Cryptocurrency Analysis

[IFX_Selena]

BTC analysis for July 02,.2020 - Bigger downside move is expected towards the level of $8.666

Coronavirus summary:


China's local governments must increase testing capacity to prepare for potential outbreaks. Local institutions should ramp up and reserve coronavirus testing capacity in preparation for increased demand amid potential outbreaks, Reuters reports citing national health authorities.


Trading recommendation:
Watch for potential sellingopportunities due to completion of the mini abc upward correction and potential for bearish flag pattern breakout.

The downward targets are set at the price of $8,900 and $8,666

Stochastic oscillator is showing the overbought condition and fresh bear cross, which is another confirmation for our short bias.




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

[IFX_Selena]

Technical Analysis of ETH/USD for 03 July 2020

Crypto Industry News:
Ethereum 2.0 was created to improve the scalability and performance of the native blockchain. Let us remind you that in the near future the network co-created by Vitalik Buterin is shifting from the PoW to PoS consensus.

The co-founder of Ethereum reminded that the transition to ETH 2.0 will not happen overnight. Either way, it will ultimately lead to network scaling with 100,000 transactions per second (TPS).

Buterin has confirmed that the network will have to settle for current off-chain scaling solutions for the next two years. This will continue until developers finally realize their plans for new Ethereum 2.0 scaling options:

"ETH2 scaling for data will be available * before * ETH2 scaling for general computation. This implies that rollups will be the dominant scaling paradigm for at least a couple of years: first ~ 2-3k TPS with eth1 as data layer, then ~ 100k TPS with eth2 (phase 1). Adjust accordingly " - tweeted Buterin.

The launch date of ETH 2.0 remains unclear and the planned implementation is being delayed. The first launch was to take place in January this year. As we know, ETH 2.0 is being implemented in stages. Afri Schoedon, test network coordinator ETH 2.0, said in May that based on the current progress of the project, phase 0 is likely to occur at the end of this or early next year. In the initial phase, a beacon chain will be launched to implement proof-of-stake.

According to Bitinfocharts data, within 48 hours to June 30 the median transaction fee on the Ethereum blockchain increased by 60%, increasing from USD 0.23 to USD 0.37. Despite the sudden increase, this means a continuation of the trend in which the median ETH transaction fees increased by 510%.


Technical Market Outlook:
After the Doji candlestick pattern was made at the top ot the move up that retrace 50% of the last wave down, the ETH/USD pair had dropped significantly. The short-term trend line dynamic support has been broken as well. The market has hit the intraday support located at the level of $221.31, but it was not clearly violated yet. Nevertheless, the odds for another low are high as the momentum is still weak and negative. The next target for bears is seen at the level of $217.65 and $209.89.

Weekly Pivot Points:
WR3 - $273.84
WR2 - $260.74
WR1 - $240.04

Weekly Pivot - $227.40
WS1 - $206.35
WS2 - $194.36
WS3 - $173.30


Trading Recommendations:
The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred. The next key technical support is seen at the level of $174.82.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 03 July 2020

Crypto Industry News:
The Russian criminal court rejected the claim for compensation to the victim of what would be a crime in many jurisdictions, arguing that Bitcoin, as a virtual currency, does not enjoy the same protection of property as other assets.

The case dates back to 2018, when two men pretending to be agents of the Federal Security Service and their associates kidnapped the victim and forced her to hand them over 5 million rubles or $ 90,000 in cash and 99.7 BTC - with a value of about $ 900,000 at that time. The kidnappers were sentenced to eight and ten years in prison.

As part of the criminal proceedings, the victim asked the court to force thieves to return the money they had stolen. The court partly issued a ruling in favor of the victim, claiming that thieves must pay back 5 million rubles. However, as far as cryptocurrencies are concerned, the court stated that it is not able to satisfy the claim because virtual currencies are not recognized by Russian law as legal tender or its surrogate.

The victim can still try his luck in a civil court. Regardless of future court proceedings, this court decision is extraordinary - in fact, it stated that the theft of Bitcoins is not a crime.


Technical Market Outlook:
The BTC/USD pair has made a new local high at the level of $9,240, but bulls had hit the technical resistance located at the level of 9,238, so the price pulled-back and finally hit the intraday support located at the level of $8,971. The momentum is still weak and negative, but keeps hovering around the level of fifty, which is a neutral level for the momentum indicator. The odds for another wave down are high. The next target for bears is seen at the level of $8,565, but in a case of an upside breakout, the next target for bulls is seen at the level of $9,290 (technical resistance level).

