Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of BTC/USD for 30 October 2019

Crypto Industry News:
Cryptocurrencies like Bitcoin are not real money, as we read in a statement published by the German federal parliament.

According to the announcement, the assets offered by the current cryptocurrency landscape - such as Bitcoin - provide only a very limited part of the functions expected from traditional money. The statement entitled "Cryptographic tokens are not real money" - based on the answer given by the German federal government to the question of the Free Democratic Party parliamentary group.

The answer given defines the basic features of money: exchange and payment methods, storage of value and unit of account. The advertisement indicates that the amount of payments made using crypto is limited compared to fiat currencies.

In addition, the author of the statement also claims that value fluctuations make crypto tokens unsuitable for storing values. The government's reply states that stablecoin coins are trying to solve problems caused by excessive price fluctuations. Despite this, the government explains that it intends to prohibit their adoption:

"It will be ensured that stablecoins do not become an alternative to state currencies and thus undermine the existing monetary system."

Finally, the government also noted that they had not yet determined whether Facebook Libra would comply with German law. The statement states that the white paper of the project is not an appropriate source of information for the assessment of the case and the need for additional information.


Technical Market Overview:
The BTC/USD market has entered a corrective cycle and bulls are struggling to break through the technical resistance located at the level of $9,796. The zone from $9,645 to $10,278 is still a sell zone, where most of the sell orders have entered the market. The immediate support is seen at the level of $9,263. The bearish pressure intensifies and the next target for bears is seen at the level of $8,760 or even $8,474 before a new wave up will be made.

Weekly Pivot Points:
WR3 - $14,033
WR2 - $12,095
WR1 - $10,995

Weekly Pivot - $9,057
WS1 - $8,029
WS2 - $6,062
WS3 - $4,932


Trading Recommendations:
Due to the short-term impulsive scenario invalidation, the best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.







Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of ETH/USD for 30 October 2019

Crypto Industry News:
The head of the Chinese think tank said that the Chinese central bank will be the first to successfully introduce the digital currency.

According to the Chinese news magazine, Huang Qifan, vice president of China Center for International Economic Exchanges (CCIEE), is convinced that the Chinese central bank will win the race for the first central currency of the central bank (CBDC).

Qifan's comments appeared at the Bund's inaugural financial summit in 2019 in Shanghai. According to Qifan's publication, he was dissatisfied with the current dependence on US SWIFT and CHIPS payment systems, which currently depend on cross-border renminbi exchange. His complaints were based on both US sanctions and platform technical limitations.

"SWIFT is an outdated, inefficient and expensive payment system. Since SWIFT was established 46 years ago, this technology has been updated slowly and performance has been relatively low," he said.


Technical Market Overview:
Despite the slight breakout above the level of $188.93, the bullish attempt to rally on the ETH/USD pair has been capped at the level of $192.16 and a Harami candlestick pattern was made. The market has entered a corrective cycle with a low made at the level of $172.91 and as long as it trades above the level of $163.11 there is still a chance for another impulsive wave up. The nearest technical resistance is seen at the level of $193.52 and the nearest technical support is seen at the level of $179.94.

Weekly Pivot Points:
WR3 - $249.74
WR2 - $225.62
WR1 - $207.85

Weekly Pivot - $177.85
WS1 - $161.54
WS2 - $131.99
WS3 - $115.01


Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

BTC. Potential gap fill on the Bitcoin
30 October 2019

BTC has been trading downside and the price tested the level of $9.000. I see potential chance for the gap fill and test of $8.770-$8.356. As long as the swing high at 9.934 is holding, there is the chance for the downside.


Yellow rectangle – Resistance level

Falling white line – Expected path

Horizontal lines – Support levels

Based on the 4H time-frame, there is potential for the gap fill and test of $8.770. BTC is trading in defined downward channel and the sellers are in control for now. My advice is to watch for selling opportunities near the resistance zone $9.165 with the downward targets at $8.770 and $8.350.




