Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for 15 May 2020

Crypto Industry News:
Proof of Stake Alliance revealed that it is taking critical steps to improve the regulatory space around the Staking-as-a-Service (STaaS) market, including dialogue with the US Securities and Exchange Commission (SEC).

According to the announcement, POSA met with the SEC to discuss the growing popularity of Proof-of-Stake (PoS) protocols - the successor to the Bitcoin Proof-of-Work Consensus protocol, which is perceived as being more efficient and scalable. Staking allows token holders to earn from blocked amounts of the native network token, which in turn supports overall network performance. POSA submitted a white paper containing a legal analysis of the international law firm Paul Hastings LLP and stated that the "legal analysis" dialogue was ongoing.

Meetings with the SEC took place in February, which educated the agency on PoS technology and discussed the legal framework for STaaS offers. POSA looked at a set of industry standards that anticipate potential regulatory problems, including asking STaaS suppliers to refrain from investment advice, avoiding financial industry terminology (e.g., "interest", "dividend" or "income"), focusing on security and participation in the network, and avoidance of guarantees regarding the size of prizes.


Technical Market Outlook:
The ETH/USD pair has made a new local high located at the level of $205, but there was a Pin Bar candlestick made at the top of the move. Currently, ETH is hovering around the technical resistance located at $198.71 and in a case of violation of this level, the bulls might rally towards the trend line resistance located around the level of $208. The momentum turns to positive, so it supports the short-term bullish outlook.

Weekly Pivot Points:
WR3 - $241.59
WR2 - $228.78
WR1 - $204.66

Weekly Pivot - $191.03
WS1 - $168.45
WS2 - $154.83
WS3 - $130.49


Trading Recommendations:
The fear of the second wave of coronavirus consequences has decreased among the global investors on the financial markets, nevertheless the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. 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.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 15 May 2020

Crypto Industry News:
Bitcoin Cash and Bitcoin SV hash rate after a dramatic fall following halving in April returned to normal after Bitcoin hash rate declined to May 11

According to data, the Bitcoin Cash hash rate increased by more than 90%, from 1.43 Exahash / second (EH / s) on May 10 to 2.74 EH / s on May 13. BSV also increased from 1.1 EH / s to 1.78 EH / s. Both BCH and BSV experienced a sharp decline in production immediately after reducing the number of awards on April 8 and April 10, respectively. BCH hash rate dropped by over 80% within two days after block prizes fell from 12.5 to 6.25 BCH. BSV also observed a decline as miners transferred their computing power to the Bitcoin chain.

After April halving, Bitcoin blocks were one of the most profitable cryptocurrency mining operations. In anticipation of Bitcoin's halving, it was anticipated that miners with less efficient platforms would turn off their machines when revenues fall. To date, Bitcoin hash rate has dropped by 24% - from 137 EH / s before halving, to 104 EH / s - but not to the extent that BCH and BSV have experienced after their halving.


Technical Market Outlook:
The BTC/USD has been hovering around the level of $9,380 after a failed rally towards the $10,000 swing high. The local high was made at the level of $9,871 when the Pin Bar candlestick pattern was made , quite similar to Shooring Star. Please notice, this is the supply zone for the last rally as well. Any breakout higher will open the road towards the level of $10,000 again. Positive momentum supports the short-term bullish outlook for Bitcoin.

Weekly Pivot Points:
WR3 - $11,485
WR2 - $10,709
WR1 - $9,512

Weekly Pivot - $8,760
WS1 - $7,652
WS2 - $6,835
WS3 - $5,708


Trading Recommendations:
The recent rally in Bitcoin was made in anticipation of Bitcoin halving and it is a classic pump and dump scheme. 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.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 14 May 2020

Crypto Industry News:
JPMorgan Chase, the largest bank in the United States, reportedly accepted clients of the US cryptocurrency exchanges Coinbase and Gemini.

The media report quotes unknown sources apparently familiar with the matter, which emphasize that for the first time a banking giant has served clients from the cryptographic industry. Both accounts were accepted in April and transactions are beginning to be processed. JPMorgan Chase does not process Bitcoins or other cryptocurrency transactions on behalf of exchanges, but provides cash management services and supports US dollar transactions for US customers. According to reports, the bank will process all transfers and deposits and withdrawals in dollars via the Automated Clearing House network.

Sources say that both exchanges were asked to undergo a rigorous verification process, which indicates the long-standing reluctance of major banks to establish relationships with crypto-related companies.


Technical Market Outlook:
The BTC/USD has been seen moving up towards the 61% Fibonacci retracement located at the level of $9,249 and recently violated this level. The local high was made at the level of $9,381 and this is the level of local technical resistance as well. Any breakout higher will open the road towards the level of $9,704 and $10,000 again. Positive momentum supports the short-term bullish outlook for Bitcoin.

