Cryptocurrency Analysis

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Bitcoin: updating the all-time high is not a fix for you! Be careful!


Well, we've waited! Bitcoin has updated its record high, reaching 68,500 dollars for one coin today. Fears about a deeper correction were not justified, the triangle was broken to the upside. Will the growth continue now and what catalysts will push the main cryptocurrency to new record values?


Institutions flee inflation

Only the lazy one doesn't talk about it now. And the Federal Reserve is still very soft on restraining inflationary pressure.

Against this background, institutional investors are looking for more reliable assets. Marketing experts believe that this is one of the main factors of interest in the traditional stock market and the new cryptocurrency market for major players.

It is worth noting that a report on the US consumer price index will be released on Wednesday, and if it turns out to be stronger than the forecast, bitcoin may get another driver for strengthening.

By the way, today's update of the highs may signal the beginning of the final rise in the fourth quarter, before the cryptocurrency market demonstrates a more pronounced consolidation next year.

How things are on the web: whales are accumulating, hashrate is growing, bitcoin is preparing an update

In yesterday's Glassnode report, it was indicated that the total balances of bitcoins on cryptocurrency exchanges are constantly decreasing. In parallel, it is known that bitcoin whales are increasing their positions. Over the past five days, cryptophytes with a balance of 10,000 to 100,000 BTC have accumulated 43,000 bitcoins on their wallets.

Meanwhile, the hashrate has every chance to set new records before the end of the year. And this is after it plummeted in the middle of 2021 due to Chinese repression.

Also in line is the biggest bitcoin upgrade in four years, with an emphasis on improving transactions, privacy and efficiency. The Taproot upgrade will also add smart contract functionality - a key feature of blockchain technology. The planned BTC update will occur even with bolder forecasts regarding the prospects for price growth. For example, JP Morgan previously claimed that BTC could reach $146,000 by the end of the year with a short-term target price of $70,000.


Bitcoin: where next?

Today, at the time of writing, bitcoin has lost some of its morning positions. There are 67,000 left from 68,500. Moreover, the breakdown of the resistance of 67,044.68 now looks like a false one - the level is punctured by a shadow.

Of course, it's not evening yet, that is, the day candle is not closed. So it can still be. But consolidating above the level of 67,044.68 now is a key factor for the further growth of the cryptocurrency.

If the main cryptocurrency manages to be on the other side of the October high, you can expect a fast or slow growth first to the round level of $ 70,000 per bitcoin, and then to $74,000, where the level of 161.8 Fibo Expansion passes.

The second scenario, less optimistic, is consolidation in the range of 63,722.20-67,044.68. And it is likely that tomorrow's inflation data will become a local catalyst or an increase in flight to the main cryptocurrency. But this is not accurate, since bitcoin has not yet reacted as sensitively to the news at the moment as the US dollar.








Ekaterina Kiseleva
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin and Ethereum are just warming up and going into a rage: new highs are just around the corner



Bitcoin and Ethereum are just warming up, and they are still far from their potential new all-time highs. Recently, Bitcoin crossed the $68,000 mark, and Ethereum - $4,800.

The market capitalization of the crypto market has crossed the $3 trillion milestone due to the bull run of bitcoin and ethereum, and now the crypto market is completely in the grip of the bulls.

Last year, well-known technical analyst Adrian Zdunczyk, who heads The Birb Nest trading group, predicted new highs for bitcoin in the fourth quarter of 2021, and even that it would exceed the $66,000 mark in October.

Ethereum is trading at a price of $4,800, and Zdunczyk believes that Ethereum has huge opportunities to set new super-high targets and overcome the $20,000 milestone as early as next 2022.

If Zdunczyk turns out to be right, then Ethereum will rise in price by more than 300% by the beginning of 2022. Ethereum has already grown by more than 500% since the beginning of the year, as the demand for NFT and Defi has been enormous.

Ethereum will soon fully switch to the new eth 2.0 protocol, which contributes to even greater scalability of the network and will make gas commissions much lower.

This can become a catalyst for the increased growth of the main altcoin. However, Ethereum is already breathing down the back of such a competitor as Solana, which also works with smart contracts, but the commissions within the network are much lower.

