Cryptocurrency Analysis

[IFX_Selena]

Bitcoin climbs above $65k but sees new threat through Ethereum

The new week for the cryptocurrency market started off well. Bitcoin broke out of the triangle and climbed above $65,000 per coin. Now, the coin is gradually approaching an all-time high above $67,000 per coin. What's going on behind the scenes of a price that includes everything?


The crushing losses of the crypto bears

According to crypto analytic platform Coinglass, Monday's trading session brought the crypto bears the worst losses in three weeks.

In the last 24 hours, short and long positions worth 240 million US dollars have been liquidated. In total, bitcoin traders lost $130 million, while Ether traders lost $50 million. And the holders of positions on XRP, DOGE, SHIB, and SOL faced the liquidation of positions worth more than $20 million.

Unsurprisingly, 72% of liquidations were "short" during Monday's rally, with a total of 46,831 traders lost their funds.

According to Coinglass, the largest single liquidation was recorded on OKEx for the BTC/USDT pair: Bitcoin bears lost $6.57 million in an instant.

It is worth noting that on October 19, 2021, when Bitcoin reached an all-time high, the bears lost $254 million in 24 hours.


Ethereum is on its heels

The second cryptocurrency, Ether, has updated its all-time high and has risen above $4,700 per coin on Monday. Experts point out that the reason for this is the shift of institutional interest from Bitcoin to Ether.

Genesis statistics for the third quarter of 2021 show that the demand for bitcoins is falling this time, while institutional investors are looking into DeFi platforms and other altcoins.

The rise of DeFi and the NFT craze led to wider institutional adoption of Ethereum. And this creates the preconditions for the second cryptocurrency to be able to greatly distract the market share.

First , the Ethereum blockchain processes more transactions than Bitcoin, so payments are faster and more efficient.

Second, the Ethereum network supports the creation of multiple applications. Ethereum is known for its smart contracts that allow the creation of decentralized applications such as DeFi (decentralized finance) or NFT (unique tokens).

However, if you look at Ethereum as an investment, the only problem, according to analysts, is that it has not yet been fully developed. Therefore, it is difficult to predict what improvements will occur in the next few years.


Bitcoin: nearest targets

Let's digress from the long-term prospects and see what to expect from bitcoin in the near future. Since the price has risen above the resistance of 62,637.96, having consolidated at this level, now the obvious target remains at the level of 67,044.68 (all-time high). The level 100 of the Fibonacci Expansion is also located there.

If Bitcoin can break that border, the next target will be the 161.8 Fibo Expansion level, which passes near $72,000 per Bitcoin. How quickly the price will get there, we can only guess: it can take several days or several months.







Ekaterina Kiseleva
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading signal for BITCOIN (BTC) on November 08 - 09, 2021: buy above $ 62,500 (symmetrical triangle)



Bitcoin broke above the symmetrical triangle on November 8. Now the chart shows that it is consolidating above 6/8 of murray and it is likely to continue this trend in the coming days until the price reaches the area of 3/8 murray around 68,750 and up to 4/8 murray around 75,000 as their ultimate goal.

According to the daily chart, we observe that from October 16 to November 8, Bitcoin has been consolidating within a symmetrical triangle. This pattern was broken a few hours ago which could mean that in the short term Bitcoin could move up to the psychological level of $ 75,000.

On the contrary, if BTC consolidates again below the SMA of 21 located at 61,999, a correction movement could occur to 1/8 of murray around 56,250. If this support is broken, BTC could fall to the psychological level of 50,000. The final target it could even test the strength of the support of the 200 EMA is located at 47,275.

The eagle indicator is still giving a bullish signal. After it makes a correction towards the 2/8 murray level around 62,500, the crypto could give us a good chance to buy with targets towards 68,750 and up to 75,000.

The medium-term outlook for BTC continues to be bullish given that this week Bitcoin broke above the technical triangle pattern and is now consolidating above the 21 SMA. This could increase market optimism and we could expect new all-time highs in the coming days.

Our forecast remains bullish for BTC as long as it trades above the 21 SMA and above the 2/8 murray. We can continue buying with targets until 4/8 of murray. The eagle indicator is supporting our strategy.


Support and Resistance Levels for November 08 - 09, 2021
Resistance (3) 69,819
Resistance (2) 68,750
Resistance (1) 67,031

Support (1) 64,913
Support (2) 63,465
Support (3) 62,500


A trading tip for Bitcoin for November 08 - 09, 2021
Buy above 62,500 (SMA 21) with take profit at 68,750 and 75,000 (4/8), stop loss below 61,000.






Dimitrios Zappas
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin approaches all-time high; what do technical indicators say about further price movement?