Weekly Pivot Points:
WR3 - $10,465
WR2 - $10,072
WR1 - $9,509

Weekly Pivot - $9,126
WS1 - $8,593
WS2 - $8,191
WS3 - 7,623


Trading Recommendations:
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 until the level of $10,791 is clearly violated. The key mid-term technical support is located at the level of $7,897.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 06 July 2020

Crypto Industry News:
Elon Musk has long aroused interest in the cryptocurrency environment. With unclear reasons, many investors on the BTC market are waiting for the creator of Tesla to invest in digital currencies. Last week, the famous businessman only admitted that ... has nothing to do with Ethereum.

Almost a year ago, Twitter post by William Shatner appeared. He suggested (half-jokingly, semi-seriously) that Vitalik Buterin and Elon Musk should consider building a platform based on Ethereum.

Then, in May 2019, none of the most interested responded. However, now Musk finally reacted and wrote on Twitter:

"I'm not building anything on ethereum. Not for or against it, just don't use it or own any".

Musk has long been arousing emotions on the market. First, many scams were based on his fake accounts. The fraudsters set up profiles that suggested that Tesla's CEO was behind them, and then persuaded naive Internet users to send them funds at BTC. In response, they were supposed to send a few times more cryptocurrencies. As you could easily guess, it was just a simple recruitment. It turned out, however, that some people fell for it. Why? Perhaps the reason was that Musk looks like a little crazy who would be able to do something so strange. In addition, the eccentric businessman recently announced that he was selling all his physical assets, including home. Then many BTC investors dreamed that he would buy cryptocurrency for such acquired funds.

Musk himself, however, already has cryptocurrencies, but apparently it is only 0.25 BTC. A little bit for a billionaire.


Technical Market Outlook:
The ETH/USD has has almost hit the intraday support located around the level of $222, but it was not clearly violated yet. The market is still trading below the short-term trend line resistance, so the odds for another low are high as the momentum is still weak and negative. Neither bulls nor bears can make up their mind and made a breakout in either direction. The next target for bears is seen at the level of $217.65 and $209.89 and the nearest technical resistance for bulls is seen at the level of $232 ( just above 50% of the Fibonacci retracement located at $231.94).

Weekly Pivot Points:
WR3 - $241.60
WR2 - $236.80
WR1 - $229.63

Weekly Pivot - $225.04
WS1 - $218.03
WS2 - $213.12
WS3 - $205.61


Trading Recommendations:
The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred. The next key technical support is seen at the level of $174.82.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 06 July 2020

Crypto Industry News:
A recent Blockchain Tencent accelerator competition took place in Shenzhen, China. The topic concerned "Blockchain industry and ecological construction".

According to local news, Professor Zhu Jiaming, a former United Nations Industrial Development Economist and President of Chinese Digital Assets Research, believes that "2020 is an important year for Blockchain integration in various industries and this is a key period in the history of Blockchain development and applications."

Zhu says that there is an unprecedented consensus on Blockchain status in macroeconomic and social governance, and that he has reached a national strategic level. He admits that Blockchain application scenarios have been extended in recent years. He also states that the combination of Blockchain with various industries has become more developed, and that the ecology of Blockchain industrialization has begun to appear. In this context, Zhu Jiaming believes that "Strategy, interaction, ecology and acceleration" have become the key words for Blockchain integration.

Apparently 60 companies participated in the Tench Blockchain accelerator competition. They were divided into three groups: "industrial Blockchain solutions", "industrial Blockchain infrastructure" and "industrial blockchain peripheral services". They cover finance, government affairs, logistics, legal affairs, education, industry and other industries, with a total value of over 10 billion yuan, or about $ 1.40 billion.


Technical Market Outlook:
The BTC/USD pair has been trading inside of a narrow zone during the weekend after the bulls had managed to made a Pin Bar candlestick formation during the tests of the level of $8,858. The price keeps trading below the key short-term trend line resistance as well and the bears are making lower highs during a bounces. The momentum is hovering around the fifty level, which is a neutral level for both market participants, but in a case of any breakout higher above the trend line, the next target for bulls is seen at the level of $9,150 and $9,240. Only a sustained breakout above the $9,240 would put the bulls back in control over the market again.

