ECB is looking to design

The underlying architecture of the digital euro will be designed to have a negligible environmental footprint compared to Bitcoin and other crypto-assets.

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ECB is looking to design a digital euro more energy-efficient than BitcoinNEWS

The European Central Bank, or ECB, joins the growing club of crypto-friendly financial institutions as it announces the decision “to launch a project to prepare for possibly issuing a digital euro.” The ECB’s official tweet noted:

“We will look at how a digital euro could be designed and distributed to everyone in the euro area.”
According to a press release on July 14, the ECB’s governing council has launched the investigation phase of a digital euro project. This phase is planned to last for two years, during which time Eurogroup will design a digital currency focused on “users’ preferences and technical advice by merchants and intermediaries.”

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Sharing more insights, the ECB’s official statement also highlighted their success in identifying the various ways to protect it’s user’s privacy, in tune with the nation’s GDPR requirements. They added:

“It has also shown that the energy needs of the infrastructure would be negligible compared with the energy consumption and environmental footprint of crypto-assets, such as bitcoin (BTC).”
One of ECB’s executive board members, Fabio Panetta, clarified that the success of the digital euro will be heavily dependent on the value it adds for “people, merchants and financial intermediaries in the euro area.”

Related: UAE to experiment and launch an in-house digital currency

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On a similar timeline, the United Arab Emirates also announced an interest in launching a digital version of the nation’s fiat. In the three-year plan spanning from 2023-2026, the Central Bank of the UAE intends to be among the top 10 financial leaders across the globe.

In what seems increasingly common in 2021, banking giants around the world are announcing their interest in experimenting with various types of crypto assets. Recently, Vietnam’s prime minister Phạm Minh Chính asked the State Bank of Vietnam to begin trialing its own digital currency.

While the crypto ecosystem faces enormous mainstream resistance, governments are now cautious about missing out on the underlying innovation. As more and more leaders continue to share their interest in trying out digital currencies, Bitcoin is set to redefine the “B” in banking.

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Bitcoin (BTC) has once again held the critical support area at $31,000 today, indicating accumulation at lower levels. This led some analysts to speculate that traders were selling their holdings to investors with a low history of selling in anticipation that “a supply shock” to occur when the re-accumulation process completes.

Another sign of strong hands entering the crypto market was seen when Capital International Group, a $2.3 trillion asset manager, purchased a 12.3% stake in MicroStrategy, which many believe to be a sort of Bitcoin proxy stock because it holds 105,084 Bitcoin on its books. This acquisition suggests the asset manager is taking indirect exposure to Bitcoin.

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The United States Consumer Price Index (CPI) surged 0.9% in June 2021 over the previous month and 5.4% from a year earlier, this is the fastest pace in nearly 13 years. However, Bitcoin’s failure to respond positively to the spike in inflation has ignited a debate on Bitcoin’s billing as an inflation hedge. News outlet Fortune said this made Bitcoin a doubtful hedge against inflation.

In a bear phase, the markets usually tend to overlook the triggers in the short term. During such a period, the smart money continues to accumulate and eventually, the price action catches up with fundamentals. Therefore, writing off Bitcoin with only a few months of data may not be the right thing to do.

Bitcoin price returns

Bulls are having problems reclaiming lost support levels, but $30,000 remains a solid foundation for Bitcoin’s trading range.

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Bitcoin price returns to ‘critical’ pivot zone as $33K stays untouchedMARKET UPDATE

Bitcoin (BTC) failed to crack $33,000 on July 14 as a bounce from multi-day lows delivered only modest progress.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
BTC price: Fits and starts below $33,000
Data from Cointelegraph Markets Pro and TradingView tracked another day of ranging — albeit with increased volatility — for BTC/USD on Wednesday.

The pair briefly touched $31,750 overnight before a sharp rebound produced highs of $32,970. This meant that $33,000, once firm support, still remained out of reach.

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For popular trader Michaël van de Poppe, this zone from $32,600 upwards was “critical to break” in order for Bitcoin to have a chance at hitting targets higher up in its trading range.

“Many altcoins making double bottom tests. Great,” he added in his latest Twitter update.

