Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for 28 August 2020

Crypto Industry News:
Insiders helped Tavanir, an Iranian energy company, shut down 1,100 cryptocurrency mining farms that allegedly operated without proper licenses.

Although Tavanir claims that some miners were using "high level" subsidized electricity, their report explained that no significant changes in electricity consumption were observed. Local authorities said that was why they had to rely on whistleblowers, noting that Tavanir "cannot detect all illegal farms just by studying their consumption patterns."

People who provided information leading to the discovery of unauthorized miners were awarded Rial 100 million ($ 480) for their cooperation, the Financial Tribune said.

Iran recently announced it would allow industrial-scale power plants to act as Bitcoin miners - provided they don't use subsidized fuel.

National cryptocurrency mining law states that miners should disclose their identity and provide detailed information to the Ministry of Industry, Mines and Trade. This information includes the size of the mining farms and the type of equipment they use. They are collected to prevent smuggling into the country. Miners are defined both as natural persons and companies.

Illegal cryptocurrency miners risk fines ranging from $ 2,000 to $ 5,000 for each piece of equipment used, and an additional $ 20,000 fine for being caught using a subsidized source of electricity.


Technical Market Outlook:
The ETH/USD pair keeps trading below the short term trend line resistance after it was rejected at 50% Fibonacci retracement of the last wave down located at the level of $389.66. The market reversed, but managed to bounce from the intraday technical support seen at the level of $375.62. If the level of $369.58 is clearly violated, then the next target for bears is seen at the level of $362.30. The nearest technical resistance is seen at the level of $391.73. All the bigger time frame charts looks very bullish and the up trend should be continued after the correction is completed.

Weekly Pivot Points:
WR3 - $491.79
WR2 - $470.70
WR1 - $424.12

Weekly Pivot - $402.20
WS1 - $357.21
WS2 - $333.72
WS3 - $286.54


Trading Recommendations:
The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500. The key mid-term technical support is seen at the level of $364.95.






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

[IFX_Selena]

BTC analysis for August 27,.2020 - Inside days formation active. Watch for potetnial breakout to confirm further direction

Further Development


Analyzing the current trading chart of BTC, I found that we got inside days formation (sideways-contraction) and it is best to watch for the breakout of support or resistance.

The upside breakout of resistance at $11,793 would lead us for test of $12,437

The breakout of support level at $1,111 would lead us for test of $10,620

Watch carefully for the the breakout of inside days formation to confirm direction...


Key Levels:

Resistance: $11,793

Support levels: $10,620





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

[IFX_Selena]

Technical Analysis of BTC/USD for 27 August 2020

Crypto Industry News:
The rise in cryptocurrency prices since March has been accompanied by a wave of cryptojacking attacks, according to new research published by the cybersecurity company Symantec.

According to the company, there was a 163% increase in browser-based cryptojacking in the second quarter of 2020. Previously, cryptojacking saw a sharp decline since March 2019 due to the closure of the mining script maker CoinHive.

Symantec points out that the growth in the last quarter coincided with the rise in the value of Bitcoin and Monero, two cryptocurrencies often mined by cybercriminals who rely on browser-based cryptocurrency malware.

Cryptojacking saw a period of high activity from September 2017 to March 2019, becoming one of the most widespread forms of cyber attacks at the time. In 2019, the CoinHive project reportedly became economically unprofitable. According to the announcement, the mining service ceased operation on March 8, 2019, and among the reasons for the shutdown, developers noted a 50% drop in hash rate after the last Monero hard fork.


Technical Market Outlook:
The BTC/USD pair keeps trading inside of a descending channel. The recent rally only hit the 50% Fibonacci retracement seen at the level of $11.431. The bulls keep trying to bounce from the oversold market conditions as they do not want to lose the $11,000 support. The nearest technical resistance is seen at the level of $11,484, which is the rally high and the level of $11,220 will act as a support from now. The key short-term technical support is seen at the level of $11,062. The weekly time frame trend remains up.

Weekly Pivot Points:
WR3 - $13,245
WR2 - $12,828
WR1 - $12,122

Weekly Pivot - $11,728
WS1 - $11,022
WS2 - $10,628
WS3 - $9,978


Trading Recommendations:
The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic correction are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,463.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 27 August 2020

Crypto Industry News:
The People's Bank of China plans to use its digital currency at the 2022 Winter Olympics in Beijing.

According to a media report, Sun Guofeng, head of the PBoC's monetary policy department, said the bank did not have a schedule to introduce digital currency. However, according to Sun's statement, the PBoC will likely launch it ahead of the 2022 Winter Olympics as they plan to use it at an international sporting event.

The news comes as China is ramping up pilot projects for the digital yuan. Currently, China's central bank is testing its digital currency in Shenzhen, Suzhou, Xiongan and Chengdu. The bank also planned to introduce a digital currency for pilot tests in other regions, including Beijing, Tianjin, Hebei, and the Greater Bay area of Hong Kong.

