Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of BTC/USD for October 19, 2021


Crypto Industry News:
ProShares to Launch a Bitcoin Futures Exchange Fund (ETF) that will start trading on the New York Stock Exchange tomorrow, the company confirmed in Monday's filing with the SEC.

The US Securities and Exchange Commission (SEC) approved Bitcoin futures ETFs on Friday. ProShares applied for the Bitcoin ETF last summer. The fund is linked to BTC futures traded on the Chicago Mercantile Exchange.

The news of the long-awaited approval of the Bitcoin ETF is tandem with the current cryptocurrency quotes to levels not seen since April. Bitcoin soared above $ 60,000 on Friday for the first time in almost six months.

There will be hopes that the Bitcoin ETF debut on the NYSE will open the gates to a stream of similar products that will gain regulatory approval and accelerate the flow of cryptocurrency investments.


Technical Market Outlook:
The BTC/USD pair is heading towards the ATH located at the level of $64,920, but first the bulls need to break through the level of $63,898, which is a short-term technical resistance. The immediate technical support is seen at the level of $59,561, but the corrective cycle in wave 4 might extend lower towards the key short-term technical support is located at $52,209. Please keep an eye on this level as any violation of this level will be negative for bulls.

Weekly Pivot Points:
WR3 - $72,401
WR2 - $67,700
WR1 - $63,611

Weekly Pivot - $58,705
WS1 - $54,810
WS2 - $49,233
WS3 - $45,621


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 $64,920 (the previous AT 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 October 19, 2021


Crypto Industry News:
BIT Mining increases its investment in Ohio's Cryptocurrency Mining Data Center, which is being jointly developed with Viking Data Centers, to increase power.

The investment will be increased by $ 11 million, of which $ 9.8 million will be paid in cash and the remaining $ 1.2 million will be payable to Viking Data Centers in cash or as class A common stock.

The Ohio mine, scheduled for completion by March 2022, is expected to reach a total capacity of up to 150 megawatts, adding 65 MW to 85 MW for the original project, the company announced. The additional capacity will be developed in two phases, 25 MW in the first and 40 MW in the second. The parties expect to hit these milestones by February 15 next year and March 31, 2022 respectively.

After the successful implementation of the investment, BIT Mining's stake in Ohio Mining Site will increase to 55%, and Viking Data Centers will own the remaining 45%. The company has also completed the operation of a cryptocurrency mining data center in Texas, and will also limit the capacity of the cryptocurrency mining project in Kazakhstan to 40 MW.


Technical Market Outlook:
The ETH/USD pair has been seen bouncing from the technical support located at the level of $3,677, but bulls are not that keen to head towards the level of $4,000 again. This might be the last wave in the impulsive cycle, the wave 5 of the overall wave progression, so a some kind of correction might be expected soon. The momentum is strong and positive, so the bulls might risk to push the prices towards the level of $4,000 before any meaningful correction will occur, but any breakout below $3,677 will be a negative in the short-term.

Weekly Pivot Points:
WR3 - $4,596
WR2 - $4,262
WR1 - $3,971

Weekly Pivot - $3,631
WS1 - $3,394
WS2 - $3,073
WS3 - $2,777


Trading Outlook:
Ethereum have started the next wave up and violated the long-term target at the level of $3,550. The next long-term target for ETH is seen at the level of $4,394. 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.








Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin skyrockets to above $ 62,000




Bitcoin soared above $ 62,000 this morning amid growing confidence that ETFs will be approved.



Bloomberg reported that the Securities and Exchange Commission said it intends to authorize Bitcoin ETFs in the US this week, and is unlikely to block the trading of products. The recent offers of ProShares and Invesco, for example, were based on futures contracts, which distinguishes them from previously rejected projects.

The announcement came after the SEC tweeted: "Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits."

This raised hopes that Bitcoin ETFs will be approved soon, more than eight years after the Winklevoss twins first requested approval.

As such, the world's largest cryptocurrency, having had a volatile year even by its own standards, hit its highest level since April, trading nearly $ 60,000.