At the time of writing, Bitcoin circled $32,800 following repeated attempts to crack $33,000. Buy and sell levels on Binance showed support firmly in place at $30,000, with a resistance band at $33,000 nonetheless slowly fading.

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BTC/USD buy and sell levels (Binance) as of July 14. Source: Material Indicators/ Twitter
Strong hands quietly scoop up liquidity
Expectations were high on the day ahead of a much-publicized “Bitcoin bill” being presented before the government of Paraguay. While information about the legislation has been sketchy, optimists hope that the country will seek to follow El Salvador and make Bitcoin legal tender.

Beyond network fundamentals, there was little else for bulls to leverage at the time of writing, with accumulation by investors big and small yet to show itself in price action.

Related: Great buy? Bitcoin trades at record 59% below stock-to-flow BTC price model target

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In fresh analysis, however, William Clemente suggested that there could be a “lag” in price response.

“Vice versa. Price can sometimes lag the accumulation flows. For example in January or September 2020 we had a bull div, not nearly this size though,” he said in Twitter comments.

“Also to note: we had one in March 2020, but macro forces can obviously override this.”

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Bitcoin liquid supply ratio annotated chart. Source: William Clemente/ Twitter
Clemente highlighted a chart of Bitcoin’s liquid supply ratio (LSR), a metric now signalling movement of BTC to those with little history of selling.

“Nothing has changed, supply shock still in play,” he said, referencing last year’s block subsidy halving.

“LSR shows that the action of Bitcoins being reabsorbed by strong hands only continues to diverge more from price. Exchanges also down -21,829 BTC in the last 2 weeks; clear trend of accumulation in those flows as well.”

BlackRock CEO signals low

“We see very little in terms of investor demand” for crypto, BlackRock CEO said.

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BlackRock CEO signals low demand for crypto from long-term investorsNEWS

BlackRock, an institutional asset manager that has indirect exposure to Bitcoin (BTC), has recorded a major decline in investor demand for cryptocurrency.

The company’s CEO Larry Fink declared Wednesday on CNBC’s Squawk Box that BlackRock has been seeing less crypto-related queries from investors recently, signaling a massive drop in demand for crypto.

Fink noted that specifically long-term and retirement investors now appear to have less interest in crypto, stating:

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“In the past, you’ve asked me about crypto and Bitcoin, again. And in my last two weeks of business travel, not one question has been asked about that. That is just not part of the focus of retirement and long-term investors. We see very little in terms of investor demand.”

Fink’s remarks come amid a continued sideways trading on the cryptocurrency markets, with Bitcoin dropping over 16% over the past 30 days. At the time of writing, Bitcoin is trading at $32,572, slightly up around 0.3% over the past 24 hours. The most-valued cryptocurrency has lost almost half of its price since BTC broke its all-time high in mid-April, surging above $64,000.

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Bitcoin price over the past year. Source: CoinGecko
BlackRock is known for its friendly stance on Bitcoin as the company obtained indirect exposure to Bitcoin through its ownership stake in business intelligence firm MicroStrategy. The firm made an initial $425 million investment in BTC in 2020 and then continued buying more Bitcoin.

Related: Fidelity to hire more crypto hands amid growing institutional interest

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BlackRock CEO previously delivered some positive comments about Bitcoin as well. Last December, Fink claimed that Bitcoin can potentially evolve into a global market despite still being widely untested.

Despite BlackRock CEO’s claims on the alleged decline in Bitcoin demand from long-term investors, the institutional interest in crypto apparently continues growing. Last week, Bank of America, the second-largest bank in the United States, reportedly set up a crypto research team in response to growing institutional interest in digital assets.

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Data from Cointelegraph Markets Pro and TradingView tracked another day of ranging — albeit with increased volatility — for BTC/USD on Wednesday.

The pair briefly touched $31,750 overnight before a sharp rebound produced highs of $32,970. This meant that $33,000, once firm support, still remained out of reach.

For popular trader Michaël van de Poppe, this zone from $32,600 upwards was “critical to break” in order for Bitcoin to have a chance at hitting targets higher up in its trading range.

