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US senators tell athletes to avoid digital yuan, Chinese exchange volumes rebound… and more – Cointelegraph Magazine

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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.  

Olympic battle

After months of writing about the relentless actions of the Chinese government, this week we lead with a story from the United States government. On July 19, three U.S. senators signed a letter addressed to the U.S. Olympic and Paralympic Committee, requesting that U.S. athletes not use the digital yuan in February’s Winter Olympic Games in Beijing. The logic was that the digital currency would be traceable after the athletes returned to the U.S., in case China was interested in tracking foreign biathletes and bobsledders in their offseason training regimens. 

China’s Foreign Ministry spokesperson, Zhao Lijian, snapped back that the senators “should stop making troubles” and “figure out what a digital currency really is.” Zhao apparently believes that the U.S. lawmakers might not be up-to-date on the latest in technology, something the crypto enthusiasts on Twitter have been bemoaning for years. 

All sarcasm aside, this points to a growing trend of consumers being caught in geopolitical struggles around technology, which could become a much larger issue as central bank digital currencies, or CBDCs, become more prevalent. Users can choose to avoid certain hardware or apps that provide a data security risk, but avoiding the local currency will be a much more difficult choice to make. Cash use has dropped to a negligible amount in China, with the bulk of daily transactions being digital through Alipay and WeChat. Traveling or living in China without touching the digital currency will be a huge inconvenience, and one likely to not go over well with future generations.

Leading the pack

On July 19, Cointelegraph reported that Chinese Bitcoin miners had earned close to $7 billion dollars in the past year, 10 times more than miners in the second-highest country, the United States. This trend might be broken up slightly by the regulatory crackdown this year but still shows the influence China has on the industry, especially if large Chinese companies can continue to set up operations in neighboring countries.

 

 

Axie Infinity
Axie Infinity’s token is taking off faster than the game in China. Source: Axie Infinity

 

Chinese volumes bounce back

 

Volumes on Chinese exchanges Huobi and OKEx rebounded slightly compared with the same time last week, including on the derivatives side where the two exchanges made up around 44% of Binance’s volume, compared with only 38.7% at the same time the week before. Gaming token Axie Infinity’s AXS remained a hot token for trading and was the fourth-most traded token on Huobi on Thursday behind BTC, ETH and DOGE. Actual gameplay hasn’t really taken off in China, and even though the site remains unblocked by the Great Firewall thus far, visits to the website are still scarce. Users from the Philippines make up 40% of website visitors, whereas China accounted for less than 3%. China boasts the largest gaming community in the world, but tight restrictions on cryptocurrencies are likely to limit the growth of public blockchain-based gaming for the time being. Speculating on gaming-related tokens, however, will likely remain a strong trend. 

It’s worth noting that in the short term, the regulations looming on the horizon make betting on exchanges a risky proposition. Many rumors have swirled about upcoming action to be taken by Chinese regulators, particularly for repeat offenders in the area. Regulators in smaller countries seem to be waiting to see who will throw the first punch. 

Nonfungible fossils

Hong Kong’s most prominent newspaper South China Morning Post is launching an NFT platform aimed at historical news and items. This platform will let verified issuers mint and trade NFTs in an open marketplace. This should appeal to a broader audience of collectors and non-crypto-native users in Southeast Asia, as well as a government interested in exporting soft power to the world.

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Ethereum eyes rally to $3K, with 39% ETH price rebound triggering a classic bullish pattern

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The value of Ether (ETH) jumped to a three-week excessive on Monday, triggered by related features within the Bitcoin (BTC) market that appeared within the wake of rumors about Amazon’s foray into the cryptocurrency sector.

A job posting from the retail big confirmed that it’s in search of an govt to construct its “digital foreign money and blockchain technique.” In the meantime, world media reviews have been speculating, primarily based on inside sources that Amazon would start accepting Bitcoin as funds. Consequently, the BTC/USD alternate fee surged to its six-week excessive after the information.

Ether, whose 30-day correlation with Bitcoin stands at 88%, surged likewise on Amazon’s crypto integration rumor. On Monday, the ETH/USD alternate fee soared to an intraday excessive of $2,390, reaching its highest stage since July 8. The pair was up greater than 6.7% as of 12:20 GMT.

Ether bottomed out twice in a row close to $1,700 in latest classes. Supply: TradingView

Nonetheless, measuring from its earlier backside of $1,720 on Tuesday, the web upside rebound got here out to be 38.94%. The retracement appeared strikingly much like the bullish value motion between June 22 and July 7, whereby ETH/USD rebounded by more than 40% after bottoming out at $1,700.

That stated, Ether bottomed out twice close to the $1,700 vary earlier than rebounding increased by 38%–40%. Analyst Jonny Moe noticed that mirrored retracements transfer and dominated them out as a double backside sample.

The bullish setup

Intimately, double bottoms are bullish pattern reversal patterns, consisting of two troughs across the similar stage hanging by a neckline resistance. Because it performs out, the worth ultimately flips the neckline resistance as assist and rallies increased by as a lot as the utmost sample’s peak.

Ether matches the outline. It has fashioned two consecutive backside ranges at round $1,700. In the meantime, its neckline resistance is close to $2,390. Subsequently, the utmost sample’s peak is $690.

Ether’s double backside setup envisions value at or round $3,000. Supply: TradingView

Ought to the ETH/USD fee break above the $2,390 neckline resistance, accompanied by a spike in quantity, the pair can be anticipated to increase its upside transfer by roughly $690. That might roughly take it towards $3,000 (with $2,948 serving as a psychological bullish goal primarily based on historic value motion).

Confluence

One other technical sample in play outdoes the double backside setup’s upside goal by predicting Ether costs at close to $3,250.

Associated: Ethereum bounces but ETH price in danger of turning $2.3K into new resistance

Dubbed as a falling wedge, the sample develops when the worth trades decrease inside a spread that begins huge however contracts through the downtrend. It will definitely prompts the worth to interrupt bullish whereas establishing its revenue goal at a stage located usually above the wedge peak (if measured from the breakout level).

Ethereum’s falling wedge setup. Supply: TradingView

So, it seems, the ETH/USD alternate fee is present process a bullish breakout confirmed by a high-volumed shut above the wedge resistance trendline. The profit-taking goal for the present setup is $1,208 above the breakout stage, which places the worth en path to $3,257.

The views and opinions expressed listed below are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, it is best to conduct your personal analysis when making a choice.