Gemini co-founder Tyler Winklevoss believes that Ethereum is the best financial instrument, and this money will never depreciate.

He is sure that the growth of Ethereum is just beginning. Winklevoss believes that the rally that can be observed now is similar to the 2017 market.

The analyst is confident that this extreme jump will be at least up to the level of $14,000. Now Ethereum is the second cryptocurrency by capitalization, the main goal of Ether is to overcome the $1 trillion milestone.






Vitaly Kolesnikov
Analytical expert of InstaForex
© 2007-2021

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Ethereum hits new all-time high of 4,842.65


Ethereum is trading in the red at 4,745.97 at the moment of writing. Still, the current retreat could be only a temporary one after reaching a new all-time high. Bitcoin has retreated a little as well after reaching a new record high of 68,564.40.

BTC/USD's rally helped altcoins to climb higher as well. Personally, I am using this correlation in crypto trading. Ethereum is up by 0.14% in the last 24 hours and by 5.38% in the last 7 days.

After reaching a new all-time high, we cannot exclude a temporary decline. So, maybe you should wait for a temporary correction before taking action again.


ETH/USD RETESTS BROKEN RESISTANCE


As you can see on the H4 chart, the price of Ethereum has jumped above the ascending pitchfork's warning line (wl1). It has found resistance right above the weekly R1 (4,808.71). Now, it has decreased a little to retest the warning line (wl1).

Staying above this level could signal potential growth. Dropping and stabilizing below this dynamic resistance could announce a larger retreat. On the other hand, making a new higher high, that is, a new historical high, and stabilizing above the weekly R1 could activate potential growth towards the 5,000 psychological level.


ETH/USD OUTLOOK
The bias is bullish as long as it stays above the warning line (wl1) and above 4,670.81 former high. Coming back and stabilizing above the R1 (4,808.71) may signal strong buyers and potential further growth.





Ralph Shedler
Analytical expert of InstaForex
© 2007-2021

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Major news in the crypto market for November 10, 2021



The news background for the cryptocurrency market is a very vague concept. If there is a special calendar for the foreign exchange market, which displays all important events for each individual day, then in the case of the cryptocurrency market, there is nothing like this. On the contrary, any message from Elon Musk on any social network can cause a serious change in the rate of Bitcoin or any other cryptocurrency. Thus, every time bitcoin shows an increase or decrease, the markets can only guess what happened this time. What could have started a new strong movement?


BITCOIN HAS UPDATED ITS ALL-TIME HIGHS.

On Tuesday, November 9, Bitcoin rose by only $2,000. But this was enough for the course to update the previous peak. The maximum value of one bitcoin is now $68,447.


IT LOOKS LIKE INFLATION IS TO BLAME.

If you look at the situation from the outside and try to put all the markets in the lens, it becomes obvious that bitcoin is growing due to important, long-term factors. One of these factors may be growing inflation not only in the United States but throughout the world.

A new report on US inflation may show its acceleration to 5.8% YoY. The same goes for core inflation, which also continues to break records in America. Meanwhile, the consumer price index in the European Union and the UK is slightly lower but remains at high levels. Based on this, high-yield instruments remain a way for investors to reduce inflationary risks.

However, I propose to think about what will happen when inflation begins to decline in America, and the Fed's QE program tends to zero. It is clear to everyone that with such a strong growth of the US stock market, the US cryptocurrency market cannot be groundless and inconsistent. The "bubble" will burst sooner or later.

Earlier, JPMorgan analysts stated that the fair price for bitcoin is $35,000. And I agree with this figure 100%. Thus, now Bitcoin simply continues to "fly into space," with no reason except for market supply and demand. There has been an outflow of cryptocurrency on exchanges in recent weeks, which means its scarcity and shortage. Fewer and fewer owners are putting up their coins for sale.



Bitcoin has been pondering over the past few weeks but has attempted in the past few days to resume building an upward trend. And the attempt was successful. The picture below shows that the current upward trend is beyond doubt.

The wave pattern was refined after the instrument made a successful attempt to break the high of the expected wave 3. Now the whole picture looks like an impulsive five-wave upward trend section, which began its construction on July 20. If this assumption is correct, the construction of wave 5 has now begun as part of this section, which may be the last.

