Cryptocurrency Analysis

[IFX_Selena]

BTC 12.16.2019 - Watch for potential drop on the BTC

Industry news:

Some facts:
Longs were extremely liquidated in comparison to shorts

A total of $12.3 billion longs were liquidated while only $7 billion shorts were liquidated

Shorts dominated the start of 2019 while longs are starting to come into play

Bitcoin's median return has consistently increased since 2015; However, the 2019 average return has performed worse than in 2018

As Bitcoin moves sideways, stuck in the $7,000 region, the year comes close to an end. 2019 has certainly been a tumultuous year, with Bitcoin dragging itself through the low $3,000s and pumping to $13,800 out of the blue.

With the launch of Bakkt's physically-settled Bitcoin Futures and other major updates, Bitcoin has grown and perhaps, matured, as a decentralized currency in the last 350 days or so. However, with Bitcoin and cryptocurrencies come inherent risks due to their volatile nature and many traders have faced volatility's music and suffered the consequences.


Technical analysis:


BTC has been trading downwards, exactly what I expected in my previous analysis. The Bitcoin tested the level of $7.020. BTC is heading towards my main downward targets at the price of $6.850 and $6.539.

MACD oscillator is showing negative reading, below the zero

Resistance levels are seen at $7.300 and $7.730

Main support level is set at the price of $6.850 and $6.539





Performed by Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of BTC/USD for 17 December 2019

Crypto Industry News:
The Shenzhen Bao'An District Court in China ruled to freeze assets worth approximately $ 676,000 belonging to the Bitmain subsidiary, the Bitcoin mining giant.

According to a lawsuit, the Shenzhen BaoAn District Court ordered the freezing of 4,717,710.68 yuan ($ 676,000), a 100% Bitmain subsidiary of Shenzhen Century Cloud Core. This ruling is a follow-up to the application made by the electronic components manufacturer Dongguan Yongjiang Electronics.

Dongguan Yongjiang asked the court to freeze measures to ensure that a commercial contract dispute could be investigated if the court decided in favor of the company. According to the application, Shenzhen Century Cloud Core has the right to appeal the decision.

Recently, Shenzhen police have approached the founder of the Bitcoin mining platform MicroBT, Zuoxing Yang, to investigate him in connection with allegations of intellectual property infringement regarding Bitmain technology.

Yang had previously worked at Bitmain as a processor design director and developed the Antminer S7 and S9 flagship mining kit. In 2017, Bitmain sued the company for alleged patent infringement. However, Yang's lawyers successfully appealed for the patent to be revoked the following year.


Technical Market Overview:
The BTC/USD pair spied down towards the next technical support located at the level of $6,789 (low was at the level of $6,760). There was another Pin Bar candlestick pattern made around the level of $7,133 during the weekend and since then the bears are trying to take back the control over the market and are pushing the prices lower. If the level of $6,760 is violated again, then the next target for bears is seen at the level of $6,642. The immediate technical resistance is seen at the level of $6,946.

Weekly Pivot Points:
WR3 - $8,020
WR2 - $7,786
WR1 - $7,335

Weekly Pivot - $7,151
WS1 - $6,714
WS2 - $6,500
WS3 - $6,073


Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of ETH/USD for 17 December 2019

Crypto Industry News:
The international IT company Advanced Micro Devices (AMD) has joined the Blockchain Game Alliance and has entered into two new partnership agreements to help use technology in the industry.

The published press release revealed that the chip giant is working with Blockchain Robot Cache and ULTRA technology providers - both are working on developing and servicing Blockchain-based online gaming markets. These markets aim to establish new, secure purchasing options and distribution channels for game publishers and users.

Blockchain Game Alliance (BGA) is an organization involved in adopting Blockchain technology in games by promoting the creation of common standards, facilitating networking and knowledge sharing, and encouraging collaboration and implementation of best practices.

AMD is reportedly the first major hardware manufacturer to join the Alliance, which owns the token creator Enjin Fig and veteran of Blockchain EverdreamSoft games.

