Cryptocurrency Analysis

[IFX_Selena]

Short-term analysis on Ethereum.


Ethereum continues making higher highs and higher lows. Price remains inside the bullish channel it is in since mid September. Price has reached previous all time highs around $4,200. There is a warning signal by the RSI as the price does not make new highs as the Ethereum price does.



Blue lines- bullish channel

Support is found at $4,100 and next at $3,850. The lower channel boundary is at $3,850. Bulls will remain in control of the trend as long as this level remains intact. So far there is no sign of a reversal. Only a warning that the bullish trend is weakening. This should be considered seriously and traders should be prepared for a reversal.





Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BTC analysis for October 26,.2021 - Potential for drop towards $61.720

Technical Analysis:



BTC has been trading downside in last few hours and I see that there is the breakout of the well defined rising channel in the background, which is good sign for the potential downside movement.


Trading recommendation:
Due to the breakout of the rising channel and the lower highs in past 24 hours, I see potential for fuhrer drop.

Watch for selling opportunities with the downside targets at $61,720 and $59,755

There is fresh bear cross on the oscillator, which is another confirmation for the downside movement.

Key resistance is set at $63,700





Petar Jacimovic
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin: Technical picture ignores growth catalysts

Tuesday was a day of good news for the main cryptocurrency. From a document filed with the U.S. Securities and Exchange Commission (SEC), Tesla is likely to start accepting bitcoins as payment for its cars. But that's not all.


TESLA IS READY TO BRING BACK PAYMENT USING BITCOINS.

Elon Musk's company has hinted at the possibility of accepting payments in cryptocurrency in financial details related to his initial purchase of bitcoins, which were added to the company's 10-Q filing with the U.S. regulator.

Tesla said that the $1.5 billion purchase of bitcoins was made "during the nine months ended September 30, 2021." During this period, the firm also accepted bitcoin as payment for some of its products for three months, until March 31, 2021.

According to a document released on Monday, October 25, 2021, the company now sees an opportunity to allow customers to pay with Bitcoin or other digital assets in the future.

Tesla's SEC filing also acknowledges the company's view of digital assets, which the automaker says can provide a long-term investment as well as an alternative to cash.


RECORD FLOW OF INVESTMENTS IN CRYPTOCURRENCY.
According to CoinShares' blog post, the cryptocurrency industry noted a record inflow of $1.47 billion this week. Of this, $1.2 billion came exclusively from the new Bitcoin ETF ProShares.

It is currently an absolute record with a significant advantage over the previous weeks of the year. The total assets under management reached $76.7 billion.

Obviously, massive inflows to the market are related to the listing and approval of BTC futures ETFs. The second-largest provider of funds last week was the ETC Group, which brought in $111 million to the market.

And as the main cryptocurrency is becoming more and more popular among institutional investors, against the backdrop of ETFs, there is an outflow from some altcoins. Ethereum has been losing institutional interest for the third week in a row, with $1.4 million withdrawn from it.


PROSHARES ETFS, A SUCCESS!
ProShares' Bitcoin futures exchange-traded fund, launched last week, has surpassed the $1 billion mark in assets under management. It became the fastest ETF in the history of investment products.

It is also worth noting that the net asset value of the first U.S. ETF reached the $1 billion mark and came close to the ETFs based in Canada, which have been trading since February and April this year.

The main difference between the two funds is that Canadian ETFs actually contain bitcoins, while U.S. ETFs only deal with bitcoin futures so far.


TECHNIQUE VS FOUNDATION: IT'S TOO EARLY TO RELAX.
While the market is showing signs of growing demand for the main cryptocurrency, things don't look so rosy on the Bitcoin chart.

The local resistance level 62,637.96 has not yet been broken: Monday's breakout turned out to be false. This means that the threat of the formation of a head and shoulders reversal pattern in the range of $60,000 - $63,000 per coin has not yet passed.

As noted earlier, if the recovery stops below $67,000 per coin in the coming days, the price may well return to the $60,000 support and break through, opening the way for bitcoin to $55,000 or even $52,000 per coin.







