Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of BTC/USD for 01 April 2020

Crypto Industry News:
After many delays, the adoption of the main Russian law on cryptocurrencies will be postponed once again, this time because of the coronavirus.

Anatoly Aksakov, chairman of the Russian State Duma of the State Commission for Financial Markets, says that the national cryptography act - a draft law on digital financial assets - is currently being finalized, but will not be adopted before the end of spring 2020.

According to a Russian press agency report of March 31, Aksakov admitted that earlier delays in adopting the bill were due to disagreement with the new type of asset between local authorities. Aksakov, who is also the chairman of the National Banking Council at the Russian central bank, reportedly said that the central bank opposed the legalization of cryptocurrencies, while the State Duma advocated some cryptographic initiatives.

However, the long-awaited law is now postponed for another reason. As Aksakov noticed, when Russia shifts to priority actions against the COVID-19 pandemic, all legislative processes slowed down.

Aksakov added that the upcoming Russian cryptographic law will define the definition of cryptocurrency and prohibits the use of cryptocurrency as a form of payment. In addition, the law will cover the issue and trading of digital assets, the official said. In mid-March, the executive director of the Russian central bank said the bill bans the issuance and circulation of cryptocurrencies.

Aksakov also emphasized that the new law will not hinder cryptocurrency exchanges operations if they do not break it. He added that the bill on digital financial assets does not contain provisions regarding the extraction of cryptocurrencies. However, he expressed the conviction that profits from cryptographic mining should be taxed, noting that cryptographic mining is a "type of activity that creates value".

Aksakov's recent remarks about the delay in adopting the upcoming Russian cryptography law appear after Russia has seen the largest one-day increase in coronavirus cases for the sixth time in a row.


Technical Market Outlook:
The bears on Bitcoin have managed to push the price lower after a Pin Bar candlestick pattern was made. The price made a local low at the level of $6,271, which is a technical support for the price. In a case of a breakout here, the lower levels of the red zone will be tested again: $5,900 and $5,500. The price of BTC/USD is below the trend line already and the larger time frame trend remains down, so the odds favor the bears.

Weekly Pivot Points:
WR3 - $7,805
WR2 - $7,343
WR1 - $6,514

Weekly Pivot - $6,022
WS1 - $5,217
WS2 - $4,764
WS3 - $3,965


Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in Bitcoin and treat BTC as a digital gold. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.







Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

Technical Analysis of ETH/USD for 01 April 2020

Crypto Industry News:
At a time when many global jurisdictions, such as the Bahamas and Sweden, are already testing their digital central bank (CBDC) currencies, the French central bank is becoming more direct regarding its own CBDC plans.

The Bank of France is now officially starting a program of experiments to test the integration of CBDC for interbank settlements, inviting potential participants to submit applications.

According to a published document, the French central bank calls for applications to experiment using the digital Euro to explore the potential of CBDC in the settlement and settlement of tokenized financial assets. Although previously the Bank of France called for the introduction of Blockchain-based billing systems in Europe, it stated that it did not impose any specific technology as part of the newly announced CBDC experiment program.

Therefore, the French Central Bank will select a maximum of 10 CBDC-related applications by group or by person, focusing on "innovative nature" as the main selection criterion. According to the detailed document requesting applications, applicants must be established in the European Union or a country that is a party to the agreement on the European Economic Area. Applicants may submit applications by May 15, 2020, and their selection will take place on July 10, the bank said.

The bank's experiment with CBDC has three goals, such as modeling of CBDC-based interbank settlements as well as identification of benefits and analysis of potential risks. Among the three potential use cases, the Bank of France lists payments on financial instruments, payments using the digital currency of other central banks, and payments on digital assets.

The bank emphasized that it will not be involved in creating money as part of its CBDC experiment. In addition, the central bank noted that it would destroy the token reflecting the amount in Euro in digital form at the end of the accounting day on which the payment was made.


Technical Market Outlook:
The ETH/USD pair did not manage to break through the short-term trend line resistance located at the level of $132 again and the price was rejected from this level after Bearish Engulfing candlestick pattern was made. This level will now act as a resistance for the price, so it is worth to notice, that is located very close to the short-term trend line (marked in black). Ethereum is trying to bounce after the rejection, but to make this bounce more important, the bulls must break through the level of $134.65 and then through $142.77. In a case of a failure, the lower levels will be tested: $118.53 and $114.98. Please notice, there is almost non increase in momentum as the price moves up.

Weekly Pivot Points:
WR3 - $161.35
WR2 - $151.83
WR1 - $136.71

Weekly Pivot - $127.64
WS1 - $112.54
WS2 - $102.86
WS3 - $88.46


Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. The larger time frame trend on Ethereum remains down and as long as the level of $214.67 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.







Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

BTC analysis for 04.01.2020 - Potential drop on BTC is coming, the main objective is set at the price of $4.390

BTC news:


Along with decreasing volatility in the spot price of major cryptoassets, trading volumes in both bitcoin (BTC) and ethereum (ETH) futures contracts have also been on the decline across exchanges since the crypto market crash in mid-March.

As would be expected, the futures market was most active during the major sell-offs on March 12 and 13, but has since declined steadily. The decline was seen across most marketplaces, although it was most pronounced on the major exchanges OKEx and Bitfinex.


Technical analysis:
BTC has been trading sideways at the price of $6.300.

My bearish analysis from yesterday is still active In the background,here is the gap down tought the bearish flag pattern, which is strong sign of the sellers. My advice is still to watch for selling opportunities. The level at the $6.367 looks like a great sell zone...

Downward targets are set at the price of $4.390 and $3.800.

MACD oscillator is showing decreasing momentum and the slow line turned to the downside, which is another confirmation for our bearish bias.

Resistance levels are set at the price of $7.000 and $7.500

Support levels and downward targets are set at the price of $4.390 and $3.800





Performed by Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

Technical Analysis of ETH/USD for 02 April 2020

Crypto Industry News:
The digital payments giant PayPal has published a new job offer in which the company is seeking to hire a director of anti-money laundering strategy (AML) and Blockchain in its branch Global Financial Crimes (GFC).

According to the company, the new director - operating from New York - will be responsible for assessing the use of Blockchain to prevent financial crimes such as money laundering and terrorist financing, overseeing the entire AML process.

The post also specifies that an ideal profile must focus on the company's capabilities related to Blockchain in terms of strengthening the company's risk department.

PayPal explained that this role is to regularly review AML-related reports to identify and oversee key trends within the Blockchain portfolio by implementing it according to the company's needs.

PayPal requires that the person previously occupy a position in a finance company using Blockchain technology with a thorough understanding of the risks associated with cryptocurrencies, along with experience in AML compliance or law enforcement.

This is not the first time the digital payments giant has expressed interest in the Blockchain and cryptocurrency environment. On November 19, 2019, reports appeared that PayPal had conducted a $ 4.2 million funding round for TRM Labs, which is a cryptocurrency management platform.


Technical Market Outlook:
The ETH/USD pair has made a new local high after a pull-back towards the level of $128.27. This level will now act as a support for the price, so it is worth to notice, if you are looking for an intraday support. Ethereum is trying to continue rally after the breakout with a target located at the level of $147.22. In a case of a failure, the lower levels will be tested: $118.53 and $114.98. Please notice, there is almost non increase in momentum as the price moves up.

Weekly Pivot Points:
WR3 - $161.35
WR2 - $151.83
WR1 - $136.71

Weekly Pivot - $127.64
WS1 - $112.54
WS2 - $102.86
WS3 - $88.46


Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. The larger time frame trend on Ethereum remains down and as long as the level of $214.67 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.







Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

TTechnical Analysis of BTC/USD for 02 April 2020

Crypto Industry News:
According to data on the blockchain.com website, the daily amount of confirmed transactions in the bitcoin network has been following the exchange rate over the last years. In December 2017 and in May-July 2019, when bitcoin recorded high valuations, the number of transactions also recorded its historical peaks - 450-500k one day transactions.

In times of crisis, however, as we are currently dealing with, while falling, there are also fewer transactions. From summer 2019 to March 2020, the daily number of transactions in the Bitcoin network was on average 275-350k transactions. In mid-March, the markets recorded declines in the BTC exchange rate, which also resulted in transactions carried out, the number of which fell to 225-275k transactions.

Bitcoin network can be explored in many ways and many indicators can be derived. One of such is the time of mining the block, which in March increased by 40 percent. This is not positive information, because block mining takes longer, which in turn translates into a longer wait for confirmation of the transaction. In addition, network computing power (hash rate) has recently been reduced - by up to 40%.


Technical Market Outlook:
The BTC/USD pair has bounced from the level of $6,120 and made a new local high during a short-term rally towards the trend line resistance (marked in black). The new local high was made at the level of $6,712 and since then the price is consolidating the recent gains. In a case of a failure here, the lower levels of the red zone will be tested again: $5,900 and $5,500. The price of BTC/USD keeps trading below the trend line and the larger time frame trend remains down, so the odds favor the bears as long as the level of $6,908 is not clearly violated.

