price movement makes us believe that it was a validation of the previous support line as resistance.

There are two support areas, one minor at $8000 and the other near $7000. A breakdown below the latter would likely cause the price to fall towards $5000.

The entire upward move throughout May/June/July was preceded by a bullish cross between the 100- and 200-day moving averages (MA).

Now, the opposite has occurred since we have a bearish cross between the aforementioned MAs. This is another bearish sign.

In the short-term, the Bitcoin price broke down from a descending wedge. It is not currently following any clear trading patterns.

The volume on the breakdown was weak. This increases the chances that we will see a bounce at $8000. However, due to the bearish long-term market structure, we do not think the small levels of volume make it sufficient for this to be considered a fake breakdown.

Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.

Images courtesy of Twitter, TradingView.

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Bitcoin Outlook Has Changed to Bearish, According to Analyst - BeInCrypto

According to a notice issued on weibo.com, and later confirmed as authentic by business publication Caixin, authorities in Shanghai appear to have dispatched officials for conducting reviews of area businesses engaged in cryptocurrency dealings, and are set to report back to financial regulators by November 22. This comes in conjunction with a recent program on the Chinese Communist Partys CCTV1 television channel, discussing cryptocurrency scams, and also local reports to news.Bitcoin.com that some exchanges under governmental review are experiencing problems.

Also Read: Chinese Communist Party Reportedly Filling Roles at Top Exchange Huobi

The November 15 notice which sparked controversy was later said to be authentic by Chinese business publication Caixin. According to the translated article from Caixin, recent virtual currency speculation has shown signs of rising, and the regulatory authorities have frequently carried out related rectification actions against virtual currency exchanges. The translated article goes on to state that:

On November 15th, a notice called Developing the Renovation of Virtual Currency Trading Places was circulated on the Internet. A relevant person close to the central banks Shanghai headquarters confirmed the authenticity of the document. It said that the current work is led by the Shanghai Mutual Renovation Office and supported by the central bank.

This news is accompanied by a program which aired November 18 on the Chinese Communist Partys (CCP) CCTV, addressing blockchain and crypto scams. Although Twitter commentator @DoveyWan wrote of the show: TL;DR cryptocurrency is unregistered security, financial fraud and illegal ponzi, this doesnt appear to be exactly what the hour-long program conveyed, although it may not be far from the overall impression given.

The focus report featured commentary from Wu Zhen, head of the Key Laboratory of Internet Financial Security Technology of the National Internet Emergency Center, who said: There are more than 32,000 [claimed] blockchains However, after actual monitoring, we found that there are actually not many companies that have blockchain technology or chain ownership About 10%, or even less than 10%. In other words, Zhen maintains there are a lot of snake oil blockchains in China.

Dovey Wan roughly translated a short clip posted of Chinese president Xi Jinping speaking, ostensibly featured on the same special, but the date of that clip is debated.

An anonymous local source informed news.Bitcoin.com that Chinese exchanges are experiencing issues due to Beijings continued probe of crypto groups in the country. A screenshot from a Wechat group depicts discussion where users cite frozen accounts at Huobi as reason to remove coins from the exchange. One users translated commentary states: The OTC freeze of Huobi is more and more frequent, now Beijing has to check.

The local source asserts that users globally should leave Chinese exchange to protect their crypto assets, and that the CCP is now compromising exchanges. One Wechat user implied that P2P trading is also in danger, quipping that In the end, all of them became public funds.

Though the legal status of cryptocurrencies in China is still a source of confusion for many, crypto in and of itself is not illegal, bitcoin having been recognized as virtual property since 2013. Bitcoin and crypto are not recognized as legal currency, however. Mainland financial institutions may not deal in crypto and it is illegal for foreign groups to serve mainland customers. Chinese continue to trade and organizations get around regulations by facilitating OTC trading, as the practice is not technically prohibited.

Since the banning of ICOs in 2017, the CCP has focused increasingly on eliminating scams and fraud, with excitement about speculation after bullish speeches like Xi Jinpings recent pro-blockchain rhetoric tempered by commentary such as Wu Zhens on the CCTV program. In short, China seems to be very pro-blockchain but not pro-decentralized, permissionless money.

What do you think about the developments in China? Let us know in the comments section below.

Image credits: Shutterstock, fair use.

Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your

Graham Smith is an American expat living in Japan, and the founder of Voluntary Japanan initiative dedicated to spreading the philosophies of unschooling, individual self-ownership, and economic freedom in the land of the rising sun.

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Chinese Authorities Scrutinize and Report on Crypto Exchanges - Bitcoin News

This past summer, Craig Wright, a chief proponent of the Bitcoin Satoshis Vision blockchain, made a rare end-of-year price call for his favorite cryptoasset. With just six weeks remaining, the realization of Wrights $1,200 BSV prediction for 2019 is looking increasingly doubtful.

Investor and entrepreneur Alistair Milne pointed out the ticking clock against Wrights call in a tweet featuring a screenshot of Wrights original prediction, dated June 3, 2019.