Ekaterina Kiseleva
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading signal for Ethereum (ETH) on October 26 - 27, 2021: sell below $4,200 (double top)



After having risen to the price level of May 12, 2021, Ethereum is making a technical correction. Yesterday there was an attempt to approach the high of 4,375, but the crypto failed to achieve its goal. Now in the American session, we notice that the bulls are getting exhausted and technical indicators are showing an overbought signal, which means that there could be a downward movement in the next few days.

We expect a sharp break below the 21-moving average located at 4,121. Besides, we foresee a break and consolidation below the uptrend channel that comes from September 26. Once these steps are confirmed, there could be a fall towards the EMA of 200 around 3,690. For us, it will be a good selling opportunity.

We could expect the uptrend to continue. For this, Ethereum must remain intact, trading above the uptrend channel. If ETH bounces at the bottom of the channel it would mean that the buying pressure continues to prevail and the price could break the level of 6/8 of the murray and go up to 7/8 of murray around 4,687.

Our trading plan for the next few hours is to sell ETH below the second one-month high that was around 4,250 and below the formation of the double-top pattern, with targets at the uptrend channel. If this channel is broken, we could sell with targets at 4/8 murray around 3,750.


Support and Resistance Levels for October 26 - 27, 2021
Resistance (3) 4,395
Resistance (2) 4,330
Resistance (1) 4,252

Support (1) 4,062
Support (2) 3,896
Support (3) 3,750


A trading tip for Ethereum for October 26 - 27, 2021
Sell below 4,200 (double top) with take profit at 4,100 (SMA 21) and 3,690 (EMA 200), stop loss above 4,375.





Dimitrios Zappas
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Tesla looks to be gearing up for resumption of Bitcoin adoption, with Elon Musk facing strong inflationary pressures



Tesla has become a company with a global capitalization of $1 trillion, it seems that the corporation is seriously thinking about resuming the adoption of bitcoin for its electric vehicles.

Elon Musk is confident that strong inflationary pressure will soon be observed in the world.

Musk agrees with other figures of the world monetary policy on this issue, because even the Federal Reserve predicts that inflation will persist, and possibly even increase.

This cannot but cause concern for bitcoin, given its deflationary characteristics. Musk is sure that bitcoin is a real magic pill from the problems of fiat funds.

The richest man on the planet agreed with Michael Saylor, as well as Ark Invest CEO Katie Wood that inflationary pressure will persist for the next year, maybe two.

Michael Saylor and Katie Wood, on the contrary, did not agree with Jack Dorsey's tweet that inflation could change everything.

"Inflation is a vector of direction and it clearly defines the movement of many products, services and assets that are not measured using CPI or PCE. Bitcoin is the best solution for holders, corporations, or the average user who is looking for a real hedge asset and inflation protection for a long time," Saylor wrote.

Meanwhile, Musk is seriously thinking about returning to paying in bitcoins.

In a recent filing with the U.S. Securities and Exchange Commission, the company left the door open to accepting btc for payment for its products in the near future.

The document states that for nine full months, the company purchased bitcoins for a total of $1.5 billion. Also, for three months, until March 31, 2021, Tesla accepted bitcoins as payment for electric cars in certain regions and in accordance with current legislation.

This procedure was discontinued in May 2021. In the future, Tesla may resume the practice of accepting payments in bitcoin for cars.





Vitaly Kolesnikov
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

GSA extends access to the crypto industry. El Salvador removes app feature to minimize speculation

Another hedge fund is reportedly joining the crypto industry. GSA Capital, a 16-year-old quantum hedge fund, declared that it will extend its services to cryptocurrencies because of high demand from customers.

GSA has long established a reputation for trading stocks, derivatives and currencies. And, around August this year, it began officially trading crypto assets. But the final size of the investments under management has not been disclosed.

The company is now in the process of hiring its first head of crypto trading and operations. The management considers this a timely step, especially since they are confident in the revival of the bull market. After all, Bitcoin rose by more than 40% this month alone, hitting all-time highs following the launch of the first US Bitcoin ETF.