Weekly Pivot Points:
WR3 - $7,805
WR2 - $7,343
WR1 - $6,514

Weekly Pivot - $6,022
WS1 - $5,217
WS2 - $4,764
WS3 - $3,965


Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in Bitcoin and treat BTC as a digital gold. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

BTC analysis for 04.02.2020 - Watch for the price action around the very important pivot at the price of $6.960 to confirm further direction

Corona virus news:


Leading blockchain intelligence firm Chainalysis has found that the COVID-19 pandemic and global economic contraction is affecting Bitcoin (BTC) consumer habits in surprising ways.In a new report published on March 30, Chainalysis details how Bitcoin spending trends in three areas — merchant services, gambling and darknet marketplaces — have changed, or even reversed.


Technical analysis:
BTC has been trading upwards.The price tested the level of $6.690. Anyway, the main pivot is set at the price of $6.960 and you should watch for the price action around it.

The successful rejection of the resistance at $6.960 would confirm downside and potential testing of $5.800 and $4.476

The eventual breakout of the resistance $6.960 can lead us for test of $7.623.

Stochastic oscillator is showing overbought condition, which increases the risk for the further upside...

Resistance levels is set at the price $6.960

Support levels and downward targets are set at the price of $5.810 and $4.476.




Performed by Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

Technical Analysis of BTC/USD for 03 April 2020

Crypto Industry News:
With the rise of panic and uncertainty caused by the coronavirus, Egypt has become the latest country to limit withdrawals from banks. Individuals can now charge a maximum of $ 635 per day from their bank and only $ 317 from ATMs.

According to press reports, on Sunday the Egyptian central bank instructed banks around the country to apply temporary daily withdrawal and deposit limits. This movement aims to control inflation in the country and prevent citizens from accumulating cash during a pandemic.

The daily limit for individuals has been reduced to 10,000 Egyptian pounds in bank branches and 50,000 pounds for companies. Only companies that need to withdraw money to pay their employees will be exempted from the limits.

Restrictions appear after a wave of mass payments from banks in the country. Central bank governor Tarek Amer said on Sunday that 30 billion Egyptian pounds (1.91 billion dollars) had been removed from the banks over the past three weeks.

"It turned out that individuals withdraw money from banks, although they did not need them ... in the last three weeks they have paid 30 billion pounds. We want discipline. We live in society and we must think about others" - said the governor.

Registered coronavirus cases in Egypt are currently slightly less than 800. However, the national health service is not prepared for a mass epidemic. In addition, Egypt is prone to high inflation, which can further aggravate the crisis. This can reduce inventory and panic and keep prices down.


Technical Market Outlook:
The BTC/USD pair has rallied through the technical resistance zone located between the levels of $6,759 - $6,908 and made a new local high at the level of $7,212. Nevertheless, the overall rally has failed to continue and market has made a red Pin Bar candlestick pattern after the breakout. The rally was short-lived and currently the Bitcoin price has returned to the main channel area and is again trading below the red zone. If the bearish pressure will intensify, then the price might move even lower towards the technical support located at $6,568 or even towards the level of $6,271.

Weekly Pivot Points:
WR3 - $7,805
WR2 - $7,343
WR1 - $6,514

Weekly Pivot - $6,022
WS1 - $5,217
WS2 - $4,764
WS3 - $3,965


Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in Bitcoin and treat BTC as a digital gold. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.







Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

Technical Analysis of ETH/USD for 03 April 2020

Crypto Industry News:
Vitalik Buterin - co-creator of Ethereum - got involved in a Twitter discussion with the Bitcoin developer yesterday.

"Digital gold was, is and will be a bitcoin narrative," one user wrote on Twitter, which caused a stormy discussion. Buterin emphasized that the oldest cryptocurrency was originally to act as digital cash, not gold. He also added that he joined the BTC community in 2011, and yet he remembers that even then the atmosphere around this cryptocurrency was completely different. Bitcoin was originally an electronic peer-to-peer cash, only later it became gold. As proof of this statement, Buterin attached the BTC White Paper, because even in its title it was clearly emphasized. It is no surprise, therefore, that he supports this original version.

Although fees in the Bitcoin network may seem relatively high to some, others accept this state of affairs. Vitalik Buterin himself wrote that this is a controversial matter. He added, however, that users do not have to use BTC, if they do not like it, they can always use a different block chain.

The nickname of digital gold, which was given to Bitcoin, deviates from the original concept. In this case, this cryptocurrency begins to be perceived more as a speculative object, not money, but no matter what role BTC currently plays, its initial assumptions were undoubtedly associated with P2P transactions, not value storage. This is difficult to deny.


