Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for 22 January 2021

Crypto Industry News:
One of the first steps taken by President Joe Biden on his first day in office was the freezing of the federal regulatory process, including the controversial private cryptocurrency wallet legislation proposed by former Treasury Secretary Steven Mnuchin.

The above decision was included in a White House memorandum addressed to the heads of various federal agencies, including the Financial Crimes Enforcement Network (FinCEN). The decree does not specify a cryptocurrency wallet proposal, but does make a general recommendation to freeze any agency rules pending feedback for a period of 60 days from the date of the memorandum.

The proposal for a self-hosted cryptocurrency wallet was made by FinCEN on December 18 under the rule of former US Treasury Secretary Steven Mnuchin. If the regulations were implemented, it would require banks and money service companies to file reports, keep records and verify the identity of customers who transact to and from private cryptocurrency wallets.

The proposal was widely criticized by industry leaders, including Square CEO Jack Dorsey, who said collecting a counterparty's name and address should not be required for cryptocurrencies, as it is not required for cash.

Other critics have also argued that it would be technically impossible to meet Mnuchin's requirements for many projects, as smart contracts do not contain information about the name or address.


Technical Market Outlook:
The ETH/USD pair has dropped significantly during the last 24h. The bears has managed to push the price towards the technical support seen at the level of $1,070, the local low was made at the level of $1,048. Since then the market bounced a little, but did not make it above the level of $1,223, which is the key short-term technical resistance now. If the bears will intensify the pressure, then the next target for them is seen at the level of $1,008 and $922. The weak and negative momentum supports the short-term bearish outlook.

Weekly Pivot Points:
WR3 - $1,800
WR2 - $1,551
WR1 - $1,448

Weekly Pivot - $1,183
WS1 - $1,077
WS2 - $810
WS3 - $699


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $1,500, so any correction or local pull-back should be used to open the buy orders. Please notice, the up trend starting to go vertical, so the volatility will be higher than average. The bullish scenario is valid as long as the level of $830 is broken.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for January 21,.2021 - BTC is aproaching our first downside target at $30.350

Further Development


Analyzing the current trading chart of BTC, I found that BTC is heading towards our downside targets at $30,370 and $27,750.



Performed by Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for 21 January 2021

Crypto Industry News:
In an TV interview, Scott Minerd, Guggenheim Partners' investment director, explained his seemingly conflicting views on Bitcoin's potential and revealed that selected private Guggenheim funds have invested in the cryptocurrency.

Minerd, which oversees Guggenheim's $ 275 billion-managed assets, predicted an exorbitant $ 400,000 target price for Bitcoin in an interview late last night - easily one of the loftiest price predictions from a top-tier chief - but recently said in a tweet last week that the market may overheat. The turn even sparked joking accusations of market manipulation.

However, as Minerd said, its long-term bullish target price remains intact, while a bearish fall may still be there.

When asked if any Guggenheim funds have made the jump to Bitcoin, Minerd said, "I don't think we'll be successful with any of our mutual funds yet," although the company would consider allocating if customer demand increased.

Some of Minerda's predictions are rooted in long-term historical analysis. Earlier in an interview, he noted that "we can enter the golden age" and that "comparisons have been made to the 1920s after the Spanish flu."


Technical Market Outlook:
The BTC/USD pair has broken below the level of $34,000 as the market keeps trading under the short-term trend line resistance. This means the market is trying to break out to the downside from the narrow range located between the levels of $34,00 - $37,000. Any violation of any of this levels would meant the up trend continuation or deeper corrective cycle towards $27,000. On the other hand, any trend line breakout and violation of the level of $37,000 will be the trigger for bulls to continue the bounce towards the level of $39,000. The momentum indicator remains neutral, but the longer time frame up trend is intact.

Weekly Pivot Points:
WR3 - $50,241
WR2 - $45,262
WR1 - $41,218

Weekly Pivot - $35,725
WS1 - $31,875
WS2 - $26,553
WS3 - $22,402


Trading Recommendations:
Bitcoin made another ATH and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $50,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $20,000 is clearly broken.





Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for 21 January 2021

Crypto Industry News:
President-elect Biden's team recently unveiled the personal details of those it plans to nominate for various positions after Wednesday's inauguration of the new term.

One of the key figures is Gary Gensler, who has been proposed as chairman of the Securities and Exchange Commission (SEC), according to today's statement by the President-elect Transformation team. On January 12, Reuters reported on the basis of information from an anonymous source, predicting that Biden would choose Gensler. Today's statement by the president-elect's team confirms his expected election.

"Gary Gensler served as chairman of the US Futures Trading Commission from 2009 to 2014," the statement read.

Immediately after the financial crisis, Gensler's tenure at the CFTC saw him enforce the emerging Dodd-Frank Act on commodity markets.

The formal nomination will have to wait for Biden to actually take office and will also require confirmation from the US Senate. However, January's elections in Georgia secured a majority of the Democrats in the senate.

