Indian university joins Hedera decentralized governance council

September 14, 2021 Coin Telegraph

Adoption

The Indian Institute of Technology Madras will test use cases around the Hedera Token Service, a public blockchain for payments.

The Indian Institute of Technology Madras (IITM) has become a member of the Hedera Hashgraph’s council for decentralized governance.

IIT Madras is one of the top institutes for technical education in India, which falls under the direct jurisdiction of India’s Ministry of Education. As a member of the Hedera Governing Council, IITM has become one of the 39 global organizations that run initial network nodes for governing the Hedera public ledger built on distributed ledger technology (DLT).

In addition to advancing DLT's capabilities in education and research, IITM plans to test use cases around public blockchains for payments via Hedera Consensus Service and the Hedera Token Service.

Professor Prabhu Rajagopal from IITM’s Center for Nondestructive Evaluation spoke about helping other council members identify sustainable use cases:

“I am particularly enthused by the opportunity to test and scale our solutions in blockchain-backed information systems in healthcare, industry and digital media.”

In May, IIT researchers launched a blockchain-based phone application called BlockTrack that helps users and organizations digitize and manage medical records.

Complimenting the initiatives of national institutions, the Maharashtra State Board of Skill Development recently deployed an Ethereum blockchain-based tamper-proof credentialing system called LegitDoc.

According to LegitDoc CEO Neil Martis, mainstream institutions, including the National Institute of Technology and Ashoka University, are in talks to implement similar systems to counter document forgery.

Indian regulators are reportedly in talks to pass a crypto bill that would tax cryptocurrency traders, but entrepreneurs believe the move could potentially push cryptocurrencies into the mainstream.

As Cointelegraph reported, the Income Tax Department of India is keen on taxing earnings made through crypto trades and exchanges. However, the upcoming tax laws will not classify cryptocurrencies as a valid asset class.

Crypto experts in India see this move as bullish and believe that crypto tax will eventually provide regulatory clarity for Indian investors.

What Are POAPs, and Why Should You Collect Them?

September 5, 2021 The Crypto Briefing

Traders know not to ‘go long’ when this classic trading pattern shows up

September 4, 2021 Coin Telegraph

Coin Telegraph

Investors watch trading volume and other momentum indicators alongside descending channel patterns to better gauge when to open and close trades.

Buying an asset in a downtrend can be a risky maneuver because most investors struggle to spot reversals and as the trend deepens traders take on deep losses. In instances like these, being able to spot descending channel patterns can help traders avoid buying in a bearish trend.

A “descending channel,” also known as a “bearish price channel” is formed by drawing two downward trendlines, parallel to each other, which confine the price action of the asset.

Descending channel basics

In a downtrend, the price action forms a series of lower highs and lower lows. A descending channel is drawn by joining the lower highs and the lower lows using parallel trendlines. The main trendline is drawn first where two or more lower highs are connected. Then a parallel line, also called the channel line, is drawn connecting the lower lows.

The price action inside a descending channel continues to move south as bears sell on any relief rallies to the main trendline.

*Descending channel pattern. Source:* *TradingView*

The asset in the chart above is in a downtrend, forming lower highs and lower lows. The main trendline is drawn by joining two lower highs (marked as ellipses) while the parallel channel line is drawn by joining the two reaction lows.

When the price reaches the channel line, bulls believe that the price has become attractive and they buy, but the bears are in no mood to allow the bulls to have their way. They sell when the price reaches the main trendline and the trend remains down.

The trading inside the channel is usually random but bound between the two parallel lines. A break below the channel indicates that the bearish momentum has picked up and that could result in a spike down.

Conversely, a breakout of the descending channel suggests a possible change in trend. Sometimes these breakouts result in a new uptrend, but on other occasions the price action forms a range before resuming the downtrend.

Descending channel breakouts

*THETA/USDT daily chart. Source:* *TradingView*

The chart above shows THETA token in a descending channel where the main trendline is formed by joining the two lower highs made on April 16 and May 9. The parallel line drawn from the reaction low on April 18 forms the channel line.

As seen above, the price action is largely caged between these two lines. The bulls pushed the price above the channel on June 17 but could not sustain the higher levels. The bears again quickly pulled the price back into the channel, trapping the aggressive bulls.

There were a few spikes below the channel line but the long tails on the candlesticks show that bulls used these dips to buy. This shows how the lines act as strong support and resistance.

Finally, the price broke above the channel on July 24 and after a minor consolidation, the recovery continued. This confirmed a legitimate breakout, indicating a possible trend change.

*XMR/USDT daily chart. Source:* *TradingView*

Monero (XMR) topped out on June 23, 2019, and then started a downtrend. The main trendline of the channel was formed by connecting the lower highs on July 8, 2019, and Aug. 8, 2019, while the channel line was drawn from the low on July 16, 2019. The XMR/USDT pair continued to trade inside the channel until Jan. 4, 2020.

