Cryptocurrency Analysis

[IFX_Selena]

BTC analysis for 04.06.2020 - Important pivot resistance at the price of $7.245 on the test, watch for potential downside rotation

News:


Since the price of bitcoin plunged to historic lows last month, the bitcoin network's hash rate has also been on a constant decline. Nearly 2.3 million S9 miners were wiped out in China recently as it became hard for miners to make profits. Network's hash rate indicates how secure and strong the blockchain network is.

Bitcoin's hashrate dropped from 133.29 EH/S, the highest since the start of 2020, to 108.16 on 12th March, when the price of the leading cryptocurrency plunged below $4,000. Since then, the hashrate has been continuously falling as miners face tough times to continue their operations. On 4th April, hashrate was at 96.9888EH/S, an increase in hashrate must be accompanied by an increase in the price of bitcoin for miners to maintain healthy profit margins.


Technical analysis:
BTC has been trading upwards. The price is at the very critical pivot level at $7.245. This is decision level for BTC and you should watch carefully this level.I do expect potential downside rotation and rejection towards the level at the price of $5.827. Watch for selling opportunities.

Only if you see the breakout of the $7.245, watch for possible rise towards the $7.691.

MACD oscillator is showing neutral stance and no imbalance in momentum.

Resistance level is set at $7.245

Support levels are set at the price of $6.600 and $5.827.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 07 April 2020

Crypto Industry News:
An ongoing coronavirus pandemic accelerates the development of the Central Bank Digital Currency (CBDC). In a published tweet, Deutsche Bank cites that the risk of coronavirus spreading will further motivate authorities to consider digital alternatives.

According to earlier reports, China has quarantined its banknotes in an attempt to stop the spread of the coronavirus. Research published in 2008 showed that the influenza virus was able to survive on banknotes for up to 17 days.

Governments are increasingly perceiving cash handling as a potential infection risk factor. This will probably become an additional reason why you should aim for digital currencies. Another Deutsche Bank tweet quotes her saying:

"The pathogen requires adequate solutions every hundred years. The obvious place to start is to accelerate the inevitable transition to digital cash."

Interestingly, the experts' comments contradict studies published by Deutsche Bank at the end of January. According to the report, cash will remain in circulation for a long time, despite a decline as a payment method and will not be replaced in the near future by digital currencies.


Technical Market Outlook:
The BTC/USD pair has made another higher high at the level of $7,390 after the breakout from the consolidation zone. Nevertheless, the rally has failed to continue and market has made a Bearish Engulfing candlestick pattern after the level of $7,390 was hit. If the bearish pressure will intensify again, then the price might move even lower towards the technical support located at $6,908 or even towards the level of $6,586.

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

[IFX_Selena]

Technical Analysis of ETH/USD for 07 April 2020

Crypto Industry News:
Bank of Revolut said that all standard users will now be able to buy and sell cryptocurrencies supported in its banking application, although this will not apply to US residents for now.

Revolut planned to expand its cryptographic offer later this year. In an email to users, the bank's cryptography chief, Edward Cooper, said that growing concerns about the potential effects of the central bank's quantitative easing and currency devaluation have accelerated adoption.

Revolut - which raised $ 500 million in D series earlier this year - has enabled users to buy cryptocurrencies directly from the app since they added Bitcoin support in 2017. Although users can trade digital assets with other Revolut users, they cannot remove them from the app.

Revolut services were extended to the United States at the end of March. The bank said that new US customers will only have access to its basic functions. Additional services, such as the cryptocurrency buying service, will be added later.


Technical Market Outlook:
The ETH/USD pair has made a new local high at the level of $175.00 in the time of writing the analysis. Nevertheless, the bulls are still trying to make use of the momentum behind this move up and move higher towards the level of $176.78, 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 $156.24 - $153.46. Please notice the increasing 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]

BTC analysis for 04.07.2020 - Major resistance set at $7.640-$7.600 zone, watch for potential selling opportunities

News:


Discussing the global coronavirus epidemic and its impact on global finance, Dixon warned that the health aspect of the crisis was by no means its worst."I don't want to be dramatic, but this is a global reset in the financial system," he told host Max Keiser.Coming after, he said, was a massive "scrambling" for power by governments and central banks. Taxpayers and those forced to rely on fiat money will pay the price.Dixon continued:"I think we're going to see a real attack from central banks on traditional banks as we inevitably experience the ginormous consequences of essentially the world's largest regulated Ponzi scheme."