A recent official statement from the bank also noted that the digital yuan was only tested for small retail transactions. Debunking rumors about the impossibility of converting digital currency into banknotes, the central bank also clarified that digital yuan is legal tender that users can convert into banknotes at a 1: 1 ratio.

While there is still too little information on the Chinese digital currency to say anything about its launch and use cases, it is fairly obvious that the bank is making rapid progress towards its introduction.


Technical Market Outlook:
The ETH/USD pair could not make it to the $400 and was rejected at 50% Fibonacci retracement of the last wave down located at the level of $389.66. The market reversed and now is approaching the intraday technical support is seen at the level of $375.62. If the level of $369..58 is clearly violated, then the next target for bears is seen at the level of $362.30. The nearest technical resistance is seen at the level of $391.73. All the bigger time frame charts looks very bullish and the up trend should be continued after the correction is completed.

Weekly Pivot Points:
WR3 - $491.79
WR2 - $470.70
WR1 - $424.12

Weekly Pivot - $402.20
WS1 - $357.21
WS2 - $333.72
WS3 - $286.54


Trading Recommendations:
The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500. The key mid-term technical support is seen at the level of $364.95.






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

[IFX_Selena]

BTC analysis for August 26,.2020 - First downward target at the price of $11.111 has been reached. Potential for test of second target at $10.620

Further Development


Analyzing the current trading chart of BTC, I found that our yesterday's donward target at the price of $11,111 has been reached and that we got reaction from buyers there.

The sellers are in control but to confirm further downside movement I would like to see the downside breakout of $11,111. In case of the downside breakout of $11,111

I see test of $10,618 to come into the play.


Key Levels:

Resistance: $11,545



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

[IFX_Selena]

Technical Analysis of ETH/USD for 26 August 2020

Crypto Industry News:
The People's Bank of China plans to use its digital currency at the 2022 Winter Olympics in Beijing.

According to a Reuters report, Sun Guofeng, head of the PBoC's monetary policy department, said the bank did not have a schedule to introduce digital currency. However, according to Sun's statement, the PBoC will likely launch it ahead of the 2022 Winter Olympics as they plan to use it at an international sporting event.

The news comes as China is ramping up pilot projects for the digital yuan. Currently, China's central bank is testing its digital currency in Shenzhen, Suzhou, Xiongan and Chengdu. The bank also planned to introduce a digital currency for pilot tests in other regions, including Beijing, Tianjin, Hebei and the Greater Bay area of Hong Kong.

A recent official statement from the bank also noted that the digital yuan was only tested for small retail transactions. Debunking rumors about the impossibility of converting digital currency into banknotes, the central bank also clarified that digital yuan is legal tender that users can convert into banknotes at a 1: 1 ratio.

While there is still too little information on the Chinese digital currency to say anything about its launch and use cases, it is fairly obvious that the bank is making rapid progress towards its introduction.


Technical Market Outlook:
The ETH/USD pair has made another lower low at the level of $369.51, which was in line with 1:1 market geometry target for correction. Currently, the bulls are trying to bounce higher towards the level of $400 in order to reclaim it again, but if they fail, then a new local low should be made. The intraday technical support is seen at the level of $375.62 and the nearest technical resistance is seen at the level of $385.98. All the bigger time frame charts looks very bullish and the up trend should be continued after the correction is completed.

Weekly Pivot Points:
WR3 - $491.79
WR2 - $470.70
WR1 - $424.12

Weekly Pivot - $402.20
WS1 - $357.21
WS2 - $333.72
WS3 - $286.54


Trading Recommendations:
The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500. The key mid-term technical support is seen at the level of $364.95.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 26 August 2020

Crypto Industry News:
Japanese Finance Minister Taro Aso has suggested that Blockchain will play a key role in the global fight against the coronavirus pandemic as the technology can be used to track contacts while ensuring privacy.

Aso delivered the opening speeches of the Blockchain Global Governance Conference, also known as FIN / SUM Blockchain & Business, on August 24 in Tokyo.

"In the fight against widespread infectious diseases, Blockchain provides one solution for contact trading" he said, referring to the coronavirus.

There are nearly 24 million COVID-19 cases worldwide, with over 60,000 in Japan. Despite the subject of Aso's speech, a limited number of people could physically participate in the Blockchain conference, while others watched the speakers live.

The Finance Minister admitted that while the threat from the coronavirus has not subsided, Blockchain could provide privacy to anyone who gets a positive through contact tracing. In addition, this technology could give authorities a better measure of what needs to be done to contain the spread, preventing possible future outbreaks.


Technical Market Outlook:
The BTC/USD pair has been trading inside of a descending channel and made a new local low at the level of $11,062. The bulls are trying to bounce from the oversold market conditions as they do not want to lose the $11,000 support. The nearest technical resistance is seen at the level of $11,350 (for intraday traders) and the level of $11,220 will act as a support from now. The key short-term technical support is seen at the level of $11,062. The weekly time frame trend remains up.

