Cryptocurrency Analysis

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Technical Analysis of ETH/USD for November 1, 2021


Crypto Industry News:
AMC Entertainment is in the process of updating its technical infrastructure to allow consumers to pay online with Bitcoin, Ethereum, Litecoin and Dogecoin for movie tickets. However, it is not the end. In a Twitter post, Adam Aron, the company's CEO, asked if users would be potentially interested in paying with Shiba Inu as well. Currently, more than 103,000 Twitter users have already taken part in the poll, and over 86% of voters chose "Yes".

The cult network of theaters has recently become more and more interested in cryptocurrencies. Last week, its president discussed the possibility of issuing a corporate cryptocurrency. Earlier this month, AMC allowed its customers to purchase digital gift cards through Dogecoin and other cryptocurrencies using a BitPay wallet. In September, Aron expressed interest in minting commemorative cinema tickets as NFT tokens.

On Friday, Shiba Inu overtook Dogecoin, becoming the ninth largest cryptocurrency in the world by market capitalization. According to Etherscan, the daily number of Shiba Inu transactions surpassed 140,000, slightly less than the record high of 172,411 daily transactions reached in May.


Technical Market Outlook
The ETH/USD pair has made a new ATH at the level of $4,459. The rally from the level of $3,890 has ended with exhaustion candlestick pattern, so the corrective cycle is currently developing. The nearest technical support is seen at the level of $4,274 - $4,243 and the key short-term technical support is currently located at the level of $4,121. The larger time frame trend remains up and the outlook for the nearest week is bullish.

Weekly Pivot Points:
WR3 - $5,137
WR2 - $4,787
WR1 - $4,556

Weekly Pivot - $4,216
WS1 - $3,997
WS2 - $3,650
WS3 - $3,426


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]

Carl Icahn: Bitcoin's value will grow in proportion to inflation



The bullish trend may continue

Bitcoin failed to show a strong growth or decline over the weekend, although it used to happen very often that Monday began far from where Friday ended. However, the main digital asset is now resuming its correction after breaking through its all-time highs. At the moment, Bitcoin's quotes have already entered the Ichimoku cloud several times, but have never been able to break through it and, accordingly, continue growth. A trend line has been formed, which now supports the corrective mood, but we draw the attention of traders to the fact that Bitcoin is actually not in a rush to decline. This means that they are not particularly enthusiastic about selling it. This means that the "bullish" trend can resume at any time.


Everything will depend on the results of the Fed meeting

In principle, it will be possible to see this resumption by consolidating the quotes above the descending trend line. Previously, it had a slightly different angle of inclination. The target for correction now remains at the level of $ 56,500, but even if this is reached, serious problems still arise. It should also be noted that there is currently another "hype" on the cryptocurrency market, which means that good reasons for the growth of the value of "digital gold" are not required. The asset is growing due to the constant influx of investors who also want to participate in the "bullish" trend and make money on it. And only the Fed can radically change the mood of traders. In particular, the Fed can only announce on November 3 that it will begin to reduce the QE program by $ 15 billion per month. Here, it will make a huge difference in how the markets react. It can be recalled that the euro surged last Thursday and Friday despite the fact that, if there were still grounds for this on Thursday, then there is definitely no reason on Friday. In this case, the markets can easily and simply start getting rid of Bitcoin after the Fed meeting if they feel that monetary policy will only tighten now, and this cryptocurrency's potential to rise has been exhausted.


Carl Icahn believes that inflation will contribute to the growth of Bitcoin

Carl Icahn, who is the billionaire and founder of Icahn Enterprises, said that the world was on the verge of a new crisis. "The crisis is inevitable because of the way the US prints money and how inflation spins. The rise in consumer prices has become pervasive and pervasive," said Icahn.

In regards to Bitcoin and its defensive properties against inflation, Icahn stated: "If inflation becomes rampant, then the first cryptocurrency will have value. There are many variables, but investing in this asset is very difficult anyway. " In theory, Bitcoin will only grow while inflation rises. However, this process can still end the Fed. According to Jerome Powell, inflation will drop by the middle of next year, and the QE program will be fully done. Therefore, the favorable period for Bitcoin is another 8 months. The question is, where will it be able to grow during this period of time?



The trend on the four-hour timeframe shifted to a downward one, as the price consolidated below the Ichimoku cloud. In this case, sales with the target level of $ 56,500 are now relevant. A consolidation below the critical line can be used as a new signal to sell. But if traders manage to consolidate above the downward trend line again, then buying with targets of $ 64,700 and $ 67,000 will become relevant.






Paolo Greco
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for October 29, 2021


Crypto Industry News:
The price of Ethereum, the second largest cryptocurrency by market capitalization, set a new all-time record, just two days after breaking the previous record. The new ATH ETH is $ 4,404.55.