Gensler also taught blockchain technology and cryptocurrencies at MIT. Having someone knowledgeable about the cryptocurrency and blockchain industry at the forefront of the SEC could pave the way for accurate regulations and guidelines. The SEC has played a key role in regulating the coin IPO market, which has quieted considerably since the commission started treating many ICOs as unregistered public offering of securities.


Technical Market Outlook:
The ETH/USD pair has hit the lower channel line located at the level of $1,270. Moreover, there is a new local low made at the level of $1,233, but it is a Pin Bar candlestick which shoes the bulls are defending the lower channel line. So far, the market bounced towards the level of $1,388, but if the bearish pressure intensify, the pull-back might get deeper. The next technical support is seen at the level of $1,173. On the other hand, the next target for bulls is seen at the level of $1,500.

Weekly Pivot Points:
WR3 - $1,800
WR2 - $1,551
WR1 - $1,448

Weekly Pivot - $1,183
WS1 - $1,077
WS2 - $810
WS3 - $699


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $1,500, so any correction or local pull-back should be used to open the buy orders. Please notice, the up trend starting to go vertical, so the volatility will be higher than average. The bullish scenario is valid as long as the level of $830 is broken.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for January 20,.2021 - Broken Pitchfork channel to the downside and potetnail for test of $30.400 and $27.800

Further Development



Analyzing the current trading chart of BTC, I found that there is the breakout of the smaller Pitchfork channel to the downside, which is sign for the further downside movement.

Stochastic is not yet in the oversold zone and I think there there is still room for the downside.


Key Levels:

Resistance: $40,100

Support levels: $30,380 and $27,800



Performed by Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for 20 January 2021

Crypto Industry News:
According to the cryptocurrency analytics firm Messari, the daily Ethereum (ETH) transaction volume is now 28% greater than Bitcoin (BTC).

Ethereum's daily transaction volume is parabolic, and Ethereum-powered stablecoins and Ethereum itself have processed $ 12.3 billion in transactions in the past 24 hours. The data does not include ERC-20 transactions other than stablecoins for Ethereum to avoid double counting of DEX volumes.

According to the Blockchain Center's "Flippening Index", which uses eight key indicators to track whether the Ethereum network has surpassed Bitcoin's size and activity, Ethereum currently has a 63.5% chance of outperforming the cryptocurrency king's network in this regard. While Blockchain Center data suggests Ethereum has yet to beat Bitcoin transaction volume, the Flippening Index shows that Ethereum is already beating Bitcoin in terms of number of transactions and total transaction fees.

The data also shows an Ethereum node count of 94% and estimates Ethereum's trading volume to be 57% of Bitcoin trading after bouncing back from a record 76% last week.


Technical Market Outlook:
The ETH/USD pair has made a new all time high at the level of $1,430.50. Since then the Doji candlestick was made at the H4 time frame chart, giving the short-term indication of a possible pull-back coming. So far, the market bounced from $1,323 technical support, but if the bearish pressure intensify, the pull-back might get deeper. The next technical support is seen at the level of $1,294 and the other one at $1,173. On the other hand, the next target for bulls is seen at the level of $1,500.

Weekly Pivot Points:
WR3 - $1,800
WR2 - $1,551
WR1 - $1,448

Weekly Pivot - $1,183
WS1 - $1,077
WS2 - $810
WS3 - $699


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $1,500, so any correction or local pull-back should be used to open the buy orders. Please notice, the up trend starting to go vertical, so the volatility will be higher than average. The bullish scenario is valid as long as the level of $830 is broken.





Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for 20 January 2021

Crypto Industry News:
According to Bitnodes.io, the number of Bitcoin nodes is currently at its highest ever. Currently, 11,558 nodes are active. Coin.dance, in turn, estimates the total number of Bitcoin nodes at 11,613, slightly above the previous high of 11,250, set a year ago - also in January.

The Bitcoin Core 0.21.0 update was made available for public download on January 14, 2021. It is currently the fourth most used software version among the nodes. There are currently 619 nodes running on this version, which is approximately 5.5% of all nodes running any Bitcoin Core version. Almost 5,000 nodes still use the second and most recent version of Bitcoin Core, 0.20.1, which remains the most popular so far.

The latest version of Bitcoin Core also introduces a way to create more predictable test networks and implements Taproot consensus rules without activating them on the main network.

The changes will ultimately serve to increase privacy in Bitcoin transactions as Taproot ensures that output no longer discloses terms that were unnecessarily disclosed in previous implementations. Removing the distinguishing features of transactions will also help Bitcoin to become a more fungible asset, more in line with Satoshi Nakamoto's original "digital cash" proposition.


Technical Market Outlook:
The BTC/USD pair market keeps trading under the short-term trend line resistance (marked in gold on the chart). This means the market is still consolidating in the narrow range located between the levels of $35,00 - $37,000. Any violation of any of this levels would meant the up trend continuation or deeper corrective cycle towards $27,000. On the other hand, any trend line breakout and violation of the level of $37,000 will be the trigger for bulls to continue the bounce towards the level of $39,000. The momentum indicator remains neutral, but the longer time frame up trend is intact.