The bulls pushed and closed the price above the channel on Jan. 5, 2020. This signaled a possible change in trend. The target objective can be arrived at by adding the height of the channel to the breakout level.

In the above case, the depth of the channel was $31.50. Adding this to the breakout level at $51.80, gave a target objective of $83.30. The pair easily exceeded the pattern target and turned down from $96.90 on Feb. 15, 2020.

This suggests that traders should use the target as a guide but decide on closing the position after analyzing other supportive indicators and patterns.

Descending channel breakdowns

*LUNA/USDT daily chart. Source:* *TradingView*

Terra’s LUNA token topped out at $22.40 on March 21. Thereafter, it started trading inside a descending channel pattern. The bears pulled the price below the channel line on April 18 but they could not sustain the lower levels. The bulls pushed the price back into the channel on April 23 and trapped the aggressive bears.

The sellers again broke below the channel line on May 19. Attempts by the bulls to push the price back into the channel failed on May 20 and May 21, confirming a valid breakdown. The pattern target of the breakdown was $5.10 and the LUNA/USDT pair bottomed out at $3.91.

Take care to not mix up bull flags and descending channels

*BTC/USDT daily chart. Source:* *TradingView*

Bitcoin (BTC) rallied sharply from $17,572.33 on Dec. 11, 2020 to $41,950 on Jan. 8, 2021. Subsequently, the price corrected inside two parallel lines, which was a bullish flag pattern but could have been easily mistaken for a descending channel.

Thomas Bulkowski, author of the book Encyclopedia of Chart Patterns, says when a pattern is less than three weeks long, it is a flag, but longer than that can be considered as a channel.

In the above example, the correction lasted for just over three weeks and the price resumed its up-move after breaking out of the flag.

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.

Crypto and blockchain jobs’ share grew 118% in ten months, new data shows

September 3, 2021 Coin Telegraph

Adoption

Not only has demand for cryptocurrency- and blockchain-related expertise increased, but new data suggests that the kinds of roles being posted have shifted over time.

A new report gathering together the most recent data on the cryptocurrency and blockchain job market has suggested that higher levels of institutional adoption have spurred ever greater demand for expertise in the sector.

According to the employment website Indeed, cited today in Korea IT Times, as of mid-July 2021, the overall share of crypto and blockchain job postings on the platform has grown 118% compared to early September 2020.

This solid growth has also come to a shift in the roles being sought after, with the share of management posts in crypto and blockchain increasing 29.87% year-on-year as of July 16. Human resource accounts have risen 200% over the same time frame, whereas software development jobs have dropped down to 29.7% of all crypto and blockchain posts compared with 34.8% the previous year. All data on the allocation of roles has reportedly been drawn from the crypto trading simulator, Crypto Parrot.

As the Korea IT Times observes, blockchain-related roles tend towards a higher salary range than other technology posts, as they demand a strong knowledge of cryptography combined with expertise in ledger economics and object-oriented programming, among other areas. While crypto and blockchain - even DeFi - have steadily gained traction in educational institutions over time, the report alleges that many developers in the sector remain largely autodidact, suggesting universities and programs are lagging.

The report further claims that reliance upon remote working during the pandemic may prove to be a good fit for an industry that prizes decentralization, encouraging core devs and researchers to engage with multiple partners and employers on different projects.

While the report does not provide data on the share of public and private sector employers seeking crypto talent, this year has seen everyone from Israeli intelligence agency Mossad to the Bank of England advertise related roles.

In the private sector, the crypto arm of asset management firm Fidelity Investments has reportedly been planning to grow its workforce by 70%, JPMorgan began accepting applications for blockchain-focused software developers, and Amazon has been seeking someone to lead its digital currency and blockchain strategy and product roadmap amid unconfirmed claims that the mega retailer intends to accept Bitcoin (BTC) payments by 2022.

DeFi literacy: Universities embrace decentralized finance education

September 2, 2021 Coin Telegraph

Coin Telegraph

A small number of universities are beginning to offer DeFi courses to help students and the general public better understand the technology.

Decentralized finance, or DeFi, has become one of the fastest-growing sectors within the cryptocurrency ecosystem. Data shows that the total value locked (TVL) in all DeFi protocols is now around $130 billion. This is an important metric, as some analysts view TVL as one of the best ways to measure sentiment within the DeFi sector.

While growth is apparent, many individuals may still wonder what DeFi is and how it can be applied today. Piers Ridyard, chief executive officer of Radix DLT — a secure decentralized network — stated that DeFi currently only caters to users with sufficient knowledge of the crypto market.

This in mind, it’s notable that a small number of universities are now offering DeFi-focused courses to help educate enrolled students and the general public on the basics of decentralized systems.

Where you can learn about DeFi

The University of California at Berkeley recently added a massively open online course, or MOOC, on decentralized finance to its Fall 2021 semester offering.