On Tuesday, October 26, the price of ETH dropped to nearly $ 4,300 before rising back to below $ 4,000. The network has undergone its third update in the last seven months.

The ETH price also benefited from the London hard fork in August, the assumptions of which introduced a deflationary mechanism into the network.

One of the most anticipated changes to Ethereum, the EIP-1559, was also the largest to be introduced under London. EIP has introduced a "base charge" on blocks in the network that tracks the gas price that the network accepts from transactions based on demand for block space. This means that it is easier for portfolios and users to estimate what the right price should be for their trade.

Additionally, EIP-1559 has added a new transaction type where users can specify the maximum fee they are willing to pay, along with the maximum they are willing to send to the miner, and get a refund of the difference between this maximum fee and the basic fee and tip for the miner. Finally, EIP also burns some transaction fees, which a large part of the community sees as a critical improvement in the economics of the Ethereum network.


Technical Market Outlook
The ETH/USD pair has made a new ATH at the level of $4,404. The rally from the level of $3,890 has ended with a Shooting Star candlestick pattern anyway, so the corrective cycle is about to start. The nearest technical support is seen at the level of $4,274 - $4,243 and the key short-term technical support is currently located at the level of $4,121. The larger time frame trend remains up and the outlook for the nearest weekend is bullish.

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 29, 2021


Crypto Industry News:
The US Department of Justice announced that "Operation Dark Huntor" has led to 150 arrests worldwide. In addition, over $ 31.6 million in cash and cryptocurrencies was confiscated.

The DOJ described Operation Dark Huntor as "a coordinated international effort across three continents to disrupt the darknet trade in opioids." It was carried out in the USA, Australia and Europe in cooperation between the Joint Criminal Opioid and Darknet Enforcement (JCODE) and foreign law enforcement agencies. Coordination activities were carried out by Europol and Eurojust.

The announcement detailed that the operation "resulted in the arrest of 150 alleged drug dealers in the darknet and other criminals who were involved in tens of thousands of illegal goods and services sales in Australia, Bulgaria, France, Germany, Italy, the Netherlands, Switzerland, the United Kingdom and United States.


Technical Market Outlook
The BTC/USD pair has made a very big Pin Bar candle and bulls took this opportunity to move higher towards the technical resistance located at $63.889, but this level had not been broken. 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. There is a 100% market geometry level based on Fibonacci extension located at $56,050 that might be a target for bears as well. 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]

Bitcoin is trying to restore the upward trend, but to no avail yet



Yesterday, Bitcoin move up to the Ichimoku cloud on the four-hour timeframe, but it did not manage to consolidate above it. Therefore, the downward trend is currently continuing, and selling near the Ichimoku cloud might be an interesting trading idea. However, not everything is as clear as it seems at first glance. Last night, Bitcoin initially declined by $ 3,500 thousand, and then rose by $ 4,000. Moreover, this did not happen during the publication of the US GDP. When GDP was published, the price of the digital coin was quietly rising, which is absolutely logical. It was already mentioned in the previous articles that the less likely the Fed's QE program is to be curtailed in November, the higher the probability of further growth of Bitcoin and US stock indices. And the probability of a gradual curtailment of QE, starting in November, has sharply fallen recently due to reports on Nonfarm and GDP. Therefore, at first glance, it seems that Bitcoin has simply adjusted against the upward trend of recent months, and is now preparing to restore the "bullish" trend.

This assumption is very reasonable since one should not forget about the "hype" of the current trend and the fact that Bitcoin is showing the most impressive growth at such a "hype" time, or at certain points in time. Bitcoin purchases increase, which provokes even larger purchases of cryptocurrencies due to the influx of small traders and investors who also want to make a profit. In this case, the Ichimoku cloud, which now has a rather narrow appearance, can be used as a provider of trading signals. Once it is overcome, it will mean a very likely continuation of the growth of Bitcoin quotes. If there is a rebound, then, at least, a new round of correction may occur.

However, the general fundamental background is currently on the side of the world's first cryptocurrency. The Fed, even if it announces a reduction in QE in November, still will not mean an immediate curtailment of this program. The American regulator will continue to fill the economy with liquidity for at least another 7-8 months, so the markets will feel just fine, and inflation may continue to remain high.

It is worth noting that high inflation is another reason for the possible continuation of Bitcoin's growth since most investors use it as a means of protection against the depreciation of their capital. It turns out that the two most important factors remain on the side of Bitcoin. However, there is not much other news from the field of cryptocurrencies right now. The situation for bitcoin may worsen in the future because there is now a clear trend to tighten regulation of the cryptocurrency sphere around the world. Some countries are completely abandoning cryptocurrencies and digital assets, seeing them as a threat to the stability of the national economy. And from our point of view, these measures will only become more stringent over time.

