Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis on BTC/USD for 15 June 2020

Crypto Industry News:
One of the largest US banks, JPMorgan Chase, has thoroughly analyzed the March market collapse. Quite a lot of space in the report is devoted to Bitcoin. According to analysts, the BTC market is clearly maturing, they also see a strong correlation with global stock markets.

The sudden collapse of markets in March 2020, caused by the global COVID-19 pandemic, has become the object of research for many analysts from around the world. Specialists from JPMorgan confirm that "Bitcoin has emerged relatively unscathed" from the March decline.

Well-known analysts developing the strategy for the bank said that the survival of the crisis in March 2020 confirmed "the longevity of BTC as a class asset."

The bank's narrative compared to the most popular cryptocurrency clearly changes to positive. Not so long ago, the president of the American giant Jamie Dimon called the BTC a "fraud." Although a few days after the unfortunate words, he apologized to the community gathered around the oldest cryptocurrency but the disgust remained.

For several weeks we have been observing a surprising turn in the assessment of Bitcoin by JPMorgan, which according to unofficial sources buys BTC.

Another signal confirming a 180-degree return is the May message about the bank's service of clients, the two largest US cryptocurrency exchanges: Coinbase and Gemini.

The report also did not go without stigmatizing the weaknesses of the Bitcoin market. First of all, attention was paid to large fluctuations of chickens of the vast majority of cryptocurrencies. The opinion about "using [Bitcoin] more as a tool for speculation than as a means of exchanging or storing value," is shared by many professional traders.


Technical Market Outlook:
The BTC/USD pair has failed to rally higher towards $10,000 and after a quite long period of consolidation moved lower towards the level of $9,000. The last local low was made at the level of $8,860, but there is still a room for another wave down. The next technical support is seen at the level of $8,565 and the nearest technical resistance is still seen at the level of $9,249. The larger time frame trend remains up.

Weekly Pivot Points:
WR3 - $10,691
WR2 - $10,307
WR1 - $9,752

Weekly Pivot - $9,407
WS1 - $8,828
WS2 - $8,448
WS3 - $7,903


Trading Recommendations:
The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated. The key mid-term technical support is located at the level of $7,897.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 11 June 2020

Crypto Industry News:
Beverage vending machines operated by Asia Pacific's main distributor of non-alcoholic beverages, Coca-Cola Amatil, will now accept payments in cryptocurrencies. This development took place as a result of a new agreement with the Centrapay digital assets platform.

A network of over 2,000 Coca-Cola Amatil vending machines in Australia and New Zealand will allow consumers to spend crypto using a smartphone camera to scan a QR code, provided that the phone has the Sylo smart wallet installed.

Jerome Faury, CEO of Centrapay, also drew attention to the greater awareness of the need to limit physical contact in commercial locations due to the global crisis of COVID-19.

The company's agreement with Coca-Cola Amatil - allegedly one of the largest Coca-Cola bottling plant in the world serving 270 million consumers - was presented as the first step in providing easier access to crypto for consumers around the world.

"Now that we've shown how it can work in Australia and New Zealand, we want to grow globally. We've established a North American presence and will be heading to the US market," said Faury.

Centrapay focuses on removing barriers to the adoption of Web 3.0 technology - in particular, digital assets and digital identity services.


Technical Market Outlook:
The upper boundary of the consolidation zone on ETH/USD paris is located at the level of $246.94 and the lower one at $235.42. The uppar one had been broken just recently during a quick rally towards the level of $249,69, but the price returned back to the range zone. The last bounce was quite strong and if bears will not regain the control of the market soon, then the bulls will push the price towards last swing high seen at $253.00. The decreasing momentum supports the short-term bearish outlook for Ethereum and the next target for bears is seen at the level of $217.65 and $215.58.

Weekly Pivot Points:
WR3 - $282.07
WR2 - $267.98
WR1 - $254.66

Weekly Pivot - $238.43
WS1 - $226.18
WS2 - $210.71
WS3 - $197.39


Trading Recommendations:
The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred. The next key technical support is seen at the level of $174.82.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 11 June 2020

Crypto Industry News:
Stampede Ventures - a production company belonging to the former president of Warner Bros. Greg Silverman - collaborates with Cameron and Tyler Winkelvoss in the production of the film depicting the story of the brothers described in the best-selling book Bitcoin Billionaires.

According to a report published in Deadline, Silverman will be working on the film with Jon Berg, known from movies with superheroes such as Wonder Woman and Aquaman.

