Cryptocurrency Analysis

[IFX_Selena]

Peter Thiel does not advise buying Bitcoin at $ 60,000



The bullish trend remains

For the last few days, Bitcoin has been trading in a very limited range. As it often happens, the correction has begun, but the bears are very weak and the cryptocurrency simply refuses to further decline. In this case, the technical picture on the four-hour timeframe is now a little confused, and the price began to ignore the trend line, as well as important lines of the Ichimoku indicator. Now, we move to daily TF and see the following picture here. The price dropped to the critical line and rebounded from it yesterday. At the same time, the upward trend line continues to be relevant, which indicates that the upward trend is preserved. Therefore, all this suggests that Bitcoin's quotes can resume its growth at any time, at least as long as the BTC rate is above the Kijun-sen line.


PayPal's co-founder considers the price of $ 60,000 per coin to be overpriced

As always, disputes and discussions continue on Bitcoin regarding how much it will cost in a month or a year. But one thing is clear, buyers have clearly fallen near historical highs since not all participants in the cryptocurrency market believe that this cryptocurrency will be able to continue its growth or the market is just waiting for a new impulse, which will help to confidently break through the level of $ 64,700. At the same time, one of the founders of the PayPal payment system, Peter Thiel, said that the high cost of Bitcoin is an expression of high inflation in the United States. That is, he also makes a correlation between the indicators of the value of bitcoin and inflation.

"The fact that bitcoin is already worth $ 60,000 speaks of a crisis moment," Thiel said. He also believes that the Fed does not realize that it is impossible to print money without consequences for inflation. According to him, the current state of affairs points to the bankruptcy of central banks. Nevertheless, it should be borne in mind that the current growth of bitcoin is "hype", which means that the reasons for a new round of upward movement may not be necessary.


The difficulty of mining is growing

At the same time, the complexity of mining the first cryptocurrency increased by almost 8%. This is the eighth consecutive increase in complexity since the summer of this year when the minimum values were recorded. Thus, since the summer of this year, the total difficulty of mining coins has increased by 47% in total. It is also worth noting that the complexity of Bitcoin mining directly depends on the number of mining capacities that are currently working on the network since the summer drop in complexity was caused by the fact that a huge number of Chinese miners turned off their equipment due to a corresponding ban in China. After that, they began to relocate and turn on their equipment, which leads to a gradual increase in hash rate and complexity of calculations.



The trend on the daily timeframe continues to be upward, and market participants have not yet managed to consolidate below the critical line. Therefore, Bitcoin purchases with the targets of $64,700 and $67,000 remain more preferable right now. But closing the price below the Kijun-sen line will open the way for the cryptocurrency to the lower border of the Ichimoku cloud, as well as the trend line. In any case, judging by the daily timeframe, the end of the upward trend is not a threat to Bitcoin in the near future.





Paolo Greco
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Mad inflation is coming, which will absorb and devalue fiat, so prices and demand for bitcoin and ethereum are rising




The cryptocurrency market has performed very well and is starting this week on a positive track. Over the past day, bitcoin has grown by almost 3%, ethereum by 4%, and dogecoin by more than 5%.

Among other things, the famous billionaire and co-founder of PayPal, Peter Thiel, said that he regretted that he did not buy cryptocurrency when it was on the decline.

Thiel said that the rapid rise in prices for Bitcoin and other altcoins is due to the fears of institutional investors about the upcoming inflation, which could be an irreparable blow to world economies.

He is sure that now it is possible to observe verified impulse trading. Investors invest their personal savings in the crypto market based on the factor that they are confident in their security during the upcoming inflation, since fiat funds will be devalued and absorbed by the impending inflation, and cryptocurrency savings will remain intact.

Investors should pass by those coins that are in unlimited quantities, and instead it is worth carefully analyzing and investing only in those cryptocurrencies that have a limited crypto-coin circulation.

In particular, digital gold has a limited reserve of 21 million. And if all Bitcoin in the world is mined, then the price will rise accordingly.

According to Thiel, Ethereum will follow bitcoin, its annual production volume is limited to 18 million, but in general it has no limit restrictions.

The billionaire believes that dogecoin will be the worst cryptocurrency and a means of saving, because it has an unlimited supply and will be the least effective hedge fund against the coming inflation.