Dawn Song, a professor of electrical engineering and computer science at UC Berkeley and founder of blockchain platform Oasis Network, told Cointelegraph that she will help lead the DeFi course, alongside professors from Stanford and Imperial College London. According to Song, DeFi is becoming a fundamentally new way to build financial infrastructure, which is why it’s important for students everywhere to learn about the topic:

“About 300 computer science and finance students have signed up for the course, yet given the enormous interest of DeFi, we are also offering a MOOC version open to everyone globally. In total, over 1400 students have signed up for Berkeley’s DeFi course.”

Song mentioned that UC Berkeley previously offered a shorter, more experimental DeFi course during its Spring 2021 semester. She explained that due to the success and interest of that class, the university is now offering a full semester course covering the most important concepts in DeFi.

“The first segment of the course will cover an introduction to smart contacts and blockchain. The second segment is the core, where we will discuss different DeFi services including stablecoins, decentralized exchanges, decentralized lending and more," Song said, adding further: "We will also cover oracles and privacy protocol in DeFi, which have proven to be a big topic lately.”

Song noted that the DeFi course will be entirely remote due to COVID-19 restrictions but that the curriculum will be the same for both UC Berkeley students and participants in the MOOC class. However, she mentioned that Berkeley students will conduct more course work, such as completing open-ended class projects and getting hands-on experience with developing new technologies within the DeFi space. Nonfungible tokens, or NFTs, will be issued as certificates to those who complete the class.

While UC Berkeley’s DeFi course may be one of the first of its kind, it’s notable that the MOOC is open to everyone across the world. “We have students from Europe, India, Asia and other regions outside of the U.S. taking the class,” said Song. Staying true to DeFi’s open, inclusive standards, she added that the goal of Berekely’s DeFi course is to bring together online participants with students enrolled at Berkeley to create a bigger community while improving the technology in the space.

Wyoming, one of the leading states for blockchain innovation, is also offering education on DeFi to students at the University of Wyoming. Ali Nejadmalayeri, a professor of finance at the University of Wyoming, told Cointelegraph that the university offers a blockchain minor and that various disciplines within the sector can be studied as courses.

For example, Nejadmalayeri teaches the Blockchain and Financial Services course, which is a full-semester online class that contains a portion on DeFi concepts:

“The first part of this course during the Spring semester focused on an introduction and review of the blockchain sector. The second module was about the digital money sphere, which included early experimentation of electronic money and central bank digital currencies. DeFi was the last portion, where we discussed platforms like Uniswap and Aave, along with various applications.”

According to Nejadmalayeri, anyone globally can take the Blockchain and Financial Services course. “If you are admitted as a non-traditional student then you can take the course,” he explained, adding that about 10 students took the class during the Spring semester. But given the interest in DeFi, he expects that number to grow moving forward, pointing out that individuals who don’t have a computer science or finance background are starting to find DeFi interesting:

“You’ve got the people who can code, but DeFi products must be catered to a certain clientele. Inside knowledge of those particular industries are important and will therefore be at the forefront of many of these classes.”

Although the United States ranks as the leading region for DeFi adoption according to data from crypto intelligence firm Chainalysis, European universities and schools are also offering DeFi courses to drive innovation.

For example, the University of Nicosia (UNIC) in Cyprus is offering a free DeFi MOOC beginning Oct. 11. George Giaglis, executive director of the Institute for the Future at UNIC, told Cointelegraph that although UNIC has offered a free introductory course on crypto and blockchain since 2013, DeFi has only been briefly covered. Yet given the success of the course — which has attracted over 45,000 students from various countries — UNIC is now offering a six-week-long online course dedicated entirely to DeFi.

Giaglis shared that the course curriculum will cover all DeFi fundamentals: “This includes the full DeFi application stack (decentralized exchanges, automated market making, lending and borrowing, liquidity mining, yield farming, decentralized insurance, synthetic assets, oracles, stablecoins), governance, tokenomics, DAOs.” While the course is entirely free, Giaglis noted that there is an optional cost for graduates who want to receive a UNIC-issued, blockchain-verifiable certificate of completion.

In addition to UNIC, European Tech School — which launched in July and features two blockchain programs — also discusses DeFi in depth. Victoria Gago, co-chief executive officer of European Tech School, told Cointelegraph that both the Blockchain Executive Program course the Certified Blockchain Expert Course contain a DeFi unit taught by Monica Singer, the South Africa lead at ConsenSys.

Unlike the other DeFi courses mentioned, Gago believes that these blockchain courses are small and focused — requiring students to pay a fee to join and also submit an application for acceptance. Gago elaborated:

“These are all live, online, cohort-based classes that begin on September 15. The classes will consist of 25 students each to ensure that students can interact with professors and their colleagues.”

According to Gago, what is commonly referred to as decentralized finance today will eventually become simply finance in the future, which is why she believes that teaching DeFi-focused courses is necessary: “We hope that the students taking these courses can build an impactful network by being surrounded by others who are there to learn and contribute to the blockchain sector.”