In any case, next year may be indicative. According to many experts, a lot of institutional investors have invested in Bitcoin at this time, who are not in the habit of selling off an asset as soon as it starts to decline. It is the institutions that can keep this cryptocurrency from serious collapse. Therefore, when two new taxes on bitcoin are introduced in the States at once, and the Fed starts curtailing QE, then this will be the "aptitude test" for Bitcoin.



The trend on the four-hour timeframe shifted to a downward one, as the price consolidated below the Ichimoku cloud. In this case, sales with the target level of $ 56,500 are now relevant. A rebound from the cloud can be used as a new signal to sell. But if traders manage to consolidate above it, then buying with targets of $ 64,700 and $ 67,000 will become relevant.






Paolo Greco
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading plan for Bitcoin for October 29, 2021



TECHNICAL OUTLOOK:
Bitcoin had dropped through $56,400 levels on Thursday, in-line with expectations and as discussed earlier. Also note that the crypto has tested its fibonacci 0.382 retracement of the recent rally between $40,000 and $67,000 levels respectively. Traders might have booked profits on short positions taken earlier.

Bitcoin has found support around $56,400 mark and is now pulling back toward $61,300-500 levels. The corrective drop from $67,000 might be complete or it could produce another leg lower towards $50,000 mark. Immediate resistance will be seen around $62,800, followed by $64,000 and higher; while support comes in around $50,000, followed by $40,000 levels respectively.

Also note that Bitcoin bulls are expected to remain in control until prices stay above the new channel support trend line. The channel is passing through $48,500 levels at the time of writing and prices could bounce higher from there. On the flip side, a push above $67,000 will open the door for another high toward $75,000 level before finding resistance.


TRADING PLAN:
Target hit around $56,000-500 mark. Potential reversal from $64,000-65,000, against $67,000.

Good luck!






Oscar Ton
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Will there be a massive launch of Bitcoin futures ETFs, and how will this affect the correlation in Bitcoin price?



October was truly significant for the entire crypto market, namely the launch of bitcoin futures ETFs, which became a catalyst for the growth of bitcoin.

Digital gold has become available to investors through any brokerage account in a tax-efficient shell.

VanEck became the second Bitcoin ETF after the ProShares BITO ETF, following them, Valkyrie Investments received the green light from Gary Gensler and started trading on October 22.

Despite the huge success that has been seen over the past two weeks, regulatory requirements have always been a problem for bitcoin.

ETF issuers have repeatedly tried to bring the exchange product to the cryptocurrency, but no one has received SEC approval. up until October, as everyone had their own arguments and additional investigations.

However, physical products have always been and will be more successful and efficient than futures products, since it is very difficult to trade long-term with them and extend them, investors also cannot thoroughly track spot prices.


WILL THERE BE ANY MORE ATTEMPTS TO LAUNCH FUTURES ETFS?


Gary Gensler remained very enthusiastic about the bitcoin futures ETFs, as they were created in accordance with the current investment company law of 1940, which protects investors from losses.

After the launch of the ProShares ETF BITO, the price rose to all-time highs. Many companies, such as Invesco, have applied to create similar ones.

Previously, investors could track products such as the Grayscale Bitcoin Trust (GBTC), which opened the door for them to trade on lower terms, but they were only available to seasoned high net worth investors.

If you are not yet sure about investing in bitcoin futures ETFs or want to wait for the launch of new ones, you can look at stocks associated with mining and trading BTC, as they play an important role in placing bets on this asset.







Vitaly Kolesnikov
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin: The battle for the $60,000 level continues. Will the fall be redeemed?


After dropping to $58,000 on Wednesday, Bitcoin starts to look better and encouraging on Thursday. But don't jump to conclusions.

An important psychological and technical level of $60,000 per bitcoin is being traded. The battle for it is still going on, and how it will end is still unclear. But most of Wednesday's fall has been bought back. On Thursday, the redemption of the bottom became known from El Salvador. They love this tactic. And other participants, too, probably connected.

Hints of a possible bullish engulfing formation look encouraging in this situation. And if this pattern is formed, it will be possible to think about further growth.


Head and shoulders pattern has not lost its relevance

Yes, Thursday's daily candle calls into question anchoring below the $60,000 horizontal. But, it's not over yet. However, Thursday's growth does not guarantee that the price will not return to this level in the following days.

This means that the threat of working out the head and shoulders reversal pattern and a decline in the zone of $55,000 and even $52,000 for Bitcoin has not passed.

Yes, the situation is uncertain. It is difficult to make predictions, you have to observe.


Market growth is not canceled

At any position of the price relative to the level of $60,000 per coin, the bull market remains relevant. The only question is how deep the downward correction will be before the next return to strengthening.