Bitcoin starts the trading week with a rebound from the support line of $60.2k, after which the impulse growth is close to the historical maximum. However, as a result, the cryptocurrency cannot continue to grow due to the local correction that inevitably comes after such a powerful impulse growth.

Thanks to such a clear rebound, there is no doubt about the imminent start of a bullish rally and the establishment of a new maximum. With this in mind, it is necessary to conduct a technical analysis of BTC horizontal charts in order to determine the likely start of a new period of bitcoin growth.

The four-hour chart clearly shows that there was an impulse price increase, which is typical for a rebound from the support zone. Despite this, the asset was close to breaking through this area and continuing to decline. In this case, the nearest key support zones would be $56.3k and $53.2k. However, movement to these levels is canceled due to a confident consolidation above $64k.

The coin came close to the resistance line of the historical maximum and began to decline. This was expected, as the quotes reached the zone after the sellers began to defend their positions, as can be seen from the upper wick of the largest bullish candle that appeared.



Despite this, bitcoin confidently broke through the weekly resistance zone and reached the $66k mark, near which it is trying to gain a foothold. An uncertain bearish Doji candle has formed on the four-hour chart, indicating the weakness of sellers in these positions.

However, the subsequent bullish candle also looks extremely uncertain, which may mean the start of a consolidation period with a parallel decline within the $63.4k-$65.9k channel. This is also evidenced by the unspoken rule that any impulse movement ends with a local correction period to stabilize the situation.

In addition, technical indicators also indicate the beginning of a stabilization period: the MACD still maintains an upward movement, but the level of buyers has fallen significantly. This is signaled by the start of the sideways movement of the stochastic oscillator and the relative strength index. It is worth noting that both indicators are outside the safe zone (above 60), which is also a signal to overbought bitcoin and the need for correction.



A clear pattern has formed on the hourly chart for a further price decrease. After the bears seized the initiative (three red candles in a row), a candle formation consisting of three uncertain Doji candles appeared. This pattern is a clear sign of a price decline. It is most likely that the fall will continue to $65k, where the local support zone passes, and where the price can make an upward rebound. However, the option with a decrease to $65k and further price stabilization looks more plausible.

At the same time, there is a possibility of continuing upward movement and a reversal of the local trend. Technical indicators of the cryptocurrency indicate a systematic decline in the price, which indicates a healthy correction after an impulse growth. The MACD is preparing to form a bullish intersection, and the stochastic and the relative strength index are turning in a downward direction. The $65.8-$65.7k range is an excellent area to enter a downside with a stop loss around $65k.



On the daily chart, bitcoin has made an important breakthrough beyond the usual fluctuation corridor, which is a strong bullish signal. If the price is firmly fixed above $64.4k, then we can talk about the continuation of the bullish rally to new heights.

Technical indicators are steadily moving up: the MACD is preparing to form a bullish intersection, and the stochastic and the RSI index are moving in a bullish zone, which indicates the activation of buyers.

The global bullish trend is beyond doubt, as is the establishment of new price highs this week. Most likely, Bitcoin will be able to reach the $73k mark and continue its upward movement with local pauses on correction.








Artem Petrenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Major break out imminent in XRPUSD.


XRPUSD today is trading above the key resistance level of $1.24. If price stays like this above $1.22-$1.24, we should expect new couple of weeks to see a strong upward move in XRPUSD that will eventually push price to 2021 highs and maybe higher.



Red line - major resistance

Green line - support trend line

Blue line - Fibonacci extension first target

XRPUSD is making higher highs and higher lows. Respecting the green trend line was important for bulls. Now bulls are showing signs of strength once again by breaking above the red downward sloping resistance trend line. Our first target is at $1,45-$1,50 and next towards $1.75. Support is now at previous resistance at $1.23-$1.13.





Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BTC analysis for November 08,.2021 - Strong upside momentum and potential test of $67.000

Technical Analysis:



BTC has been trading upside as like I expected. BTC almost reached my main objective at $67,000.


Trading recommendation:
Strong upside momentum on the BTC and potential for further rally. My main objective from last week is set at $67,000.

The level of $67,000 will bee important pivot and depend of the price action around we can define next direction.

Stochastic is looking positive with the new fresh bull cross...

Support level is set at the price of $60,000






Petar Jacimovic
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Ethereum continues to rise in price


The cryptocurrency market is off to a very buoyant start to the new trading week. The major coins are approaching historic records, with market capitalization crossing the $3 trillion level for the first time ever. Ethereum managed to set a new ATH on the night of November 8, hitting $4750. The fundamental reason for such a rapid growth of the altcoin is the full functioning of the main London update protocols, which formed the basis for the asset's current price rally. And there appear to be no obstacles for the altcoin to continue its upward movement and it is likely to reach the $5k level in November.