But according to William Morris from GlobalBlock, new entries may emerge: "All-time highs of nearly $ 65,000 will be the next resistance level before a potential price discovery phase. While the BTC price has fiercely rallied over the past few weeks, bitcoin balance on exchanges remains at the lowest levels in nine months, indicating investors are holding bitcoin in wallets rather than readying themselves to sell. "

Meanwhile, earlier this week, Bank of England Deputy Governor John Cunliffe called for urgent regulation and warned that a crypto collapse could trigger a financial crisis.





Andrey Shevchenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for October 18, 2021


Crypto Industry News:
Grayscale Investments is planning to apply earlier this week to convert the world's largest BTC fund into a stock exchange fund (ETF) earlier this week, CNBC reported, citing an expert on the matter.

While the exact timing of Grayscale's intended application submission is unknown, the world's largest digital asset manager has made no secret of its intention to seek approval for a Bitcoin-based ETF spot as soon as the futures-based ETF releases its commission. This approval took place on Friday.

A Grayscale ETF would be backed by actual cryptocurrency units rather than linked via derivative contracts such as futures. Should the proposal be approved, it would be a further expansion of the leading cryptocurrency as an established investment asset.

Some analysts predict that the $ 38.7 billion Grayscale Bitcoin Trust (GBTC), whose shares are already traded on public exchanges, has no chance of getting approval from its current cryptocurrency-backed ETF conversion plan any time soon.

After your application is filed, the SEC will have 75 days to process it.


Technical Market Outlook:
The BTC/USD pair has broke above the level of 361% Fibonacci extension seen at $60,740 and is heading towards the ATH located at the level of $64,920. The immediate technical support is seen at the level of $59,561, but the corrective cycle in wave 4 might extend lower towards the key short-term technical support is located at $52,209. Please keep an eye on this level as any violation of this level will be negative for bulls.

Weekly Pivot Points:
WR3 - $72,401
WR2 - $67,700
WR1 - $63,611

Weekly Pivot - $58,705
WS1 - $54,810
WS2 - $49,233
WS3 - $45,621


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 $64,920 (the previous AT 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 October 18, 2021


Crypto Industry News:
The President of Mexico gave his views on Bitcoin and cryptocurrencies earlier this week. At a press conference at the National Palace, Lopez Obrador denied having any interest in adopting Bitcoin as legal tender, as did El Salvador earlier this year. When asked by a journalist about the case, he stated:

"No. We will not change in this respect. We consider it appropriate to be orthodoxy in financial management. We will not try to introduce many innovations in the financial system."

The statement is in line with Mexico's position to date on cryptocurrencies. On the other hand, Lopez Obrador stated that he would pay particular attention to the tax situation in the country, ensuring that tax collection proceeds normally, without tax evasion.


Technical Market Outlook:
The ETH/USD pair has bounced from the technical support located at the level of $3,677 and is heading towards the level of $4,000 again. This might be the last wave in the impulsive cycle, the wave 5 of the overall wave progression, so a some kind of correction might be expected soon. The momentum is strong and positive, so the bulls might risk to push the prices towards the level of $4,000 before any meaningful correction will occur.


Weekly Pivot Points:
WR3 - $4,596
WR2 - $4,262
WR1 - $3,971

Weekly Pivot - $3,631
WS1 - $3,394
WS2 - $3,073
WS3 - $2,777


Trading Outlook:
Ethereum have started the next wave up and violated the long-term target at the level of $3,550. The next long-term target for ETH is seen at the level of $4,394. 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.







Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

More Bitcoin buyers jumped in


Bitcoin is strongly bullish and continues to climb. It has increased to as high as 61,749 today. Now it's located at 61,374.10 level. You should know that BTC/USD is likely to reach fresh highs anytime. Technically, it has taken out strong upside obstacles, so the current growth is natural.

The price registered 8.57% growth from 56,877 today's low to 61,749 today's high. In the last 7 days, BTC/USD was up by 12.71%. After the current strong rally, maybe we should wait for a temporary decline before deciding to go long again.


BTC/USD SEEMS UNSTOPPABLE


BTC/USD resumed its growth after taking out the first warning line (wl1) and the weekly resistance (58,535) levels. I've already mentioned that breaking above these obstacles may signal further growth.

After its false breakdown with great separation below the upper median line (uml), 52,956, and under the weekly pivot point signaled strong buyers. Staying near the warning line (wl1) announced an imminent upside breakout.


