Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of BTC/USD for 04 November 2019

Crypto Industry News:
Following the recent imposition of limits on purchases in US dollars, the Central Bank of Argentina (BCA) announced that citizens are forbidden to use credit cards to buy Bitcoins or other cryptocurrencies.

The messages were published in a communication covering several industries in which the use of credit cards has been restricted or banned. The section about cryptocurrency reads:

"Purchasing Bitcoin and cryptocurrencies: It is forbidden to buy BTC using this payment method. The only remaining alternative to this investment is to do it with money transferred from a bank account."

It is unclear whether the rules apply only to credit cards or whether they include debit and prepaid cards.

BCA claims that these measures are key to maintaining the country's foreign reserves. According to experts, the central bank intends to block the entry of dollars into the country, trying to have stronger control.

This is due to BCA's move earlier this week, where the amount of US dollars that Argentine citizens could buy every month was limited. The maximum amount has been reduced from $ 10,000 to just $ 200.


Technical Overview:
The BTC/USD pair technical picture did not change too much during the weekend as the lack of volatility is making the market to move sideways. The price is locked in a narrow range between the levels of $9,046 - $9,263 and the momentum is neutral on the H4 timeframe chart. The zone from $9,645 to $10,278 is still a sell zone, where most of the sell orders have entered the market. The immediate support is seen at the level of $8,925.

Weekly Pivot Points:
WR3 - $10,530
WR2 - $10,201
WR1 - $9,572

Weekly Pivot - $9,189
WS1 - $8,589
WS2 - $8,251
WS3 - $7,587


Trading recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. 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 31 October 2019

Crypto Industry News:
Chinese cryptocurrency mining giant, Canaan Creative, has applied to become a public company in the United States.

Canaan Creative filed an IPO with the US Securities and Exchange Commission (SEC) to raise $ 400 million, while planning to list on Nasdaq under the name CAN. Canaan reportedly submitted an $ 200 million IPO application to US regulators in July, but the formal F-1 form has been made public today.

If the company succeeds, Canaan, which is one of the three largest Chinese mining companies, next to Bitmain and Yibang International, may become the first Chinese mining company that is listed on the US Stock Exchange.

Bitmain has already made an offer for a stock exchange debut at the SEC in June 2019 after the expiry of its application for stock trading on the Hong Kong Stock Exchange in March.

Canaan's biggest competitor, Bitmain, opened, he claimed, the world's largest Bitcoin mining facility in Rockdale, Texas, which was completed through collaboration with the Rockdale Municipal Development District and Canadian technology company DMG Blockchain Solutions.

Clinton Brown, project manager of Rockdale for Bitmain, said that commissioning the facility is "essential to Bitmain's global expansion plans" and that stable and efficient state energy resources will be fundamental to supporting what he believes is the inevitable scale of mining industry growth.


Technical Market Overview:
After a Harami candlestick pattern was made around the level of $193.00, all the bullish attempts to rally are being reversed by bears and the price of ETH/USD is making new local lows. The market has entered a corrective cycle with a low made at the level of $172.91, but as long as ETH/USD trades above the level of $163.11 there is still a chance for another impulsive wave up. The nearest technical resistance is seen at the level of $193.52 and the nearest technical support is seen at the level of $179.94. The key technical support is located at the level of $172.91.

Weekly Pivot Points:
WR3 - $249.74
WR2 - $225.62
WR1 - $207.85

Weekly Pivot - $177.85
WS1 - $161.54
WS2 - $131.99
WS3 - $115.01


Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. 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 BTC/USD for 31 October 2019

Crypto Industry News:
The Bitcoin mining company belonging to the Russian Ombudsman plans to open a new facility and gain 20% of the international market.

The Russian Mining Company (RMC) plans to change the purpose of the metal factory in the northern province of Karelia, according to a local news site. Closed due to US sanctions in 2018, the former Rusal facility may soon host such a large mining farm that it could account for one-fifth of global production.

"Our idea is to transform the factory and sell computing power as a service, that is, offering IT services," said general director Dmitry Marinichev.

Mariniczew led the RMC through an ICO of $ 43 million in 2017, which remains the largest in Russia.

Despite links to the Russian government, Marinichev criticized some policies, especially aspects related to the Internet. For example, the Kremlin's attempt to block the Telegram communicator caused contempt. Efforts to date have failed, because Telegram is still available, while the company may soon be moving to issue its own digital currency.

"It cannot be blocked by blacklisting IP addresses. This way the battle will go on forever, even if you consider that part of the Telegram client is open-source software whose internal operations can be analyzed and understood," he said in an interview. from May last year.


Technical Market Overview:
The BTC/USD market is still trading below the short-term trendline resistance and bulls are struggling to break through it. The zone from $9,645 to $10,278 is still a sell zone, where most of the sell orders have entered the market. The immediate support is seen at the level of $8,925. The bearish pressure intensifies and the next target for bears is seen at the level of $8,760 or even $8,474 before a new wave up will be made.

