Cryptocurrency Analysis

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US Senators are buying Bitcoins!



Wyoming senator Cynthia Lummis made a huge Bitcoin investment around the same time she backed an amendment that would benefit the crypto industry. She reportedly purchased $ 50,000 - $ 100,000 BTC at the time cryptocurrencies were rallying and a number of senators were trying to limit the definition of a crypto broker.

The amendment to the infrastructure bill guarantees that miners, validators, software and hardware manufacturers, and protocol developers will be excluded from the reporting requirements set for crypto brokers. Sadly, it was blocked.

The disclosure of Lummis' investment happened after the 45-day reporting deadline set for members of Congress. A spokesman said it was delayed due to a "filing error."

"It was an honest mistake, and the issue was resolved without penalty," the spokesman said.

Back in April, there was no mention of Bitcoin holdings in Lummis' annual filing. But it was quickly corrected in May, revealing that the senator owns around $ 100,001 - $ 250,000 BTC.

"Amendments are a part of the filing process," said Darin Miller, the senator's communication director. "Sen. Lummis's spring filing was completed on time and in accordance with ethics requirements, "he added.

In any case, Bitcoin rallied as regulatory concerns diminished. It hit its highest level since May, topping $ 55,000 on Friday.



Late last month, Fed Chairman Jerome Powell said he had no intention of banning cryptocurrency. But stablecoins - another type of cryptocurrency associated with assets like the US dollar - require more control, he noted.

Bitcoin was up 1.24% to $ 54,878, while Ethereum was down 0.73% to $ 3,597 on Friday morning.





Andrey Shevchenko
Analytical expert of InstaForex
© 2007-2021

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Bitcoin Buyers In Full Control!


Bitcoin was standing at 57,236.65 at the time of writing that is below the 57,855.79 today's high. It decreased a little after reaching a dynamic resistance. The outlook is bullish, so the crypto could jump towards new highs anytime.

Yesterday, the price of Bitcoin printed a false breakdown with great separation below the immediate support levels, so an upside continuation is favored. Bitcoin was up by 2.03% in the last 24H and by 16.79% in the last 7 days.


BTC/USD CHALLENGES A DYNAMIC RESISTANCE!



BTC/USD challenges the first warning line (wl1), which stands as a dynamic resistance. It moved sideways below the 55,800 level in the short term accumulating more bullish energy. As you can see, the price of Bitcoin printed a false breakdown with great separation below 52,956 static support and under the ascending pitchfork's upper median line (uml) confirming strong bulls and a potential upside continuation. Making a valid breakout through the warning line (wl1) and above the weekly R1 (58,551.11) could activate further growth. The bias remains bullish as long as it stays above 55,800 and above the 150% Fibonacci line.


BITCOIN OUTLOOK!

Jumping, closing, and stabilizing above the weekly R1 (58,551.11) is seen as a bullish signal. The R2 (62,372.42) and the 64,895.22 all-time high are seen as upside targets.





Ralph Shedler
Analytical expert of InstaForex
© 2007-2021

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Bitcoin's daily settlement value reaches record high


Bitcoin is one step away from reaching a historical high, which is likely to be hit quite soon. Apart from that, the on-chain activity is also high. Besides, bitcoin has won back luster with market participants. A few days ago, a new historical record was set in the BTC network for daily transaction volumes, worth $30 billion. Since the beginning of 2020, this indicator has increased by 40 times, signaling high demand for the digital asset among crypto traders. So, many experts are now sure that the bitcoins' rally will soon start. However, before making bullish calls on the cryptocurrency, it is necessary to conduct technical analysis and make sure that the price continues to move up after hitting a record level.

The Relative Strength Index (RSI) is a technical indicator that helps you determine the strength of a trend (descending or ascending) and warns of possible changes in the price movement. Thanks to this indicator, it is possible to determine at what level the asset gets overbought or oversold. The 60 level indicates bullish momentum. It means that there is a high demand for the coin and the current upward momentum is strong. When crossing this mark, the coin begins to move towards the overbought zone.

Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relation between two moving averages of an asset's price. The bullish signal is the intersection of the white line under the red and bearish. Alternatively, when the upper white line crosses the red one, it indicates a downward movement.

Stochastic (stochastic oscillator) indicates the strength of the current prevailing trend. If the indicator is above the 80 mark, then the asset can be considered overbought. If the stochastic is below 20, then the asset is oversold.