Challenges of teaching DeFi

While it’s notable that universities are beginning to offer DeFi courses, the fast-paced, developing nature of the cryptocurrency sector may create challenges for professors.

For instance, coming up with a syllabus that addresses the most relevant topics in DeFi may be problematic. Nejadmalayeri explained that during the Spring 2021 semester, he had to change everything in his Blockchain and Financial Services course as DeFi started to gain traction: “I had to take out many of my lectures and replace those with DeFi concepts.”

Echoing this concern, Giaglis noted that it can be challenging to develop a curriculum when there's almost nothing to rely upon and when the sector is literally changing by the day: “Suffice to say that we do not consider the material finalized at any point: we are making and will continue to make changes to reflect new developments up until (and beyond) the date of each session.”

However, industry participants believe that DeFi courses are here to stay and will become an integral part of education moving forward. For instance, Alex Tapscott, author and instructor of Coursera’s Blockchain Revolution Specialization series of courses, told Cointelegraph that as the DeFi industry grows, the demand for educational content will also increase:

“In the early days of Bitcoin, schools like Cornell and Berkeley started offering courses around the topic. I wouldn’t be surprised if DeFi is part of the curriculum of every MBA program in the future. We are still very early.”

Adding to this, Kimberly Grauer, director of research at Chainalysis, told Cointelegraph that DeFi courses will be an ongoing trend at many universities, alongside the probable incorporation of other crypto-related courses: “In this sense, DeFi acts as the foundational building block for a wider array of classes.”

Pro traders know it’s time to range trade when this classic pattern shows up

August 17, 2021 Coin Telegraph

Coin Telegraph

Traders analyze bearish and bullish rectangles to spot trend changes and range trade stocks and cryptocurrencies.

A bull trend is formed when demand exceeds supply and a bear trend occurs when sellers overpower the buyers. When the bulls and bears hold their ground without budging, it results in the formation of a trading range.

Sometimes, this leads to the formation of a rectangle pattern, which can also be described as a consolidation zone or a congestion zone. Bearish and bullish rectangles are generally considered to be a continuation pattern but on many occasions, they act as a reversal pattern that signals the completion of a major top or bottom.

Before diving in to learn more about the bullish and bearish rectangle patterns, let’s first discuss how to identify them.

Basics of the rectangle pattern

A rectangle is formed when an asset forms at least two comparable tops and two bottoms that are almost at the same level. The two parallel lines can be used to join the high and the low points, forming the resistance and support lines of the rectangle.

The duration of the rectangle could range from a few weeks to several months and if this time is shorter than three weeks it is considered a flag. Typically, the longer an asset spends in consolidation, the larger is the eventual breakout or breakdown from it.

Bullish rectangle pattern

As shown above, the asset is in an uptrend but after the rally, some bulls took profits and this created the first reaction high. After the price corrects, several dip buyers jump in and arrest the decline, which forms the first trough.

As demand exceeds supply, the asset attempts to resume its up-move but when the price nears the previous reaction high, traders book profits again. Joining these two high points with a straight line forms the resistance of the rectangle. When the price turns down, buyers defend the earlier reaction low and this forms the support.

It is difficult to predict the direction of the breakout beforehand and the price could trade between the support and the resistance for a few weeks or even months. For this reason, it is better to wait for the price to escape the rectangle before turning bullish or bearish.

In the above example, the price breaks out of the resistance of the range as demand exceeds supply. This could result in the resumption of the uptrend.

Bearish rectangle pattern

As shown in the above example, the asset is in a downtrend but when the price reaches a level deemed as undervalued by traders, dip buyers absorb the supply and form a reaction low. Bulls then attempt to reverse the direction but the sentiment is still negative and traders sell on rallies, forming the reaction high.

Traders again buy the dip when the price reaches the first reaction low but the bears stall the recovery near the earlier reaction high. Thereafter, the price gets stuck between the parallel lines, forming a rectangle.

The bearish rectangle pattern completes when the price breaks and closes below the support of the range. This generally results in the resumption of the downtrend.

A bullish continuation rectangle pattern

THETA had been in an uptrend before hitting resistance near $0.80 on Sep. 30, 2020. On the downside, buyers stepped in and arrested the correction near $0.55. Thereafter, the price remained stuck between these two levels until Dec. 15, 2020.

The THETA/USDT pair broke above the rectangle on Dec. 16, 2020, which indicated that the bulls had overpowered the bears. This signaled the resumption of the uptrend.

To arrive at the target objective of the breakout from the rectangle pattern, calculate the height of the rectangle. In the above case, the height is $0.25. Add this value to the breakout level, which is $0.80 in the above example. That gives the target objective at $1.05.

After a long consolidation, when the uptrend resumes, it may overshoot the target by a huge margin as is the case above. Traders can use the target as a reference point but the decision to close or hold the trade should be taken after considering the strength of the trend and signals from other indicators.

The same processes apply to bearish rectangles as shown below.

