Day: November 30, 2017

To aging heads of state and conservative bankers, bitcoin is a tool for criminality. To those in the know, nothing could be further from the truth; most bitcoin transactions are for legitimate purposes. Proving this has always been difficult, but a new study adds weight to this argument. Its key finding? Bitcoin hit peak criminality in 2014 and has been dropping ever since.

See also: Trump’s Federal Reserve Nominee: Cryptos “Don’t Really Matter Today”

Bitcoin: More Legitimate Than You Think

Warfare and organized crime are two of the most unsavory elements of civilized society, and yet both share one positive trait: they’re great drivers of technology. Without war, we wouldn’t have such eclectic inventions as canned food, the jerry can, the microwave, or radar. And without internet crime, much of the tech we take for granted would likely never have broken through. Encryption, Tor, privacy coins, self-destructing messaging apps and – oh yes – bitcoin, all owe their adoption to the more shadowy parts of the web.

This assertion is borne out by a recent study from University of Sydney’s Dr Sean Foley. It found that around one third of the virtual currency’s owners have used bitcoin in connection with some form of illegal activity. The study’s author claims that 34-36 million bitcoin users, out of a total of 106 million, have illicitly sent or received bitcoin. Given that not all uses of bitcoin on darknet websites are for illegal purposes, however, the true number is likely to be lower.

Define Illegal

One thing the study fails to clarify is what constitutes illegal use. Is buying a gram of weed with bitcoin as nefarious as buying a gun or issuing ransomware? Such philosophical questions are beyond the remit of the University of Sydney study. Besides, calculating how a pseudonymous digital currency was used over the course of millions of transactions is impossible. The blockchain can tell you where those coins went, but they can’t tell you why or for what. In fairness to Dr Foley, the author has investigated the matter in some detail, analyzing the flow of bitcoins through known illicit trade networks – think Silk Road and its string of successors. The senior lecturer, as reported in Australia’s Financial Review, detailed his methodology:

Our second approach is to exploit characteristics that can distinguish between users involved in illegal activity and those involved in legal activity using detection-controlled estimation models. For example, for each bitcoin user we are able to measure the extent to which they take actions to conceal their identity and trading records. Using these innovative tools, we are able to approximate the size of the black market economy.

There are numerous lawful reasons why an individual might take steps to conceal their identity on the web. Assuming the claim of 36 million “illicit” bitcoin users is accurate, however, what’s more fascinating is the extent to which legitimate use has superseded this. Dr Foley’s research indicates that illicit use of bitcoin peaked in 2014 and has been dropping ever since. Legitimate use, on the other hand, has been climbing sharply for the last five years and overtook illegal purposes in 2016.

The Original Trade Route to Bitcoin

When bitcoin first came along, one of the few places where the digital currency could be used was on the Silk Road marketplace. Coupled with its then-anonymous nature (blockchain explorers were still rudimentary), it was possible to buy anything with bitcoin and have it shipped to your door. Many of bitcoin’s early adopters first heard of the currency through Silk Road and first spent it there. Six years on and the deep web’s most notorious marketplace is long gone but bitcoin is booming.

Despite bitcoin’s lawful applications having long since surpassed unlawful ones, it’s still routinely cited in the same breath as criminality. When quizzed about cryptocurrency and bitcoin this week, it was telling that White House Press Secretary Sarah Sanders said the one U.S. department taking an active interest in the digital currency is Homeland Security.

Asked about cryptocurrency, the White House said they’re monitoring it. Pushed further, Sanders mentioned Homeland Security specifically. pic.twitter.com/55n3SI0NvE

— Fran Berkman (@FranBerkman) November 30, 2017

If one third of bitcoin users have used cryptocurrency to engage in some form of illegal activity, how many users of the U.S. dollar have done the same? Given that 90% of U.S. banknotes are tainted with cocaine, there’s a strong case for arguing that bitcoin is the cleaner currency.

Which currency do you think is more synonymous with criminal activity – bitcoin or the U.S. dollar? Let us know in the comments section below.

Images courtesy of Shutterstock, Pixabay, and University of Sydney.

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The post White House ”Monitoring the Situation” While Study Shows Illicit Bitcoin Use Has Dropped appeared first on Bitcoin News.

Hello and welcome to News BTC’s Market Outlook December.

ETH/USD

Ethereum has fallen rather significantly against the US dollar, partially in a “knock on” move from the brutal selloff in Bitcoin. Ethereum has lost $100 in the last 24 hours, and of course that is a very significant selloff. It currently looks as if we are going to test the $400 level underneath. The $400 level of course is a psychologically important area, and previous support. If we were to break down below there, is very likely that Ethereum will continue to go lower, perhaps to the $360 level.

