Cryptocurrency Analysis

[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]

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]

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]

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]

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]

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]

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]

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]

Trading plan for Bitcoin for October 26, 2021



TECHNICAL OUTLOOK:

Bitcoin had raised through all-time high around $67,000 levels in the last week. The crypto has followed a rising new channel support since $28,600 lows as depicted on the daily chart here. The next support for Bitcoin is around $45,000-46,000 zone, which falls on the channel support marked in rectangle box.

Also note that the Fibonacci 0.618 retracement of the upswing between $40,000 and $67,000 is also passing through $49,500-50,000 zone. Probabilities remain high for a bullish reversal if prices drop through the $49,500 mark as bulls might come back in control. Only a break below the channel support and $40,000 price support will nullify the above bullish scenario.

Bitcoin is facing immediate resistance around $57,000 mark, while support is seen at $51,000 level respectively. Most traders might be prepared to book profits on long positions taken earlier, Conservative traders might allow prices to drop through $50,000 mark before initiating fresh long positions.


TRADING PLAN:

Aggressive trade potential for a drop towards $50,000, against $6,000.

Good luck!





Oscar Ton
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Mastercard extends access to cryptocurrencies




Mastercard (ticker: MA) recently announced that it plans to partner with Bakkt (ticker: BKKT) to give customers access to digital assets. Their partners will also be able to issue branded crypto credit and debit cards, as well as participate in loyalty programs that offer cryptocurrencies as rewards. Even vendors and restaurants will soon be able to offer Bitcoin rewards instead of points. Meanwhile, existing points can be converted to cryptocurrency at rates set by participating companies.

According to the company's second quarter results, as of June 30, there were 2.9 billion cards in circulation under the Mastercard and Maestro brands.



Nancy Gordon, Executive Vice President of Rewards and Loyalty Payments for Bakkt, said: "We are incredibly excited to partner with MasterCard to bring crypto loyalty services to millions of consumers. As brands and merchants look to appeal to younger consumers and their transaction preferences, these new offerings represent a unique opportunity to satisfy increasing demand for crypto, payment and rewards flexibility."

Following the announcement, Bakkt shares surged 169% to $ 25.64, while Mastercard rose 0.9%.

The announcement also came just days after the Securities and Exchange Commission (SEC) approved the first US Bitcoin ETF, which pushed the cryptocurrency up to $ 66,974. On Monday, it traded at $ 63,003.48.







Andrey Shevchenko
Analytical expert of InstaForex
© 2007-2021