BITCOIN FORECAST
Theimmediate upside target is seen at the weekly R2 (62,403.04). Also, the 64,895.22 all-time high stands as a major upside target. Personally, I believe that a temporary decline could bring new long opportunities.

In the short term, it could come back to test and retest the 60,000 psychological level before resuming its upside journey.





Ralph Shedler
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin: Bloomberg Says SEC Will Approve Crypto ETF Next Week


Waiting for the Bitcoin futures ETF to be approved all week determines the direction of the main cryptocurrency. Bitcoin hit $60,000 per coin Friday for the first time since May after news leaked from Bloomberg that the anticipated event could happen as early as next week.

Market influencers continue to give bullish forecasts. Mike McGlone, senior commodity strategist for Bloomberg, identified the key factors that he believes could push Bitcoin to an all-time high of $100,000 per coin.


Three Drivers of Bitcoin Growth
According to McGlone, the main drivers that will allow Bitcoin to grow to $100,000 are the economic confrontation between the US and China, the approval of the Bitcoin ETF, and the introduction of proper regulation of cryptocurrencies.

Bloomberg on Friday released news that the SEC will very soon approve the first bitcoin futures ETF in the United States. A Bloomberg report cites this as a near-settled issue as there seems to be no objection to the ETF approval.

Bloomberg senior ETF analyst Eric Balchunas tweeted that, according to several sources, there is a 90% chance that a BTC ETF will receive the green light.


Lack of Supply Pushes the Price Up
It is worth noting that McGlone has been predicting the growth of BTC to $100,000 for several months.

A month ago, he tweeted that the reasons for achieving this target this year could be a decrease in the supply of bitcoins, while the Fed continues to print dollars.

Here it is appropriate to recall both the mining limit of the main cryptocurrency and the protection against inflation, which big capital is trying to find in bitcoin.


The Historical Maximum Is Already In Our Pocket
The price of bitcoin remained above the support of 55,842.84, at least a little, and frightened it with volatile trades. Fortunately, the good news helped.

At the time of this writing, bitcoin is trading near $60,000 per coin, which is a significant psychological level. Having passed it, the price will go to the technical target of 61,048.64, and then 64,000 is not far off.

If ETFs do get approved next week, there are two possible scenarios outlined earlier. The first is a correction against the background of the "buy the rumor, sell the news" effect. The second is a skyrocketing rise above all-time highs if Bitcoin futures ETFs do indeed stimulate a significant influx of institutional investments in the main cryptocurrency.







Ekaterina Kiseleva
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

XRPUSD continues to respect channel boundaries.


XRPUSD is trading around $1.12 after reaching as high as $1.22 which was just a cent below our first target. Price continues to respect the bullish channel boundaries and as long as this is the case, bulls will remain in control of the trend.



Blue lines - bullish channel

XRPUSD is right on top of the lower channel boundary. Support is at $1.08 and a daily close below this level will be a sign of weakness. If price breaks out of the bullish channel, then we should expect price to make a pull back towards the recent major support at $1-$0.98 area. Resistance is found at $1.16. A daily close above this level will open the way for a move above $1.22 recent high towards our next upside target of $1.42. Ideal scenario for bulls would be for price to pull back towards $1 and then form a higher low and start a new upward move that will eventually push price above $1.42.






Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

What awaits Bitcoin next year?



Bitcoin continues its strong growth on the four-hour timeframe. It was already previously mentioned that its current growth seems very "hype". That is, it seems that market participants have seized on some event or factor and are buying bitcoin based on it. We believe that such an event could be the SEC approval for exchange-traded investment funds to trade bitcoins on the Chicago Mercantile Exchange. However, it is advised to look a little further into the future and guess how Bitcoin will be traded next year. At the moment, it is not far from its historical highs, but what will happen when the Fed begins to wind down its quantitative stimulus program? What will happen when rates around the world start to rise, increasing the cost of money?

Many crypto experts continue to argue that bitcoin and other cryptocurrencies will not be able to occupy a prominent place in the global financial system. It is absolutely not profitable for central banks to have such uncontrolled currencies or their analogs. Everyone has talked about this a bunch of times, but it was this year that the bans on bitcoin began. China was the first to speak, but it is unlikely that it will remain the only country in the world that will ban bitcoin, cryptocurrency transactions, and mining. Other countries may not ban bitcoin, but may greatly tighten its regulation, as well as impose taxes, so its investment attractiveness may greatly decrease.