ETH/BTC

Ethereum sold off against Bitcoin as well, as we are testing the lows yet again. It looks likely that we are going to go looking towards the 0.04 level over the next couple of days, with the 0.045 level being a bit of a ceiling. Selling the rallies continues to be the profitable trade.

Thanks for watching, I’ll be back tomorrow.

The post ETH/USD and ETH/BTC Technical Analysis December 1 2017 appeared first on NEWSBTC.

Compared to other alt coins, DASH has been resilient and is making higher highs. NEO and NEM on the other hand are rebounding from key support levels and should NEO break below that level then it will herald a new phase of bears.

On the other hand NEM traders should watch out $0.20 support.

Let’s look at the charts:

NEM PRICES TEST LOWS OF $0.20 AND REVERSES

NEM bulls and sellers are equally matched and despite yesterday’s strong bear candlestick that saw prices close strongly below $0.26 highs, today NEM prices might end up appreciating.

As price action shows, NEM prices are still above the main resistance trend line of the wedge in the daily chart and clearly, there is no follow through of yesterday bears.

In the 4HR chart, November 30 lows tested $0.20 but then the minor support trend line is preventing further depreciation.

If prices reverses and close above the minor support trend line then bulls should re-enter this trade and aim at November 29 highs of $0.26.

DASH BULLS CLEARS $786 HEADING TOWARDS $1,000

Even if there have been two fake bear double reversal patterns in within 24 hours, DASH bulls are still in charge.

The thing is, as long as price action is above the 20 period MA then we enter long at any retest. That happened on November 29 and 30. As a result of this bounce, our buy stops set at $640 are live as bulls drove prices above November 29 highs at $786.

Stochastics are bullish so we only take long positions with main support at %660.

Ultimate bull target is at $1075 as the Fibonacci extension level in the weekly chart shows.

IOTA CORRECTS AFTER HITTING $1.3 HIGHS

After 4 days of IOTA bull pressure, USD bulls managed to push prices below the 20 period MA.

Of course this correction was expected now that the record highs at $1.3 had been cleared when prices printed highs of $1.4 on Wednesday.

The thing now is to see if the Middle BB in the 4HR chart might act as resistance. As we can see, $1.3 which was also a take profit level no longer holds as per Fibonacci retracement and reversal guidelines.

Reversals were from below the 78.6% Fibonacci retracement. In light of this, $1.3 would have been  the highest price IOTA could muster.

However, momentum wise, we expect this bull pressure to continue and given the strong buy pressure in the weekly chart.

We shall set a buy stop around the round number at $1.4 to take advantage of the overall bull momentum.

MONERO BULLS AND BEARS CANCEL EACH OTHER OUT AS A DOJI CANDLESTICK FORMS.

In the daily chart, November 30 closed as a doji candlestick meaning bulls and bears kept on cancelling each other.

Zooming in to the 4HR chart and we notice that Monero price action is trending inside our support zones. In fact the lower limit of this zone at $154 has been tested. At the moment, patience is our key asset.

We shall wait until a clear short term trend develops. That will happen either by bears pushing prices below $154 or by a close above $170. The latter would confirm our bullish trend.

NEO CLOSE BELOW $28 MEANS BEARS ARE IN CHARGE

Now that NEO prices are trading below our main support trend line of $34.

Bear momentum is visible in the daily chart and last week’s bear momentum is still on. Should this bear momentum continue, the the resistance trend line connecting October 8 and 23 highs should be our next support trend line. This in line with the bearish break out pattern which begun after October 19.

We shall now watch if price action shall close below the minor support line in the 4HR chart. This would in turn confirm our bearish trend.

If prices reverse from it, the better for bulls and we wait until December 2 to enter.

All charts courtesy of Trading View

The post OTHER THAN DASH MOST ALT COINS ARE TESTING KEY SUPPORT LEVELS DECEMBER 1, 2017 TECHNICAL ANALYSIS appeared first on NEWSBTC.

Hello and welcome to News BTC’s Market Outlook December.

DASH/USD

DASH continue to be volatile during the trading session on Thursday, as we are selling off rapidly. The market has lost $150 as I write this, part of it being a reaction to the bloodbath in the Bitcoin market. Crypto currencies everywhere are getting sold off rather drastically, but dash does have a significant amount of support at the $640 level. If we were to break down below the $600 level, dash could see horrific losses, so it is imperative that we hold that area. Only the foolish jump in right now and start buying.

LTC/USD

Litecoin has fallen $20, looking to reach towards the $80 handle. That’s an area that should be psychologically important, and must hold in order for this market to continue to go higher. The selloff that we have seen the crypto currencies I believe is a sign that some of the mania is starting to abate. As far as Litecoin is concerned, I suspect that we will go looking towards $70.

Thanks for watching, I’ll be back tomorrow.

The post DASH/USD and LTC/USD Technical Analysis December 1 2017 appeared first on NEWSBTC.