Performed by Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of BTC/USD for 31 October 2019

Crypto Industry News:
The Bitcoin mining company belonging to the Russian Ombudsman plans to open a new facility and gain 20% of the international market.

The Russian Mining Company (RMC) plans to change the purpose of the metal factory in the northern province of Karelia, according to a local news site. Closed due to US sanctions in 2018, the former Rusal facility may soon host such a large mining farm that it could account for one-fifth of global production.

"Our idea is to transform the factory and sell computing power as a service, that is, offering IT services," said general director Dmitry Marinichev.

Mariniczew led the RMC through an ICO of $ 43 million in 2017, which remains the largest in Russia.

Despite links to the Russian government, Marinichev criticized some policies, especially aspects related to the Internet. For example, the Kremlin's attempt to block the Telegram communicator caused contempt. Efforts to date have failed, because Telegram is still available, while the company may soon be moving to issue its own digital currency.

"It cannot be blocked by blacklisting IP addresses. This way the battle will go on forever, even if you consider that part of the Telegram client is open-source software whose internal operations can be analyzed and understood," he said in an interview. from May last year.


Technical Market Overview:
The BTC/USD market is still trading below the short-term trendline resistance and bulls are struggling to break through it. The zone from $9,645 to $10,278 is still a sell zone, where most of the sell orders have entered the market. The immediate support is seen at the level of $8,925. The bearish pressure intensifies and the next target for bears is seen at the level of $8,760 or even $8,474 before a new wave up will be made.

Weekly Pivot Points:
WR3 - $14,033
WR2 - $12,095
WR1 - $10,995

Weekly Pivot - $9,057
WS1 - $8,029
WS2 - $6,062
WS3 - $4,932


Trading Recommendations:
Due to the short-term impulsive scenario invalidation, the best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of ETH/USD for 31 October 2019

Crypto Industry News:
Chinese cryptocurrency mining giant, Canaan Creative, has applied to become a public company in the United States.

Canaan Creative filed an IPO with the US Securities and Exchange Commission (SEC) to raise $ 400 million, while planning to list on Nasdaq under the name CAN. Canaan reportedly submitted an $ 200 million IPO application to US regulators in July, but the formal F-1 form has been made public today.

If the company succeeds, Canaan, which is one of the three largest Chinese mining companies, next to Bitmain and Yibang International, may become the first Chinese mining company that is listed on the US Stock Exchange.

Bitmain has already made an offer for a stock exchange debut at the SEC in June 2019 after the expiry of its application for stock trading on the Hong Kong Stock Exchange in March.

Canaan's biggest competitor, Bitmain, opened, he claimed, the world's largest Bitcoin mining facility in Rockdale, Texas, which was completed through collaboration with the Rockdale Municipal Development District and Canadian technology company DMG Blockchain Solutions.

Clinton Brown, project manager of Rockdale for Bitmain, said that commissioning the facility is "essential to Bitmain's global expansion plans" and that stable and efficient state energy resources will be fundamental to supporting what he believes is the inevitable scale of mining industry growth.


Technical Market Overview:
After a Harami candlestick pattern was made around the level of $193.00, all the bullish attempts to rally are being reversed by bears and the price of ETH/USD is making new local lows. The market has entered a corrective cycle with a low made at the level of $172.91, but as long as ETH/USD trades above the level of $163.11 there is still a chance for another impulsive wave up. The nearest technical resistance is seen at the level of $193.52 and the nearest technical support is seen at the level of $179.94. The key technical support is located at the level of $172.91.

Weekly Pivot Points:
WR3 - $249.74
WR2 - $225.62
WR1 - $207.85

Weekly Pivot - $177.85
WS1 - $161.54
WS2 - $131.99
WS3 - $115.01


Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of BTC/USD for 04 November 2019

Crypto Industry News:
Following the recent imposition of limits on purchases in US dollars, the Central Bank of Argentina (BCA) announced that citizens are forbidden to use credit cards to buy Bitcoins or other cryptocurrencies.