Technical analysis:
BTC has been trading upwards. The price tested the level of $7.400. Anyway, I found that BTC is near the important resistance zone ($7.640-$8.000) and my advice is to watch for potential selling opportunities due to strong resistance zone.

Watch for selling opportunities on the potential bear divergence on the momentum oscillators or any bearish pattern that can happen near the resistance.

Downside targets can be placed at $6.600 and $5.813.

MACD oscillator is showing upside pressure and the slow line is turned to the upside, which is still suggesting upside pressure.

Resistance levels are set at the price of $7.640 and $8.000.

Support level is set at the price of $7.270, $6.600 and $5.813.




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

[IFX_Selena]

Technical Analysis of BTC/USD for 08 April 2020

Crypto Industry News:
Bitcoin hash exploded from 91.290.582 TH / s from April 4 to 121.029.181 TH / s on April 6. Historically, Bitcoin hashrate and price showed a very close relationship, with a correlation of 0.77.

This relationship makes sense, given that hashrate represents the cost of producing Bitcoins for miners on the one hand, and the overall security of the Bitcoin network on the other. In other words, the higher the total hashrate, the more expensive it will be to take over the network. This decentralized trust is one of the key values that Bitcoin possesses.

At the same time, the price of Bitcoins increased only by 0.92%. The rapid increase in the value of hashrate is the result of a recent favorable adjustment of Bitcoin mining, which in itself was caused by an earlier decrease in the value of hashrate on the network.

If the Bitcoin / hashrate price correlation remains constant, we can expect a significant increase in prices. However, the dynamics are complicated by the upcoming halving of prizes in the form of Bitcoin blocks, for which only 36 days are left.

When everything else remains constant, the miners' income will also be halved after being halved. On the other hand, for miners' revenues to remain at the same level, the price would have to double (maintaining constant mining efficiency). The recent increase in Bitcoin hashrate may indicate that miners are betting on the second scenario.


Technical Market Outlook:
The BTC/USD pair has recovered from the recent loses. The price has hit the level of $7,028, but bulls quickly moved the rate back towards the recent high at the level of $7,392. Currently, the bulls are preparing to rally higher towards the level of $7,757. Nevertheless, if the bearish pressure will intensify again, then the price might lose the momentum and move even lower towards the technical support located at $6,908 or even towards the level of $6,586.

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

[IFX_Selena]

Technical Analysis of ETH/USD for 08 April 2020

Crypto Industry News:
A new PricewaterhouseCoopers (PwC) report showed that fundraising and cryptography mergers and acquisitions (M&A) fell last year, but that doesn't mean the cryptographic market is dying out.

It seems that the cryptographic industry cannot attract investment from institutional investors. The giant of professional PwC services said that the number and value of fundraising as well as mergers and acquisitions showed a sharp decline last year. Cryptography-related mergers and acquisitions dropped by 76% to $ 451 million in 2019, from over $ 1.9 billion in the previous year. The amount of funds raised decreased by 40% to USD 2.24 billion.

Cryptocurrency space could not attract mainstream investment, despite the fact that Bitcoin grew strongly in the second and third quarters of 2019. In July, the price reached a peak of over $ 13,500.

Given the current COVID pandemic, the report's authors argue that the cryptocurrency market will not attract mainstream investment in the near future. High volatility due to coronavirus panic and the economic downturn does not bode well for the space being created. It seems that the cryptographic industry is not resistant to global winds, and the number and value of fundraising and merger transactions can be affected in 2020.


Technical Market Outlook:
The ETH/USD high located at the level of $175.00 is still an important target for bulls that are still trying to make use of the momentum behind the recent move up and move higher towards the level of $176.78, which is a technical resistance for the price. On the other hand, if the bulls fail here, (there is a Bearish Engulfing candlestick pattern present on H4 time frame chart), then the next technical support is seen at the level of $156.24 - $153.46. Please notice the increasing 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]

BTC analysis for 04.08.2020 - Potential drop on BTC is coming, the main objective is set at the price of $5.813

Corona virus news:


On April 5, Italy's "blood donation day," the Italian Red Cross constructed an advanced medical post using funds generated through a crypto fundraiser.The Italian Red Cross has raised nearly $32,000 through cryptocurrency donations in less than one month. Roughly $22,000 has been used to finance the construction of the initiative's first advanced medical post in the town of Castel Gandolfo near Rome.

The funds were spent by the initiative to purchase a pneumatic tent that will house the medical post, in addition to other materials. The tent was erected during Italy's "blood donation day" and used as a screening station for pre-donation medical examinations.