“Many altcoins making double bottom tests. Great,” he added in his latest Twitter update.

At the time of writing, Bitcoin circled $32,800 following repeated attempts to crack $33,000. Buy and sell levels on Binance showed support firmly in place at $30,000, with a resistance band at $33,000 nonetheless slowly fading.

Leading DEX offers dual mining mechanism to drive down transaction fees

Transaction fees can be expensive on decentralized exchanges — but this platform says it allows payments to be completed with minimal costs thanks to a dual mining mechanism.

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Leading DEX offers dual mining mechanism to drive down transaction feesSPONSORED

A decentralized exchange says its unique dual mining mechanism delivers transaction fees that are “close to zero” — including for major cryptocurrencies such as Bitcoin.

MDEX says a blend of liquidity mining and transaction mining results in a deeper liquidity pool and lower slippage, as well as a more user-friendly experience.

Data from CoinMarketCap shows that transaction volumes across the blockchains it uses have surpassed big names such as PancakeSwap, Sushiswap and 1inch.

MDEX has come a long way since the project launched on Jan. 6. Within a month, the project claims single-day transaction volumes exceeded $1 billion — a figure that doubled to $2 billion by Feb. 19.

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The project has regularly updated a roadmap to inform users of the features that lie ahead. MDEX had initially supported Ethereum and Huobi Eco Chain only, but this was expanded to Binance Smart Chain by April 8. This was followed by MDX being included in Binance’s Innovation Zone the following month.

Giving crypto enthusiasts choice
MDEX says that the market for DeFi products has suffered from a high degree of fragmentation so far. Many prominent DEXs, such as Uniswap and SushiSwap, only support Ethereum. This has proven problematic as the blockchain battles astronomical fees, with a number of projects seeking rival networks that are cheaper and more scalable.

However, MDEX delivers token swaps across three blockchains — Binance Smart Chain, Ethereum and Huobi Eco Chain — giving crypto enthusiasts choice.

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Supporting three distinctive networks helps to solve this problem and ensures that DeFi users have everything they need in one place. It can also deliver enhanced levels of liquidity — and makes it easier for investors to find opportunities that pique their interest.

MDEX also supports single token staking and offers IMOs — initial MDEX offerings — something that gives new projects the support they need as they plan to enter the market. A rather distinctive feature called “fun buyback” provides a degree of gamification for those who contribute MDX, the platform’s native token, to the burning pool.

MORE INSIGHTS FROM MDEX HERE

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What’s on offer
Comparing itself against rivals, MDEX says one of the most compelling benefits of its offering lies in how it provides low transaction fees. All of this comes after costs increased to “unimaginable heights” on Ethereum-based DEXs.

The fact that MDEX has been built on Huobi Eco Chain also delivers enhanced speeds. This blockchain can achieve up to 500 transactions per second with a transaction confirmation time of under three seconds. Developers at the project say this is a stark contrast to Uniswap, where it can take a minute for a transaction to finalize because of the congestion seen on the Ethereum mainnet.

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MDEX describes itself as the leading decentralized app on HECO, and says its DEX has been instrumental in increasing awareness about the network. Of course, there’s still plenty more work to be done. The platform says it intends to attract more users and enhance the trading experience by listing more multi-chain assets and strengthening community governance.

Learn more about MDEX

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.

Bitcoin sell-off continues

The latest price declines came after the U.S. inflation rose to a 30-year high in June.

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Bitcoin sell-off continues as BTC nears $31K ahead of Powell’s speechMARKETS NEWS

Bitcoin’s (BTC) price continued its downtrend Wednesday ahead of the testimony from United States Federal Reserve Chairman Jerome Powell.

The spot BTC/USD exchange rate fell to its 17-day low of $31,600 following a 3.46% intraday dip. Meanwhile, CME futures tied to the pair plunged 3.41% to $31,515, extending their week-to-date losses to 9.5%.

Bulls step in at $31.5K to buy the Bitcoin dip. Source: TradingView
Bitcoin had powered to $35,000 at the beginning of July, as bulls continued to defend support levels around $30,000 against each downside attempt.