The messages were published in a communication covering several industries in which the use of credit cards has been restricted or banned. The section about cryptocurrency reads:

"Purchasing Bitcoin and cryptocurrencies: It is forbidden to buy BTC using this payment method. The only remaining alternative to this investment is to do it with money transferred from a bank account."

It is unclear whether the rules apply only to credit cards or whether they include debit and prepaid cards.

BCA claims that these measures are key to maintaining the country's foreign reserves. According to experts, the central bank intends to block the entry of dollars into the country, trying to have stronger control.

This is due to BCA's move earlier this week, where the amount of US dollars that Argentine citizens could buy every month was limited. The maximum amount has been reduced from $ 10,000 to just $ 200.


Technical Overview:
The BTC/USD pair technical picture did not change too much during the weekend as the lack of volatility is making the market to move sideways. The price is locked in a narrow range between the levels of $9,046 - $9,263 and the momentum is neutral on the H4 timeframe chart. The zone from $9,645 to $10,278 is still a sell zone, where most of the sell orders have entered the market. The immediate support is seen at the level of $8,925.

Weekly Pivot Points:
WR3 - $10,530
WR2 - $10,201
WR1 - $9,572

Weekly Pivot - $9,189
WS1 - $8,589
WS2 - $8,251
WS3 - $7,587


Trading recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.







Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of ETH/USD for 04 November 2019

Crypto Industry News:
The Malta Financial Services Authority (MFSA) received inquiries from 21 cryptocurrency exchanges in order to obtain a license in accordance with the Virtual Financial Assets (VFA) Act.

According to the official announcement of 21 exchanges, there are 34 potential VFA service providers who have sent letters of intent to the Maltese financial regulator to obtain a license for VFA services.

MFSA clarified that cryptocurrency suppliers up to October 31 acted in accordance with the transitional provisions set out in Art. 62 of the VFA Act. These companies will now need to apply for authorization at MFSA to continue operations in or from Malta.

According to media publications, applicants will be classified at MFSA's discretion into one of four categories that specify the requirements of license holders. The regulator also plans to enforce administrative penalties for compliance violations.

In an official announcement, MFSA stated that it would shortly contact applicants to arrange an initial meeting. After the meeting, applicants will have 60 days to submit a full application back to the authority.

According to the announcement, 30 applications for registration of VFA agents were received by MFSA, of which 18 were registered. The list of registered agents is available on the MFSA website.

The VFA Act is part of the legislation related to Blockchain technology adopted in July 2018 together with the Malta Digital Innovation Authority Act and the Innovative Technological Arrangement and Services Act. In September, MFSA published its strategic plan, claiming that it will actively monitor and manage the business risk associated with cryptocurrency companies.


Technical Overview:
The ETH/USD pair keeps trading close to the recent lows made by the corrective down move last week and did not improve the situation during the weekend. The market is making lower highs, so the bearish pressure might be clear now and confirmed by the recent Pin Bar and Harami candlestick patterns on the H4 timeframe chart. The market continues a corrective cycle with a low made at the level of $172.91, but as long as ETH/USD trades above the level of $163.11 there is still a chance for another impulsive wave up. The nearest technical resistance is seen at the level of $193.52 and the nearest technical support is seen at the level of $179.94. The key technical support is located at the level of $172.91.

Weekly Pivot Points:
WR3 - $203.38
WR2 - $197.53
WR1 - $186.87

Weekly Pivot - $181.92
WS1 - $171.26
WS2 - $165.71
WS3 - $155.07


Trading recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

BTC 11.04.2019 -2-day balance in the focus, watch for breakout to confirm further direction

Bitcoin has been trading upwards in the past 24 hours. The price did test the level of $9.300 I found 2 important pivot points for the BTC.The 2-day high at the price of $9.420 and the 2-day low at the price of $8.920.



The successful breakout of the 2-day high at $9.420 may lead us for test of $9.920.