*LTC/USDT daily chart. Source:* *TradingView*

Litecoin (LTC) had been in a strong downtrend, dropping from $184.98 on May 6, 2018, to $73.22 on June 24, 2018. The buyers stepped in at this level and attempted to form a bottom but the bears were in no mood to relent. They stalled the recovery at $90 on July 3, 2018. Thereafter, the LTC/USDT pair remained range-bound between these two levels until Aug. 6, 2018.

The bears reasserted their supremacy and pulled the price below the rectangle on Aug. 7, 2018. This resumed the downtrend.

The target objective following the breakdown from a bearish rectangle is calculated by deducting the height of the rectangle from the breakdown point. In the above case, the height of the rectangle is $17. Deducting it from the breakdown level at $73 presents a target objective at $56.

The rectangle as a reversal pattern

*ETH/USDT daily chart. Source:* *TradingView*

Ether (ETH) topped out at $1,440 in January 2018 and started a strong downtrend, which reached $81.79 in December 2018. This level attracted strong buying from the bulls and the ETH/USDT pair made a sharp recovery. However, bears stalled the recovery near $300 in June 2019. Thereafter, the pair remained stuck between these two levels until July 24, 2020.

The bulls pushed the price above the rectangle on July 25, 2020, which suggested the start of a new uptrend. The bears tried to pull the price back below the breakout level at $300 but failed. This showed that the sentiment had turned positive and traders were buying the dips. The pair resumed its uptrend in November 2020.

Although the pattern target of the breakout from the rectangle was only $518.21, the pair rose to an all-time high at $4,372.72 in May.

Key takeaways

The rectangle pattern is a useful tool because it can act both as a continuation pattern and a reversal pattern. If the rectangle is large, traders may buy near the support and sell near the resistance.

To benefit from the rectangle and avoid getting whipsawed, traders can wait for the price to break and sustain above or below the pattern before establishing positions.

The target objective should only be used as a guide because when the price breaks out of a long rectangle it tends to overshoot the target objective by a huge margin.

Pro traders look for this classic pattern to spot Bitcoin price reversals

July 31, 2021 Coin Telegraph

Coin Telegraph

Crypto and stock traders view the inverse head-and-shoulders pattern as an early signal that a bullish trend reversal is in the making.

Every trader aims to buy low and sell high, but only a few are able to muster the courage to go against the herd and purchase when the downtrend reverses direction.

When prices are falling, the sentiment is negative and fear is at extreme levels, but it's at times like these that the inverse head and shoulders (IHS) pattern can appear.

The (IHS) pattern is similar in construction to the regular H&S top pattern, but the formation is inverted. On completion, the (IHS) pattern signals an end of the downtrend and the start of a new uptrend.

Inverse head and shoulders basics

The (IHS) pattern is a reversal setup that forms after a downtrend. It has a head, a left shoulder and a right shoulder that are upside down and placed below a neckline. A breakout and close above the neckline completes the setup, indicating that the downtrend has reversed.

*Head-and-shoulders bottom pattern. Source:* *TradingView*

As shown above, the asset is in a downtrend but after a significant decline, value buyers believe the price has reached attractive levels and will start bottom fishing. When demand exceeds supply, the asset forms the first trough from the left shoulder and the price starts a relief rally.

In a downtrend, traders sell on rallies. The bears sell aggressively after the pullback and the price dips below the first trough, making a lower low. However, bears are unable to capitalize on this weakness and resume the downtrend. The bulls buy this dip and start a relief rally, forming the head of the pattern. As the price nears the previous peak where the rally had stalled, the bears again step in.

That starts the decline, culminating in the formation of the third trough, which is arrested almost in line with the first trough as buyers anticipate a turnaround and purchase aggressively. This forms the right shoulder of the setup. The price turns up and this time, the bulls manage to push the price above the neckline, completing the pattern.

The neckline thereafter becomes the new floor as traders buy the dip to this support. This signals the start of a new uptrend.

Identifying a new uptrend with the (IHS) pattern

Bitcoin (BTC) had been in a downtrend since forming a local top at $13,970 on June 26, 2019. The buyers stepped in and arrested the decline in the $7,000 to $6,500 support zone, forming the left shoulder of the (IHS) pattern. This started a relief rally that pushed the price to $10,450. At this level, short-term bulls booked profits and bears initiated short positions, aiming to resume the downtrend.

Aggressive selling broke the support at $6,500 and the Bitcoin/Tether (USDT) pair plunged to $3,782.13 on March 13, 2020. The bulls viewed this fall as a buying opportunity and that started a strong relief rally, which reached close to $10,450. This second trough formed the head of the setup.

The right shoulder was shallow because the selling pressure was reduced and bulls did not wait for a deeper correction to buy. Finally, the bulls pushed the price above the neckline on July 27, completing the (IHS) pattern.

The bears tried to trap the bulls and they pulled the price back to the neckline. Although the price dipped just below the neckline, traders did not allow the pair to sustain below $10,000. This suggested a change in sentiment. The bullish momentum picked up as buyers pushed the price above $12,500.