As for the medium-term trend, many cryptanalysts agree that Bitcoin has now fulfilled only half of its growth potential.

For example, Mitch Klee, guided by the signals of the HODL Ratio (RHODL) indicator, notes that the main cryptocurrency is still far from its potential maximum values that can be reached. The expert notes that RHODL is showing seller depletion.

Other sources of this opinion include PlanB, the creator of the Bitcoin Stock-to-Flow model. PlanB believes bitcoin still has six months before the turning point and the market change from bullish to bearish.


Three reasons for the fall in BTCUSD

It is difficult to consider the current decline as anything more than an ordinary technical correction. A strong "Uptober" is coming to an end, and the update of historical values is a good reason to take some of the profit. So the sales started.

In addition, ETF funds were launched, enthusiastic expectations calmed down, traders began to sell on facts , also provoking a correction.

Finally, the euphoria of October and skyrocketing growth have traditionally led to a partial loss of vigilance in terms of risk. The estimated leverage ratio on cryptocurrency derivatives exchanges is about to hit an annual high, as we talked about earlier. Note that this reason intensified the market collapse in May: positions with leverage with a slight decrease in prices are quickly taken out, and accounts are closed by margin call.

If the fundamental background remains neutral and there is no bad news, the market in general and Bitcoin, in particular, will return to growth. Perhaps from current values, or from $55,000-$52,000. But it is difficult to predict the dynamics locally. It is necessary to observe, and, perhaps, the situation will clear up by the end of the week.







Ekaterina Kiseleva
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Ethereum false breakdown?

Ethereum registered a strong rally today and invalidated potential deeper drop. It's trading at 4,159 level at the time of writing far above 3,893.16 today's low. Bitcoin's growth helped ETH/USD to come back higher as well.

The price of Ethereum registered an 8.06% growth from 3,893.16 daily low to 4,206.89 today's high. In the short term, it moves somehow sideways, we don't have a clear direction. Still, despite the current indecision, ETH/USD maintains a bullish bias.


ETH/USD BULLISH MOMENTUM!


ETH/USD failed to stay under the broken support levels announcing strong upside pressure. It has found support right above 3,886 former low and now is back above the uptrend line.

The crypto is trapped between 4,332.29 and 3,886 levels. The current upside momentum seems very strong, but It's risky to go long here because it's too close to the all-time high of 4,380.64.

Technically, failing to stay above the uptrend line and above the upper median line (uml) could announce that we could still have a corrective phase.


ETHEREUM FORECAST!
You should know that the price of Bitcoin is located right below a strong resistance zone. It remains to see what will happen, BTC/USD's upside continuation indicates that Ethereum could climb higher as well.

On the other hand, Bitcoin's drop could signal that ETH/USD could slip lower again. Technically, as long as it stays above 4,025, it could resume its upwards movement. The bias is bullish after failing to make a new lower low, dropping below 3,886.





Ralph Shedler
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading signal for Ethereum (ETH) on October 28 - 29, 2021: sell below $4,280 (top of range)




Ethereum (ETH) is trading within a price range between 4,300 and 3,900. We hope that in the next few hours ETH will continue to oscillate within these levels and could find strong resistance around 4,280. If it fails to break it, there will be a good point to sell as long as it trades below 4,300 and below 6/8 of a murray.

As long as it remains above the 3,900 support and above the 200 EMA located at 3,720, Ethereum price is likely to hit new all-time highs. For this, we must expect a daily close above 6/8 of murray (4,375). Thus, the price could rise towards its next target at 4,687 where there is 7/8 of murray and that represents a reversal zone.

Conversely, if Ethereum consolidates below the range zone around 3,900, it may fall to the support of the 200 EMA located at 3,720. If this support is broken, ETH could weaken and wait for a drop to the psychological level of 3,000 if the bearish pressure prevails to 1/8 of a murray around the prices of September 26.

A decisive daily close above 4,375 (6/8) will confirm that the uptrend is still valid and will give Ether a push towards 4,687 (7/8). The eagle indicator is showing a bullish signal for the next few hours. We must wait for a sharp break from the top of the range to be able to buy. Otherwise, it will be a selling opportunity.

Our trading plan is to buy within the range around 3,900 and sell below the top around 4,280. We expect this price swing movement to continue until next week. On the other hand, a sharp break below above these levels could determine the next trend for Ether.

Support and Resistance Levels for October 28 - 29, 2021
Resistance (3) 4,375
Resistance (2) 4,207
Resistance (1) 4,062

Support (1) 3,900
Support (2) 3,750
Support (3) 3,466


A trading tip for Ethereum for October 28 - 29, 2021
Sell if pullback 4,280 (Top of range) with take profit at 4,062 (5/8) and 3,900, stop loss above 4,375.





Dimitrios Zappas
Analytical expert of InstaForex
© 2007-2021