Technical analysis:
BTC has been trading downwards as I expected. The price broke the Pitchfork mini upward channel and it gave us the first signal for the potential chage in the trend from bullish to bearish.

Watch for selling opportunities. The area around $7.500-$7.600 looks like good zone for sell posiitons.Downward targets are set at the price of $6.595 and $5.813.

MACD oscillator is showing decreasing on the upside momentum and the slow line turned to the downside, which is indication for potential change in the trend.

Major resistance pivot zone is set at $7.600-$8.000

Support levels are set at the price of $6.600 and $5.813





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

[IFX_Selena]

Technical Analysis of BTC/USD for 09 April 2020

Crypto Industry News:
Microsoft warns hospitals at risk of ransomware attacks to prevent healthcare institutions from being overwhelmed by the COVID-19 pandemic. The company also published recommendations for hospitals to secure their systems and prevent such attacks.

Through a network of threat analysts, Microsoft states that it has "identified dozens of hospitals" with vulnerable virtual private networks and other publicly available applications on their systems:

Microsoft distributed "first-of-its-kind" targeted hospital notifications containing "important information about vulnerabilities, how attackers can exploit them, and a strong recommendation to apply security updates that protect them from security holes."

Hospitals were recommended to provide regular updates of the VPN configuration and firewall, better monitoring of remote access infrastructure, and enhanced violation response protocols.

It is recommended that they seek greater involvement of operational security specialists and plan regular audits. Microsoft is also participating in the 'Tech Against Corona' initiative with around a dozen technology companies to freely provide technology to the Dutch government to fight coronavirus - which includes efforts to help hospitals fight ransomware.

Some ransomware and darknet operators take a rare moral position among COVID-19. Both Maze and DoppelPaymer operators said they would not launch ransomware attacks on hospitals during a pandemic.


Technical Market Outlook:
After a dip towards the level of $7,028, the BTC/USD pair moved quickly back towards the recent high at the level of $7,392. Currently, the bulls are preparing to rally higher towards the level of $7,757 as the price consolidates the recent gains. Nevertheless, if the bearish pressure will intensify again, then the price might lose the momentum and move even lower towards the technical support located at $6,908 or even towards the level of $6,586.

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

[IFX_Selena]

Technical Analysis of ETH/USD for 09 April 2020

Crypto Industry News:
The Bank of Korea has announced that it has launched a pilot program to assess the logistics of issuing digital currency of the central bank - or CBDC. While South Korea's central bank does not plan to introduce such currency immediately, the pilot program will ensure it is ready in the face of changing market conditions.

After theoretical research carried out in February 2020, the pilot will cover the technological and legal review of CBDC emissions. It will last 22 months, until December 2021.

The first step is to define the requirements and the CBDC project that will run for five months until July 2020. It will overlap with the review of the technology required to implement the currency, which is scheduled from April to August.

A business process analysis will then be carried out, which will last until the end of 2020. Finally, in 2021, a 12-month compilation and testing of the CBDC pilot system should take place.

The announcement explains that the bank does not see the immediate need to issue a digital currency in South Korea, but rather that, based on research from other countries in this area, it wants to be prepared in case such a move becomes a necessity.


Technical Market Outlook:
The ETH/USD high located at the level of $175.00 is still an important target for bulls that are still trying to make use of the momentum behind the recent move up and move higher towards the level of $176.78, which is a technical resistance for the price. The Ethereum bulls are now consolidating the recent gains in a narrow range that looks like a Pennant pattern. On the other hand, if the bulls fail here, (there is a Bearish Engulfing candlestick pattern present on H4 time frame chart), then the next technical support is seen at the level of $156.24 - $153.46. Please notice the increasing 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]

BTC analysis for 04.09.2020 - Potential drop on BTC is coming, the main objective is set at the price of $5.813

News:


Technical analysis:
BTC has been trading downwards as I expected. The price broke the Pitchfork mini upward channel and it gave us the first signal for the potential chage in the trend from bullish to bearish. My analysis from yesterday is still active and valid.

Watch for selling opportunities. The area around $7.500-$7.600 looks like good zone for sell posiitons.Downward targets are set at the price of $6.595 and $5.813.

MACD oscillator is showing decreasing on the upside momentum and the slow line turned to the downside, which is indication for potential change in the trend.

Major resistance pivot zone is set at $7.600-$8.000

Support levels are set at the price of $6.600 and $5.813




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