ETH/USD gained 9% in the past 24 hours and set a new record. At the same time, as of 12:00 p.m., the daily trading volume of the asset had slipped to $17 billion, indicating a certain decline in the bullish rally caused by higher commissions in the coin's network. Despite the local pause, the cryptocurrency will definitely continue to rise. The main reason for the current price increase is the low level of supply of ETH on exchanges. This is due to the impact of the London update, in which the number of transactions in the network entails the burning of some coins, thus controlling the emission. Last week, Ethereum had its first deflationary week (the number of coins issued was less than the number burned). This generated strong demand for the small amounts of cryptocurrency that remained in free float and contributed to the rise in price.

In addition, the altcoin futures market has also started to recover and show significant gains. This is primarily due to rumours that the SEC will soon approve the first ether-based futures ETF in the US. This is expected to occur in November-December 2021. Deflation and interest from large companies are also important components of the increased demand for ETH on the futures market, as the coin has shown itself to be competitive against inflationary losses on a par with BTC. Another major piece of news that has allowed Ethereum to set a new record is the growth of the network's hash rate, which has continued to gain momentum since the period of repression by the Chinese authorities. Thanks to the increasing difficulty of mining the asset, the average cost of commissions on the ETH network has dropped from $50 to $35 over the past week.





Due to these key factors, Ethereum held steady near the all-time high and managed to make a strong upward surge to a new record. However, there is no doubt that the altcoin will continue its upward movement and reach the $5k mark by the end of November. When predicting the mid- and long-term growth of the altcoin, all fundamental factors contributing to the crypto's growth must be taken into account, and the main catalyst for ETH's growth is the project's booming ecosystem. The main provider of audience and transactions for the cryptocurrency is the DeFi marketplace, where a new ATH of $250 billion in blockchain funds was recently set. Much of the decentralized finance sector operates on ETH, which gives the core altcoin network many advantages over its competitors. With the DeFi market only in its formative stage, there is no doubt that the main altcoin will drive growth in the sector, which provides the coin with fundamental reasons to upgrade ATH.

An important feature of Ethereum's growth is consistency. The four-hour chart shows a strong consolidation with a gravitational pull towards the lower end of the range, followed by a succession of green candles. This means that the asset has risen due to audience confidence rather than sharp momentum supported by other players. Judging by the last weak candle, the short-term upward momentum has lost its strength and the coin may start to consolidate or decline as part of a local correction. Technical indicators for the crypto show that the upward momentum is complete but there are no prerequisites for a further decline. MACD continues to rise and stochastic is completing a bullish crossover in an overbought zone. At the same time, the relative strength index is within the sideways movement in an overbought zone. Taking this into account, it can be concluded that the buyers are starting to put pressure on the price and want to continue the bullish run. However, the possibility of realizing the strength of the upward momentum can be assessed after the formation of a candle on the four-hour chart.



On the daily chart, the situation remains bullish and the altcoin is firmly following the uptrend from September 30. It is worth noting that despite establishing a new ATH, the daily bullish candlestick does not look very confident and has a medium body, indicating increased resistance. It could also mean the start of a profit taking campaign, as usually happens when a new record is hit. With the relative strength index and stochastic being in an overbought zone even on the daily chart, the possibility of a local correction increases. The nearest support level would then be the $4.2k line. However, from a broader perspective, Ethereum stands a good chance of reaching $7k at the end of November and ending the trading year above $10k.








Artem Petrenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

NYC mayor in favor of teaching cryptocurrency at schools



Newly elected NYC mayor Eric Adams said schools should teach cryptocurrency technology in order to increase people's awareness of how it works.

He explained during an interview with CNN last Sunday that when he talks about blockchain and Bitcoins, young people would ask him 'What is that?' and he would have a challenging time to explain it.

He added that Bitcoin is "a new way of paying for goods and services around the world," so there is a need to persuade schools to teach crypto ideas and technology.

When asked if he would encourage New York City businesses to accept Bitcoin or another cryptocurrency, he answered: "We are going to look at it, and we are going to tread carefully. We are going to get it right."

Adams said he will receive his first three salaries in Bitcoin, and that the city should create a talent pool for crypto-related jobs. He also said he plans to explore the possibility of creating a New York cryptocurrency coin similar to MiamiCoin to wager a "friendly competition" with the city.

Bitcoin skyrocketed because of this news, nearing record highs. It may hit a new all-time high in the coming days.