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Independent market analyst Will Clemente III noted that entities with a low history of selling kept absorbing Bitcoin at lower levels from speculative traders, adding that the strategy is in the process of effectively removing a good BTC supply out of the market.

“Given no capitulation event, in my humble opinion, it is a matter of ‘when’ the re-accumulation process will be finished rather than ‘if,’” Clemente wrote.

“Once the process completes, the market would experience a supply shock.”
But…
Bitcoin sold off at $35,000 and dropped to near $31,500 during the Wednesday session. One factor that made traders cautious is uncertainty about how the Federal Reserve would respond to the bout of higher inflation — now running upward at its fastest pace in 13 years.

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In detail, the U.S. Consumer Price Index (CPI) rose 0.9% in June 2021 from the previous month and by 5.4% compared to June 2020. The higher inflation readings honed focus on Powell’s appearance before the House Financial Services Committee on Tuesday at 9:30 am EST.

U.S. core inflation data hits its highest levels since the year 1991. Source: Bureau of Labor Statistics
The central bank chief expects to clarify his position on the ongoing spike in consumer-related inflation. In his earlier statements, Powell has suggested that the Fed should move cautiously unless it sees a “maximum recovery” in the U.S. labor markets.

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Therefore, with support from some like-minded dovish Fed officials, including New York branch head John Williams, Powell might ignore trimming the Fed’s $120-billion monthly asset purchase program in the wake of strong U.S. growth and high inflation.

The Fed’s hawkish tone coincides with lower BTC prices
Meanwhile, Evercore ISI economist Peter Williams forecasted that rising CPI readings would increase tensions among the Federal Open Market Committee’s members.

He noted that some hawkish members might demand tapering to begin as early as September, albeit adding that the Fed, in general, would follow a wait-and-watch approach, thinking inflation is transitory in nature.

As for Bitcoin, the outlook remains mixed, especially after the cryptocurrency failed to respond to inflation alarms in recent months, China’s crackdown on the crypto sector, increasing regulatory scrutiny, the Fed’s rate hike plans for 2023, and Elon Musk’s anti-crypto tweets.

Fortune reported that Bitcoin is marching “on its own drummer,” ignoring the recent spikes in key inflation metrics. That makes the cryptocurrency a doubtful hedge against rising consumer prices.

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However, Joel Kruger, a forex strategist at London-based investment firm LMAX, thinks differently. The analyst noted that Bitcoin’s long-term prospects remain skewed to the upside because there’s a “legit fear of rising inflation.”

“Setbacks more about SOME investors looking at Bitcoin as a risk correlated emerging asset,” he tweeted late Tuesday.

“Short-term could see more downside if stocks plunge. But ultimately, Bitcoin should be well supported on the longer-term value proposition.”
Additionally, Greg Waisman, co-founder and chief operating officer of cryptocurrency infrastructure company Mercuryo, offered a more critical outlook.

First, he noted that macro investors do not believe in Bitcoin’s true value even against rising inflation. And second, he projected Ether (ETH) as a better cryptocurrency, given its recent run-up against Bitcoin.

Ether prices against Bitcoin has surged 136% on a year-to-date basis. Source: TradingView
“Bitcoin is the most expensive and renowned cryptocurrency, but it’s not a cryptocurrency of the present,” Waisman explained, adding:

“Ethereum is the true king of cryptocurrencies. Investors will continue to ride the Bitcoin high and dump at their convenience. That said, Bitcoin will once again surpass the $50k mark.”
Technical outlook
Currently, lackluster volumes and a two-month-old downside move continue to keep Bitcoin in a bearish state.

Crypto community divided on whether Bitcoin is an inflation hedge

Market observers expressed more concerns over the Bitcoin price drop amid a significant projected spike in inflation.

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Crypto community divided on whether Bitcoin is an inflation hedgeNEWS

Amid a massive spike of the United States’ Consumer Price Index (CPI), the cryptocurrency community has been divided on whether Bitcoin (BTC) is really a hedge to inflation.

The CPI, an indicator measuring the average change in prices that consumers pay for a basket of goods and services, saw its largest one-month increase in June over the past 13 years, Business Insider reported Tuesday. The inflation surge reportedly started in March, when CPI rose by 2.6%, followed by subsequent increases in April of 4.2% and eventually 5.4% in June.

