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Three Reasons BIS Crypto Rebuke Is B.S.

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What a difference a week makes. Traders in recent days have found more reasons to celebrate cryptocurrencies than to fear them, despite the best efforts of central bankers. The combined market cap of the cryptocurrency market is hovering at more than $293 billion, top digital currencies are trading in a sea of green and investors who sold too early are kicking themselves.

As Hacked.com previously reported, the Bank for International Settlements (BIS) published a scathing report on the cryptocurrency industry, rehashing old arguments against decentralization and adding more fuel to the fire. But there are chinks in the armor of their argument, much of which surrounds a lack of trust, extreme volatility and cryptocurrency mining power consumption.

Ripple’s Brad Garlinghouse recently reminded us that bitcoin is not a panacea. The BIS report, however, is full of bias and fails to acknowledge that for every issue that bitcoin faces there are fixes, such as a push toward alternative power-fueled bitcoin mining as well as KYC and AML efforts among the leading exchanges.

Cryptocurrency trader Brian Kelly on CNBC outlined a trio of reasons to doubt the findings of the BIS report, which are summarized below.

  • Crypto Threat

Kelly points out that the very reason that bitcoin was created in the first place was as an alternative to the centralized financial system. That in and of itself places a bullseye on the back of bitcoin, even though central banks have explored developing their own digital currencies. He said: “Bitcoin itself is an existential threat to the central bankers.”

  • Old School vs. New School

The other secret that the BIS report reveals is the old-school mentality that central bankers are stuck in. Kelly likens it to the rise of digital news versus traditional newspapers, reminding us of the early 1980s when it took a couple of hours to download an article on the San Francisco Examiner. He calls it “new guard/old guard” but also concedes that the cryptocurrency market, e.g. prices, probably got far ahead of the technology.

  •  P2P Nature of Bitcoin

Lastly, it’s the peer-to-peer nature of bitcoin, which again removes the friction from payments as well as the hefty fees and lengthy transactions that are attached to them. “The middleman in this particular case is the BIS and the central banks,” Kelly said.

While bankers may feel threatened by decentralization, it’s not the other way around. Blockchain pioneers have repeatedly said that there’s room enough for both.

Market Rally

Cryptocurrency traders have glossed over the BIS report not because they aren’t willing to listen to reason. Instead, it’s more like the central bankers failed to accomplish much other than to point to the flaws in a nascent decentralized financial system without acknowledging the drawbacks of their own.

Meanwhile, the best defense is a good offense, and today’s cryptocurrency market rally is a big score.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 70 rated postsGerelyn has been covering ICOs and the cryptocurrency market since mid-2017. She's also reported on fintech more broadly in addition to asset management, having previously specialized in institutional investing. She owns some BTC and ETH.




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  1. jksmith815

    June 20, 2018 at 5:32 pm

    You are being too nice… “chinks in the armor” should be replaced with “gigantic sinkholes” and “reasons to doubt the findings” should be replaced with “reasons to puke on the findings”.

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Stellar Price Analysis: XLM/USD Has the Potential for a Short-term Rally, Though Bearish Set-up Eyed

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  • Stellar’s XLM potentially has further room for upside, within the short-term view.
  • Danger still looms for XLM/USD, as the daily chart suggests of a bearish technical pattern set up.

Steller’s native token XLM, has failed to commit to any sustained trend. This has been the case since the start of July. Bull rallies that have been witnessed were quickly sold by the market bears. This led the market to trade within a generally long running form of consolidation. Price action is narrowing, given the unsustainable short-term trend runs that have been witnessed. It comes as somewhat of a surprise, as the Stellar foundation have certainly been busy.

Stellar Developments

It was reported recently, blockchain security company BitGo, announced their support of Stellar Lumens (XLM). Being added to the BitGo’s list, Stellar now receives custody solutions. Their users will be able to generate wallets for Stellar Lumens. This is said to be starting at some point within the next couple of weeks. Elsewhere, as previously reported, the Stellar foundation at the start of this month released their heavily anticipated decentralized exchange, StellarX.

4-hour Chart Technical Review

XLM/USD 4-hour chart

Looking via the 4-hour chart, price action has formed a bullish pennant pattern. This comes after the surge higher between September 20-23. XLM/USD has since entered consolidation mode, trading within a range-bound nature. The price is coming very much towards the end of this technical pattern seen, raising the case for an imminent breakout. Near-term support can be observed around $0.2350 area. This is the lower tracking trend line of the mentioned pennant. A failure of the support could very likely see a fast fall to $0.2050. XLM/USD was last trading in this territory between September 12 – 20. The mentioned period was during a time of consolidation, prior to the mentioned breakout higher.

Resistance is seen just ahead of the current price. The above descending trend line of the pennant pattern is tracking around $0.2460-70. Enough bullish momentum to see the breach would likely force the price running to $0.2650. This is seen as an area of resistance on the 4-hour chart view. Looking further to the north, eyes would be on the supply heading into the $0.3000 mark.

Daily Chart Technical Review

XLM/USD daily chart

Taking into consideration the 4-hour chart view, there is still room for another squeeze higher. Despite this, danger appears to still be looming for XLM/USD. Risks on the daily chart point to the downside. The view of this is that a longer-term bearish pennant pattern is containing the price. XLM/USD support on the daily chart can be seen just sub of $0.2000. A long-running supporting trend line can be seen. The price having required assistance on June 29 and several occasions from September 8 – 12. To the upside, resistance can be seen around $0.2900. XLM/USD was rejected already on a few prior occasions, by the above descending trend line. July 25-2 and then most recently September 23, all saw respective bull runs halted.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 54 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Bitcoin Cash Price Analysis: When is BCH/USD Taking Another Extended Move Higher?

