Cryptocurrency Analysis

[IFX_Selena]

BTC analysis for November 12,.2020 - Potential exhastion from buyers and space for the downside rotation towards $15.000

Further Development



Analyzing the current trading chart of BTC, I found that there is potential for the downside rotation towards the $15,300 and $15,000

Based on the daily time-frame, I found that there is strong momentum on the breakout of the multi day balance high at $15,900, which is sign that this breaout might the fake one.

Watch for selling opportunities with the potential downside targets at $15,300 and $15,000

Resistance is set at the price of $16,00 (round number)



Performed by Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

Technical Analysis of BTC/USD for 12 November 2020

Crypto Industry Outlook:
Bitcoin's hash rate has increased by around 30% in the last 24 hours, which, if maintained, suggests that there may be a major correction of difficulties soon. According to Coinwarz, the Bitcoin hash rate is now 157.5 Exahashes per second (EX / s) after a brief spike above 160 EH / s. At the time of the press release, the BTC hash rate increased by 42% in two days.

The jump follows a sharp drop in computing power at the end of October, which many analysts attribute to the end of the rainy season at the Chinese Sichuan mining center. It is estimated that the abundant and cheap hydropower in the province attracts around 80% of Chinese miners during the rainy season. In December, CoinShares estimated that Sichuan was responsible for 54% of global mining activity. The sudden increase in BTC computing power could mean that many Chinese miners have finished their migration from Sichuan and resumed operations in other local mining centers such as Xinjian and Inner Mongolia.


Technical Market Outlook:
The BTC/USD pair keeps pushing upward and in the result bulls are getting closer to the level of $16,000. From time to time the market is consolidating the recent gains in extremely overbought market conditions and then makes another spike up. There is a potential Bullish Flag price pattern in progress on the H4 time frame chart. The intraday technical support is currently seen at the level of $15,215 and the intraday technical resistance is located at $15,526. The up trend is still being continued, so the next target for bulls is seen at the level of $16,000.

Weekly Pivot Points:
WR3 - $19,307
WR2 - $17,576
WR1 - $16,627

Weekly Pivot - $14,868
WS1 - $13,889
WS2 - $12,207
WS3 - $11,247


Trading Recommendations:
Bitcoin is trading at the yearly highs 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 $16,000, 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 $10,000 is broken.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

Technical Analysis of ETH/USD for 12 November 2020

Crypto Industry Outlook:
The KuCoin cryptocurrency exchange recovered most of its funds from the $ 280 million lost in September in a hacking incident.

Johnny Lyu, KuCoin's co-founder and CEO, announced on November 11 that the stock market had recovered 84% of the stolen assets. Lyu said the recovery process included "chain tracking, updating contracts, and judicial collection." He also noted that the exchange will publish more details on the refund after the case is closed.

According to Lyu, KuCoin has resumed full service for 176 trading tokens on its platform. He said the services for the remaining coins are due to reopen before November 22nd. KuCoin has a total of 230 tradable assets on its platform.

When posting the news on Twitter, Lyu did not provide the exact amount of assets lost as a result of the hacking incident. KuCoin initially estimated user losses at $ 150 million, while crypto analytics company Chainalysis estimated losses at $ 275 million.

Lyu previously said the breach had an impact on hot wallets that contain Bitcoin, Ether, and ERC-20 tokens. A large number of stolen ERC-20 tokens were then frozen by major crypto projects to prevent withdrawals. In early October, Lyu announced that KuCoin executives had managed to find burglary suspects with "substantial evidence".


Technical Market Outlook:
The ETH/USD pair has hit the level of $475.58 after the triangle breakout, so the bullish pressure is still present. Nevertheless, the price got back to the old supply zone quickly and now is consolidating inside of this zone. The level of $424.65 will now provide the intraday support and the level of $400 will now act as a key technical support. The next target for bulls is seen at the swing high at $466.36 and then $500. Only if a daily candle closes below $360 level, then the bears will have full control of the market.

Weekly Pivot Points:
WR3 - $594.51
WR2 - $529.18
WR1 - $494.37

Weekly Pivot - $431.37
WS1 - $395.52
WS2 - $336.56
WS3 - $301.67


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $500, 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 $309.61 is broken.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

This is a success: Bitcoin on the wave of a bullish trend

2020 proved that digital commerce is an integral part of the global economy, most companies, whether they want to or not, had to evolve, otherwise, they would face bankruptcy.