Weekly Pivot Points:
WR3 - $14,033
WR2 - $12,095
WR1 - $10,995

Weekly Pivot - $9,057
WS1 - $8,029
WS2 - $6,062
WS3 - $4,932


Trading Recommendations:
Due to the short-term impulsive scenario invalidation, the best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. 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]

BTC. Potential gap fill on the Bitcoin
30 October 2019

BTC has been trading downside and the price tested the level of $9.000. I see potential chance for the gap fill and test of $8.770-$8.356. As long as the swing high at 9.934 is holding, there is the chance for the downside.


Yellow rectangle – Resistance level

Falling white line – Expected path

Horizontal lines – Support levels

Based on the 4H time-frame, there is potential for the gap fill and test of $8.770. BTC is trading in defined downward channel and the sellers are in control for now. My advice is to watch for selling opportunities near the resistance zone $9.165 with the downward targets at $8.770 and $8.350.




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

[IFX_Selena]

Technical Analysis of ETH/USD for 30 October 2019

Crypto Industry News:
The head of the Chinese think tank said that the Chinese central bank will be the first to successfully introduce the digital currency.

According to the Chinese news magazine, Huang Qifan, vice president of China Center for International Economic Exchanges (CCIEE), is convinced that the Chinese central bank will win the race for the first central currency of the central bank (CBDC).

Qifan's comments appeared at the Bund's inaugural financial summit in 2019 in Shanghai. According to Qifan's publication, he was dissatisfied with the current dependence on US SWIFT and CHIPS payment systems, which currently depend on cross-border renminbi exchange. His complaints were based on both US sanctions and platform technical limitations.

"SWIFT is an outdated, inefficient and expensive payment system. Since SWIFT was established 46 years ago, this technology has been updated slowly and performance has been relatively low," he said.


Technical Market Overview:
Despite the slight breakout above the level of $188.93, the bullish attempt to rally on the ETH/USD pair has been capped at the level of $192.16 and a Harami candlestick pattern was made. The market has entered a corrective cycle with a low made at the level of $172.91 and as long as it trades above the level of $163.11 there is still a chance for another impulsive wave up. The nearest technical resistance is seen at the level of $193.52 and the nearest technical support is seen at the level of $179.94.

Weekly Pivot Points:
WR3 - $249.74
WR2 - $225.62
WR1 - $207.85

Weekly Pivot - $177.85
WS1 - $161.54
WS2 - $131.99
WS3 - $115.01


Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. 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 BTC/USD for 30 October 2019

Crypto Industry News:
Cryptocurrencies like Bitcoin are not real money, as we read in a statement published by the German federal parliament.

According to the announcement, the assets offered by the current cryptocurrency landscape - such as Bitcoin - provide only a very limited part of the functions expected from traditional money. The statement entitled "Cryptographic tokens are not real money" - based on the answer given by the German federal government to the question of the Free Democratic Party parliamentary group.

The answer given defines the basic features of money: exchange and payment methods, storage of value and unit of account. The advertisement indicates that the amount of payments made using crypto is limited compared to fiat currencies.

In addition, the author of the statement also claims that value fluctuations make crypto tokens unsuitable for storing values. The government's reply states that stablecoin coins are trying to solve problems caused by excessive price fluctuations. Despite this, the government explains that it intends to prohibit their adoption:

"It will be ensured that stablecoins do not become an alternative to state currencies and thus undermine the existing monetary system."

Finally, the government also noted that they had not yet determined whether Facebook Libra would comply with German law. The statement states that the white paper of the project is not an appropriate source of information for the assessment of the case and the need for additional information.


Technical Market Overview:
The BTC/USD market has entered a corrective cycle and bulls are struggling to break through the technical resistance located at the level of $9,796. The zone from $9,645 to $10,278 is still a sell zone, where most of the sell orders have entered the market. The immediate support is seen at the level of $9,263. The bearish pressure intensifies and the next target for bears is seen at the level of $8,760 or even $8,474 before a new wave up will be made.

Weekly Pivot Points:
WR3 - $14,033
WR2 - $12,095
WR1 - $10,995

Weekly Pivot - $9,057
WS1 - $8,029
WS2 - $6,062
WS3 - $4,932


Trading Recommendations:
Due to the short-term impulsive scenario invalidation, the best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. 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 29 October 2019

Crypto Industry News:
China is considering using Blockchain and Artificial Intelligence (AI) for cross-border financing, according to financial media.

Lu Lei, deputy head of the Chinese regulatory body of the State Currency Exchange Administration (SAFE), reportedly said that there are plans to use Blockchain and AI in cross-border financing, with particular emphasis on risk management applications. Lei noted that SAFE promotes the use of fintech and AI in international finance and macro-prudential management.

His pursuit of innovation is in line with the comments of Chinese President Xi Jinping, who recently urged the country to accelerate the introduction of Blockchain technology as the basis for innovation. Lei also emphasized the importance of risk management:

"We must pay special attention to the rapid development of digital finance and fintech. [...] If we are not completely sure where the (new) form of activity is going, we must pay attention to risk management" - he said.