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  • The Bitcoin Cash price behavior suggests another imminent breakout is likely. Upside surprises appear move likely than any potential downside breakouts.
  • BCH/USD continues to move within a bullish pennant pattern formation. Narrowing price action indicates a breach is near.

The Bitcoin Cash price after the huge surge to the upside on 26th September, attributed to the Bitmain IPO news, has remained elevated. Risks appear tilted to the upside, given current price behavior and technical patterns observed. Outside of the technical view, news flow and updates have remained positive around Bitcoin Cash.

News Flow Remains Positive

Bitcoin Cash adoption continues to take place. It was reported that the events ticketing company, Bigtickets.com, has expanded its payment options, with acceptance of cryptocurrency. Customers will be able to pay using Bitcoin Cash. The CTO said “We know our dedication to innovation is deserving of a secure and seamless purchase method for our event attendees. The use of Bitcoin Cash is a major social trend we’ve been following. Therefore, we’re excited to be one of the first event ticketing platforms in the United States to accept the burgeoning cryptocurrency,”

Elsewhere, earlier in the week, TD Ameritrade, announced it is investing in a cryptocurrency exchange platform, ErisX. This will be facilitating a range of products, including crypto futures contracts. Fortunately for Bitcoin Cash, it has earned its way into the top 4 cryptocurrencies by market cap. Given its status, Bitcoin Cash will be one of the crypto futures products offered by ErisX.

This follows news back in August, Crypto Facilities announcing a Bitcoin Cash futures product. Crypto Facilities are regulated by the UK Financial Conduct Authority (FCA). The move came given Bitcoin Cash has a growing presence and acknowledgement across the market. The introduction of Bitcoin Cash futures is joining the company’s other crypto-based products.

Near-term Analysis (60-minute chart)

Eyes are locked on BCH/USD movement within a bullish pennant pattern formation. Price action is well-supported by the lower trend line. It for now remains within consolidation mode, after the strong surge on 26th September. The price is moving towards the end of the pattern, into a narrower range. This behavior suggests a breakout could very much be imminent, subject to bullish momentum.

BCH/USD 60-minute chart

Resistance to the upside is seen at the above trend line of the pennant, $523. Given the pole of the mentioned pattern, the breakout may be chunky. A retest of the supply around $640-$660, will therefore be the likely first target area. The price last traded in this region from the 1st to the 4th September. Support is eyed around $510-509, as mentioned above, the lower trend line of the pennant.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 54 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Cardano Price Analysis: Imminent Breakout Anticipated, with Eyes on Another Bull Run

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  • The Cardano (ADA) price has been showing some promising signs, following the project’s 1-year anniversary.
  • ADA/USDT is near the end of a triangular pattern, which can also be perceived as a bullish pennant pattern.

Cardano a few days ago celebrated its one-year anniversary. It is still very much a new project to hit the industry. There are always new technologies and cryptocurrencies cropping up, so it is important to review what purpose do or are they going to serve. It does appear Cardano community members are looking forward to several upcoming developments from the foundation.

What Is Cardano?

Cardano is very much like Ethereum – a smart contract platform. The technology is much focused on scalability and security via a layered architecture. As such, it is the first blockchain platform to evolve out of a scientific philosophy and peer-reviewed academic research. A large innovation of Cardano is that it will balance the needs of users with those of regulators, and in doing so combine privacy with regulation. Its cryptocurrency is ADA, which is currently the ninth largest by market cap.

Recent Updates

The organisation behind Cardano, IOHK, has released a new project known as ‘Cardano Rust’. This will be a large helping hand to developers, who want to build products for its blockchain. The effort is essentially providing the toolbox for developers, with a library of functions that they can use to build their decentralised applications for Cardano and facilitate integration.

Technical Review

Looking at Cardano (ADA) technically vs. Tether (USDT), it is down a chunky 95% from the 1st January 2018. This move largely following suit of the general strong bearish trend, seen across the market. Since September, this price has shown some positive signs, and a willingness to make breakout from the bears paws. ADA/USDT produced a double bottom pattern on 18th September, which saw the take-off. It went on to gain over 50% up to $0.0939, from the low within $0.06 territory, moving into the $0.09 area. The price has since eased somewhat, but is still up over 30% from the mentioned low area.

ADA/USDT 4-hour chart

Current price behavior has formed a triangular pattern, as it narrows within this range-bound form. It is very much coming to the end of this, looking more and more likely to a breakout. This formation could also be perceived as a bullish pennant. The big bull run from the above-mentioned double bottom, provides the substance for the pennant view. Near-term resistance is seen just ahead at $0.0830, with support at $0.0797. Another test to the upper descending trend line, could see a fast breakout up towards the supply at the 23rd September high, $0.0939. Failure to see enough bullish momentum for a breach, could see a slip down to the below demand area, $0.0750-40.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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3 votes, average: 5.00 out of 53 votes, average: 5.00 out of 53 votes, average: 5.00 out of 53 votes, average: 5.00 out of 53 votes, average: 5.00 out of 5 (3 votes, average: 5.00 out of 5)
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4.5 stars on average, based on 54 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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