Bitcoin's daily settlement value is directly connected to the growth of the number of unique addresses in the coin network. It may become a catalyst for the further movement of the cryptocurrency in the $58,000-$60,000 resistance area. On the 1H chart, the coin is rising. The main technical indicators are also pointed upwards. The MACD indicator is moving down, but there are signs of a possible sideways movement. The stochastic oscillator managed to form a bullish intersection but failed to push the price above $58,000. The RSI indicator approached 70. However, it is changing a direction and moving sideways. Judging by the 1H chart, the current bullish momentum is losing strength and indicators are beginning to decline.





On the 4H chart, bullish momentum seems solid. MACD has formed a bullish intersection and it is moving up. The stochastic and the RSI indicators are moving sideways. It indicates that the bullish momentum is strong and may continue. So, at the end of today, bitcoin is likely to try to break above the $58,000 level. Shortly after, it may decline.



The daily chart shows the continuation of the uptrend. It has entered the range of $58,000-$60,000. The main technical indicators are steadily rising. MACD continues to grow and the stochastic formed a bullish intersection. At the same time, the RSI indicator is moving sideways along the support zone, which indicates that there are no reasons for a correction. On the chart, there is also a bullish flag pattern that may also signal an uptrend. Taking into account the technical analysis, today, BTC may face a strong resistance level, which may turn into a correction. However, the bullish momentum is strong and BTC is likely to consolidate above $58,000-$60,000 in the near future.







Artem Petrenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading plan for Bitcoin on October 12, 2021



TECHNICAL OUTLOOK:
Bitcoin might be targeting the $58,500-59,000 resistance zone in the near term. The crypto could retrace after taking out the above mentioned resistance and drag towards the $46,000-47,000 levels going forward. Most traders might be preparing to take some profits around the $58,000-59,000 levels and initiate fresh long positions after the pullback is complete.

Bitcoin may remain bullish until the price stays above the $40,000 initial support as highlighted on the daily chart here. Bulls are looking poised to push through the $65,000 high either from here or after slight correction to the $4,6000-47,000 mark, going forward. The immediate price support is at $40,000, while resistance stands around $59,000.

Bitcoin traders might be preparing to buy on dips rather than sell on rallies. The trend will change to bearish only if the $40,000 support breaks in the near term. In that case the corrective drop could re-test $39,000 before it resumes its rally.


TRADING PLAN:
Potential rally towards $65,000 against $40,000.

Good luck!





Oscar Ton
Analytical expert of InstaForex
© 2007-2021

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Technical Analysis of ETH/USD for October 12, 2021


Crypto Industry News:
Lawmakers belonging to the South Korean opposition People Power Party have prepared a new challenge for the planned cryptocurrency tax law. They are in favor of a one-year extension of the start of cryptocurrency taxation in this country.

According to earlier reports, the South Korean tax system will enter into force in 2022, which will impose a 20% fee on cryptocurrency profits exceeding $ 2,100.

In addition to the one-year delay, lawmakers are also pushing for a multi-level cryptocurrency tax levy that is in line with the financial investment income tax system to be implemented in 2023.

Under the legislative proposal, instead of the government's flat rate of 20% on profits above $ 2,100, lawmakers suggested 20% on profits from $ 42,000 to $ 251,000 and 25% on profits above $ 251,000.

Commenting on the need to reduce the burden on crypto investors, the representative of Cho Myoung-hee argued that the tax system for cryptocurrencies should be in line with the national income tax on financial investments.

The People Power Party's challenge to the cryptocurrency tax bill coincides with a similar action taken by lawmakers belonging to the ruling Democratic Party in September. However, an agreement between lawmakers and the country's finance minister reportedly put an end to any plans to delay the entry into force of the cryptocurrency tax law.


Technical Market Outlook:
The ETH/USD had pulled-back towards the technical support located at the level of $3,385, but is still trading under the short-term trend line resistance located around $3,600. There is a clear Bullish Engulfing pattern at the end of the last pull-back, so the bulls are back in control of the market. The next target is located at $3,677 and then at $3,830. The momentum is back into the positive zone, but is not that strong yet, so a more complex and time-consuming correction in a potential wave 4 is still possible.