Wright posted the tweet as he was in the midst of a legal battle against the estate of his former partner, the late computer scientist, David Kleiman. The court cases referred to above would apparently finally settle the question of who Satoshi Nakamoto (SN), the creator of Bitcoin, really is (or was).

Wright, having long argued that he himself created Bitcoin in 2008, seemed to suggest above that when he inevitably proved his identity in court, the price of Bitcoin SV would shoot up from a sudden influx of wealth moving into the market. In a reply tweet to his price prediction, Wright went as far as to give it a 97.8 percent probability.

Of course, the Kleiman Vs. Wright battle is still ongoing and Wright is still to prove himself the author of the Bitcoin Whitepaper. The two parties had agreed to settle in September. On October 30, Wright broke the agreement claiming that he could no longer afford to pay the legal fees.

With legal proceedings set to go on into next year now, it doesnt look like Wrights bold price prediction will come to fruition. Already past the middle of November, there are just over six weeks remaining for the price of Bitcoin SV price to increase by more than $1,000 equivalent to a level of around five times greater than its all-time high.

Wright has not been having much luck with his soothsaying of late. BeInCrypto recently reported on the Satoshi Nakamoto-claimant promising that he would reveal a coin-killing flaw in the coding of SegWit, an update to both Bitcoin and Litecoin aimed at increasing the number of transactions per second. The day Wright said he would make his grand announcement has, of course, come and gone. Wright has yet to disclose or exploit this supposedly fatal flaw.

Images courtesy of Twitter, TradingView.

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Bitcoin SV to $1,200: Craig Wrights Prophecy Almost out of Time - BeInCrypto

Following Chinese President Xi Jinpings decision to embrace blockchain technology, many China-based cryptocurrencies have seen a significant spike in their market value. VeChain, for instance, has moved up a whopping 185% while NEO has skyrocketed nearly 100% since then.

Despite the high volatility seen across these altcoins, bitcoin has been lurking without much action. A renowned technical analyst in the crypto community believes that BTC is on the verge of a significant price movement.

The low level of volatility seen in bitcoin over the last three weeks led the formation of a descending parallel channel on its 12-hour chart, which is composed of three parallel lines. Every time BTC drops to the lower line, it rebounds to the middle or the upper one. Conversely, when it surges to the upper line, it pulls back to the middle or the lower one.

Now that bitcoin is trading around the lower parallel line, an increase in volume could take BTC to move back to the upper one. And, if the buying pressure behind it is strong enough, bitcoin could break out of the descending parallel channel. This would allow it to resume its uptrend, considering that this technical pattern is part of a bull flag.

Investopedia defines a bull flag as a continuation pattern, which has been developing on bitcoins 12-hour chart since Oct. 25. The uptrend that took BTC to nearly $10,500 formed the flagpole. Meanwhile, the current consolidation phase it entered on Oct. 27 is creating the flag.

This technical pattern estimates a breakout in the same direction of the previous trend. The height of the flagpole presents a 26.50% target to the upside. If validated, bitcoin could surge to $11,300.

Looking at bitcoin from a long-term perspective, Tone Vays, former VP at JP Morgan and organizer of Unconfiscatable, Understanding Bitcoin and Financial Summit, told CCN that the way BTC is closing the week leads him to believe that it is bound for a further decline.

Vays said,

Assuming the price of bitcoin does not move at all in the upcoming hours before the week ends, the current weekly candlestick would likely close near the lows. Under this scenario, the only thing that I would expect for next week is that bitcoin is going to go lower.

According to Vays, bitcoin appears to have lost the $8,500 support level, which increases the odds for a bearish impulse.

He added,

If bitcoin indeed goes lower next week, there is going to be reasonable support around $7,200. This price level is supported by the 50-week moving average and the 61.8% Fibonacci retracement level.

Bitcoin is signaling a move to $7,200, according to Tone Vays. | Source: TradingViewDespite Vays bearish outlook, it remains to be seen whether bulls or bears will take control over the price of bitcoin this week.

Disclaimer: The technical analysis above should not be considered trading advice from CCN. The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in different cryptos but does not engage in short-term or day-trading.

This article was edited by Gerelyn Terzo.

Last modified: November 19, 2019 17:07 UTC

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Heres What to Possibly Expect From Bitcoin This Week - CCN.com

As you may recall, last week Bitcoinist published an article regarding an analysis of Bitcoin difficulty adjustment by PlanB. The upshot of the analysis was that the previous 7% difficulty reduction could actually signal the start of a major bull-run if followed by a significant increase.

At the time of PlanBs analysis, a 4% increase in difficulty was predicted during the adjustment. However, by the time the article was written, it had changed to an expected 0.8% fall. Well the good news is, that since then miners have been churning out blocks, and now a 4% increase in difficulty is back on the cards again for this Thursday.

Bull run, ahoy?

PlanB, the champion of the stock-to-flow (S2F) model for Bitcoin, is regularly featured here at Bitcoinist. The model is one of the most accurate historical price prediction tools, and gives a bullish longer term forecast of a $100k bitcoin price by 2021.