But despite the recent growth in CPI-measured inflation, Bitcoin has allegedly failed as an inflation hedge as its price has almost halved from $64,000 in mid-April, according to some analysts.

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“Bitcoin isn’t behaving like an inflation hedge anymore and will continue to remain heavy over expectations over higher yields,” Ed Moya, senior equity analyst at foreign exchange firm Oanda, said in a Tuesday note. However, that inflation is viewed as transitory,

which could be a reason why the June CPI report wasn’t enough of a catalyst to break Bitcoin’s sideways trading, Moya added.

The crypto community subsequently reacted to these CPI-versus-Bitcoin observations, with many industry advocates emphasizing that their early Bitcoin investment and gains “have already hedged the future.” Some Bitcoin enthusiasts pointed out that Bitcoin has been growing historically, posting massive gains over the long term.

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Related: Bitcoin boon as US inflation hits 13-year high, wages fall to lowest in 21st century

According to some crypto experts, Bitcoin is indeed “not a great hedge against inflation.” Mati Greenspan, founder of money management firm Quantum Economics, told Cointelegraph that there “doesn’t seem to be any correlation” between Bitcoin’s price action and inflation or deflation data, stating:

“Certainly Bitcoin has been a great performer over time. But most of the gains have occurred during a great global deflationary period in which all risk assets rose. Now that inflation is picking up for real, for the first time since Bitcoin’s inception, it’s drastically underperforming.”

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The latest CPI-triggered argument brings another twist in long-running debates regarding Bitcoin as a hedge instrument. A number of financial analysts, including Nassim Taleb, believe that inflation has nothing to do with Bitcoin’s price. Still, some global investors, such as Paul Tudor Jones, have moved into Bitcoin to protect their investments from inflation.

Bitcoin’s (BTC) price continued its downtrend Wednesday ahead of the testimony from United States Federal Reserve Chairman Jerome Powell.

The spot BTC/USD exchange rate fell to its 17-day low of $31,600 following a 3.46% intraday dip. Meanwhile, CME futures tied to the pair plunged 3.41% to $31,515, extending their week-to-date losses to 9.5%.

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Bulls step in at $31.5K to buy the Bitcoin dip. Source: TradingView
Bitcoin had powered to $35,000 at the beginning of July, as bulls continued to defend support levels around $30,000 against each downside attempt.

Independent market analyst Will Clemente III noted that entities with a low history of selling kept absorbing Bitcoin at lower levels from speculative traders, adding that the strategy is in the process of effectively removing a good BTC supply out of the market.

“Given no capitulation event, in my humble opinion, it is a matter of ‘when’ the re-accumulation process will be finished rather than ‘if,’” Clemente wrote.

“Once the process completes, the market would experience a supply shock.”
But…
Bitcoin sold off at $35,000 and dropped to near $31,500 during the Wednesday session. One factor that made traders cautious is uncertainty about how the Federal Reserve would respond to the bout of higher inflation — now running upward at its fastest pace in 13 years.

In detail, the U.S. Consumer Price Index (CPI) rose 0.9% in June 2021 from the previous month and by 5.4% compared to June 2020. The higher inflation readings honed focus on Powell’s appearance before the House Financial Services Committee on Tuesday at 9:30 am EST.

Strip club in Las Vegas now accepts Lightning

Guests at the Crazy Horse 3 will soon be able to tip their favorite dancers using BTC.

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Payments in a flash: Strip club in Las Vegas now accepts LightningNEWS

The Crazy Horse 3 gentlemen’s club has announced it has become the first major entertainment venue in Las Vegas to accept Bitcoin using the Lightning Network.

The nightspot will implement the layer two Bitcoin scaling solution enabling punters to make payments in a flash. It has integrated BTC payment processor OpenNode which will initially allow guests to securely purchase VIP bottle packages using BTC through the venue’s website.

According to the announcement, the Bitcoin payments rollout includes plans to accept the digital asset for admission, food selections, craft cocktails and the club’s signature “dance dollars” which are used for tipping entertainers. In other words, Lightning for lap dances.