Andrey Shevchenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for November 8, 2021

Crypto Industry Outlook:
Warner Bros., the US multinational mass media and entertainment conglomerate, has announced the launch of NFT collectable tokens for its upcoming film, Matrix Resurrections. The Matrix NFT program begins on November 30 with Warner Bros. will release 100,000 NFT Matrix Resurrections tokens.

Amusement giant Warner Bros. is currently deeply involved in the NFT token industry after joining Nifty's, Inc. based in Miami has launched the official NFT Space Jam. The NFT stems from the recently released "Space Jam: A New Legacy," starring a cast of famous characters from Looney Tunes and NBA star LeBron James.

Warner Bros. joined many famous entertainment companies such as Fox, Lionsgate, Dolphin and ViacomCBS. WWE and UFC, companies that focus on specific sports such as professional wrestling and mixed martial arts, also jumped into the NFT space.

Now Warner Bros. he's working with Nifty's to dump the NFT for the upcoming film, Matrix Resurrections, due out on December 22nd. According to statements sent to the media, the official NFT Matrix will be avatars of people in the Matrix.

The NFTs will appear on November 30, and on December 16, basic avatar owners will be able to take the "blue pill" or "red pill". If they take the "blue pill" the NFT avatar owners will stay in the Matrix, but if they take the "red pill" the NFT will undergo a transformation.


Technical Market Outlook
The ETH/USD pair has resumed the impulsive wave to the upside and hit the 100% market geometry level seen at $4,716. The next target for bulls is 127% Fibonacci projection located at the level of $4,873. The momentum is strong and positive, which supports the short-term bullish outlook for ETH. The nearest technical support is seen at the level of $4,670 and $4,642.

Weekly Pivot Points:
WR3 - $5,386
WR2 - $5,022
WR1 - $4,864

Weekly Pivot - $4,516
WS1 - $4,398
WS2 - $3,977
WS3 - $3,841


Trading Outlook:
The next long-term target for ETH is seen at the level of $5,000. 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. The level of $3,677 is the key mid-term technical support for bulls.








Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for November 8, 2021


Crypto Industry Outlook:
The American grocery chain Kroger has denied claims that it accepts cryptocurrency payments.

The company said the press release stating that Bitcoin Cash would be accepted in all stores, as well as for online purchases, was a hoax. Kroger is the second retailer to fall victim to such a scam recently.

The cryptocurrency space is no stranger to Kroger. In 2020, the company began offering Bitcoin rewards in its store via the crypto-based Lolla platform.

Cryptocurrencies have gradually found their way into the grocery store in various forms. In 2019, Safeway - another major US grocery chain - began offering Bitcoin rewards through Lolla, as did Kroger.

Earlier this summer, Coin Cloud announced that it was preparing to install cryptocurrency ATMs at 29 H-E-B supermarkets in Houston, Texas.

Blockchain technology underlying cryptocurrencies is also expected to play an important role in the food industry. A 2019 study by research firm Gartner predicts that by 2025, 20% of the world's top 10 grocery stores will be using Blockchain chains.


Technical Market Outlook
The BTC/USD pair has resumed the impulsive wave to the upside and is currently moving above the technical resistance located at the level of $64,920. The next target for bulls is seen at the level of $66,971 and $70,000. The momentum is strong and positive, which supports the short-term bullish outlook for BTC. The nearest technical support is seen at the level of $63,689.

Weekly Pivot Points:
WR3 - $66,979
WR2 - $67,182
WR1 - $65,171

Weekly Pivot - $62,254
WS1 - $60,269
WS2 - $57,180
WS3 - $55,878


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 $66,974 (the previous ATH level). 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]

Trading plan for Bitcoin for November 08, 2021



TECHNICAL OUTLOOK:

Bitcoin is approaching resistance around $66,000 and its all-time highs around $67,000 at the time of writing. The crypto still remains vulnerable to a decline from here until a $67,000 high is reached. A bearish reversal from here could drag prices lower back toward $50,000 before resuming higher again.

The Fibonacci 0.618 retracement of recent upswings between $40,000 and $67,000 is seen passing through the $49,500 mark. Further, the channel support trend line is also passing through the same zone and hence high probability remains for a bullish bounce. On the flip side, a push through $67,000 will open doors to the $75,000 mark.

Bitcoin may face immediate price resistance around $67,000-100 while support is at $65,000 (short-term), followed by $56,000 (medium-term) respectively. If it drops below $56,000, it may decline to the $50,000 mark before finding interim support. Aggressive traders might prepare to initiate short positions against the $67,000 level.


TRADING PLAN:
Potential drop to $50,000 against $69,000

Good luck!






Oscar Ton
Analytical expert of InstaForex
© 2007-2021