Technical Market Outlook:
The ETH/USD pair has made a new local high after a breakout through the level of $142.77 has been made. The new high was made at the level of $149.52, but the candlestick pattern of a Pin Bas has been made during this move, so the price wend back down below the level of $142.77 again. The Ethereum is still trading below this level and the bulls are still trying to make use of the momentum behind this move up and move higher towards the level of $153.44 which is a technical resistance for the price. On the other hand, if the bulls fail here, then the next technical support is seen at the level of $132.21 - $130.87.

Weekly Pivot Points:
WR3 - $161.35
WR2 - $151.83
WR1 - $136.71

Weekly Pivot - $127.64
WS1 - $112.54
WS2 - $102.86
WS3 - $88.46


Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. The larger time frame trend on Ethereum remains down and as long as the level of $214.67 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

Technical Analysis of ETH/USD for 06 April 2020

Crypto Industry News:
According to Union Bank CEO Edwin Bautista, the COVID-19 pandemic will lead to the end of cash and accelerate the adoption of digital banking services, including central bank cryptocurrency,.

In a television interview, the head of UnionBank, the ninth largest bank in the Philippines, said it could be the beginning of the end of physical cash, at least for the Philippines, a country whose preventive measures against the spread of the virus are difficult for people living on over 2,000 islands.

It is also difficult for the central bank of the country, which must improve its ability to deliver banknotes to banks and ATMs scattered around the islands. The most reasonable option is to focus on the digitization of the financial system to the extent that people can use digital money for everyday needs.

Bautista predicts that eventually banks will have to test and spend digital cash, and maybe even cryptocurrency. He is proud that UnionBank is already one of the most digitally advanced banks in the region. The bank introduced several external command and control systems for its digital system and asked some employees to work from home. That is why 95% of the bank's branches are currently open, despite the fact that 75% of employees work remotely.

Last month, UnionBank opened 7,000 new accounts that are fully digital, while 20,000 customers downloaded the bank's digital application within a month. Last week, members of the company's management board had their first fully digital meeting.


Technical Market Outlook:
The ETH/USD pair has made a new local high after a breakout through the weekend consolidation zone has been made. The new high was made at the level of $148.63 in the time of writing the article. Nevertheless, the Ethereum is still trading below the level of $149.52 and the bulls are still trying to make use of the momentum behind this move up and move higher towards the level of $153.44, which is a technical resistance for the price. On the other hand, if the bulls fail here, then the next technical support is seen at the level of $132.21 - $130.87. Please notice the decreasing momentum on ETH/USD on H4 time frame chart during the last move up.

Weekly Pivot Points:
WR3 - $180.45
WR2 - $163.97
WR1 - $154.32

Weekly Pivot - $137.76
WS1 - $127.39
WS2 - $112.43
WS3 - $101.19


Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. The larger time frame trend on Ethereum remains down and as long as the level of $214.67 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

Technical Analysis of BTC/USD for 06 April 2020

Crypto Industry News:
According to the Adoption of Digital Asset Trading report, about 100 cryptocurrency trading systems have been launched for institutional clients. Senior executives believe that large companies would be interested in taking advantage of the recent cryptographic crisis, in particular Bitcoin

The electronic currency trading companies that took part in the study are aware of the growing interest in Bitcoin derivatives. About 57% of traditional trading companies traded Bitcoin and 29% traded another cryptocurrency, Ethereum.

Based on the survey, it was determined that XRP, despite being the eighth most popular digital asset, was XRP / USD ranked 5th in the ranking of institutional companies.

According to the respondents, the biggest problems are security gaps in exchanges and fear of burglary. Another negative issue is fear of losing reputation, which is why many commercial institutions do not want to offer digital assets.

Despite these concerns, 97% of traditional trading companies are considering trading in digital assets over the next two years, according to a survey.


Technical Market Outlook:
During the weekend the BTC/USD pair has been trading inside of a local consolidation zone located between the levels of $6,568 - $6,989. On early Monday morning the bulls are in control of the price and are trying to test the level of $6,989 and might even push the prices higher. Nevertheless, the last rally has failed to continue and market has made a red Pin Bar candlestick pattern after the breakout. The rally was short-lived and currently the Bitcoin price has returned to the main channel area and is again trading below the red zone. If the bearish pressure will intensify again, then the price might move even lower towards the technical support located at $6,568 or even towards the level of $6,271.

Weekly Pivot Points:
WR3 - $8,726
WR2 - $7,938
WR1 - $7,363

Weekly Pivot - $6,545
WS1 - $5,997
WS2 - $5,159
WS3 - $4,567


Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in Bitcoin and treat BTC as a digital gold. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020