However, even such a seemingly unambiguous structure raises some concerns. First, wave 4 can take a three-wave form because wave 2 has taken on a three-wave form. Secondly, the part of the trend after September 21 can be one wave, the third. Then the construction of the fourth wave will begin a little later.

Thus we derive the conclusion that Bitcoin has already climbed very high and it will be scary to buy it at such high price levels. Although with an increase in demand for the instrument, it can continue to grow even up to $100,000.





Chin Zhao
Analytical expert of InstaForex
© 2007-2021

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Apple invests in crypto


Apple CEO Tim Cook said his company is exploring the possibilities of a cryptocurrency, but did not elaborate on what that might mean. Some suggested that this is a hint that Apple will launch their own cryptocurrency, while others believe that like Tesla, it will start investing in the crypto industry.

During the DealBook online summit, Cook said that while the company has no immediate plans to include cryptographic features in Apple Pay, there are other things they are looking at closely. He noted that he is engaged in personal investments in cryptocurrency, but there is no talk that Apple itself will invest in the market. "I don't think people buy Apple stocks to gain access to cryptocurrency," Cook said. "Apple also has no plans to introduce cryptocurrency into its products anytime soon."

Most interestingly, Cook mentioned NFTs, calling them an interesting part of the cryptocurrency.



Many experts believe that Apple should not neglect the world of payments, especially since the company is already lagging behind Square, PayPal and Venmo in this direction. Also, Amazon and EBay recently demonstrated willingness to accept crypto payments in the near future.

On a different note, the Fed mentioned stablecoins in its financial stability report yesterday. The central bank noted that it carries significant risks as it is not subject to serious regulation. This follows the proposal of the Fed and the Treasury last week to pass legislation that would regulate stablecoins. If the Congress does so, companies involved in the issue of stablecoins will face the same high demands as the banks.

Many are pleased with this news because additional regulation and transparency in this area will make the market more resistant to manipulations.



Another good news is that there is a pause in US tax legislation on cryptocurrencies. Austria announced earlier that it wants to increase confidence in cryptocurrencies by taxing them like investing in stocks and bonds. So, from March 2022, the country is supposed to introduce a capital gains levy of 27.5% for digital tokens such as bitcoin and ether, etc. It will be done as part of a large-scale tax reform.

Austria's research showed that taxes could bring billions of dollars to the EU, which could boost investor interest.


Technical analysis on Bitcoin.

As for the technical picture of Bitcoin

Traders rushed to take profits after Bitcoin hit $ 68,000. This led to a decline to $ 66,450, a breakdown of which will result in a further plunge to $ 62,400 and $ 58,160. But if the quote rises above $ 66,450, Bitcoin could trade at $ 68,500 and $ 69,000.








Jakub Novak
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for November 10, 2021


Crypto Industry Outlook:
According to local news, the Zimbabwe government is considering using Bitcoin as a legal payment option to meet the growing demand among residents and take advantage of the technology.

Retired Brigadier Colonel Charles Wekwete, the permanent secretary and head of the president's office and e-government technology unit in the government, has reportedly confirmed that talks are already underway with B in this direction.

According to Wekwete, the disadvantages of a decentralized ecosystem include unregistered cross-border transfers, money externalization, money laundering, and illegally acquired cash flow in subsequent illegal or unlawful activities.

He also said that the authorities are trying to develop laws to protect consumers and support the country's financial future. As a result, the government sought input from a variety of sectors before making any major policy changes.

Zimbabwe has yet to make any major declarations, according to an official. He also stated that the country is still at the consultation stage.

The Zimbabwe government has accepted the digital economy framework as part of the National Development Strategy 1, which it defines as a way to bring together government and business efforts with regard to the evolving concept of the digital economy.


Technical Market Outlook
The BTC/USD pair continues the impulsive wave to the upside. Recently bulls made a new ATH at the level of $68,482 and is currently moving away from the 127% Fibonacci projection located at the level of $68,267. The next target for bulls is seen at the level of $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 $66,150.