Crazy Horse 3 publicist, Lindsay Feldman, said that the club is embracing the opportunity to accept Bitcoin as a way to deliver convenience and an additional level of anonymity for its guests, adding:

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“The club’s partnership with OpenNode allows us to cater to our tech-savvy customers’ needs by offering an innovative form of payment that’s both seamless and secure.”
OpenNode is a Lightning Network-powered BTC payments platform that operates in 126 countries and has more than 8,000 users.

The platform will allow the venue to receive BTC payments directly without the involvement of third-party payment processors or associated fees.

The adult industry has embraced cryptocurrencies over the years as much through necessity as choice, with payment processors either banning such businesses or charging them exorbitant fees for being “high risk”.

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Related: Las Vegas Club to Accept Bitcoin, Record Memberships on Blockchain

Bitcoin’s leading layer two scaling solution has seen steady growth over the past year. Since the beginning of 2021, LN nodes have increased by 56% to a record high of 12,844 at the time of writing according to BitcoinVisuals.

The number of unique channels connecting nodes for the first time has also seen impressive growth this year with an increase of 54% since January 1.

Bitcoin and crypto acceptance in Sin City is also showing growth. In May, the Resorts World Las Vegas casino-resort announced a partnership with crypto exchange Gemini to allow patrons to make payments using BTC and cryptocurrencies using their exchange wallets.

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In today’s regulatory climate, there’s no doubt that exchanges proactive in decentralizing operations and risk are better poised to minimize damage from unfavorable policies.

Working together for compliance?
On July 13, the Nanjing Public Security Research Institute announced it was working with OKLink to combat money laundering. OKLink is a blockchain technology firm that has ties to OK Group, a company that used to manage leading exchange OKex. With exchange leadership under incredible scrutiny in 2021, there is no surprise in seeing attempts to placate regulators.

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Abandoning ship
On July 15, cryptocurrency media company Bishijie announced it was shutting down after violating national laws against cryptocurrency. Bishije, which translates to Coin World, had enjoyed a lot of popularity in 2018, prior to the depths of the last bear market cycle.

This recent bull cycle never saw it fully recover it’s previous position however, making this only a minor loss for the current cryptocurrency space. It remains to be seen whether other media platforms based in the mainland can survive this trying period of time.

mining laws are beneficial

With government officials trying to clean up the image of China prior to the start of the Winter Games, miners are leaving in droves and media group Bishijie has been forced to close down

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Shanghai Man: Crypto media closes, bad news just repeats, mining laws are beneficial?NEWS

This weekly roundup of news from Mainland China, Taiwan, and Hong Kong attempts to curate the industry’s most important news, including influential projects, changes in the regulatory landscape, and enterprise blockchain integrations.

It has now been two months since the crypto crackdown and subsequent enforcement began. Most new stories are now just the trickling down of earlier national policies being enforced at a provincial level. The latest example was from the Anhui provincial government,

as it announced a set of measures to reduce energy consumption, with cryptocurrency mining listed among the culprits. Anhui is a small province east of Shanghai, more known for its scenic rural landscape and agriculture than its contributions to the economic development of China.

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It’s likely other provinces, particularly ones that rely on coal for energy, will have similar announcements over the summer as the central government pushes for a carbon-neutral future.

On July 13, Chinese mining pool giant Bit Mining announced it had raised $50 million for expansion outside of China. The company is listed on Nasdaq and operates BTC.com, which is currently a top 5 pool for Bitcoin, Bitcoin Cash, and Litecoin.

This is another sign that Chinese mining companies aren’t giving up in light of the restrictions at home, instead choosing to relocate the data centers and mining machines abroad.

The disappearing industry left a trail of impressive photographs, including some published by Financial media Caixin. One image that grabbed the attention of social media depicted a woman who appeared to be an ethnic minority holding a bundle of mining equipment and power cables like a flower bouquet.

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Going for gold?
Former Bitmain CEO Jihan Wu believes that the mining regulations will benefit the industry over the long-term, citing an improved public image and eradication of bad actors. It’s certainly a nice thought, but at the moment, China seems more intent on eliminating all actors, not just the bad ones.