Weekly Pivot Points:
WR3 - $4,097
WR2 - $3,885
WR1 - $3,704

Weekly Pivot - $3,473
WS1 - $3,298
WS2 - $3,083
WS3 - $2,876


Trading Outlook:
Ethereum have started the next wave up and violated the long-term target at the level of $3,550. The next long-term target for ETH is seen at the level of $4,394. Nevertheless, in order to continue the long-term up trend, the price can not close below the technical support at the level of $2,906. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls.







Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021

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Technical Analysis of BTC/USD for October 12, 2021


Crypto Industry News:
SEC commissioner Hester Peirce spoke about the regulation of cryptocurrencies in an online interview. Peirce is also known in the crypto community as "crypto mom" due to her knowledge and support of the crypto space.

She was asked if the SEC had any problems keeping up with changes in the crypto space and protocols that evolve and change very rapidly every day.

"Certainly the regulator is having a hard time keeping up with the development of DeFi and more generally cryptocurrencies," Peirce admitted.

"People should not assume that the SEC can only focus on one thing. The SEC has many resources and can do many things at once. So be aware of this and you need to consider whether the securities laws apply to what you do and consult lawyers when necessary, "she recommended.

The Commissioner added that the decentralized world is very new to the regulator, as the SEC is used to dealing with the usually large, centralized brokers.

SEC chairman Gary Gensler also said that many of the platforms claiming to be decentralized were in fact centralized. In September, he told Senator Elizabeth Warren that many platforms "are decentralized in name only." In addition, he said that many of the tokens listed on cryptocurrency exchanges are actually securities.


Technical Market Outlook:
The BTC/USD pair has been seen moving up towards the next target seen at the level of $59,661. The market conditions are still overbought, but the momentum remains strong and positive as the bulls are in control of the market. The immediate technical support is seen at the level of $55,748. The key short-term technical support is located at $52,209. Please notice the top of the wave 3/C might be completed at the level of $59,561 and then the market will start the corrective cycle in wave 4.

Weekly Pivot Points:
WR3 - $69,115
WR2 - $62,582
WR1 - $60,185

Weekly Pivot - $53,520
WS1 - $50,100
WS2 - $43,237
WS3 - $40,463


Trading Outlook:
According to the long-term charts the bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. The next mid-term target is seen at the level of $59,506. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).







Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin skyrockets to five-month high




Bitcoin rose by 5.2% on Monday, continuing the two-week rally that pushed the price beyond $ 57,000. Its market cap also surged beyond expectations.



The rally enabled Bitcoin to hit a five-month high, albeit still below the all-time high of over $ 63,000.




Momentum has been building since late September, when the digital asset struggled to shake off the losses fueled by fears that US and China would crackdown on the industry.

Those fears have gradually died down, especially after SEC chief Gary Gensler said he had no intention of banning crypto transactions. "It will be at the discretion of Congress," Gensler said.

This comment came just a week after Fed Chairman Jerome Powell announced that the central bank had no plans to ban the asset.

So, could Bitcoin go much higher? We don't know yet. But according to CoinDesk, it may try to break above $ 60,000 and fluctuate around $ 58,000 to $ 60,000.

With regards to other cryptocurrencies, Ethereum posted a 2.5% increase in market cap, pushing it to $ 3,602. Cardano, on the other hand, fell more than 3.5%, while Dogecoin lost more than 5%.







Andrey Shevchenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BTC analysis for October 12,.2021 - Potential for the downside rotation

Technical Analysis:



BTC has been trading sideways at the price of $57,000 but I see potential for the downside movement towards lower references.


Trading recommendation:
Watch for selling opportunities due to upside exhaustion in the background. The downside targets are set at $56,400, $55,900 and $45,600.

Stochastic is showing bearish divergence and potential for the further downside movement.

Key resistance is set at $57,800





Petar Jacimovic
Analytical expert of InstaForex
© 2007-2021

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Trading signal for Ethereum (ETH) for October 12 - 13, 2021: Buy above 3,400 (6/8)



Since October 10, Ether (ETH/USD) has been falling below the SMA of 21. It seems to be forming a descending wedge pattern. A break of this technical figure can confirm a bullish movement and could reach the resistance level of 8/8 Murray located at 3,750.

If the bulls push and close the daily price above 3,600, then a new bullish wave could be expected, and it could go all the way to the psychological level of 4,000. If the 7/8 Murray level turns out to be very strong and consolidation occurs instead of a breakout, then it will be a good opportunity to sell below the 21 SMA located at 3,528.