Weekly Pivot Points:
WR3 - $11,485
WR2 - $10,709
WR1 - $9,512

Weekly Pivot - $8,760
WS1 - $7,652
WS2 - $6,835
WS3 - $5,708


Trading Recommendations:
The recent rally in Bitcoin was made in anticipation of Bitcoin halving and it is a classic pump and dump scheme. 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.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 14 May 2020

Crypto Industry News:
During a conversation at the Consensus: Distributed event, Changpeng Zhao, CEO and founder of Binance, said the largest cryptocurrency exchange is experiencing a sharp increase in the number of user registrations.

Zhao noticed that new registrations among Bitcoin halving have approached levels that were recently observed during the peak of 2017. CEO Binance also noted that the exchange customer service department receives a large number of requests that indicate a high level of activity among completely new or sporadic ones users, including requests from "new users depositing at the wrong addresses" and "many older users resetting passwords" after long periods of inactivity.


Technical Market Outlook:
The ETH/USD pair has made a new local high located at the level of $200.13 after the bounce from 61% Fibonacci retracement. Currently, ETH is testing the technical resistance located at $198.71 and in a case of violation of this level, the bulls might rally towards the trend line resistance. The momentum turns to positive, so it supports the short-term bullish outlook.

Weekly Pivot Points:
WR3 - $241.59
WR2 - $228.78
WR1 - $204.66

Weekly Pivot - $191.03
WS1 - $168.45
WS2 - $154.83
WS3 - $130.49


Trading Recommendations:
The fear of the second wave of coronavirus consequences has decreased among the global investors on the financial markets, nevertheless the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. 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.







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

[IFX_Selena]

Bitcoin done with the third stage

Greetings cryptocurrency enthusiasts!

So the triumphant halving of Bitcoin came, which was anticipated for so long. But what changes have occurred and what to expect in the future?

Let's take it in order.

In the new story, three BTC halvings are known: November 28, 2012; On July 9, 2016, and May 11, 2020, each subsequent stage carried a complication of the production process of the new block, or rather, a decrease in remuneration to miners. The process has its own sacred meaning of emission, which was asked by the sensei of crypto enthusiasts, Satoshi Nakamoto. Halving focuses on itself with increased interest, and judging by the existing process of complication, Google Trends literally went off-scale from queries related to halving. Naturally, against this background, crypto enthusiasts became active, which in March-April began to prepare trading accounts on stock exchanges, where the influx of living funds from outside was recorded.

Before we move on to halving and its impact on the market in the future, it is worthwhile to analyze the preparation process in detail.

So, for more than a month the price was in the variable range of $ 6,500 / $ 7,500, which served as a kind of catalyst for trading forces, but the existing platform was a temporary phenomenon, and everyone knew about this. Since April 24, the process of preparing positions for the halving has begun, longs have grown and capital has flowed into BTC. Over 16 days, market participants managed to gain more than $ 3,000, reaching $ 10,079, and this is a kind of parity for bitcoin. Such accelerations due to expectations of halving led to the mass liquidation of long positions in the amount of $ 1.3 billion, which resulted in a sharp decrease in the BTC rate, the loss of May 10 more than 15% of the cost.

The triumphant moment of halving comes on May 11, and everything is already won back on the market, there is no speculation, and the enthusiasts that were bought by BTC at the level of $ 10,000 are at a loss.

However, everything is not so bad, Bitcoin has come a long way from nothing to public recognition, and it is worth a lot. If we go to the numbers and compare the BTC trading volumes from the last halving, we will see that during this period, the trading volume soared 50 times.

Summing up, no matter how bad the judgment about the first MTC cryptocurrency, it still remains in its place and balances both in the market and in the world. Current halving will not bring unprecedented heights of $ 100,000; $ 200,000 $ 500,000 PTS needs stabilization in the new digital world.



Current development and prospects

After a local collapse on May 10, the quotes entered the stabilization phase, with variable boundaries of $ 8,250 / $ 9,200. In fact, we were faced with another catalyst for trading forces, where it can be assumed that halving could theoretically push the BTC to a gradual increase in the future.

The growth goes towards the breakdown of parity of $ 10,000 and consolidation above this value, which is the main goal for most traders.

We specify everything in the trading recommendations.

A buy position should be considered after consolidating the price higher than $ 9,200, with the prospect of a move to the level of $ 10,000. Subsequently, we expect a new stabilization, where it is necessary to consolidate at a level above $ 10,500, which will confirm the intention of further growth.