The Bitcoin Billionaires book was written by American author Ben Mezrich in 2019 after the Winklevoss twins became crypto billionaires. The Winklevoss brothers came out after another of Mezrich's best-selling book The Accidental BIllionaire, which served as inspiration for the Oscar-winning movie The Social Network. In the book, Mezrich describes the legal battle of the twins with Mark Zuckerberg and Facebook, and asserts their rights against the social media giant, who was originally their idea. The court's decision later granted the brothers a $ 65 million settlement for their claims.

Bitcoin Billionaires continues the Winklevoss journey from winning the trial in June 2011 to investing $ 11 million in Bitcoin in 2013 and becoming the first crypto billionaires in the world.


Technical Market Outlook:
The BTC/USD pair tried to break out from the range zone, but the rally was short-lived and the price did not break above the level of $10,000. After the local high was made at the level of $9,955, the bears pushed the price back towards the middle of the range zone. The market keeps bouncing from the ascending trend line support (marked in blue on chart) every time the price goes lower. It means, the bulls are still trying to push the price higher despite the overbought market conditions. For them any violation of the local low made after the sell-off ( the low is located at the level of $9,158) would indicate the start of the corrective cycle to the downside with a target seen at the level of $8,565.

Weekly Pivot Points:
WR3 - $11,389
WR2 - $10,828
WR1 - $10,195

Weekly Pivot - $9,652
WS1 - $9,043
WS2 - $8,494
WS3 - $7.815


Trading Recommendations:
The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated. The key mid-term technical support is located at the level of $7,897.







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

[IFX_Selena]

Technical Analysis of BTC/USD for 10 June 2020

Crypto Industry News:
After the latest CoinMarketCap update, which introduced a "trust factor" in the stock market ranking, users question perceived injustice against popular platforms. Twitter users have criticized CoinMarketCap for placing BitMEX, one of the most popular derivatives exchanges, in 175th place.

Such a low position seems unusual in the new CoinMarketCap rankings, in which Internet traffic is one of the main factors. This update appears after a few weeks in which exchanges were ranked only by network traffic - which has also been criticized. According to CoinMarketCap, BitMEX has an almost ideal network traffic result of 960, just 40 points less than the maximum Binance value of 1000. However, the BitMEX liquidity index is zero. Indeed, a sudden change can be seen, starting from position 175, after which all exchanges have zero liquidity rating. Decentralized exchanges such as Bancor and Uniswap can also be found later in the ranking.

CoinMarketCap representative explained that the current ranking includes only spot exchanges, while promising that derivatives platforms will soon be classified as well. However, several stock exchanges in the top 50, such as CoinDCX and Huobi Russia, also have liquidity ratios of zero, making it difficult to interpret the new ranking mechanism.

A notable exception in the ranking of derivatives platforms is FTX, which took 74 place. The price aggregator has often been criticized for creating rankings that favor its new owner, Binance. Although Binance is an FTX investor, the discrepancy can be explained by the fact that the platform has several cash markets that can determine its position.


Technical Market Outlook:
The BTC/USD pair still has been seen trading between the levels of $9,381- $9,822 as the volatility is decreasing significantly. The market keeps bouncing from the ascending trend line support (marked in blue on chart) every time the price goes lower. It means, the bulls are still trying to push the price higher despite the overbought market conditions. For them any violation of the local low made after the sell-off ( the low is located at the level of $9,158) would indicate the start of the corrective cycle to the downside with a target seen at the level of $8,565.

Weekly Pivot Points:
WR3 - $11,389
WR2 - $10,828
WR1 - $10,195

Weekly Pivot - $9,652
WS1 - $9,043
WS2 - $8,494
WS3 - $7.815


Trading Recommendations:
The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated. The key mid-term technical support is located at the level of $7,897.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 10 June 2020

Crypto Industry News:
Ethereum's daily network fees surpassed those in the Bitcoin network for two consecutive days, June 6 and 7, according to data obtained by Glassnode.

According to Glassnode, on June 6, the total fees spent on the Ethereum network were $ 498,000, compared to $ 308,000 for Bitcoin. The gap increased the next day, with total charges of $ 540,000 and $ 258,000, respectively. For the second time this year, Ethereum network fees have beaten Bitcoin. March 12 saw a sudden increase in Ethereum network fees, which amounted to nearly $ 800,000, far exceeding the amount paid by Bitcoin users on the same day. The Ethereum network was experiencing major bottlenecks at the time, which probably prompted users to pay more for their transactions.

Also this time, the reasons behind the event seem similar. First, the Bitcoin pool was recently cleared as a result of a recent difficulty correction that took place on Thursday. The lack of pending transactions significantly reduced transaction fees on the network, which fell to the level of 1 dollar. By comparison, on May 20, an average Bitcoin transaction could cost as much as $ 6.6 due to the state of the net after halving.