On a different note, El Salvador's digital Bitcoin wallet, Chivo, removed a pricing feature that allowed users to quickly profit from trades. The company did this to minimize speculation in the world's largest cryptocurrency.

Last month, El Salvador became the first country in the world to officially adopt Bitcoin as an alternative to the national currency. But many users operated Chivo to pursue profit-making as an idea rather than storing, calculating and an alternative to national money.

So now Chivo removed a feature that freezes the price of Bitcoin for one minute before confirming a trade, giving users time to check prices on other crypto exchanges and decide whether to buy or sell. El Salvador's Central Bank Governor Douglas Rodriguez said he now expects Bitcoin to lose its reputation as a speculative asset and prove useful as a legitimate payment system backed by Chivo.




Technical analysis on Bitcoin
A lot currently depends on $ 63,250 because a breakout will result in a further increase to $ 66,450, $ 68,000 and $ 70,000. But looking at the H4 chart, a head and shoulders pattern is forming, which indicates a potential reversal and collapse any time. As such, a drop below $ 59,500 could lead to a plunge to $ 54 444 and $ 50 930.


Technical analysis on Ethereum
A lot depends on $ 4,185 because a breakout will lead to a larger jump to $ 4,367, $ 4,500 and $ 4,750. Meanwhile, a decline below the level will result in a decrease to $ 3,950, $ 3,680 and quite possibly to $ 3,405.





Jakub Novak
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

XRPUSD rejected at resistance.

XRPUSD yesterday closed right on the lower resistance level ahead and today is showing rejection signs. Price has made no real progress over the last few days and price remains above the key support of $1 and below the key resistance of $1.15-$1.25.



Orange lines - resistance trend lines

Blue line - support trend line

As long as price is above the blue upward sloping trend line, bulls will have hopes for a move towards $1.50 and higher. Breaking above the orange resistance trend lines will provide bulls the much anticipated bullish signal. If the blue support trend line fails to hold, we will get a bearish signal. Until then trend is neutral in the short-term and traders need to be patient.





Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for October 27, 2021


Crypto Industry News:
After months of waiting, the Bank of Spain issued instructions for registering with the central bank to offer cryptocurrency services in the country.

Institutions are instructed to submit the application via the electronic register after which the central bank will process the application within three months.

The trial was first announced by the Spanish central bank in June, with the promise that instructions on how to proceed would be issued in good time. These instructions have already arrived.

Much of the uncertainty was about whether existing mainstream financial institutions such as banks would need to register as they are already regulated entities.

"The registration obligation applies to all natural or legal persons who are in any of the above cases and provide virtual currency exchange and e-wallet storage services, whether they appear in other administrative registers at the Bank of Spain or in other competent authorities" - said in a statement.


Technical Market Outlook
The ETH/USD pair had broken below the short-term trend line support around the level of $4,100 and is trading below $4,000 already. The local low was made at the level of $3,938 and the corrective cycle might extend towards the next technical support seen at $3,830 soon. The momentum is weak and negative already, so the bears are in control of the market and continue the corrective cycle.

Weekly Pivot Points:
WR3 - $5,099
WR2 - $4,706
WR1 - $4,412

Weekly Pivot - $4,017
WS1 - $3,701
WS2 - $3,313
WS3 - $2,969


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 October 27, 2021


Crypto Industry News:
The world faces "strong inflationary pressures" in the short term, which may persist, warns Elon Musk, the world's richest man.

In the inflation debate, some of the most famous names in Bitcoin have voiced unanimous doubts about the state of global monetary policy.

As even the US Federal Reserve admits that inflation may persist, the topic has become particularly relevant to Bitcoiners given the deflationary characteristics of the cryptocurrency.

For Elon Musk, as a "magic pill" for the ills of fiat currency, inflation is no less a problem. With over $ 250 billion in net assets, potential exposure to currency devaluation is more of a potential problem than ever.

I don't know for how long, but we see strong inflationary pressure.

He said in a Twitter interview with Ark Invest CEO Cathie Wood and MicroStrategy CEO Michael Saylor.

This refers to the tweet of Twitter CEO Jack Dorsey, who described inflation as "happening" and prone to "change everything".