The successful breakout of the 2-day low may lead us for potential test of $8.600

MACD is showing positive reading above the zero

Bollinger band is headiing upside and the middle line at the price of $8.485 is providin support.





Performed by Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of BTC/USD for 05 November 2019

Crypto Industry News:
France intends to introduce an educational module to its high school curriculum, which includes Bitcoin and cryptocurrencies.

The French Ministry of National Education has changed its curriculum to include the world's largest cryptocurrency. French teachers should lead an introductory course that will help students understand the impact of Bitcoin on the French and global economy.

The Ministry provides teachers with three educational videos that address questions such as: "Is Bitcoin the currency of the future?", "Can Bitcoin replace the euro?" And "Do you trust your currency?"

According to the ministry's draft, students will have to compare Bitcoin with fiat currency, which will ultimately lead to basic knowledge about Bitcoins, cryptocurrencies, and their role in the traditional financial world.

Because this is only an introductory course to Bitcoin, students will not leave the class as full-fledged cryptocurrency experts. However, teaching young students some of the issues related to Bitcoins and cryptocurrencies will provide them with the knowledge that becomes more and more relevant as cryptocurrencies become more and more common.

In France, a rapid increase in the popularity of cryptocurrencies is observed largely thanks to the French cryptographic startup Keplerk, which at the beginning of October re-launched its payment acceptance service in Bitcoin in more than 5,200 tobacco stores in France.


Technical Overview:
The BTC/USD pair is still locked in a narrow range between the levels of $9,539 - 8,836 (marked as thick black lines on the chart), and the momentum is neutral on the H4 timeframe chart. The zone from $9,645 to $10,278 is still a sell zone, where most of the sell orders have entered the market. The immediate support is seen at the level of $8,925. The global investors wait for the next breakout, so the volatility might dry up for some time now.

Weekly Pivot Points:
WR3 - $10,530
WR2 - $10,201
WR1 - $9,572

Weekly Pivot - $9,189
WS1 - $8,589
WS2 - $8,251
WS3 - $7,587


Trading recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.







Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of ETH/USD for 05 November 2019

Crypto Industry News:
The British Tax, Payment and Customs Authority, Her Majesty's Revenue and Customs (HMRC), has updated its guidelines for taxing cryptocurrencies for businesses and individuals. The UK government tax agency, which manages taxes along with other financial policies, has issued tax guidance updates that further clarify its position on the taxation of businesses and individuals associated with cryptocurrencies.

The guidelines present HMRC's views on cryptocurrency transactions that apply taxes, how to submit tax returns and accounting practices. It also considers the taxation of exchange tokens, while stating that the rules for utility or security tokens will be added in the future.

Companies that buy or sell tokens, extract or exchange them for other assets, or provide goods or services in exchange for tokens are required to pay one or more different types of taxes. These taxes include income tax, corporate income tax, capital gains tax, tax and social security contributions.

The tax authority has explicitly stated that it does not consider any of the current types of cryptocurrencies as money or currency.

HMRC also recognized that the cryptocurrency sector is a rapidly changing sector, therefore it will analyze the facts of each case separately and apply the relevant tax regulations in line with what actually happened instead of relying solely on theory.

Previously, HMRC considered cryptocurrency trading to be the same as gambling. However, the latest update of the tax guidelines states that the agency no longer thinks so.


Technical Overview:
The ETH/USD pair is making lower highs, so the bearish pressure might be clear now and confirmed by the recent Pin Bar, Harami and Shooting Star candlestick patterns on the H4 timeframe chart. The market continues a corrective cycle with a low made at the level of $172.91, but as long as ETH/USD trades above the level of $163.11 there is still a chance for another impulsive wave up. The nearest technical resistance is seen at the level of $193.52 and the nearest technical support is seen at the level of $179.94. The key technical support is located at the level of $172.91.

Weekly Pivot Points:
WR3 - $203.38
WR2 - $197.53
WR1 - $186.87

Weekly Pivot - $181.92
WS1 - $171.26
WS2 - $165.71
WS3 - $155.07


Trading recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019