Mempool Ethereum is currently clogged, waiting for over 103,000 transactions, which partly explains the latest amounts of network fees. What's more, the value of stablecoin transfer this year breaks new records, suggesting that stablecoins - most of which operate on the Ethereum network - have significantly contributed to network activity. Ethereum developers are trying to address the scalability issue in the upcoming Ethereum 2.0 upgrade scheduled for July.


Technical Market Outlook:
The ETH/USD pair has been seen consolidating under the upper channel line for the most of the week, so the volatility is now decreasing. No important moves were detected, no new signal appeared. The upper boundary of the consolidation zone is located at the level of $246.94 and the lower one at $235.42. The last bounce was quite strong and if bears will not regain the control of the market soon, then the bulls will push the price towards last swing high seen at $253.00. The decreasing momentum supports the short-term bearish outlook for Ethereum and the next target for bears is seen at the level of $217.65 and $215.58.

Weekly Pivot Points:
WR3 - $282.07
WR2 - $267.98
WR1 - $254.66

Weekly Pivot - $238.43
WS1 - $226.18
WS2 - $210.71
WS3 - $197.39


Trading Recommendations:
The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred. The next key technical support is seen at the level of $174.82.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 09 June 2020

Crypto Industry News:
The report, published by the Hong Kong Treasury Department on June 1, provided detailed data on accelerated growth of blockchain popularity in the fintech industry.

Blockchain is currently the fastest growing segment of this industry in Hong Kong. 22 of the 57 companies that started operations over the past year are based on this technology. WealthTech is the second fastest growing sector, which includes 20% of newly established companies. Next up is the payment sector - 17% and InsurTech - 9%.

The report states that since April 2019, the number of fintech companies operating in Hong Kong has exceeded 600. Since then, eight licenses for virtual banks and four licenses for virtual insurance companies have also been issued.

According to the report, DLT solutions for enterprises are the largest sub-sector in the blockchain industry in Hong Kong. He is represented by 45 percent of all companies. Cryptocurrency trading platforms cover 27 percent of the industry, followed by financial advisory companies for digital assets - 14%, and accounting companies - 9%.


Technical Market Outlook:
The ETH/USD pair has been consolidating under the upper channel line for the last 24h. No important moves were detected, no new signal appeared. The lower boundary of the consolidation zone is located at the level of $246.94 and the lower one at $235.42. The last bounce was quite strong and if bears will not regain the control of the market soon, then the bulls will push the price towards last swing high seen at $253.00. The decreasing momentum supports the short-term bearish outlook for Ethereum and the next target for bears is seen at the level of $217.65 and $215.58.

Weekly Pivot Points:
WR3 - $282.07
WR2 - $267.98
WR1 - $254.66

Weekly Pivot - $238.43
WS1 - $226.18
WS2 - $210.71
WS3 - $197.39


Trading Recommendations:
The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred. The next key technical support is seen at the level of $174.82.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 09 June 2020

Crypto Industry News:
Grayscale, a digital asset management company, has recently attracted a lot of community interest because of its huge Bitcoin purchases. However, it turns out that this cryptocurrency fund collects not only BTC, but also Ethereum.

Grayscale's Investor Relations Director, Ray Sharif-Askary, revealed that in 2020, the company has acquired ETH worth $ 110 million in 2020. This represents 22% of all Grayscale cryptocurrency investments. This year's Grayscale purchases account for 0.4% of Ethereum's market capitalization in the last five months. Sharif-Askary has reported that more than 38% of Grayscale's current customers have more than one digital asset, a significant increase compared to only 9% a year ago.

This year, Grayscale has already purchased Bitcoins worth USD 390 million, which corresponds to 0.2% of total market capitalization. Apparently, the company buys 1.5 times more Bitcoins than it is mined.

The purchase of Ethereum by Grayscale coincided with the amazing results of the Grayscale Ethereum Trust investment fund. The shares of this fund increased by almost 800% this year, and at the last market close their price was $ 210.


Technical Market Outlook:
The BTC/USD pair did not move much overnight as the price has been seen trading between the levels of $9,381- $9,822 for the last 24h. The market is still bouncing from the ascending trend line support (marked in blue on chart) every time the price goes lower. It means, the bulls are still trying to push the price higher despite the overbought market conditions. For them any violation of the local low made after the sell-off ( the low is located at the level of $9,158) would indicate the start of the corrective cycle to the downside with a target seen at the level of $8,565.

Weekly Pivot Points:
WR3 - $11,389
WR2 - $10,828
WR1 - $10,195

Weekly Pivot - $9,652
WS1 - $9,043
WS2 - $8,494
WS3 - $7.815


Trading Recommendations:
The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated. The key mid-term technical support is located at the level of $7,897.