Wood, also a staunch supporter of Bitcoin, noted that the monetary speed had dropped since the 2008 global financial crisis hiding some of the impact of the devaluation.

Regardless, when all types of products are considered, the true cost of printing a dollar far outweighs government claims about how insignificant inflation is.


Technical Market Outlook
The BTC/USD pair had broken below the technical support seen at the level of $59,561 and is heading towards the next technical support located at $57,770. The 38% Fibonacci retracement of the last wave up is located at $56,934 and there should be some kind of bounce from this level. The momentum is weak and negative as bears are temporary on control of Bitcoin. The larger time frame trend is still up.

Weekly Pivot Points:
WR3 - $72,680
WR2 - $69,750
WR1 - $64,343

Weekly Pivot - $61,785
WS1 - $57,070
WS2 - $54,248
WS3 - $49,247


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]

Cryptocurrency market loses $500 million amid sudden collapse and BTC below $60,000


The bitcoin recovery was disrupted by a sudden and sharp collapse of all major cryptocurrencies. The total capitalization of the cryptocurrency market fell by 6.5% in just an hour, causing all of the top ten digital assets to plummet and fall into the red zone. The market leader was hit especially hard and made a bearish breakout of $60,000. As of 12:00, the total capitalization of the cryptocurrency market dropped to around $2.6 trillion.

In just one hour there was a massive collapse in the market, as a result of which the market lost more than $500 million. The biggest open position estimated at $68 million was closed. What was the reason for such a sudden decrease will show further analysis after the situation on the market is stabilized. However, it is possible to assume that such a sharp decrease was caused by profit generation in bitcoin, which formed free volumes in the market. It can be assumed that the big players deliberately went short in order to buy the assets at an affordable price and after the rally to new highs.



If we were conspiracy theorists, this theory has all chances to exist, as bitcoin fell to $59,000, where it is trying to find support. Over the past 24 hours, the asset has fallen in price by 6%, and by 8% over the week. At the same time, there is a surge in daily trading volumes to $40 billion, which could mean the current sell-off is losing momentum. On the hourly chart, BTC is declining, and it is likely that the digital asset may break through $59,000 and continue to fall. The price broke through the supertrend line, which is a bearish signal indicating that the sellers' pressure may strengthen. The MACD indicator has crossed the zero mark and continues its downward movement, which indicates strong bearish momentum. The stochastic oscillator formed a bullish cross, but the price began to fall eventually, indicating a strong buyer entered the market. However, the buyer was unable to change the situation. The RSI confirms this and continues to decline below 30, indicating that the metric has fallen into an oversold zone. The overall situation on the hourly chart indicates the start of a sell-off, which pushes the price below $59,000.



On the daily chart, the situation continues to worsen, showing that the price may fall below $59,000. The BTC price formed a short red candle, but the sellers' positions didn't look confident. This confirms that the collapse was sharp and occurred on the morning of October 27. Despite this, the asset is still hovering above the supertrend line, indicating that the medium-term bullish trend persists. However, the price may drop out of the short-term $59,000-$65,000 growth range, and therefore the recovery may take more time. This is also confirmed by the sharp rise in open short positions below the $59,000 area, which indicates that traders want the price to go down. The technical indicators also show an increasing bearish downtrend. The MACD indicator formed a bearish crossover and now it is below zero. The stochastic oscillator made a powerful downtrend to 20, which indicates the strength of the sellers. The RSI is also declining and may reach 40 soon.



The sharp fall of BTC triggered the collapse in quotations of other cryptocurrencies. However, bitcoin investors faced the biggest losses. Given the nature of the bitcoin market participants, the price is highly likely to break through $59,000. The next important target is at $56,600, which, if reached, may cancel the medium-term uptrend. Most likely, the rebound may occur between $56,000-$57,500 and then the market is likely to begin the phase of slow accumulation and recovery. Now, the bulls' main task is to hold positions at $56,600, as there is no doubt that sales growth will increase and the situation may start to stabilize only by the middle of the current trading day.





Artem Petrenko
Analytical expert of InstaForex
© 2007-2021