How to calculate the pattern target of a IHS setup

To calculate the minimum target objective of the (IHS) pattern, calculate the depth from the neckline to the lowest point, forming the head. In the above example, the neckline is around $10,450, and subtracting the lowest point at $3,782.13 gives a depth of $6,667.87.

This value is then added to the breakout level, which in the above example, is near $10,550. This gives a target objective at $17,217.87. When a trend changes from down to up, it may fall short or exceed the target objective. Therefore, traders should use the target as a guide and not dump their positions just because the level has been reached.

Patience pays o because sometimes the pattern fails

No pattern succeeds at every breakout and traders should wait for the setup to complete before initiating the trades. Sometimes, the pattern structure forms but the breakout does not happen. Traders who preempt the completion of the pattern and initiate trades get trapped.

*LINK/USDT daily chart. Source:* *TradingView*

For example, Chainlink’s LINK topped out at $4.58 on June 29, 2019, and started a correction. The buyers attempted to stall the decline in the $2.20 to $2.00 zone. This formed an (IHS) pattern with a head and two shoulders as can be seen in the chart above.

Although the price reached the neckline on Aug. 19, 2019, the buyers could not push the price above it. Due to this, the pattern did not complete and the buy signal did not trigger.

The LINK/USDT pair turned down from the neckline and broke below the head of the setup at $1.96, invalidating the pattern. This trapped traders who may have purchased in anticipation of a trend reversal.

Key takeaways

The (IHS) pattern could be a useful tool for traders to jump on a new uptrend as it is getting started. There are a few important points to remember while using this setup.

Traders should wait for the pattern to complete, which happens after the price breaks and closes above the neckline, before initiating any long positions. A breakout of the neckline, which is on above-average volume, is more likely to result in a new uptrend compared to a breakout that happens on low volumes.

When a trend reverses, it generally continues for a long time. Therefore, traders should not be in a hurry to dump positions only because the pattern target has been met. At other times, the pattern completes but quickly reverses direction and the price plummets. Traders should closely watch the other indicators and price action before squaring up a position.

India to use Ethereum blockchain to verify diploma certificates

July 27, 2021 Coin Telegraph

Coin Telegraph

A new partnership with LegitDoc places India among early adopters to implement an e-governance system for higher education.

The Government of Maharashtra recently announced a partnership with Indian blockchain startup LegitDoc to implement a credentialing system powered by Ethereum (ETH) for providing tamper-proof diploma certificates.

In an effort to counter the rise in document forgery, the Maharashtra State Board of Skill Development (MSBSD) goes against India’s crypto ban narrative to use Ethereum-based public blockchain. In an exclusive statement with Cointelegraph, LegitDoc CEO Neil Martis highlighted that while the certificates are verified using the traditional manual methods, MSBSD will start advocating only the digital verification method for all the manual verification requests year.

Showcasing interest from other local government authorities, Martis added:

“We have an active work order from the Govt of Karnataka (Dept of Information Technology and Biotechnology). We are in talks with the Government of Telangana (school education dept) and Higher & Technical education dept of Maharashtra to implement LegitDoc for their student community.”

Mainstream institutions such as the National Institute of Technology (Surathkal) and Ashoka University are in talks to implement a similar solution for countering the ongoing forgery of documents, Martis said.

The partnership with LegitDoc places India among early adopters to implement an e-governance system for education with the Massachusetts Institute of Technology (MIT), Malta and Singapore.

Citing blockchain’s capability in curbing the frauds related to document forgery, Chairman of MSBSD Dr. Anil Jadhao pointed out:

“In the last 10 years, there has been a rampant increase in forgery of government-issued documents which have caused huge financial & reputational losses to the stakeholders involved.”

Following up on MIT’s implementation of the tamper-proof blockchain diploma, Cointelegraph reported Prof. Stuart Madnick’s point of view that blockchain comes with its unique set of challenges.

As a word of caution, Madnick opined,

“The bottom line is that while the blockchain system represents advances in encryption and security, it is vulnerable in some of the same ways as other technology, as well as having new vulnerabilities unique to blockchain. In fact, human actions or inactions still have significant consequences for blockchain security.”

This classic trading pattern signaled that Bitcoin price had hit a top

July 25, 2021 Coin Telegraph

Bitcoin Price

In technical analysis, traders interpret the head and shoulders formation as a strong sign that a trend reversal is in process.

Traders tend to focus too much on timing the right entry to a trade, but very few focus on developing a strategy for exiting positions. If one sells too early, sizable gains are left on the table and if the position is held for too long, the markets quickly snatch back the profits. Therefore, it is necessary to identify and close a trade as soon as the trend starts to reverse.

One classical setup that is considered reliable in spotting a trend reversal is the head-and-shoulders (H&S) pattern. On the longer timeframes, the H&S pattern does not form often, but when it does, traders should take note and act accordingly.

Let’s look at a few ways to identify the H&S pattern and when to act on it.