PlanB first started to analyse difficulty adjustments following an alarmingly large reduction of 7% on November 7/8. On further inspection, this turned out not be as negative as it initially seemed. Such drops have occurred several times, and when followed by a significant difficulty increase, have always indicated price gains ahead.

With an expected gain of 4% due on November 21st, this is surely the harbinger of good things to come.

Except, that prediction came right at the start of a new difficulty epoch, when a few quick (or in this case slow) blocks can have a significant effect on expectations.

When the predicted adjustment swung to -0.8%, the prospect of a bull-run started to slip away. It was neither the significant gain we wanted, nor another significant reduction following which we could hope for a gain.

However, a week later and the expected change is back around 4% so according to the historical analysis, we should anticipate a bull-run this Thursday.

Now, just because a significant bull-run has happened when this has occurred in the past is no guarantee that it will happen this time. Nor is there any guarantee that the predicted difficulty adjustment wont change again before Thursday. However, if things remain the same, and history continues in the way that it has done during the entire lifecycle of Bitcoin to date, theres no reason for it not to deliver a late rally.

Time will tell!

Do you think Bitcoin will starting rallying after the difficulty adjustment this week? Add your thoughts below!

Images via Shutterstock

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Bitcoin Bull Run To Start On Thursday After Difficulty Adjustment - Bitcoinist

Bitcoin price is trading in a bearish zone towards $8,200 against the US Dollar. BTC remains sell on rallies unless there is a successful close above the $8,880 resistance.

This past week, bitcoin saw an increase in selling pressure below the $8,880 support area against the US Dollar. Moreover, BTC price settled below the $8,700 pivot level and the 100 simple moving average (4-hours).

There were steady losses and the price broke the $8,600 and $8,500 support levels. A new monthly low is formed near $8,382 and the price is clearly trading in a bearish zone.

It is currently consolidating losses above the $8,400 level. Besides, bitcoin is trading near the 23.6% Fib retracement level of the recent decline from the $8,777 high to $8,382 low.

On the upside, there are many resistances near $8,580 and $8,600. There is also a declining channel forming with resistance near $8,580 on the 4-hours chart of the BTC/USD pair. Additionally, the 50% Fib retracement level of the recent decline from the $8,777 high to $8,382 low is also near the $8,580 level.

If there is an upside break above the channel resistance, the price could test the $8,620 and $8,630 resistance levels. More importantly, there is a crucial bearish trend line forming with resistance near $8,630 on the same chart.

To move into a positive zone, the price must break the $8,700 and $8,720 levels. Having said that, a proper close above the $8,880 resistance is needed for a trend change and a fresh increase.

On the downside, there are many key supports near the $8,320 and $8,200 levels. The bears are likely to face a strong buying interest near $8,200, below which there is a risk of a break down towards the $8,000 handle.

Bitcoin Price

Looking at the chart, bitcoin price is following a bearish path, with key supports near $8,200. Therefore, there are chances of a short term upside correction towards the $8,600 and $8,700 levels. However, the upward move is likely to face sellers and gains could be capped by $8,880.

4 hours MACD The MACD for BTC/USD is slowly losing momentum in the bearish zone.

4 hours RSI (Relative Strength Index) The RSI for BTC/USD is now recovering above the 30 level.

Major Support Level $8,200

Major Resistance Level $8,880

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Bitcoin Weekly Forecast: BTC Price Turned Sell On Rallies - newsBTC

Bitcoin (BTC) could be worth millions of dollars after 2022 as payment processors allow easier transactions, Tim Draper has forecast.

Speaking during a Q&A session at the Malta AI & Blockchain Summit last week, the pro-cryptocurrency venture capitalist said innovations such as the Lightning Network would be key in propelling the Bitcoin price higher.

Doubling down on previous claims, Draper added he still believed BTC/USD would hit $250,000 by 2022 or 2023.

I think Bitcoin payment processors are really going to open the floodgates, he summarized.

On the topic of why Bitcoin would reach new records within just the next three to four years, Draper continued:

Its because of Lightning Network and OpenNode and maybe others that are allowing us to spend Bitcoin very freely and quickly, so that its not just a store of value but it can be used for micropayments; it can be used for retail, it can be used all over.

While not a payment processor in a strict sense, Lightning facilitates near-instant BTC transactions between nodes via channels that cost almost nothing to use. The fees for Lightning transactions can, therefore, be much cheaper than transacting on-chain just a single satoshi (approximately $0.00008788).

As Cointelegraph reported, Draper has long been one of Bitcoins biggest bulls, joining the likes of John McAfee in delivering sky-high price predictions.

In September, he even went as far as to call the $250,000 figure conservative, while subsequently arguing Bitcoin would cause considerable geopolitical upheaval.

Other voices have since joined him in his price belief, with BTCC exchange co-founder Bobby Lee last week claiming BTC/USD would be worth around $500,000 by 2028.

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Lightning Network Will Drive Bitcoin to $250,000 by 2023 Tim Draper - Cointelegraph