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Bitcoin’s Latest Correction Could Spark a Bear Run Towards $6K, Fractal Shows

Bitcoin extended its bearish correction at the start of this week, falling briefly below $9,000 for the first time in three weeks. While cryptocurrency reclaimed the said support level, fears of new sell-off rounds are looming over its market. Meanwhile, a separate fractal is also suggesting that Bitcoin would retest $6,000 in the medium-term. Bitcoin […]

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  • Bitcoin extended its bearish correction at the start of this week, falling briefly below $9,000 for the first time in three weeks.
  • While cryptocurrency reclaimed the said support level, fears of new sell-off rounds are looming over its market.
  • Meanwhile, a separate fractal is also suggesting that Bitcoin would retest $6,000 in the medium-term.

Bitcoin may fall to $6,000, according to an eerily accurate fractal.

The chart pattern hints recurrence as Bitcoin extends its bearish correction from a local high above $10,000. Meanwhile, technical indicators, including two weekly moving averages and a momentum gauger indicator, the Relative Strength Indicator, also validate the fractal.

The Bitcoin Fractal Explained

So it seems, Bitcoin is extending its bearish correction after testing a long-term Descending Trendline resistance. The downside move so far has crashed the cryptocurrency by as low as 14.70 percent in the last three weeks.

At the same time, specific patterns are emerging near the head of the ongoing downtrend. For instance, a 50-weekly moving average (the blue wave) is holding Bitcoin from extending its bearish bias. But repeatedly testing it causes a breakdown, shows Bitcoin’s history.

bitcoin, btcusd, xbtusd, btcusdt, cryptocurrency, crypto

At press time, Bitcoin is trending in the middle of the Descending Trendline (resistance) and the 50-WMA (support). As the distance between the two technical parameters contracts, it would leave Bitcoin with no choice but to attempt a breakout.

Historically, Bitcoin’s breakout has been biased to the downside. The cryptocurrency repeatedly attempted to break the Descending Trendline but failed. In comparison, the 50-WMA stood weaker – and allowed bitcoin to test lower levels.

Meanwhile, Bitcoin’s weekly RSI confirms a breakdown. The horizontal green line in the chart above represents a makeshift support level. When the RSI moves below it, it typically leads to more substantial downside move in the price – and vice versa.

After the Breakout

Bitcoin is testing the RSI support, all around the same time it eyes 50-WMA. Breaking below them in conjugation leaves the cryptocurrency in a stretched-out bearish territory, with the next price floor lingering near the 200-week moving average.

The orange wave in the chart has behaved as a bottom on two of Bitcoin’s long-term downtrends. In 2018, the cryptocurrency rebounded by close to 330 percent after testing 200-WMA. Also, in 2020, bouncing back from the said level led the price 95 percent higher.

If the fractal plays out as it intends to, then bitcoin risks crashing towards the 200-WMA. As of now, the orange wave is right near $6,000.

At the same time, if RSI holds above the green support line, then bitcoin could attempt another breakout above the Descending Trendline support.

Source: https://www.newsbtc.com/2020/06/15/bitcoins-latest-correction-could-spark-a-bear-run-towards-6k-fractal-shows/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoins-latest-correction-could-spark-a-bear-run-towards-6k-fractal-shows

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NEO Takes a Dive as It Breaks Down From a Short-Term Channel

The breakdown from a short-term pattern suggests that the price will continue falling towards the support levels outlined below. NEO Takes a Dive NEO has been moving upwards since Nov. 5, when it reached a low of $12.94. The upward move culminated in a high of $21.91 on Nov. 25. Since then, it has been … Continued

The post NEO Takes a Dive as It Breaks Down From a Short-Term Channel appeared first on BeInCrypto.

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The NEO price has been moving downwards after it was rejected by an important Fib resistance level on Nov. 25.

The breakdown from a short-term pattern suggests that the price will continue falling towards the support levels outlined below.

NEO Takes a Dive

NEO has been moving upwards since Nov. 5, when it reached a low of $12.94. The upward move culminated in a high of $21.91 on Nov. 25. Since then, it has been moving downwards.

The high served to validate the 0.618 Fib retracement level of $21.10 as resistance, leaving two upper wicks in place. The rally stopped right at this resistance level making it likely that the upward movement was corrective.

At the time of writing, NEO was trading just below the $18.60 resistance area with the closest support at $16.10.

NEO Daily Movement
NEO Chart By TradingView

Long-Term Levels

Cryptocurrency trader @Cryptodude999 outlined a NEO chart that shows a long-term breakout above an important level and a retest of support.

NEO Movement
Source: Twitter

The previous level is at $13.40 and the price has indeed retested it as support after breaking out (shown with the green arrow below).

However, there is another important long-term resistance level at $24, below which NEO has been trading since Oct 2018. A breakout above would likely trigger a very sharp upward move.

Technical indicators are neutral since while the RSI is above 50 and increasing, the MACD is moving downwards. Meanwhile, the Stochastic Oscillator has made a bearish cross.

Therefore, there is no clear trend direction. This and daily time-frame readings suggest that ranging will most likely occur between these two levels.

NEO Long-Term
Chart By TradingView

Short-Term Breakdown

The shorter-term two-hour chart shows that NEO has broken down from a parallel ascending channel and validated it as resistance afterward (red arrow).

The presence of the channel suggests that the increase was corrective, while the breakdown confirms it.

Therefore, NEO is likely to fall towards the previously mentioned $16.10 support area.