Key Highlights

• Ripple price came under renewed selling pressure as it moved below $0.2500 against the US Dollar.
• There are two key bearish trend lines forming with resistances near $0.2400 and $0.2460 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair is currently correcting higher but struggling to break the $0.2400 and $0.2450 resistance levels.

Ripple price is under bearish pressure against the US Dollar and Bitcoin. XRP/USD has to move above $0.2450 to gain bullish traction in the near term.

Ripple Price Upside Hurdle

There were a couple of downside swing moves in Ripple price below $0.2500 against the US Dollar. The price failed to hold yesterday’s swing low near $0.2308 and declined further. It traded below the $0.2300 support and tested the $0.2200 zone. A low was formed at $0.2195 from where a minor correction wave was initiated. It has moved above the 23.6% Fib retracement level of the last decline from the $0.2795 high to $0.2195 low.

However, the price is facing many hurdles on the upside near $0.2400 and $0.2450. The current wave faced sellers near the 38.2% Fib retracement level of the last decline from the $0.2795 high to $0.2195 low. Moreover, there are two key bearish trend lines forming with resistances near $0.2400 and $0.2460 on the hourly chart of the XRP/USD pair. The second trend line resistance, $0.2500 and the 50% Fib retracement level of the last decline from the $0.2795 high to $0.2195 low are important. These hurdles might continue to prevent gains above $0.2500 in the near term.

On the downside, the $0.2200 swing low is a decent support. However, there are chances of XRP testing the $0.2100 support zone as well in the near term.

Looking at the technical indicators:

Hourly MACD – The MACD for XRP/USD is about to move in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently moving lower towards 35.

Major Support Level – $0.2200

Major Resistance Level – $0.2450

Charts courtesy – Trading View, Kraken

The post Ripple Price Technical Analysis – XRP/USD Under Pressure appeared first on NEWSBTC.

Developed and developing economies would see different benefits if their central banks issued a cryptocurrency.

Hello and welcome to News BTC’s Market Outlook December.

BTC/USD

Over the last 24 hours, Bitcoin has been absolutely pummeled after the well-documented break above $10,000. In fact, the daily candle from the session would have been a shooting star. This of course is a very negative sign, but currently it looks as if the $9400 level is offering support. If it gives way to selling pressure, expect to run down to the $9000 level next. Alternately, we don’t technically continue the uptrend until we break above $10,600.

BTC/JPY

Bitcoin initially trying to get back most of the losses after the brutal selloff against the Japanese yen, but you can see did not make a higher high, thereby suggesting that we could see further continuation to the downside. At this point, I anticipate that the ¥1 million level continues to be the “floor”, but if we were to break down below that level it would indeed be a very negative sign, leading to much more selling pressure. As far as buying is concerned, I don’t see a signal to do so yet.

Thanks for watching, I’ll be back tomorrow.

The post BTC/USD and BTC/JPY Technical Analysis December 1 2017 appeared first on NEWSBTC.

Key Highlights

• ETH price started a recovery from the $390 swing low against the US Dollar, but is facing many hurdles.
• There is a short-term bearish trend line forming with resistance near $430 on the hourly chart of ETH/USD (data feed via SimpleFX).
• The pair might struggle to break the $430 and $458 resistance levels in the near term.

Ethereum price is correcting higher against the US Dollar and Bitcoin. ETH/USD has to move above $430 and $458 to overcome the current pressure.

Ethereum Price Upside Hurdles

There was continuous pressure on ETH price as it remained below the $458 resistance against the US Dollar. The price started a recovery from the $390 swing low and moved above $420. It even moved above the 50% Fib retracement level of the last drop from the $455.99 high to $390.74 low. However, the price is facing many hurdles on the upside near $430 and $458.

The current recovery was capped by the 76.4% Fib retracement level of the last drop from the $455.99 high to $390.74 low. There is also a short-term bearish trend line forming with resistance near $430 on the hourly chart of ETH/USD. If the pair succeeds in breaking the trend line resistance at $430, it might challenge $455-458. The stated $458 level is very important as a resistance. It acted as a support earlier and now it might prevent gains above $460. Moreover, the 100 hourly simple moving average is near $455 to prevent buyers from taking control.

It looks like the price might trade in a range below $455 for some time before it makes an upside move. On the downside, a couple of important supports are at $410 and $400 followed the recent low at $390.

Hourly MACD – The MACD has reduced most of its bearish slope.

Hourly RSI – The RSI is currently just around the 50 level and has reduced most bearish signs.

Major Support Level – $420

Major Resistance Level – $455

Charts courtesy – SimpleFX

The post Ethereum Price Technical Analysis – ETH/USD Facing Crucial Test appeared first on NEWSBTC.

One of the world’s largest bitcoin exchanges is pushing back against allegations its business is engaging in improper market practices.