With the upcoming Winter Olympics in February of 2022 looming, Beijing will have the perfect opportunity to show off clear blue skies and clean-energy industries. On top of that, China can showcase its state-of-the-art central bank digital currency, without the confusion stemming from more speculative digital assets that might appear to have similarities on the surface. Those with first hand memories of the 2008 Summer Olympics may also remember the strict regulation against technology and social unrest prior to that landmark event.

Lowest volumes in years
The impact is being felt by leading exchanges in China. Huobi’s BTC/USDT pair saw only 109K BTC transacted in the past week, the lowest weekly volume dating back to October of 2018. Global exchanges were also affected by slumping volumes, but not to the degree as these predominately Chinese exchanges.

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In today’s regulatory climate, there’s no doubt that exchanges proactive in decentralizing operations and risk are better poised to minimize damage from unfavorable policies.

Working together for compliance?
On July 13, the Nanjing Public Security Research Institute announced it was working with OKLink to combat money laundering. OKLink is a blockchain technology firm that has ties to OK Group, a company that used to manage leading exchange OKex. With exchange leadership under incredible scrutiny in 2021, there is no surprise in seeing attempts to placate regulators.

RPA

Abandoning ship
On July 15, cryptocurrency media company Bishijie announced it was shutting down after violating national laws against cryptocurrency. Bishije, which translates to Coin World, had enjoyed a lot of popularity in 2018, prior to the depths of the last bear market cycle.

This recent bull cycle never saw it fully recover it’s previous position however, making this only a minor loss for the current cryptocurrency space. It remains to be seen whether other media platforms based in the mainland can survive this trying period of time.

spotcryptoandstockpricereversals

Many successful traders look for double bottom and W bottom reversal patterns on technical charts in order to spot powerful price reversals.

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Here’s 2 ways clever pro traders spot crypto and stock price reversalsHOW TO CRYPTO

Trading in the direction of the trend is one of the best ways to be profitable. If traders learn to spot a new trend early, it provides an opportunity to buy with a good risk to reward ratio. In addition to identifying a trend, traders should also be able to recognize when it has reversed direction.

While several patterns signal a possible trend change, one of the easiest to spot is the double bottom pattern. This can help traders change their strategy when the trend reverses direction from bearish to bullish.

Let’s take a look at the double bottom pattern and identify some of the best ways to trade it.

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What is a double bottom?
The double bottom pattern forms after a downtrend and consists of two low points that are roughly formed near a similar horizontal level, with a minor peak in between the troughs. When the price breaks out and closes above the minor peak after the formation of the second trough, the setup is complete.

This is a reversal pattern, which results in an intermediate to a long-term trend change. As the pattern resembles the shape of a ‘W’, some also call it a W bottom.

W Bottom pattern. Source: TradingView
The above image shows the structure of the double bottom pattern. The asset has been in a downtrend but at a certain price level the bulls believe the asset is undervalued and start buying. This helps in the formation of the first bottom where demand exceeds supply and a relief rally begins.

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However, most bears are still not convinced that a bottom is in and they initiate short positions again after a pullback. The price turns down but when it nears the level of the first bottom, the bulls again start accumulating, which arrests the decline and starts another relief rally. The second bottom within 3% of the level of the first bottom is usually considered valid. This is not a number set in stone and traders should use their discretion in real-life trading.

When the price rises above the resistance line, it signals a change in trend from down to up. The minimum target objective for the pattern can be arrived at by calculating the distance from the resistance line to the bottom and then adding the number on top of the resistance line.

Let’s view a few examples to better understand the concept.

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XTZ/USDT daily chart. Source: TradingView
Tezos (XTZ) price was in a downtrend before hitting the first bottom at $1.78 on Nov. 4, 2020. From there, the XTZ/USDT pair started a relief rally that stalled at $2.96 on Nov. 25, 2020. At this level, the bears again fancied their chances and sold aggressively.

Although the pair broke below the $1.78 support and dipped to $1.57 on Dec. 23, 2020, the bears could not sustain the lower levels. The pair quickly recovered on the next day and started a recovery, forming the second bottom.