In this difficult time, digital surrogates were actively rushing forward, conquering more and more new users, perhaps the self-isolation mode has led to increased interest, or perhaps we are experiencing a new round of FOMO * (Lost Profit Syndrome *), which will end as quickly as it appeared on market.

The breakout of the local maximum of 2019 - $ 13,868 - became a lever for most speculators, since that moment the trading forces have changed. The market has been flooded with new blood, the media is actively replete with the new HYIP of Bitcoin, and crypto hamsters like a magnet are drawn to pool buyers.

The most interesting thing is that we are not yet on the brink of FOMO, but only on its outskirts. The main surge in FOMO activity will occur at the time of the breakdown of the historical maximum of 2017 - $ 19,891. At that moment, money will flow like a river, and here there will be a risk of another collapse, where it is necessary to exit long positions in proportion to the working volume. It is worth considering that updating the historical maximum does not guarantee the completion of the upward cycle; before the collapse, another acceleration may occur, that is, + 50/100%.

Let me remind you that since the spring of this year, we have been actively working on long positions, and we already have more than one hundred percent of the income from the crypto market at our disposal.

Our opinion about the super-profitability of crypto assets is similar to the opinion of the eminent publication Bloomberg, which analyzed the profitability of gold and Bitcoin, eventually proving that in 2020 it was most profitable to invest money, not in traditional assets, but in digital ones, for example - Bitcoin.

Since March 2020, the growth in the value of Bitcoin has been more than 250%.

The following the growing Bitcoin quotes, Altcoins are crawling, which are also considered one of the most profitable instruments in 2020.

Against such a positive background, one should not lose sight of the fact that institutional investors, as well as funds, have changed their minds towards Bitcoin and have significantly expanded investments in crypto assets. Thus, it is not entirely appropriate to compare the HYIP of 2017 and 2020, since there are fewer unqualified market participants, and the understanding of the crypto environment has increased.

The point will be information that a close associate of George Soros, dollar billionaire Stanley Druckenmiller in an interview with CNBC said that he had invested part of the capital under his management in Bitcoin. In his opinion, the first cryptocurrency is a more profitable asset than gold or US Treasury bonds.



Trade prospects
The Bitcoin quote has recently touched the important coordinates of $ 16,000, which reflects the last frontier before the swing of the historical high of 2017 - $ 19,891. In fact, the $ 16,000 interaction area has floating boundaries from $ 500 to $ 1,000, but even consolidation above $ 16,000 will already indicate the prevailing upward interest in the market.

In terms of corrective movements from the $ 16,000 area, one can consider the local price movement towards $ 13,500 / $ 14,000, but in this case, a slight panic may arise among uncertain market participants.

If you have been following long positions since the spring of this year, then I strongly advise you not to forget to withdraw your profit. Regrouping points of trade positions have already been in the areas: $ 10,000; $ 12,000; $ 13,000; $ 16,000. The next coordinate is in the area of the maximum - $ 19,000.



General background of the crypto market

Analyzing the total market capitalization of the crypto industry, one can see that the Total market has gained more than $ 48 billion in weight since the beginning of November and is currently $ 450 billion, where there is not much left to the psychological level of $ 0.5 trillion.

The upward trend is visible to the naked eye, while maintaining the current rates, the historical maximum of $ 831 billion can be passed in the next few months. Let me remind you that the milestone is $ 1 trillion - whether a myth or reality, we will analyze it in subsequent cryptocurrency reviews.

Market Cap: $ 450 814 079 448

BTC Dominance: 64.2%




The index of emotions (aka fear and greed) of the crypto market is at 86 points, which already speaks of FOMO, but this can give an even greater speed of infusion of funds from new market participants.



Indicator analysis
Analyzing different sectors of timeframes (TF), it can be seen that the indicators of technical instruments on the four-hour, daily, and weekly periods unanimously signal a buy, which is confirmed by the general market dynamics, as well as its emotional part.






Performed by Gven Podolsky
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

BTC analysis for November 11,.2020 - Watch for the brekaout of the inside day pattern to confirm further direction

Further Development



The analysis from yesterday is still in the play and I would wait for the breakout of the consolidation to confirm further direction...