Weekly Pivot Points:
WR3 - $50,241
WR2 - $45,262
WR1 - $41,218

Weekly Pivot - $35,725
WS1 - $31,875
WS2 - $26,553
WS3 - $22,402


Trading Recommendations:
Bitcoin made another ATH and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $50,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $20,000 is clearly broken.





Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for January 19,.2021 - Sideways market, watch for the breakout

Further Development


Analyzing the current trading chart of BTC I found that there is the basing process and that market is trading sideways.

Watch for the breakout to confirm further upside movement.

Upside breakout of resistance att $38,000 will lead the BTC towards $40,000 and $42,000

The downside breakout of support at $34,000 can lead BTC towards $30,380 and $27,610.



Performed by Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for 19 January 2021

Crypto Industry News:
Canada's regulated 3iQ digital asset management fund recorded another huge milestone in the development of its public Bitcoin fund. On January 14, Bitcoin Fund (QBTC) 3iQ reached $ 1 billion in market capitalization.

Breaking this magic barrier shows parabolic growth in QBTC following the fund's launch for Q3 in April 2020. QBTC is now up 900% from the previous $ 100 million threshold recorded in October 2020.

QBTC 3iQ is the first public Bitcoin mutual fund in Canada to be listed on the Toronto Stock Exchange. The Gemini Cameron and Tyler Winklevoss exchange provides fiduciary services to QBTC 3iQ, providing support for the purchase and sale of cryptocurrency.

3iQ is one of the largest cryptocurrency companies in Canada. In January 2018, the company became the first crypto fund regulated by the Ontario Securities Commission and Canadian securities administrators. In February 2020, 3iQ also partnered with the Mavennet blockchain start-up to release a Canadian dollar tied stablecoin that will be regulated by the Canada Transaction Analysis and Financial Reporting Center.


Technical Market Outlook:
There were no dynamic moves on the BTC/USD market and this pair keeps trading under the short-term trend line resistance (market gold in the chart). This means the market is still consolidating in the narrow range located between the levels of $36,00 - $37,000. Any violation of any of this levels would meant the up trend continuation or deeper corrective cycle towards $27,000. On the other hand, any trend line breakout and violation of the level of $37,000 will be the trigger for bulls to continue the bounce towards the level of $39,000. The momentum indicator remains neutral, but the longer time frame up trend is intact.

Weekly Pivot Points:
WR3 - $50,241
WR2 - $45,262
WR1 - $41,218

Weekly Pivot - $35,725
WS1 - $31,875
WS2 - $26,553
WS3 - $22,402


Trading Recommendations:
Bitcoin made another ATH and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $50,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $20,000 is clearly broken.





Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for 19 January 2021

Crypto Industry News:
During a JP Morgan Chase phone call on Q4 2020 results, CEO Jamie Dimon and CFO Jennifer Piepszak discussed the recent OCC approval of banks using stablecoins for payments, as well as whether the approval would have any impact on JPM Coin's development.

During some of the questions and answers, Portales Partners analyst Charles Peabody asked for OCC's consent to banks using public Blockchain networks for payments.

"These tips make it possible to offer a stable operation on the public Blockchain chain. So it does not affect JPM coin. About JPM coin, you should think of it as tokenization of our clients' deposits" - replied JPM CFO Jennifer Piepszak.

However, she did not rule out the possibility of JPM-backed stablecoin if customers show interest: "So of course it is very early. We will evaluate use cases and - and customer requirements, but it's too early to see what that means for us".

JPM CEO Jamie Dimon also quickly joined in and mentioned that the bank is "already using Blockchain technology to share data with banks, so we're at the forefront of what's good."

JPM Coin, which debuted in October 2020, is largely used in the back-end of JPM payment systems, helping to clear nearly $ 6 trillion in payments on a daily basis. During the conversation, Piepszak also described the JPM Coin project as "tokenising deposits to make payments easier for the customer." Ultimately, Dimon seemed to suggest that clearing crypto payments won't significantly change the way JPM works.


Technical Market Outlook:
The ETH/USD pair has tested the recent swing high seen at the level of $1,348. The momentum remains strong and positive, so the bulls might try to break through the recent swing high and rally towards the level of $1,400. The immediate technical support is seen at the level of $1,300. Please notice, the market keeps moving inside of the ascending channel, so any break out of the channel might accelerate the rally.

Weekly Pivot Points:
WR3 - $1,800
WR2 - $1,551
WR1 - $1,448

Weekly Pivot - $1,183
WS1 - $1,077
WS2 - $810
WS3 - $699


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $1,420, so any correction or local pull-back should be used to open the buy orders. Please notice, the up trend starting to go vertical, so the volatility will be higher than average. The bullish scenario is valid as long as the level of $830 is broken.





Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021