Head-and-shoulders basics

The H&S pattern forms after a bull phase and indicates that a reversal may be around the corner. As the name indicates, the formation consists of a head, a left shoulder, a right shoulder, and a distinct neckline. When the pattern completes, the trend usually reverses direction.

*Head-and-shoulders top pattern. Source:* *TradingView*

The above image shows the structure of an H&S pattern. Before the formation of the setup, the asset is in an uptrend. At the peak where the left shoulder forms, traders book profits and this results in a decline. This forms the first trough but it is not yet a strong enough signal to provoke a trend change.

Lower levels again attract buying because the trend is still bullish and buyers manage to push the price above the left shoulder, but they are not able to sustain the uptrend.

Profit-booking by the bulls and shorting by counter-trend traders pull the price down, which finds support near the previous trough. Joining these two troughs forms the neckline of the setup.

As the price rebounds off the neckline, the bulls make one more attempt to resume the uptrend but as the price reaches the height close to the left shoulder, profit-booking sets in and the rally fizzles out.

This lower peak forms the right shoulder and is usually in line with the left shoulder. The up-move reverses and the selling picks up momentum. Finally, the bears succeed in pulling the price below the neckline. This completes the bearish pattern and the trend reverses from bullish to bearish.

Spotting trend reversals with the H&S pattern

Bitcoin (BTC) started a strong up-move after breaking out at $20,000 in December 2020. The BTC/USDT pair hit a local peak at $61,844 on March 13 and the price corrected, forming a trough on March 25. This local peak was the left shoulder.

The bulls considered the dip as a buying opportunity because the trend was still up. Aggressive buying then pushed the price above $61,844 and the pair hit a new all-time high at $64,854 on April 14. This level attracted selling, which pulled the price down to form the second trough on April 25. The middle peak, higher than the other peaks, formed the head.

Another attempt by the bulls to resume the uptrend failed on May 10. This formed the right shoulder and the ensuing correction broke below the neckline of the pattern. The breakdown and close below the neckline on May 15 completed this bearish setup.

Sometimes, after the breakdown, the price retests the breakdown level from the neckline but when the momentum is strong the retest may not happen, an example which is shown in the chart above.

To calculate the pattern target of this setup, determine the distance from the neckline to the top of the head. In this case, the value is $15,150. This distance is then subtracted from the breakdown point on the neckline to arrive at the minimum target objective.

In the above example, the breakdown happened close to $48,000. This projected a pattern target at $32,850. This figure should be used as a guide because sometimes the decline exceeds the target, and in other scenarios the down move ends without reaching the target objective.

Head-and-shoulders sometimes fail

Sometimes traders jump the gun and take counter-trend positions before the price breaks below the neckline of the developing H&S formation. Other times, the break below the neckline does not see follow-up selling and the price climbs back above the neckline. These instances may lead to failed setup, trapping the aggressive bears who are forced to cover their positions and this results in a short squeeze.

*ADA/USDT daily chart. Source:* *TradingView*

Cardano (ADA) started an uptrend from the $0.10 level on Nov. 20, 2020. The uptrend hit resistance in the $0.35 to $0.40 zone in January and a H&S pattern started developing. The price dipped to the neckline on Jan. 27, but the bears could not sink and close the ADA/USDT pair below the support.

When the price rebounded off the neckline on Jan. 28, it was a signal that the sentiment remained bullish. There was a minor hiccup on Jan. 30 and 31 when bears attempted to stall the up-move near the right shoulder but sustained buying from the bulls pushed the price above the head on Feb. 1. This break above the head of the pattern invalidated the setup.

When a bearish setup fails, it catches several aggressive sellers on the wrong foot. This results in a short squeeze and propels the price higher. The same thing happened in the above example and the pair soared in February.

Key takeaways

The H&S pattern is considered a reliable reversal pattern but there are some important points to bear in mind.

A downward sloping or flat neckline is considered to be a more reliable pattern compared to an upsloping neckline. Traders should wait for the price to break down and close below the neckline before initiating trades. Pre-empting the setup could result in losses because a failed bearish pattern could result in a strong rally.

The pattern targets should only be used as a guide because sometimes the price may overshoot and continue the down move and at other times it may reverse direction before reaching the target objective.

How to get involved with crypto: The first step into blockchain industry

July 17, 2021 Coin Telegraph

Adoption

The crypto and blockchain industry has blossomed into a large sea of activity and development, divided into various niches.

The cryptocurrency industry has grown immensely in the years since it began. Following Bitcoin’s (BTC) launch in 2009, an entire industry has sprung up and flourished around the innovative asset and its underlying blockchain technology. People have created thousands of crypto projects, numerous different blockchains and a number of different blockchain technological specifications and variants.

With such a deep and vast industry, how do you know where to start if you want to get involved? Start with your interests and talents.