Performed by Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

Technical Analysis of ETH/USD for 11 November 2020

Crypto Industry Outlook:
Japanese company Layer X has announced the development of a blockchain-based electronic voting system as part of Tsukuba City's broader 'smart city' initiative.

The Tokyo-based company said the new system would meet the technical needs of electronic voting, including preventing double voting, keeping voting content accurately, voter confidentiality and managing operational records.

In addition, it will allow voters to check their own voting results, providing a cryptographic possibility to verify that the processes of recording and aggregating votes in the blockchain network have been carried out correctly.

Layer X explained that through the new system, the company aims to move to electronic voting in local governments. He also indicated that he is working on strengthening efforts to solve technical problems related to digital transformation (DX) of various administrative services.

Layer X also announced that he would join Tsukuba's Smart City Council, Ibaraki Prefecture, with the goal of turning Tsukuba into a "smart city" and bringing it into the digital age.

The coronavirus pandemic has prompted many countries and local states to develop blockchain-based online voting options. Russia has already experimented with blockchain-based electronic voting, and has also posted the platform's source code on GitHub.

Similarly, the French municipality of Verneuil-sur-Seine voted on the road project via a blockchain-based app, and the Michigan Democratic Party announced a successful experiment with electronic voting via the blockchain-based Voatz platform.


Technical Market Outlook:
The ETH/USD pair has broken out from the triangle pattern and is approaching the key swing seen at the level of $466.36. The level of $424.65 will now provide the intraday support and the level of $400 will now act as a key technical support. The next target for bulls is seen at the swing high at $466.36 and then $500. Only if a daily candle closes below $360 level, then the bears will have full control of the market.

Weekly Pivot Points:
WR3 - $594.51
WR2 - $529.18
WR1 - $494.37

Weekly Pivot - $431.37
WS1 - $395.52
WS2 - $336.56
WS3 - $301.67


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $500, 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 $309.61 is broken.





Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

Technical Analysis of BTC/USD for 11 November 2020

Crypto Industry Outlook:

The New Jersey Senate is about to consider a new bill that proposes a new mandatory licensing framework for all cryptocurrency companies operating in the state.

Unveiled on November 5, a new Senate bill, known as the "Digital Assets and Blockchain Technology Act," was sponsored by Senator Nellie Pou from New Jersey's 35th Legislative District, New Jersey. S3132 is now awaiting referral to the Senate Trade Committee.

Under the draft, all digital asset companies must already be licensed or at least have already applied for a license to legally do business with or on behalf of a state resident.

Alternatively, the business of digital assets may be considered legal in New Jersey if the business participants are already licensees in another state with which New Jersey has a reciprocity agreement.

The New Jersey Crypto License will authorize activities involving the issuance of digital assets, offering digital asset exchange services, borrowing digital assets, and storing or maintaining digital assets on behalf of others. The latter licensing requirement excludes entities that are already registered depositories in the United States, such as banks, trusts, and brokers. Any person or entity that conducts business without a license or license application would be fined $ 500 per day.


Technical Market Outlook:
The BTC/USD pair keeps hovering in a narrow range between the levels of $14,781 - $15,783, consolidating the recent gains in extremely overbought market conditions. There is a potential Bullish Flag price pattern in progress on the H4 time frame chart. The intraday technical support is currently seen at the level of $15,215 and the intraday technical resistance is located at $15,526. The up trend is still being continued, so the next target for bulls is seen at the level of $16,000.

Weekly Pivot Points:
WR3 - $19,307
WR2 - $17,576
WR1 - $16,627

Weekly Pivot - $14,868
WS1 - $13,889
WS2 - $12,207
WS3 - $11,247


Trading Recommendations:
Bitcoin is trading at the yearly highs 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 $16,000, 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 $10,000 is broken.





Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

BTC analysis for November 10,.2020 - Watch for potential breakout of the balance to confirm further direction

Further Development


Analyzing the current trading chart of BTC, I found that there is consolidation going on at the price of $15,400, which is sign of the balancing market.

I would watch for the breakout of the trading range to confirm further direction.