Today's small increase can be attributed to the fact that Coindesk subsidiary Coinme has stated that from now on November will be the month of crypto literacy.

Coinme, which is a subsidiary of Coindesk, said that throughout November, they will promote basic knowledge about cryptocurrencies in order to increase awareness and literacy of novice investors.

The company wants to see as many interested ordinary citizens as possible who want to discover the crypto world and start investing, because now there are the best opportunities for this.





Vitaly Kolesnikov
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading signal for Ethereum (ETH) on November 01 - 02, 2021: sell below 4,375 (strong resistance of 6/8)




Since October 21, Ethereum has been consolidating below the strong resistance of 6/8 of murray around 4,375. The crypto made an attempt to break above this level on October 29. However, it could not manage to stay above. Since then, it has made make several attempts to break this level, but has so far has been unsuccessful.

The moving average of 21 is located at 4,313. Below this level and below the line of 6/8 of murray, there is strong downward pressure. If Ether manages to consolidate below this zone in the next few hours, the price is likely to drop to 5/8 murray that converges with the bottom of the uptrend channel around 4,062.

A sharp break below the uptrend channel that was formed since September 27 could be the beginning of a bearish scenario. For this, we should wait for a daily close below the 200 EMA that is located at 3,846. After trading below these levels, we should expect a drop to the psychological level of $ 3,000 and up to 1/8 of a murray around 2,812.

On the contrary, if Ether manages to overcome the level of 4,375 and consolidates above it, it is very likely that the market will become optimistic and increase buyers who will push ETH to 4,687 where there is the 7/8 of murray which means a technical reversal. If the upward force prevails, it could push ETH up to the psychological level of $ 5,000.

Since October 26, the eagle indicator is oscillating below a downtrend channel. It has not been able to overcome this channel. Each time it touches the resistance, the market volume decreases. This serves as a negative signal for Ethereu which is likely to fails to overcome 4,375. A correction is expected in the next few days.


Support and Resistance Levels for November 01 - 02, 2021
Resistance (3) 4,515
Resistance (2) 4,408
Resistance (1) 4,375

Support (1) 4,284
Support (2) 4,177
Support (3) 4,062


A trading tip for ETH for November 01 - 02, 2021
Sell below 4,375 (6/8) with take profit at 4,062 (bottom uptrend) and 3,846 (EMA 200), stop loss above 4,515.





Dimitrios Zappas
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Ethereum remains inside bullish channel since mid September.


Ethereum is trading at $4,339 and continues making higher highs and higher lows. Price is still inside the upward sloping channel that was created after the low in mid September around $2,639. As long as price continues to respect the channel boundaries, bulls will remain in control of the trend.



Blue lines - bullish channel

Ethereum as we said above is clearly in a bullish trend. Support by the lower channel boundary is at $4,045. A break below this level will be a sign of weakness and could signal the start of at least a pull back. Until then bulls remain in full control of the trend and should target the upper channel boundary at $4,625.





Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Major news on crypto market for November 1, 2021



Bitcoin has paused in its rise in the last few days. An attempt to break through the previous peak, located around $64,706, was unsuccessful. Thus, at this time, the quotes began to move away from the maximums reached. This retreat of quotes can be either a new downward wave or a new downward trend section. I would say that now almost everything for bitcoin depends on the $64,706 mark.

Starting from June 22, 2021, the BTC/USD instrument has already built a five-wave structure. And if this is so, then the construction of a downward set of waves, a three-wave minimum, will begin or has already begun. And the targets of this set of waves are located near the $51,000 mark. Thus, a new increase in bitcoin quotes can be expected either after a successful attempt to break through the $64,706 mark or after the completion of the construction of a three-wave section.


BITCOIN FELL TO $8,000 ON THE BINANCE EXCHANGE.

A rather remarkable and even funny event happened last week. Bitcoin quotes dropped to $8,000 per coin on the Binance cryptocurrency exchange. Naturally, this was an algorithm error, and only in the terminal of a single user. However, when this happened, some analysts again began to speculate about the likelihood of Bitcoin dropping 80-90% from current peaks. The fact is that after almost every upward trend, there was a decrease in bitcoin quotes, which should not be surprising since corrections are an integral part of trading.