According to the press release, both markets will integrate AMD graphics cards and processor technology for a variety of purposes, including back-end servers and Blockchain infrastructure. Apparently, AMD Ryzen processors and Radeon graphics cards have been designed to ensure optimal cryptographic computing performance.

AMD claims that its processor and GPU technology will serve as a powerful engine for Blockchain and gaming loads. The hardware manufacturer will also provide solid security protection that will help protect digital content from a range of online attacks.


Technical Market Overview:
The ETH/USD has fallen out of the parallel channel around the level of $134.80 and since then is moving lower. The swing low made on the 25th of November located at the level of $130.68 has been violated as well and the bears have made another swing low at the level of $127.91 (at the time of writing). If the bearish pressure won't stop, then the next main target for bears is seen at the level of $116.00. The complex corrective cycle is still unfolding to the downside.

Weekly Pivot Points:
WR3 - $160.13
WR2 - $155.12
WR1 - $147.83

Weekly Pivot - $142.21
WS1 - $135.13
WS2 - $130.72
WS3 - $123.35


Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the downtrend. When the wave 2 corrective cycles are completed, the market might will ready for another wave up.

Attachment 1951




Attachment 1952
Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

BTC 12.17.2019 - First downward target reached at the price of $6.850, second target set at $6.540

BTC has been trading downwards, exactly what I expected yesterday. The price reached my first downward target from yesterday at the level of $6.845. Momentum Is still strong on the downside and I do expect second target at the price of $6.540



Eventual breakout of the $6.820, would confirm test of $6.540

MACD oscillator is showing negative reading below the zero and the slow line is heading downside.

Stochastic oscillator is showing fresh new bear cross into the oversold area.

Resistance levels are seen at $7.032 and $7.134

Main support level is set at the price of 6.540




Performed by Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of BTC/USD for 18 December 2019

Crypto Industry News:
Cryptocurrency entrepreneur John McAfee says he will stop promoting single coins to focus on his presidential campaign - despite the certainty that he will not win.

In a series of tweets starting on December 14, McAfee, which gained a lot of support from cryptocurrency users, argued that supporting individual projects in space took too much time. "I don't do cryptographic promotions anymore," one post summarized.

Elsewhere, McAfee wanted to notice that he was not completely withdrawing from cryptocurrency space:

"People are asking why I don't promote Blockchain anymore. My presidential campaign will start for good in January and I can't do both. I am not giving up cryptography in any way; just the task of promoting specific projects."

When asked for more information, the tycoon nevertheless expressed doubts about its non-cryptographic outlook. When asked if he felt he could win as a candidate in the US presidential election in 2020, he replied, "I have no chance."

Despite getting mixed reviews of cryptocurrency project support in the past, McAfee is probably best known for its outrageous Bitcoin price forecasts.

He infamously bet that the price of Bitcoin would exceed $ 1 million by the end of 2020 and said that if he made a mistake he would eat his own penis. During the last round on Twitter, McAfee said the bet was "absolutely" still valid.


Technical Market Overview:
The BTC/USD pair made another leg down that so far ended at the level of $6,488. There was another Pin Bar candlestick pattern made around the level of $7,133 and since then the bears are trying to take back the control over the market and are pushing the prices lower. The bearish pressure is increasing and more downside is to be expected, targeting the level of $6,466 (the November low) and below. The immediate technical resistance is seen at the level of $6,642.

Weekly Pivot Points:
WR3 - $8,020
WR2 - $7,786
WR1 - $7,335

Weekly Pivot - $7,151
WS1 - $6,714
WS2 - $6,500
WS3 - $6,073


Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of ETH/USD for 18 December 2019

Crypto Industry News:
Two Russian citizens are prosecuted for allegedly attacking computers in state organizations for the illegal extraction of cryptocurrencies.

Two unknown people allegedly infected the equipment with a program that extracts cryptocurrencies using a web browser, according to a local media agency.

Apparently one of the suspects, a resident of the city of Kurgan, created an extensive botnet for infecting computers in various regions of the country. A second suspect reportedly focused his mining operations on equipment at the state-owned water company JSC Rostovvodokanal.