Weekly Pivot Points:
WR3 - $13,245
WR2 - $12,828
WR1 - $12,122

Weekly Pivot - $11,728
WS1 - $11,022
WS2 - $10,628
WS3 - $9,978


Trading Recommendations:
The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic correction are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,463.






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

[IFX_Selena]

BTC analysis for August 25,.2020 - Inside days pattern and potential for the breakout

Further Development


Analyzing the current trading chart of the BTC, I found that both buyers and sellers are in balance.

The current chart of BTC is showing indecision and potential for the breakout of the range.

To confirm the breakout I would like to see close above the resistance or below support level.


Key Levels:

Resistance: $11,900




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

[IFX_Selena]

Technical Analysis of ETH/USD for 25 August 2020

Crypto Industry News:
Coinbase and Apple are still not getting along months after Coinbase warned customers it might remove the app from the Apple Store.

Coinbase CEO Brian Armstrong tweeted that Apple continues to block some cryptocurrency features, including the ability to make money and unlimited decentralized applications (dApp) of the browser:

"Apple has been very restrictive and hostile to cryptocurrencies over the years. They still block some features now, including the ability to make money with cryptocurrency through task execution and unlimited Dapp browsers," Armstrong said.

In December, Coinbase warned its customers that it might be necessary to remove the dApp browser from its app to comply with Apple App Store policies. At the time, both Apple and the Google Play Store with Android apps wanted to remove dApps from their network.

Apple, especially its App Store, has been under fire recently due to unfair terms it imposes on app developers and publishers. The Wall Street Journal, The New York Times and game developer Epic Games have called on Apple to find fairer conditions for developers.


Technical Market Outlook:
The ETH/USD pair has hit the target seen at the level of $407.03 - $414.11 with a local top at the level of $409.67 and then was capped. Currently, the price is trading below the level of $400 and the next target for bears is seen at the level of $396.45 (itraday techncial support). The momentum keeps increasing as the market bounces from the oversold conditions as well. All the bigger time frame charts looks very bullish and the up trend should be continued after the correction is completed.

Weekly Pivot Points:
WR3 - $491.79
WR2 - $470.70
WR1 - $424.12

Weekly Pivot - $402.20
WS1 - $357.21
WS2 - $333.72
WS3 - $286.54


Trading Recommendations:
The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500. The key mid-term technical support is seen at the level of $364.95.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 25 August 2020

Crypto Industry News:
Open interest in Bitcoin option contracts returned to $ 2 billion after briefly breaching the level before expiring in July. Since the beginning of 2020, the BTC options market has grown sixfold, prompting investors to wonder if its potential impact on price has become too extreme.

Slightly more than a third of these contracts expire on August 28, which corresponds to 57,000 BTC. For this reason, traders have every reason to be concerned about the potential impact of an expiry on the markets, especially given the timeframe for these settlements.

The Chicago Mercantile Exchange (CME) expires at 8:00 UTC and Deribit and OKEx is at 15:00 UTC. Some exchanges list weekly contracts, but monthly contracts usually cover most of the volume.

Deribit currently holds 80% of the Bitcoin options market share. Therefore, it will be analyzed in detail below. Namely, there is open interest in the 9.9k BTC options in Deribit, which are expected to expire below 25% delta next Friday, which means that the market is currently pricing them at no less than 25% of the rates. As widely discussed, these out-of-the-money options account for more than 40% of the open call options in August.

After a 27% increase in the last 30 days, most put options have become worthless. In this situation, 17.5 thousand BTC put options are open, which entails 85% expiry in August. After adding the call (buy) and put (sell) options in Deribit, there are 46.6 thousand BTC with the August expiry. Almost 60% of them are considered unprofitable. This drastically reduces potential pressure from such a market.

It should be noted that both futures and options markets expire simultaneously, hence it is difficult to identify the responsibility of any derivative for intense price fluctuations.


Technical Market Outlook:
The BTC/USD pair has bounced from the level of $11,756 which is a 38% Fibonacci retracement level of the last wave down. The Doji candlestick pattern made at the top of this move might indicate a rejection and reversal of the higher prices. Despite the fact, that the BTC is clearly trying to bounce higher, the market is still trading below the supply zone located between the levels of $12,269 - $12,431. The nearest technical resistance is seen at the level of $11,461 (for intraday traders) and the level of $11,358 will act as a support from now. The key short-term technical support is seen at the level of $11,062.

Weekly Pivot Points:
WR3 - $13,245
WR2 - $12,828
WR1 - $12,122

Weekly Pivot - $11,728
WS1 - $11,022
WS2 - $10,628
WS3 - $9,978


Trading Recommendations:
The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic correction are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,463.






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