According to Lei, efficient financial infrastructure serves as the basis for risk management. He also promised to open Chinese capital markets, including bonds, and consolidate investment channels for foreign investors.


Technical Market Overview:
The bullish rally on the ETH/USD pair has been capped at the level of $196.61 and a big Shooting Star candlestick pattern was made. The market has entedt a corrective cycle with a low made at the level of $172.91 and as long as it trades above the level of $163.11 there is still a chance for another impulsive wave up. The nearest technical resistance is seen at the level of $188.93 and the nearest technical support is seen at the level of 4179.94.

Weekly Pivot Points:
WR3 - $249.74
WR2 - $225.62
WR1 - $207.85

Weekly Pivot - $177.85
WS1 - $161.54
WS2 - $131.99
WS3 - $115.01


Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. 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 BTC/USD for 29 October 2019

Crypto Industry News:
A court in the United States ordered Christopher Bania, who recently confessed to drug distribution, to give away nearly 17 Bitcoins - worth approximately $ 150,000.

According to a Wisconsin court order, Bania will have to hand over "About 16,91880054 Bitcoin confiscated from the Local Bitcoins exchange account. Although this amount is approximately $ 153,100 on the day of publication, it is far less than the 124 Bitcoins that the court returns to the defendant, along with various other cryptocurrencies, and over $ 50,000 in cash confiscated from his place of residence after his arrest.

Although he was initially charged with money laundering, import of controlled substances and maintaining drug ownership, the Bania settlement of September 6 concerned a single charge for possession of controlled substances with the intention of distribution, which entails a maximum of 20 years in prison.

Bania acknowledges the sale of cannabis, cocaine, MDMA and LSD on the dark web. However, he denies the distribution of methamphetamine and heroin, which the authorities also found in his home.

The US Border Patrol initially opened an investigation into Bania's proceedings after intercepting two parcels from Belgium containing MDMA. Investigators were able to trace the distribution networks used by the dealer thanks to his transaction notebooks, which court documents describe as "meticulous".


Technical Market Overview:
After the impressive rally, the BTC/USD market has entered a corrective cycle that is still being continued and is struggling to break through the technical resistance located at the level of $9,796. The zone from $9,645 to $10,278 is still a sell zone, where most of the sell orders have entered the market. The immediate support is seen at the level of $9,263. The next target for bears is seen at the level of $8,760 or even $8,474 before a new wave up will be made.

Weekly Pivot Points:
WR3 - $14,033
WR2 - $12,095
WR1 - $10,995

Weekly Pivot - $9,057
WS1 - $8,029
WS2 - $6,062
WS3 - $4,932


Trading Recommendations:
Due to the short-term impulsive scenario invalidation, the best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. 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]

BTC. Main Fibonacci confluence at $9.800 held successfully, potential downside on the way
28 October 2019


BTC has been trading upside with strong momentum but the resistance was found at $9.800 and exactly at the Fibonacci Retracement confluence (38.2% combined with 61.8%). As long as the BTC can hold the level of 9.900$, there is the chance for downside.



Purple horizontal lines – Major Fibonacci retracements

Green horizontal lines – Sub major Fibonacci retracement

Yellow rectangle - Support level

Falling purple line – Expected path

Based on the 4H time-frame, I found that Stochastic oscillator looks way overbought and that there is chance for the pullback into the $8.705 zone. Due to overbought condition, buying looks extremely risky.Another great indication that buying is risky is that Fibonacci resistance confluence zone is holding well, which is clean sign that sellers are still present.

Support levels is seen at the price of $8.700 and main resistance at $9.900.





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

[IFX_Selena]

Technical Analysis of ETH/USD for 28 October 2019

Crypto Industry News:
On October 26, the Standing Committee of the 13th National People's Congress in China adopted a new law governing cryptography that will come into force on January 1, 2020, according to a local CCTV news service.

According to the report, the new legal framework aims to set standards for the use of cryptography and password management. They define the role of the central cryptographic agency that is to conduct public cryptographic work, creating guidelines and policies for the industry.

The bill was published on May 7 by a Chinese news site. The text largely focuses on centralized password management by the government and does not explicitly mention cryptocurrencies, although it focuses on cryptography, a key ingredient underlying cryptocurrencies such as Bitcoin.

"The key to success is that - the development of new cryptography, hash algorithm, and even the use of technology - will be in the official legal sphere. This means that you must comply with the CCP standard for all" encrypted "behaviors that can be VERY wide, from mining for block propagation "- we read.


Technical Market Overview:
The ETH/USD pair has broken through the descending trendline and rallied through all the technical resistance levels located at $163.11, 4176.75 and $185.08. Finally, the bullish rally was capped at the level of $196.61 and a big Shooting Star candlestick pattern was made. The market has entedt a corrective cycle and as long as it trades above the level of $163.11 there is still a chance for another impulsive wave up.

Weekly Pivot Points:
WR3 - $249.74
WR2 - $225.62
WR1 - $207.85

Weekly Pivot - $177.85
WS1 - $161.54
WS2 - $131.99
WS3 - $115.01


Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. 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