NEO Channel
Chart By TradingView

However, if the move since Nov. 25 is an A-B-C structure, which looks likely due to the rejection from the 0.618 Fib (black), the downward move could take NEO even lower.

If the A:C waves have a 1:1 ratio, NEO would decline all the way to its Nov. 5 levels near $13.50.

NEO Wave Count
Chart By TradingView

NEO Conclusion

To conclude, the NEO price should decline in the short-term and reach at least one of the support areas at $16.10 and $13.50.

For BeInCrypto’s latest Bitcoin analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto

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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo.
In 2019, he decided to focus full-time on cryptocurrencies and trading.

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Source: https://beincrypto.com/neo-takes-a-dive-as-it-breaks-down-from-a-short-term-channel/

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U.S. DoJ Extradites Key Member of Crypto Ponzi Scheme From Panama

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The U.S. Department of Justice (DoJ) has extradited a principal member of a fraudulent cryptocurrency mining and trading platform from Panama to the United States.

AirBit Club Co-founder to Face Criminal Charges in the U.S.

According to an announcement by the acting U.S. attorney for the Southern District of New York, Audrey Strauss, U.S. authorities were able to extradite Gutemberg Dos Santos, co-founder of crypto Ponzi scheme AirBit Club.

Dos Santos, who holds dual citizenship from Brazil and the United States, was extradited to the U.S. from Panama on Nov. 23, 2020. According to Strauss, Dos Santos’ repatriation was possible with the help of the Homeland Security Investigations (HSI).

As reported by CryptoPotato back in August, the U.S. authorities arrested five individuals who were involved in the AirBit Club scheme that fleeced unsuspecting victims of $20 million. Operators of the crypto Ponzi scheme ran false advertisements that promised users hyperbolic rewards from Bitcoin trading and mining.

However, the DoJ at the time alleged that the group only sought to live flamboyant lifestyles of victims’ funds. While spending money on luxury homes and cars, they reportedly made more moves to recruit more victims across the U.S and different other countries.

A statement from the DoJ document reads:

“The extradition of Dos Santos reflects the determination of agents from HSI New York’s El Dorado Financial Crimes Task Force to dismantle global criminal organizations, wherever the investigation takes us. Utilizing our broad authorities and network of law enforcement partners, HSI will continue to hunt those who allegedly prey upon innocent citizens for financial gain.”

Also, if Dos Santos is found guilty of the charges levied against him, the AirtBit Club co-founder could face between 20-30 years in prison.

Law Enforcement Fighting Crypto Crimes

Regulatory authorities globally continue to warn investors about fake crypto-related schemes that promise high returns. According to a recent report by CryptoPotato, Chinese authorities confiscated $4 billion worth of crypto tokens from PlusToken scammers.

PlusToken, which is one of the biggest cryptocurrency Ponzi schemes, promised users high returns, similar to other crypto fraudulent projects. The Chinese law enforcement began investigating the project after it shut down in 2019. In July, the police arrested 27 key members of the scam project, along with 82 other members.

Another major fraudulent crypto scheme, OneCoin, reportedly stole $4 billion from investors with its founder Ruja Ignatova also known as “Crypto Queen,” still at large. Meanwhile, Ruja’s brother Konstantin Ignatov has been arrested by the U.S. authorities since 2019 and could face a 90-year prison sentence.

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Source: https://cryptopotato.com/u-s-doj-extradites-key-member-of-crypto-ponzi-scheme-from-panama/

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PlusToken Crypto Scammers Slammed With 11-Year Jail Sentence

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Principal actors in the PlusToken Ponzi scheme have bagged 11-year prison sentences in China. The scheme managed to defraud investors of billions of dollars in various cryptocurrencies.

End of the Road for PlusToken Scammers

According to the South China Morning Post on Dec. 1, principal members of the PlusToken scam project were sentenced to 11 years imprisonment by a Chinese court. The suspects were found guilty of duping investors of $2.25 billion worth of crypto tokens.

As previously reported by CryptoPotato, authorities arrested 27 key members of the crypto Ponzi scheme in July, in addition to apprehending 82 other individuals linked to PlusToken.

Later in November, Chinese law enforcement seized $4 billion worth of crypto from operators of the fraudulent project. According to court documents, the confiscated cryptocurrency tokens included 94, 775 BTC, 79,581 BCH, 833,083 ETH, 74,167 DASH, 1.4 million LTC, 6 billion Doge, 27.6 million EOS, and 213,724 USDT.

The clampdown of the PlusToken scam project is in line with China’s agenda to rid the country of fraudulent schemes. Also, the latest development signals a win for authorities as the PlusToken platform was one of the largest Ponzi schemes in China.

What Happened?

PlusToken, founded by Chen Bo back in 2018, had all the hallmarks of a classic Ponzi scheme, with funds generated from later investors used to benefit early investors. Chen and other operators employed social media and offline activities to get members, who in turn paid for membership fees up to $500 worth of bitcoin and other crypto tokens.

Between 2018-2019, the platform had over 2.5 million members, with rewards based on the number of new recruits that others brought on board. Meanwhile, the total number of funds generated from members was reportedly over $2.2 billion worth of crypto.

Also, court documents alleged that Chen Bo spent some of the funds on extravagant lifestyles, buying expensive cars and properties for himself and his relatives.

In addition to the PlusToken founder and other key members spending time behind bars, the ringleaders were slammed with fines. The PlusToken scammers were fined between 120,00 yuan ($18K) and 6 million yuan ($912,922),

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Source: https://cryptopotato.com/plustoken-crypto-scammers-slammed-with-11-year-jail-sentence/

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