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]

Technical Analysis of ETH/USD for November 10, 2021


Crypto Industry Outlook:
It seems New York City Mayor-elect Eric Adams is reinforcing his pro-crypto stance, arguing that schools should incorporate cryptocurrency science into their curricula.

During a TV interview, Adams described cryptocurrency as "a new way to pay for goods and services around the world," urging local schools to equip students with the "new mindset" introduced by blockchain and digital resources.

"We have to open our schools to teach technology, to teach this new way of thinking" he said.

Adams also noted anecdotally surprisingly low cryptocurrency awareness among his young voters.

"When I was talking about blockchain and Bitcoin, young people in the street stopped and asked: What is this?" - said the 61-year-old.

He also pointed out plans to encourage New York City companies to accept Bitcoin and other cryptocurrencies as a form of payment, saying he would be "careful" and "do it right." The Mayor-elect added that New York City must remain "the center of innovation, no matter what the innovation is."

Adams's comments received mixed reactions from the crypto community on social media.


Technical Market Outlook
The ETH/USD pair continue the impulsive wave to the upside. Bulls passed the 100% market geometry level seen at $4,716, made a new ATH at the level of $4,840, and are approaching 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 $4,767.

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

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Bitcoin and Ethereum hit new all-time highs



Bitcoin and Ether hit record highs on Tuesday, continuing the uptrend seen in digital assets.

BTC surpassed $ 68,525, but then fell to $ 67,201. Ether also jumped to $ 4,840, but then declined to $ 4,812.



In any case, reaching new highs pushed Bitcoin's market cap to nearly $ 1.29 trillion. Ether, meanwhile, has a market cap of over $ 570 billion.

These two leading cryptocurrencies have experienced a rift over the past year, namely the launch of the iconic Bitcoin Futures ETF and a network update on Ethereum.

Bitcoin is popular because it is seen as a store of value and a good platform for future payments, while Ethereum skyrocketed because of decentralized finance (DeFi).

As such, Bitcoin was trading at $ 15,300 a year, but now it is up by nearly 350%. Ether, on the other hand, costed lower than $ 450 in November 2020, but has grown 975% since then.



Jonas Luethy, Sales Trader at GlobalBlock, said: "Analysts are suggesting that a lack of supply is a major factor as some reports show that 85% of existing supply has remained inactive for the past 3 months. Analysts are suggesting $75,000 as a target on the upside, but if the price takes a turn downwards, the price could fall to the 50-day moving average at around $56,000."

Luethy also noted that Ether is approaching $ 5,000, which is probably difficult to overcome. "The reason attributed to such strong price action is also a lack of supply as Ethereum is being burned faster than it is being produced," he said.






Andrey Shevchenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading plan for Bitcoin for November 10, 2021



TECHNICAL OUTLOOK:
Bitcoin is off the all-time high print on Tuesday around $68,500 mark. The crypto has since pulled back towards $66,300 mark and is trading close to $67,000 mark at the time of writing. Bitcoin might be preparing to produce a meaningful corrective drop towards $49,000-50,000 zone as discussed earlier. Traders are advised to take profits on long positions initiatiated earlier.

Bitcoin bears are targeting fibonacci 0.618 retracement of the recent upswing between $40,000 and $68,500 level respectively. Also note that its channel support is passing through the $50,000 mark as of now. The above could prove to be a strong convergence point for bulls to be back in control and resume its uptrend.

On the flip side, a break below the channel support and subsequently below $40,000 mark may put Bitcoin under further pressure toward $28,600 support. Until the above happens, bulls are expected to remain in control and push prices higher through $75,000 mark going forward. In the near term, we expect a drop to $50,000 mark.


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

Good luck!





Oscar Ton
Analytical expert of InstaForex
© 2007-2021

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BTC analysis for November 10,.2021 - Potential test of $71.000 in next period

Technical Analysis:




BTC has been trading upside in last few days in the background as we expected.


Trading recommendation:
Due to strong upside cycle on the BTC and rising lows, I still see potential for the another rise towards $71,000.

Watch for potential buying opportunities on dips with the upside target at $71,000.

Stochastic oscillator is showing fresh new upside reading, which is another sign of the strength.

Support level is set at $66,600





Petar Jacimovic
Analytical expert of InstaForex
© 2007-2021