The breakout of resistance at $15,870 might lead BTC for test of $16,600

The downside breakout of support at $14,800 might lead us for test of $13,92




Performed by Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

Technical Analysis of BTC/USD for 10 November 2020

Crypto Industry Outlook:
In 2013, the world's first-ever Bitcoin ATM made its debut when Robocoin placed the machine in a coffee shop in Vancouver. A transaction in BTC worth $ 10,000 was made on the device that allows customers to exchange Bitcoins for cash and vice versa on the first day.

Now, one month from the end of 2020, the estimated number of cryptocurrency ATMs worldwide that allow customers to buy and sell Bitcoin and other altcoins for cash is around 11,665.

This reflects the remarkable increase in the number of crypto ATMs compared to last year. The number of bitomats at the end of 2019 was estimated at 6372 machines; now, as we approach farewell to 2020, there has been an increase of almost 80%.

CoinATMRadar also shows that the number of crypto ATMs is increasing by an average of 23 machines per day, or almost one new bitomat per hour.

The United States saw the fastest take-up in the world of crypto ATMs and gained the largest share in its territory. The number of bitomats located in the United States has increased from 4,213 in 2019 to 9,242 in 2020, an increase of over 50%. The United States currently accounts for approximately 79.2% of the total number of crypto ATMs in the world.

There is also a growing diversity in the spread of cryptocurrency ATMs in the United States - located in small stores, malls, transportation hubs, and even at the Tesla Gigafactory.

Canada is second in the top five with 880 bitomats; Great Britain in third place with 268 machines; Hong Kong in fourth place with 62 machines and finally Columbia, which has recently shown a lot of interest in building bitomats, with 59 machines.

The significant increase in the number of cryptocurrency ATMs in 2020 proves the growing interest of both buyers and financial institutions, including the financial giant Paypal.


Technical Market Outlook:
After the BTC/USD pair has bounced quickly back above $15,000 it keeps hovering in a narrow range between the levels of $14,781 - $15,783, consolidating the recent gains in extremely overbought market conditions. There is a potential Bullish Flag price pattern in progress on the H4 time frame chart. The intraday technical support is currently seen at the level of $15,215 and the intraday technical resistance is located at $15,526. The up trend is still being continued, so the next target for bulls is seen at the level of $16,000.

Weekly Pivot Points:
WR3 - $19,307
WR2 - $17,576
WR1 - $16,627

Weekly Pivot - $14,868
WS1 - $13,889
WS2 - $12,207
WS3 - $11,247


Trading Recommendations:
Bitcoin is trading at the yearly highs 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 $16,000, 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 $10,000 is broken.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

Technical Analysis of ETH/USD for 10 November 2020

Crypto Industry Outlook:
The creator of Ethereum, Vitalik Buterin, sent his first ethers to the Ethereum 2.0 smart contract address. Officially, it can be announced that he will take an active part in staking and securing the network of the new version of Ethereum.

Buterin's "VB2" address sent 100 transactions of 32 ethers each, for a total of 3,200 units of cryptocurrency, according to a TrustedNodes report. At the time of the press release, this amount is worth approximately $ 1.4 million. The transactions were sent to the newly launched and escrow Ethereum 2.0 smart contract, which was launched as a tool for network participants to transfer funds from the current proof-of-work blockchain to the soon-to-be-launched proof-of-stake (PoS) blockchain. In order to take an active part in securing the new Ethereum network, a minimum of 32 ethers must be deposited.

The smart escrow contract currently holds 44,741 ETH worth approximately $ 20 million. In order for Ethereum 2.0 to officially take off, one of the conditions must be met, which is that 16,384 validators must deposit funds corresponding to 524,288 ETH in the smart contract, which at the time of publication would be worth around $ 230 million.


Technical Market Outlook:
The ETH/USD pair has been seen hoveing inside of a narrow range and it is possible the market is developing the Bullish Flag pattern. The level of $424.65 will now provide the intraday support and the level of $400 will now act as a key technical support. The next target for bulls is seen at the swing high at $466.36. Only if a daily candle closes below $360 level, then the bears will have full control of the market.

Weekly Pivot Points:
WR3 - $594.51
WR2 - $529.18
WR1 - $494.37

Weekly Pivot - $431.37
WS1 - $395.52
WS2 - $336.56
WS3 - $301.67


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $500, 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 $309.61 is broken.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020