The cryptocurrency and blockchain industry (also sometimes referred to as simply the blockchain industry or the crypto industry) has branched out into a number of specific niches in which you can participate in various capacities. The factions of these industries explained in this article are not an exhaustive list, but provide a few examples of different niches within the space.

The niches mentioned are also not particularly coined or accepted industry-wide and may be grouped differently or classified differently, depending on who you talk to or what source you investigate. Some niches can also overlap with other niches within the overall industry.

Developers

Tech-savvy folks who can code might be interested in this section of crypto and blockchain. This could mean constructing decentralized applications, helping develop blockchains, or working on technical specifications for crypto assets. Developers put together the underpinnings of the industry’s solutions and assets.

To understand blockchain, check out — How does blockchain work? Everything there is to know

Numerous areas of potential interest fall under the developer category. The decentralized finance (DeFi) niche of the crypto space became prominent in 2020, introducing a whole new demand for digital asset swapping and related infrastructures. DeFi involves solutions for functions such as crypto-based loans.

To learn more about DeFi, read — DeFi: A comprehensive guide to decentralized finance

Another potential area for tech-interested folks is that of nonfungible tokens (NFTs), which exploded in prevalence in 2021, offering a new way to authenticate and track unique items of value. The NFT subdivision of crypto needs folks with technical skills to build out solutions around existing use cases, as well as explore uncharted usages of the tech.

Interested in NFTs? Check out Cointelegraph Magazine’s Nonfungible tokens quick guide

Traders

Crypto trading is similar to stock trading in some ways. The crypto industry boasts thousands of digital assets that each fluctuate in price. Trading crypto involves buying and selling assets in search of profit. Traders are not so much concerned with what an asset does and how it works as much as they are interested in whether or not they can buy assets and sell them at higher prices, or vice versa.

Traders may be interested in the latest news, looking to buy and sell based on hype or expectations. Traders also often use price charts, gauging price patterns and price indicators. Charting price action is called technical analysis. Additionally, since Bitcoin and other cryptocurrencies show asset movement publicly on their blockchains, analysts can come up with their own conclusions based on transactions and activity — known as on-chain analysis.

For more on crypto trading, read: How to trade cryptocurrencies: The ultimate beginner's guide

Trading can also overlap with the developer’s niche, as traders may want to build (or have someone else build) trading bots, customer chart indicators and other useful trading tools.

Regulation

How does crypto fit into countries’ existing laws and regulations? Should regions craft new laws and guidelines for crypto and blockchain? Regulation has been a growing area of focus as the crypto industry continues to develop for years to come.

Cryptocurrency classifications as assets have come along slowly. Bitcoin and Ethereum (ETH) are generally viewed as commodities, but the classification for the many other crypto assets in the industry has been less than clear.

The United States Securities and Exchange Commission (SEC) took action against Ripple in 2020 regarding the status of XRP, an asset Ripple has been involved with in various capacities over the years. Other regulatory action also exists in crypto and blockchain, such as the ongoing scene with crypto exchanges and their regions of operation.

Crypto or blockchain-interested folks in the mainstream legal or regulatory field might find an overlap of their passions by diving into crypto regulation in some capacity. This might include working on crypto projects’ legal and compliance teams, working with policy groups and think tanks, or serving directly within governments to elicit change.

Company builders

Leaders and visionaries may have the desire to improve the crypto space by creating a project or business that solves an identified problem or need. Innovators have birthed countless projects in the space over the years, helping to grow the industry from a single asset into an entire sector.

Building a company might involve identifying something that is missing in crypto or blockchain space, then subsequently hiring and leading a team focused on providing a particular solution to that problem.

For more about crypto regulation, read: Will regulation adapt to crypto, or crypto to regulation? Experts answer

Overlap in this category exists, as company builders may also have expertise in coding, regulation, or another of the aforementioned fields.

Content creators

Social media and internet growth have opened the door for participants to share their thoughts and expertise globally. Virtually anyone can learn vast amounts of information about the crypto space through YouTube, Twitter and other methods, and then add their own expertise to the equation by providing their own content.

Content streams can include writing about crypto and blockchain on a personal blog or for a media company, making YouTube content, Medium posts, and more. Content creation can overlap with all of the other categories mentioned in this article as well. Developers, traders and regulatory professionals can all create their own content.

Education

Descending channel basics

Descending channel breakouts

Descending channel breakdowns

Take care to not mix up bull flags and descending channels

Where you can learn about DeFi

Challenges of teaching DeFi

Basics of the rectangle pattern

Bullish rectangle pattern

Bearish rectangle pattern

A bullish continuation rectangle pattern

The rectangle as a reversal pattern

Key takeaways

Inverse head and shoulders basics

Identifying a new uptrend with the (IHS) pattern

How to calculate the pattern target of a IHS setup

Patience pays o because sometimes the pattern fails

Key takeaways

Head-and-shoulders basics

Spotting trend reversals with the H&S pattern

Head-and-shoulders sometimes fail

Key takeaways

Developers

Traders

Regulation

Company builders

Content creators

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