However, in the case of Bitcoin, these corrections accounted for up to 90% of the entire trend. When markets realized that the upward trend was over, they got rid of bitcoin at almost any price, which led to a strong fall in cryptocurrency. So now, when bitcoin has been growing for a year and a half, many analysts began to talk about a possible new collapse of the first cryptocurrency. Moreover, the wave analysis shows the completion of the construction of the next five-wave structure, therefore, it can be changed not only by the corrective, three-wave structure but also by the five-wave, impulsive one.


THE OUTFLOW OF BITCOIN FROM THE BINANCE EXCHANGE.
There was a large outflow of bitcoin coins amounting to $2 billion from the cryptocurrency exchange Binance last week. This means that bitcoin was actively bought and there was a shortage on the exchanges. That is, a fairly large number of coins were bought from the exchanges, so there are much fewer coins on sale. This could contribute to the growth of the bitcoin rate. And given this market behavior, markets and analysts continue to expect further cryptocurrency growth. This year the figure of $100,000 per coin was mentioned more than once. Thus, the course of the main cryptocurrency may eventually strive for this figure. But first, we need to clarify the wave counting, which can take both a three-wave form and a more extended five-wave one.








Chin Zhao
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Goldman Sachs confirms correlation between rising inflation and bitcoin


Bitcoin begins another trading week, stabilizing in a narrow range of $60,500-$63,500. At the same time, onchain activity and market activity continue to remain at record high levels. The cryptocurrency's hash rate also continues to recover and has returned to values prior to the "great migration" from China. However, the main reason for bitcoin's continued bullish rally is the worsening crisis of the fiat markets and the weakness of gold being a safe haven asset.



This simple conclusion was made by Goldman Sachs experts, conducting a study, according to which the growth of BTC price is directly related to the rate of inflation growth. This suggests that investors use bitcoin to protect their funds from the inflationary crisis triggered by supply disruptions due to coronavirus. A similar opinion was expressed by analysts at JPMorgan, examining the main factors for bitcoin reaching a new all-time record. According to experts, it was fear of inflation, but not the launch of the bitcoin ETF, which caused a bullish rally. Peter Peel, head of PayPal, is confident that the current price of the asset is a direct consequence of worsening inflationary processes around the world.



If we put aside the inflation problem for a while, we can note an important event for the leading digital asset. The growing correlation between BTC and the fiat currencies' depreciation suggests that bitcoin has become a major risk hedge instead of gold. The current rally in crypto is direct evidence of this, and the growing demand for bitcoin among customers of major US banks indicates the desire of investors to have more opportunities to operate with the asset. As the crisis worsens due to another wave of pandemics and the gradual acceptance of BTC as a traditional asset, the minimum growth expectation for bitcoin this year is $100,000. With the continued downward trend in financial market indices, as well as a consistently high flow of investment from all categories of investors, there is no doubt that the asset may reach $100,000 as early as November.



Meanwhile, bitcoin continues to hover within the narrow stabilization range after rebounding from the $57,000-$60,500 area. Over the past 24 hours, bitcoin gained by 2.5% and showed daily trading volumes of $36.3 billion, which is a good indicator for the current stage of the market. Despite all the fundamental positive factors, it is not yet supported by technical charts, on which the asset only enters the phase of consolidation and further accumulation. The main indicators of the cryptocurrency are moving sideways with no hints of an upward breakout. The MACD indicator maintains the current momentum and stays above zero. The RSI is moving along 60, indicating bullish market sentiment. The stochastic oscillator has formed several bullish crossovers in a short period of time, but all of them were formed by weak buyers, so it is impossible to develop a full medium-term upward movement. It is likely that it is in the waiting phase and accumulates volumes before the upcoming Taproot update. The first attempts to start a full-fledged movement to new highs may appear soon, but as of November 1, the market is not ready to support such bullish momentum due to the lack of proper support on the onchain metrics.








Artem Petrenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BTC analysis for November 01,.2021 - Potential for the upside continuation

Technical Analysis:



BTC has been trading flat in last few days at the price of $62,000 but I see today is the breakout day.


Trading recommendation:
Due to uptrend in the background and contraction in the last few days, I see potential for the upside continuation movement.