The illegal use of computer computing power to mine cryptocurrencies without the owner's consent or knowledge is sometimes called crypto-jacking. Although the news agency does not disclose the details of the cryptocurrency extracted by two suspects, malicious software such as coinminer - based on the Coinhive code - is one example of a widespread program designed for the illegal extraction of Monero via a web browser.

"(...) up to 80% of the free computer power can be used to generate virtual coins, and a legal user may not even know about it," said Nikolay Murashov, deputy director of the Russian National Center for Co-ordination of Computer Incidents in a press conference.

Murashob emphasized that this illegal use of computing power can adversely affect business operations and harm companies' performance, warning organizations before implementing appropriate cybersecurity measures.


Technical Market Overview:
The ETH/USD has made another wave down and so far the low was made at the level of $118.65. If the bearish pressure won't stop, then the next main target for bears is seen at the level of $116.00. The complex corrective cycle is still unfolding to the downside and the global investors should wait for it to terminate. In the meantime, the downtrend continues lower, but soon the bulls might test the nearest technical resistance located at the level of $127.91.

Weekly Pivot Points:
WR3 - $160.13
WR2 - $155.12
WR1 - $147.83

Weekly Pivot - $142.21
WS1 - $135.13
WS2 - $130.72
WS3 - $123.35


Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the downtrend. When the wave 2 corrective cycles are completed, the market might will ready for another wave up.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

BTC 12.19.2019 - Important pivot support at the price of $7.020, watch for potential breakout

Industry news:
Bitcoin was on a downward spiral before the December 18-19 pump provided it a boost in the market. After entering the holiday month, BTC had lost a little over 13% of its value and was trading close to $6,500. However, the coin has been in rough waters since its June 2019 high and many within the community speculate that the price has been held down by PlusToken scammers liquidating at $2 billion worth of BTC. However, on 19 December, Whale Alert alerted the community about Ethereum [ETH] worth $105.1 million being moved from the PlusToken wallet to an unknown wallet.


Technical analysis:


BTC has been trading upwards in the past 24 hours. Anyway, the price is near the critical support at $7.020 and it is good to watch for potential price action around the support.

Downside breakout of the $7.020 would confirm test of $6.900-$6.800

MACD slow line turned bearish, which is good sign that sellers took control from buyers.




Performed by Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of BTC/USD for 20 December 2019

Crypto Industry News:
The Iranian president proposed the creation of a Muslim cryptocurrency as one of many ways to oppose US economic dominance.

Speaking at an Islamic conference in Malaysia, Iranian President Hassan Rouhani called on Muslim nations to strengthen financial and trade cooperation and to reduce dependence on the US dollar, according to a report by the financial media.

As Rouhani argued, US economic sanctions are "the main tools for dominating hegemony and intimidation" of other nations. Rouhani proposed establishing a special banking and financial system among Muslim nations that use local currencies to trade. Local reports confirm that Rouhani proposed creating a cryptocurrency as part of this effort.

"The Muslim world should develop measures to protect against the dominance of the US dollar and the US financial regime," he said.

The conference was also attended by leaders of major Muslim countries, including Turkey, Qatar and Malaysia, while Saudi Arabia and Pakistan withdrew from the conference.

The idea of the Iranian president has reportedly met with support from Malaysia itself, because the country's prime minister, Mahathir Mohamad, supported the initiative, according to a local press release. The official noted that for the first time Iran and Turkey are considering the possibility of creating an alternative to the US dollar.

"We can use our own currencies or have a common currency," he said.

Meanwhile, Turkish President Recep Tayyip Erdogan has clearly criticized the Islamic Cooperation Organization, arguing that the platform connecting the Muslim world has shown "lack of implementation." Erdogan also emphasized that Muslim countries should focus on Islamic financing, suggesting the creation of a special working group.