The bears aggressively defended the resistance line and tried to trap the eager bulls following the breakout. The bulls purchased the dips and the pair made a strong breakout on Feb. 5, which started the new uptrend.

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The depth from the resistance line to the bottom is $1.18. Adding this value to the level of the resistance line at $2.96 gives a minimum pattern target at $4.14. However, in this case, the pair overshot the target objective and rallied to $5.64 on Feb. 14.

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Double bottoms also show on the weekly timeframe
Along with the daily chart, the double bottom pattern also works well on the weekly chart. This is because when the reversal setup forms on the weekly chart, it results in a long-term trend change and the new uptrend generally sustains longer.

3altcoinsshowingsignsofaccumulation

DeFi and NFT-related tokens such as GHST, CNS and TLM defied the market’s bearish mood to post double-digit gains in the past 48 hours.

Youtube​Channel

3 altcoins showing signs of accumulation, while Bitcoin price is downALTCOIN WATCH

Crypto markets faced another day of struggle on Thursday as the price of Bitcoin (BTC) dropped to its “final support zone” near $31,000, which prompted traders to issue dire predictions about the future should bulls fail to hold this level.

Despite the struggles facing the crypto market at large, relatively obscure altcoins such as Aavegotchi (GHST), Centric Cash (CNS) and Alien Worlds (TLM) posted positive gains in the past 48 hours and appear to be in a stealth accumulation mode.

Aavegotchi volume spikes ahead of DinoSwap release
Aavegotchi (GHST) is a DeFi-focused nonfungible token (NFT) that operates on the Aave protocol and allows users to utilize in-game avatars called Gotchi’s as collateral to earn staking rewards.

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GHST/USDT 4-hour chart. Source: TradingView
Data from Cointelegraph Markets Pro and TradingView shows that the price of GHST has rallied 21% from a low of $0.997 on Wednesday to an intraday high at $1.21 on Thursday as its 24-hour trading volume doubled from the previous day.

A scroll through Aavegotchi’s Twitter feed indicates that the newfound enthusiasm for GHST is a result of the upcoming release of DinoSwap, a multi-chain farming protocol that helps to attract and build liquidity on existing automated market makers.

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The new way for token holders to earn an extra yield on the Polygon network has helped drive liquidity and trading volume higher, resulting in the price appreciation seen in GHST.

Centric Cash rallies after migrating to Binance Smart Chain
Centric Cash (CNS) is another token that has managed to post a positive gain in an otherwise red market thanks to its successful migration to the Binance Smart Chain (BSC).

CNS is a dual-token protocol that offers rewards for adoption in the form of a fixed hourly yield and “stabilizes over time as it self-regulates token supply to meet ongoing changes in demand,” according to the project’s website.

The project’s migration away from the Tron blockchain to the BSC was done as a way to help increase exposure and trading volume through gaining access to the wider Binance ecosystem.

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As a result of the increased attention and trading volume that CNS garnered following the migration, its price rallied 36% from a low of $0.0003 on Wednesday to an intraday high at $0.00042 as traders looked to acquire tokens and supply liquidy for its launch on PancakeSwap.

Alien Worlds shows signs of accumulation
Alien Worlds (TLM) has also outperformed the field this week. The blockchain gaming platform provides a DeFi-connected NFT metaverse where users can collect and play with unique digital items in an environment that stimulates economic competition and collaboration among players.

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TLM/USDT 4-hour chart. Source: TradingView
The price of TLM skyrocketed by 307% over the past week, rising from a low of $0.08 on July 9 to an intraday high at $0.33 on Thursday with a 24-hour trading volume of $884 million.

Related: New data hints why Bitcoin price action has spent two months at $30K

While there has not been a major protocol announcement that is readily identifiable as the cause for increased momentum, the project’s Twitter feed shows a handful of new NFT releases recently that can be earned through gameplay, as well as an announcement that Planet Binance will soon be added to the Alien Worlds ecosystem.

Overall, projects that include NFT functionality and a select few DeFi protocols continue to perform well while the large-cap projects in the crypto market are negatively impacted by Bitcoin’s repeat excursions to the $31,000 level.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.