Watch for buying opportunities on the pullbacks with the upside objectives at the price of $63,540 and $66,600

Key support is set at the price of 59,500





Petar Jacimovic
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading plan for Bitcoin for November 01, 2021




TECHNICAL OUTLOOK:

Bitcoin had dropped through sub $56400 levels on Thursday before finding support. The crypto has tested fibonacci 0.382 retracement of the entire rally between $40000 and $67000 level respectively. Since then, prices have rallied through $63000 levels and has potential to push up to $64000-65000 zone before facing resistance.

Bitcoin might reverse lower from $64000-65000 zone and continue lower toward $49500-50000 mark before resuming higher again. Please note that fibonacci 0.618 retracement of the above rally is passing through $49000-50000 zone. Also its channel support trend line is seen passing through $50000 levels. High probability remains for a bullish turn around the above convergence.

On the flip side, if bulls manage to push prices above $67000 mark, potential remains for a test of $75000 and higher. A push above $65000 will confirm a bottom is in place at $56400 and bulls are back in control. Traders might be preparing to initiate long positions around $50000 zone, going forward.


TRADING PLAN:
Potential drop through $50000, against $67000.

Good luck!





Oscar Ton
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Ethereum sets new all-time high



The second-largest cryptocurrency, Ethereum, soared to an all-time high above $4,400 per coin and set a new all-time high on bullish sentiment around the most used blockchain network on Friday.

The digital asset rose 4.8% to $4,459.20, surpassing its previous record of $4,379.62 in May. As of 18:41 UTC on Friday, October 29, the token was trading at about $4,387 per coin, with other tokens like Binance Coin and Solana rallying. Ether has reached over $520 billion in market capitalization.



Ether is at the heart of the Ethereum subsidiary network, the dominant blockchain used for thousands of decentralized applications. The system received an additional boost this week following a successful update designed to make it faster and more energy-efficient.

Meanwhile, some analysts have pointed to a link between the rise in popularity of the Shiba Inu coin and the record for Ether.

The EIP-1559, otherwise, Ethereum upgrade, was rolled out in August - and it burns off some of the fees paid to miners, cutting net release based on network usage, according to Sam Doctor, chief strategy officer and head of research at BitOoda, a regulated crypto brokerage.

"So if Shiba Inu generates a lot of traffic, it increases network congestion and contributes to more ETH being burned. That slows the net growth in ETH in circulation. Tighter ETH supply combined with high network usage likely drove Ether's price up," said Doctor.

Bitcoin is up about 40% this month, hitting a record high of nearly $67,000 following the debut of the first Bitcoin-related ETF in the United States. The world's largest digital currency rose 1.6% in New York trading to $62,405.







Andrey Shevchenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for November 1, 2021


Crypto Industry News:
Bitcoin's growth momentum is receiving a lot of support from bitcoin miners and long-term holders.

In the report, entitled "Shocktober", various data were revealed indicating that the market is expecting another wave of gains in the coming months. The ongoing accumulation of resources by major BTC miners and whales is creating a supply shock to the cryptocurrency market that drives a short-term price rise.

On the other hand, participants in the mining pools and small scale miners have made a profit, with the latter being more likely to sell due to market fluctuations. Analysis of coin traffic from long-term bitcoin holders indicates that these investors are not currently interested in selling their coins.

Another indicator, BTC Hodl Waves, which breaks down bitcoin sales by holder type, shows that early adopters of "old coins" (bitcoins that have been inactive for more than six months) saw a 10.9% ROI increase. Moreover, the biggest BTC miners such as Riot, Marathon, Bitfarms, Argo and Hut8 keep their resources even in tough market conditions.

In September, the statistics increased by around 50%. Large mining companies, which are now largely concentrated in the US, own more than 20.4 thousand. Bitcoins, which are also unlikely to be liquidated in the market in the foreseeable future.


Technical Market Outlook
The BTC/USD pair has broke above the short-term trend line resistance around the level of $62,000 as the momentum starts to pick up again. The market made a local low at the level of $57,740 during an increased volatility session and since then the Bitcoin price is rising again. The next target for bulls is seen at the level of $62,898 and $63, 966. On the other hand, the first Fibonacci retracement level, the 38% level, is seen at $56,934.

Weekly Pivot Points:
WR3 - $70,127
WR2 - $66,705
WR1 - $64,387

Weekly Pivot - $60,937
WS1 - $58,287
WS2 - $54,685
WS3 - $52,480


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