Technical Market Overview:
From the Elliott wave point of view, the last impulsive rally might be labeled as wave 1 of the new upward move. If it is so, then the most important level is the low of the Pin Bar located at $6,365 and this level can not be violated by bears. Currently, the market is developing the corrective structure and it is consolidating the recent gains in a narrow range located between the levels of $6,938 - $7,162. The moves up should be continued once the correction is over.

Weekly Pivot Points:
WR3 - $8,020
WR2 - $7,786
WR1 - $7,335

Weekly Pivot - $7,151
WS1 - $6,714
WS2 - $6,500
WS3 - $6,073


Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of ETH/USD for 20 December 2019

Crypto Industry News:
The US Securities Commission has announced that it is looking for ways to expand the "accredited investor" classification, which may have serious implications for capital creation by companies that are not determined to meet the full public reporting requirements.

According to the announcement published on the SEC website, the regulatory authority is awaiting opinions on changes in its category of accredited investor. Currently, the SEC defines an accredited investor as a person with assets over USD 1 million or an entity controlling assets worth over USD 5 million. Other classification methods include being a board member of a company making an offer.

The question of who qualifies as an accredited investor has long been controversial. SEC's exemptions allow companies to offer shares to such investors without having to meet all requirements. Theoretically, this is to protect everyday investors from predatory offers, but criticism of these classifications says that such exclusions simply help the rich get rich while prohibiting investors from making money.

The new changes would basically open the classification for new investors, including those whose professional qualifications and certificates suggest that they have sufficient knowledge to invest in private offers. Similarly, "competent employees" may have the same access to their companies' offers as management currently has.


Technical Market Overview:
The ETH/USD has made a low at the level of $115.05 that ended up in a form of a Pin Bar/ Hammer candlestick pattern and might be labeled as a bottom for the wave (C) of the wave 2. Then the up wave has extended the move to the level of $133.62 and it was terminated by Bearish Engulfing candlestick pattern. From the Elliott wave point of view, it means the end of the corrective cycle at the mentioned level and a possibility for a new uptrend to start unfolding soon. So far, the bulls have managed to hit the level of $130.60 with a high made just at the level of the lower channel line at $133.62. If the uptrend resumes, the next target for bulls is seen at the level of $139.90.

Weekly Pivot Points:
WR3 - $160.13
WR2 - $155.12
WR1 - $147.83

Weekly Pivot - $142.21
WS1 - $135.13
WS2 - $130.72
WS3 - $123.35


Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the downtrend. When the wave 2 corrective cycles are completed, the market might will ready for another wave up.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of BTC/USD for 23 December 2019

Crypto Industry News:
Bitcoin users who use the CoinJoin privacy protection tool to increase the anonymity of their transactions face a serious warning after the Binance exchange has frozen a withdrawal request.

In an ongoing Twitter debate that began on December 19, a user named Catxolotl submitted the information that appeared to correspond with employees of Binance Singapore stating that they had initiated an "investigation" regarding the withdrawal of an unknown amount of Bitcoins.

They said the reason was the use of CoinJoin by Catxolotl through the wallet provider Wasabi. CoinJoin refers to the method of grouping Bitcoin transactions, "mixing" UTXO (unspent transaction outputs) and hiding who sent to which address in order to increase the privacy of all users.

According to Binance, including CEO Changpeng Zhao (known as "CZ"), regulations in Singapore meant that CoinJoin transactions were no longer desirable.

However, at this time Binance Singapore does not tolerate any transactions directly and indirectly related to gambling, P2P, and especially Darknet / Mixer sites.


Technical Market Overview:
The BTC/USD pair has made another wave up with a temporary high located at the level of $7,581. It means, the price has broken back to the channel and broke through the brown trend line resistance. Currently, the market is in the corrective cycle and might soon be testing the nearest technical support located at the level of $7,389. The moves up should be continued once the correction is over. The next target for bulls is seen at the level of $7,710.

Weekly Pivot Points:
WR3 - $8,907
WR2 - $8,106
WR1 - $7,862

Weekly Pivot - $7,117
WS1 - $6,770
WS2 - $6,071
WS3 - $5,771


Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.







Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019