Weekly Pivot Points:
WR3 - $9,487
WR2 - $9,346
WR1 - $9,113

Weekly Pivot - $8,999
WS1 - $8,779
WS2 - $8,645
WS3 - $8,425


Trading Recommendations:
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 until the level of $10,791 is clearly violated. The key mid-term technical support is located at the level of $7,897.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 07 July 2020

Crypto Industry News:
Data from the second quarter of 2020, show a huge increase in the number of decentralized applications in all ecosystems, especially those managed by DeFi Ethereum. Decentralized exchanges were in the first line of growth when token mining activities flowed into chain exchange solutions.

According to the data, Curve was one of the largest beneficiaries because it helped users switch between different stablecoin coins to maximize profits. Curve is an automated money market that only supports exchanges between different types of stablecoin coins and wrapped tokens. This limitation allows you to provide fees for the exchange of assets.

According to Q2 DappRadar, DeFi's dominance indirectly led to a decrease in gaming activity. Over USD 2 billion was realized on DeFi platforms in the second quarter, which caused a sharp increase in gas prices. The living DApp ecosystem in Ethereum games suffered because fees accounted for a significant proportion of each transaction. DappRadar has seen a staggering 79% decline in online gaming activity in the previous quarter.

EOS seems to be the main "beneficiary" of Ethereum losses, as the volume of transactions in games increased by about 80% compared to the previous quarter. Although this is positive news for the platform, it still has not fully returned to the state from before the EIDOS dump at the end of 2019. Volumes remain well below records from the second quarter of the previous year.


Technical Market Outlook:
The ETH/USD has finally broken through the short-term trend line resistance around the level of $230 and bulls push the price towards the level of $243. The levels of $235.42 and $232.20 will now act as a local technical support for the price. Nevertheless, the Bearish Engulfing pattern has been made at the top of the move and the market reversed lower towards the level of $235.42. Any violation of this level will open the road towards the support seen at $232.20 or below. On the other hand, the next target for bulls is seen at the level of $243.71 and $248.86.

Weekly Pivot Points:
WR3 - $241.60
WR2 - $236.80
WR1 - $229.63

Weekly Pivot - $225.04
WS1 - $218.03
WS2 - $213.12
WS3 - $205.61


Trading Recommendations:
The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred. The next key technical support is seen at the level of $174.82.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 07 July 2020

Crypto Industry News:
The Philippines Securities and Exchange Commission has warned the public about individuals and groups involved in unauthorized cryptographic investments and transactions, adding that those involved in cryptographic programs can be fined, 21 years in prison or both, explaining:

"A maximum fine of P5 5 million, imprisonment up to 21 years or both are waiting for those who act as sellers, brokers, dealers or agents of entities involved in unauthorized investment programs [...] The Bayanihan to Heal As One Act, also punishes participating in cyber incidents that exploit the current crisis as a result of the COVID-19 explosion to rob the public through fraud, phishing, fake emails or other similar activities. "

The Philippine authorities also listed three unauthorized Ponzi cryptographic programs, one of which uses the Ethreum blockchain protocol: Forsage, RCashOnline and The Saint John of Jerusalem Knights of Malta Foundation of the Philippines, Inc.

According to the Philippine SEC, both Forsage and RCashOnline do not have the necessary licenses to operate. Therefore, they cannot accept investment from the public or issue investment agreements or other forms of securities. All three projects have one thing in common: they are Ponzi diagrams by nature. According to the statement, in addition to the lack of necessary licenses, the Forsage compensation plan resembles the Ponzi program, in which investors are paid from the contribution of new investors. RCashOnline relies heavily on recruiting members for high cash prizes, not selling products. The SEC warned that in the event of cancellation of a company such as The Saint John of Jerusalem Knights of Malta Foundation of the Philippines, Inc, for purposes other than liquidation, all other activities are illegal.


Technical Market Outlook:
The BTC/USD pair has retraced over 50% of the last wave down and made a local high at the level of $9,329. Only a sustained breakout above the $9,400 would put the bulls back in control over the market again. This level is very close to the 61% Fibonacci retracement located at the level of $9,375, so breakout will require a lot of momentum, which for now is strong and positive. The local technical support is seen at the level of $9,240 and $9,154.

Weekly Pivot Points:
WR3 - $9,487
WR2 - $9,346
WR1 - $9,113

Weekly Pivot - $8,999
WS1 - $8,779
WS2 - $8,645
WS3 - $8,425


Trading Recommendations:
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 until the level of $10,791 is clearly violated. The key mid-term technical support is located at the level of $7,897.