The general background of the cryptocurrency market

Analyzing the total market capitalization, you can see the change in trading volumes relative to the previous halving, where for the current hour Total market is $ 245 billion.

If we consider the volume chart in general terms, we see that the level of $ 260–265 billion remains a variable ceiling. Subsequent resistance is in the region of $ 280–300 billion.



The cryptocurrency market emotion index (aka fear and euphoria) has recently grown significantly to level 41, which is considered a good signal for the growth of activity of market participants.



Indicator analysis
Analyzing a different sector of timeframes (TF), it can be seen that there is a buy signal relative to the main time periods, but it is worth considering the fact that price fluctuations are carried out in the side corridor and the indicators of technical instruments are variable in nature.







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

[IFX_Selena]

BTC analysis for 05.13.2020 - Bearish flag pattern in creation and potential for further downside contianution. Next downward target is set at the price of $8.130

BTC News:


According to recent research conducted by Ripple, traders swap bitcoin (BTC) and ethereum (ETH) for XRP for their exchange balance transfers. Xpring's data scientist Shae Wang noted that the recent financial market instability has put cryptocurrencies networks to the test.

The increased trading volumes witnessed, sparked network congestion on both ethereum and bitcoin. This subsequently made it very difficult to move these two currencies in and out of exchanges. As a result, most traders opted for XRP for convenient exchange balance transfers.


TRADERS USE XRP FOR INTEREXCHANGE TRANSFERS TO ESCAPE HIGH FEES AND DELAYS ON ETH AND BTC NETWORKS


Technical analysis:
BTC has been trading upwards. The price tested the level of $9,000, which is the middle Bollinger line and potential resistance. I expect further continuation of the downside movement towards the support levels.


Trading recommendation:
Watch for selling opportunities due to the bearish flag pattern in creation and potential for the downside continuation.





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

[IFX_Selena]

Technical Analysis of ETH/USD for 13 May 2020

Crypto Industry News:
The Vietnamese Ministry of Finance has agreed to set up a research group responsible for researching and presenting policy proposals on cryptocurrencies and virtual assets. The group will consist of nine members led by the vice-chairman of the State Securities Commission, Phama Hong Son.

Other members are other representatives of the national securities regulator, the General Tax Department, the National Institute of Finance of Vietnam, Vietnam Customs and the Department of Banking and Financial Institutions of the National Bank of Vietnam.

The research group will help the country keep abreast of news in the rapidly growing Blockchain sector, enabling Vietnam to respond to regulatory challenges with greater efficiency.

In August 2017, the Prime Minister of Vietnam approved a plan to supervise the development of the legal framework for cryptocurrencies until August 2018, indicating that cryptographic assets will be legally recognized in this country.

However, on April 11, 2018, Bitcoin was banned as a means of payment - meaning that although individuals and companies still had the freedom to invest in crypto, virtual currencies cannot be used to buy goods or services.

Two days later, a directive was issued ordering credit institutions to limit the provision of virtual currency services to protect against the risk of money laundering. Vietnam has informally updated its regulations since the introduction of directives two years ago, with the current lack of a regulatory framework for cryptocurrency exchanges in that country.


Technical Market Outlook:
The ETH/USD pair has bounced from the level of $177.50 (low was made at $174.72) after the Pin Bar candlestick pattern was made at the end of the move. The pair keeps trading inside of a narrow zone as the volatility is now limited. The momentum remains weak and negative, so the next target for bears is seen at the level of $164.45. The immediate technical resistance is seen at the level of $188.86 and $193.78. Please bear in mind, that there is only 13 hours left to the halving, which is highly anticipated event for all cryptoenthusiasts.

Weekly Pivot Points:
WR3 - $241.59
WR2 - $228.78
WR1 - $204.66

Weekly Pivot - $191.03
WS1 - $168.45
WS2 - $154.83
WS3 - $130.49


Trading Recommendations:
The fear of the second wave of coronavirus consequences has decreased among the global investors on the financial markets, nevertheless the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. 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.







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

[IFX_Selena]

Technical Analysis of BTC/USD for 13 May 2020

Crypto Industry News:
Riot Blockchain, an American mining company, more than doubled the number of new generation Bitcoin miners they purchased, buying 1040 S19 Antminers from Bitmain.

Additional miners cost the company $ 1.9 million after Riot bought 1000 S19s Pro. Anticipating units to be shipped and deployed in the third quarter of this year, Riot expects the upcoming 2040 S19 units to increase the company's operational hashrate by 80% by 2021. In total, Riot predicts that it will manage a hashrate of 457 petahash per second, consuming approximately 16.5 megawatts of electricity. A spokesperson for Bitmain in North America said the company "has been working with Riot Blockchain for several years," as Riot "uses Antminer [Bitmain] products to operate its data centers."