The opportunity to continue the bullish movement is based on Ether being above the 200 EMA today at 3.3319. A technical bounce around this zone will be a good opportunity to buy with targets at 3,528, and if it sharply surpasses this resistance it could reach 3,750 and 4,000.

On the contrary, a daily close below the EMA of 200 (3,319) will mean that the bulls wait for the levels of 3,125 or 2,812 to take new entries, which could result in a new bullish cycle. It remains to wait to take action according to the result of price action.

Our forecast is to buy at the current price level above 3,400, the first target at 3,528 and up to 8/8 of Murray at 3,750. Alternatively, only a daily close below the EMA of 200 (3,300) will give us the opportunity to sell with targets at 3,125 and up to strong support at 2,812.

The Eagle indicator is showing a neutral signal. It is likely that Ether will continue flutuating within a price range between 3,600-3,300 above these limits, the next movement could be defined.


Support and Resistance Levels for October 12 - 13, 2021
Resistance (3) 3,693
Resistance (2) 3,611
Resistance (1) 3,487

Support (1) 3,356
Support (2) 3,281
Support (3) 3,125


A trading tip for Ether for October 12 - 13, 2021
Buy in case of a rebound at 3,319 or above 3,400 (6/8) with the take profit at 3,528 and 3750 (8/8), the stop loss is below 3,235.






Dimitrios Zappas
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

China plans to prosecute miners and traders while 4 ETF applications await approval in the US. Bitcoin storms final resistance zone


While the rest of the world is watching the development of the cryptocurrency market and bitcoin separately, two opposing countries have taken diametrically opposite positions regarding digital assets. The Chinese authorities are going to tighten the existing restrictions, while the US waits for the approval of four more applications for the launch of ETF funds on BTC. At the same time, the main cryptocurrency is enjoying a temporary lull and is increasing its audience, preparing to storm the final resistance area.

Thanks to the positive news background, the bitcoin price managed to show a significant increase over the past month. The on-chain analysis of the main coin indicates the preservation of the current dynamics of investor growth, which has already provoked record volumes of transactions in the asset network. In addition, most of the network companies associated with BTC began to make profits after reaching lows in early September. Despite this, the Chinese authorities plan to continue repressions against the cryptocurrency market and all those involved. Relevant government groups are considering the possibility of prosecuting traders and mining companies in the country. This idea was approved by the State Prosecutor's Office, as well as the Ministry of Public Security. Due to the tightening of the current rules, Chinese crypto exchanges are forced to accelerate the pace of account liquidation, which may provoke a local sale or interruptions in the operation of the network algorithms of the main coins.

At the same time, the US decided to launch the first bitcoin ETF fund in the country. The market took this step with enthusiasm, which was reflected in the network metrics of the cryptocurrency. By the end of October, the SEC has four more potential positive decisions on launching ETF funds for BTC futures. On cryptocurrency platforms, open interest in bitcoin futures continues to grow, which indirectly confirms the approval of at least one application. However, even with the current news background, the BTC/USD pair looks very strong and will soon begin storming the final resistance area of $58k-$60k.



In addition to bullish signals on the technical charts of the coin, the continuation of the bullish rally is evidenced by a powerful increase in activity on the on-chain metrics. First of all, it is worth noting the growth in the number of unique addresses in the coin network, which indicates that the dynamics of the expansion of the BTC retail audience remains. This is also confirmed by record transaction volumes and the minimum supply of assets on crypto platforms since 2017. Taking into account the historical context, the bullish rally of the main crypto asset has always been associated with the expansion and activation of the retail audience, thanks to which the cryptocurrency looks more confident during corrective falls.





However, the main factor that indicates the continuation of bitcoin's bullish rally is the 30-day MVRV reading, which is below zero. The metric is moving near the value of -3, which indicates that most investors purchased cryptocurrency at a loss. With the current positive market situation, this means that players will continue to store coins or accumulate volumes in anticipation of growth. On-chain metrics continue to grow, and this time there is no obvious divergence between price and indicators on the charts, which indicates a planned and logical growth.



In the near future, BTC will begin to test the strength of the sales range of $58k-$60k, after which the coin will open the road to a historical maximum. Most likely, the coin will not be able to conquer the resistance area on the first attempt, and therefore we are waiting for a systematic growth with local pullbacks to the support zones during this week. However, taking into account the changing news background and the activation of large capital that buys bitcoin instead of gold, the situation on the Bitcoin market may change in a few days.





Artem Petrenko
Analytical expert of InstaForex
© 2007-2021