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

[IFX_Selena]

BTC analysis for July 07,.2020 - Descending triangle in creation, potential bigger drop incoming towards the $7.800

Technical Analysis:


Trading recommendation:
Watch for potential downside opportunities due to potential rejection of the resistance and the descending triangle in creation. To confirm the bigger drop on the BTC i would like to see breakout of the support at $8,900




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

[IFX_Selena]

Technical Analysis of ETH/USD for 08 July 2020

Crypto Industry News:
Willie Breedt, a South African citizen accused of stealing up to $ 16.3 million from around 2,000 investors through his VaultAge Solutions program, was allegedly forced into bankruptcy by a local court. According to a recent media report, the whole situation was initiated on 3 July by Simon Dix - one of the largest VaultAge investors who entrusted Breedt with 7.5 million South African rand, or $ 440,000.

VaultAge Solutions was founded in 2018, promising weekly returns on customer deposits through mining and trading cryptocurrencies. Program investors allegedly received only 1% of the expected profits. Before hiding about two weeks ago, the VaultAge operator initiated an intimidation case. A group of bailiffs hired by angry investors tracked him down at a guest house at Silver Lakes Estate in Pretoria, which he had reserved under a false name. Previous reports suggested that CEO VaultAge fled the country to Mozambique in December 2019.

Shortly after the sequestration order was issued, the Directorate for Investigating Priority Crimes, South Africa, known as "Hawks," raided the guest house, confiscating a laptop and Ledger Nano wallet, which could potentially contain some of the missing funds. In addition, the South African reserve bank has appointed PwC to investigate VaultAge and all agents who may have carried out transactions on its behalf.


Technical Market Outlook:
The ETH/USD has made the Bearish Engulfing pattern has been made at the top of the move up and the market reversed lower towards the level of $233.88. Any violation of this level will open the road towards the support seen at $232.20 or below. Please notice, there is another Pin Bar candle made at the top of the recent rally as well. The levels of $235.42 and $232.20 will now act as a local technical support for the price. On the other hand, the next target for bulls is seen at the level of $243.71 and $248.86.

Weekly Pivot Points:
WR3 - $241.60
WR2 - $236.80
WR1 - $229.63

Weekly Pivot - $225.04
WS1 - $218.03
WS2 - $213.12
WS3 - $205.61


Trading Recommendations:
The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred. The next key technical support is seen at the level of $174.82.





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

[IFX_Selena]

Technical Analysis of BTC/USD for 08 July 2020

Crypto Industry News:
For several weeks, Bitcoin miners have been holding more and more while the price is above $ 9,000. Meanwhile, Bitcoin mining may become more difficult within a week.

It seems that at a time when more Bitcoin miners were turning on their machines, increasing hashrate or network computing power, they are also holding more newly generated coins. Their net inventory over the past five weeks has reached 344 BTC ($ 3.2 million). By comparison, almost three weeks ago, on June 16, the same "collection" was 27 Bitcoins.

Consequently, the five-week MRI fell from 99.56% to 94.88%. If this indicator is below 100%, miners keep more Bitcoins and increase their inventories, and above 100% means they spend more.

Meanwhile, it is estimated that the difficulty of Bitcoin mining, which is a measure showing how difficult it is to compete for mining prizes, will increase again in seven days during the next difficulty correction, according to the top Bitcoin BTC.com mining pool. If estimates become a reality, they will raise the rate by 6% to 16.74 T - a new record of all time.

The difficulty exceeded 16 T previously only twice: 16.10 T in May and 16.55 T in March this year. This would not only be a new record, but would bring it closer to the never before reached 17 T. However, these estimates are likely to change as the adjustment date approaches. Bitcoin mining difficulty is adjusted every two weeks (more specifically every 2016 blocks) to maintain a normal 10-minute blocking time.


Technical Market Outlook:
After the BTC/USD pair has retraced over 50% of the last wave down and made a local high at the level of $9,329 the momentum has decreased and Bitcoin has stuck in a narrow range. Only a sustained breakout above the $9,400 would put the bulls back in control over the market again. This level is very close to the 61% Fibonacci retracement located at the level of $9,375, so breakout will require a lot of momentum, which for now is strong and positive. The local technical support is seen at the level of $9,240 and $9,154.

Weekly Pivot Points:
WR3 - $9,487
WR2 - $9,346
WR1 - $9,113

Weekly Pivot - $8,999
WS1 - $8,779
WS2 - $8,645
WS3 - $8,425


Trading Recommendations:
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 until the level of $10,791 is clearly violated. The key mid-term technical support is located at the level of $7,897.






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