The purchase of Riot occurred on the same day that the manufacturer ASIC admitted that it has problems with the recently sent lot S17 - miners report failures of up to 30% of units. The company is currently negotiating solutions with customers who have purchased faulty devices, encouraging affected users to contact them directly.


Technical Market Outlook:
The BTC/USD volatility has decreased after the pair has dipped 15% just before the halving. Still the key level of support is still seen at $7,943, but the nearest technical support is currently seen at the level of $8,464. Any violation of this level will deepen the correction towards the level of $7,934 which is a key short-term technical support for bulls. Weak and negative momentum supports the short-term bearish outlook about 13 hours before halving.

Weekly Pivot Points:
WR3 - $11,485
WR2 - $10,709
WR1 - $9,512

Weekly Pivot - $8,760
WS1 - $7,652
WS2 - $6,835
WS3 - $5,708


Trading Recommendations:
The recent rally in Bitcoin was made in anticipation of Bitcoin halving and it is a classic pump and dump scheme. 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.







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

[IFX_Selena]

Technical Analysis of BTC/USD for 12 May 2020

Crypto Industry News:
The South Korean government plans to create a blockchain-based platform for storing and verifying the identity of digital independent vehicles in the city of Sejong, which is a testing ground for the introduction of new technologies.

Asian media has announced that South Korea's Ministry of Science and ICT, along with the national internet technology supervisory body, Korea Internet & Security Agency, will guide the development of an identity management and verification platform. Although autonomous vehicles are still far from the mainstream, Sejong has already started preparing to fight the crimes associated with these advances.

The LG Group technology wing, LG CNS and the Korean independent vehicle manufacturer will work with the authorities of the city of Sejong to develop a blockchain-based encrypted identifier, called a decentralized identifier or DID. This can help prevent illegal identity copying or hacking into independent vehicles. The report explains that the identity verification system will implement multiple layers of data encryption shared between cars and road objects using vehicle-to-everything or V2X communication.

Although previously the government was uncertain about crypto, it did show consistent efforts to legitimize cryptocurrencies and develop favorable regulations. It is worth recalling that the Bank of Korea has launched a pilot program for assessing the logistics of the digital currency of the central bank or CBDC


Technical Market Outlook:
The BTC/USD pair has dipped 15% just before the halving and now, after the halving is done, there is no sign of the shopping frenzy behavior. Still the key level of support is still seen at $7,943, but the nearest technical support is currently seen at the level of $8,464. Any violation of this level will deepen the correction towards the level of $7,934 which is a key short-term technical support for bulls. Weak and negative momentum supports the short-term bearish outlook about 13 hours before halving.

Weekly Pivot Points:
WR3 - $11,485
WR2 - $10,709
WR1 - $9,512

Weekly Pivot - $8,760
WS1 - $7,652
WS2 - $6,835
WS3 - $5,708


Trading Recommendations:
The recent rally in Bitcoin was made in anticipation of Bitcoin halving and it is a classic pump and dump scheme. 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.







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

[IFX_Selena]

Technical Analysis of ETH/USD for 12 May 2020

Crypto Industry News:
The digital lender, Capital on Tap, has published data that show that blockchain jobs offer the highest salary among all groundbreaking technology companies in the UK.

British blockchain companies offer an average annual salary of £75,000, or about £93,000. They also revealed that these projects provide 544 permanent jobs across the country. The study emphasizes that blockchain technology is becoming a significant force adhering to all industries, from virtual reality to 3D printing. The report emphasizes that the United States dominates the world thanks to the largest number of companies in all major breakthrough technologies, followed by India and the United Kingdom with second and third place respectively.

According to Capital on Top, the internet, augmented reality and progress in online learning have also changed the way schools engage in teaching. However, the education sector still ranks eighth among UK segments.


Technical Market Outlook:
The ETH/USD pair has tested the 61% Fibonacci retracement located at the level of $177.50 with a low made at $174.72 and then the Pin Bar candlestick pattern were made at the end of the move. The momentum remains weak and negative, so the next target for bears is seen at the level of $164.45. The immediate technical resistance is seen at the level of $188.86 and $193.78. Please bear in mind, that there is only 13 hours left to the halving, which is highly anticipated event for all cryptoenthusiasts.

Weekly Pivot Points:
WR3 - $241.59
WR2 - $228.78
WR1 - $204.66

Weekly Pivot - $191.03
WS1 - $168.45
WS2 - $154.83
WS3 - $130.49


Trading Recommendations:
The fear of the coronavirus consequences has decreased among the global investors on the financial markets, nevertheless the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. 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.







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