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

[IFX_Selena]

BTC analysis for June 08,.2020 - Watch for the potential drop on BTC towards the $9.228



Restrictions on international travel imposed by Russia are to be eased, the prime minister, Mikhail Mishustin, said on Monday, as he announced a rollback of coronavirus measures.

The city of Moscow will also roll back curbs imposed over the virus from Tuesday, including cancelling a digital pass system for residents and a self-isolation regime, the TASS news agency reported separately, according to Reuters.

Muscovites will be able to go out for walks whenever they want from Tuesday, TASS said, and restaurants and cafes in the Russian capital will be allowed to open their summer verandas from 16 June.


Trading recommendation:
Watch for potential selling opportunities if you see the breakout of the intraday support at $9,550.

The downward targets are set at $9,228 and $8,666




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

[IFX_Selena]

Technical Analysis of BTC/USD for 08 June 2020

Crypto Industry News:
On June 4, a new study by a number of Russian cryptographic exchanges revealed a significant increase in Bitcoin trade throughout Russia since March in connection with COVID-19.

According to RBC, representatives of Russian stock exchange offices, such as Binance, Garantex and EXMO, highlighted the increase in the number of users in Russia. This number is associated with an increase in trading volumes between March and June. Gleb Kostarev, head of the Binance representative office in Russia, explained that the number of registrations on their platform in April 2020 was twice as high as in December 2019.

"It is worth noting that the popularity of trading in futures contracts is growing among Russians. In April and May the volume of trading in these instruments was twice as high as in March and five times compared to January" - he added.

On the other hand, Sergei Mendelev, the founder of Garantex, explained that the increase in activity on cryptocurrency exchanges "is not associated with people who withdraw money from deposits or receive payments from the budget." That is why United Traders analyst Fedor Anaschenkov believes that isolation from the pandemic coronavirus was one of the factors leading to an increase in trade volume.

The EXMO crypto exchange has released some data explaining the sharp increase in Bitcoin trading volume. Their CEO, Sergey Zhdanov, said that activity on their site increased by about 15-20%, noting a 12% increase in Russian users. These figures were compared with the same period from March to May 2019.


Technical Market Outlook:
The BTC/USD pair did not move much during the weekend as the price has been seen trading between the levels of $9,381- $9,822. The market is still bouncing from the ascending trend line support (marked in blue on chart) every time the price goes lower. It means, the bulls are still trying to push the price higher despite the overbought market conditions. For them any violation of the local low made after the sell-off ( th elow is located at the level of $9,158) would indicate the start of the corrective cycyle to the downside with a target seen at the level of $8,565.

Weekly Pivot Points:
WR3 - $11,389
WR2 - $10,828
WR1 - $10,195

Weekly Pivot - $9,652
WS1 - $9,043
WS2 - $8,494
WS3 - $7.815


Trading Recommendations:
The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated. The key mid-term technical support is located at the level of $7,897.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 08 June 2020

Crypto Industry News:
The US Federal Reserve branch in Philadelphia has released a new report warning of the potential effects of the Central Bank (CBDC) issuing digital currencies.

In the report, the Fed said that - after the introduction of CBDC - the central bank will become "a monopolist on deposits, attracting all deposits away from the commercial banking sector." According to the Fed, this monopolization may threaten the transformation of maturity dates. The Federal Reserve also states that in the event of a weakening of competition from commercial banks, the central bank must be particularly careful not to disturb the transformation of maturities.

The report also explains that central banks are not investment experts and currently rely on private investment banks to finance long-term projects. However, the study noted that the implementation of CBDC should not prevent investment banks from investing, as the central bank cannot invest alone in long-term projects, but must rely on the knowledge of investment banks.

Marshall Hayner, CEO and co-founder of the cryptocurrency company Metal, said he did not thin k CBDC would threaten private banks. Metal is building a digital banking platform using stablecoins, which according to Hayner are precursors to CBDC. He said that the introduction of such currency is only a matter of time.


Technical Market Outlook:
The ETH/USD pair has been consolidating under the upper channel line all weekend long. The lower boundary of the consolidation zone is located at the level of $246.94 and the lower one at $235.42. The last bounce was quite strong and if bears will not regain the control of the market soon, then the bulls will push the price towards last swing high seen at $253.00. The decreasing momentum supports the short-term bearish outlook for Ethereum and the next target for bears is seen at the level of $217.65 and $215.58.

Weekly Pivot Points:
WR3 - $282.07
WR2 - $267.98
WR1 - $254.66

Weekly Pivot - $238.43
WS1 - $226.18
WS2 - $210.71
WS3 - $197.39


Trading Recommendations:
The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred. The next key technical support is seen at the level of $174.82.







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