In addition, we should remember one of the main factors why Bitcoin rose to the level of $ 64,700 last time and this time. Given that these two events took place over the course of a year, what can they have in common? Obviously, it's the worldwide pandemic crisis. This is the time when key rates were cut to zero and central banks were pouring hundreds of billions of dollars into the economy. That is, money was (and remains) cheap in itself in many developed countries. Loans cost almost 0%, which allows us to take it and invest in the same bitcoin. Moreover, the money is getting cheaper due to the quantitative incentive programs. Naturally, such instruments as bitcoin, are growing in price under such conditions, as well as with the inflation that has grown in recent months, which forces investors to look for ways to protect their money from depreciation.

It can also be recalled that the US stock indices noticeably increased during the pandemic. This is because investors have constantly directed their money into stocks, which could rise in price over time, and also bring dividend income, as well as into cryptocurrencies, which remain "a way to make money quickly." In general, we believe that when the monetary policy begins to tighten everywhere next year, hard times may come for Bitcoin.



The bullish trend continues in the four-hour timeframe, and an ascending trend line has formed, which now more eloquently signals the mood of market participants and can promptly notify about the beginning of a correction or a new downward trend. As long as the price is above it, it is recommended to stay buying bitcoin with the target of $ 64,700. In turn, a consolidation below it will be the first signal to end the current bullish trend.





Paolo Greco
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin continues its strong rally, but are markets preparing for a decline?




Bitcoin managed to easily break through the 76.4% Fibonacci level. Now, it continues to grow at a high rate. In principle, the cryptocurrency has only one significant level – the price's historical high of $ 64,700. Therefore, the price may reach this value today or tomorrow, since it is currently trading at $ 59,500. We also continue to draw the attention of traders to the fact that there is no visible fundamental background for active bitcoin purchases right now. In principle, the whole movement, starting from $ 30,000 per coin, can be called quite groundless. So from our point of view, we are now talking about another "hype", which is always difficult to predict.

In fact, we are not the only ones who adhere to this point of view. It became known a few weeks ago that the US Securities and Exchange Commission may allow exchange-traded investment funds to trade bitcoin this month. All funds that have applied to the SEC are going to trade on the Chicago Mercantile Exchange. This is not even bitcoin itself, but bitcoin futures. As a result, many experts believe that "digital gold" is now growing on expectations of SEC approval of these applications. However, other experts also believe that when this happens, Bitcoin may start to decline, rather than continue to grow. We are talking about the so-called "advance" growth or, as traders say, "buy on rumors, sell on facts."

That being said, it is possible that the reason for the massive purchases of the main cryptocurrency now is the possible admission of the ETF to the Chicago Mercantile Exchange. The SEC may publish the relevant decision as early as October 18-19, that is, in just a few days. That is why many experts believe that bitcoin may start a new decline, which will be triggered by mass profit-taking. At the moment, it is difficult to say whether this will actually be the case, but this idea needs to be kept in mind by all bitcoin owners. It should also be noted that Bitcoin grew by 2,500% in 2017 in anticipation of the resolution of bitcoin futures, and then collapsed by 80%.

From a technical point of view, it is also worth noting that the upward trend still remains. On the daily timeframe, quotes are very far from the trend line, so if a collapse happens, many traders will not be able to react to it in time. Therefore, it is recommended to use Stop Loss orders and focus on the nearest support and resistance levels, from which rebounds or breaks may follow. It should be borne in mind that Bitcoin can not only grow at a rapid pace but also plummeted.



There is still an ascending trend in the daily timeframe after the price managed to break through the level of $ 56,500. This trend line supports the bulls, so it will be possible to talk about a new strong decline in Bitcoin only after breaking this line, which is very late. The upward target remains at the level of $ 64,700, and if a rebound occurs from it, traders must consider the option to make a correction. It is also suggested to pay attention to the four-hour timeframe, where it is possible to form an upward trend line. Consolidating quotes below which will warn a possible correction more quickly.





Paolo Greco
Analytical expert of InstaForex
© 2007-2021