Cryptocurrency Analysis

[IFX_Selena]

BTC analysis for September 07,.2020 - Sellers in control and there is potential for bigger drop towards the $8.230

As I discussed in the previous review, the BTC is in creation of the second down leg in my opinion and our second target at the price of $9,921 has been met.

Further Development


I still see further downside on the BTC with potetnial for test of third and fourth targets at $8,975 and $8.228

I didn't find any reversal pattern yet and the short-term target shifted from bullish to bearish.

The 1H and 4H time-frame combination is serving good for selling on the rallies and from the middle Bollinger band.


Key Levels:

Resistance: $10,800

Support levels: $8,975 and $8.228





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

[IFX_Selena]

Technical Analysis of BTC/USD for 08 September 2020

Crypto Industry News:
Bitcoin's price has dropped back to below $ 10,000 on major exchanges today. This is the key level testing time. The three factors that likely contributed to the sharp decline in Bitcoin's value are miners, a strong dollar, and profitable whales.

When Bitcoin's price suddenly fell 5% to $ 9,975 on Binance, BitMEX liquidations fell below $ 40 million. Typically, a sharp price movement cancels futures contracts worth over $ 100 million. Futures data suggest that the selling pressure came from the spot market. While this is possible, retail investors are unlikely to start losing aggressively above $ 10,500. The whales are more likely to cash in a profit at the $ 10,500 site that in the past served as a long-standing resistance level for Bitcoin, though the sell-off began since Bitcoin reached $ 12,000.

The gradual sell-off of BTC by miners since mid-August may have exerted significant selling pressure on Bitcoin, which is probably the second reason for the decline. However, vice president of Poolin Alejandro De La Torre stressed that keeping track of miners' inflows is difficult.

And the third reason - the US dollar. A common theme of the last two weeks - after Bitcoin consolidation - has been the strengthening of the dollar. It started to show signs of a rebound after four months of decline, while the euro started to decline. As both Bitcoin and gold are priced primarily in US dollars, and many BTC traders are based in the US, the rising dollar has contributed to a weakening of the BTC pace.


Technical Market Outlook:
The BTC/USD pair has made a new local low at the level of $9,854 and bounced yet back again towards the level of $10,343. The market keeps hovering around the level of $10,000 again as this is very important psychological level for market participants. The nearest technical resistance is seen at the level of $10,248, $10 343 and $10,430 and the nearest technical support is seen at the level of $9,704. The market conditions are oversold, but the momentum remains weak and negative, so another wave down might be just around the corner.

Weekly Pivot Points:
WR3 - $13,397
WR2 - $12,625
WR1 - $11,243

Weekly Pivot - $10,566
WS1 - $9,071
WS2 - $8,375
WS3 - $6,978


Trading Recommendations:
The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic correction are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,463 and $10,000.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 08 September 2020

Crypto Industry News:
With online payments company Wirecard going through bankruptcy this month, major financial services such as VISA, PayPal and Mastercard are in a rush to fill the digital payment void and be among the first to offer cryptographic cards payments, experts in the crypto industry have found.

During a media interview, Jerry Chan, CEO of blockchain service provider TAAL, and Rod Hsu, president and co-founder of the Coincurve virtual currency platform, agreed that competition may be just what the industry needs to change the way digital currencies are used as a method payments.

But Chan goes beyond the need for universal cryptocurrency awareness and points out that blockchain can make payment services even more efficient:

"The payment technology is already quite efficient. (...) Credit cards prevent fraud, and this insurance cost is borne by merchants and their banks. Blockchain platforms that are transparent, immutable, and do not support coin mixing or concealment technologies such as Bitcoin SV, can largely eliminate fraud, thus reducing costs for sellers. "

Hsu of CoinCurve also added that the current payment ecosystem has different roles in this process. This includes clearing houses, banks or intermediaries of payment service providers and increases fees and the efficiency of settlement.


Technical Market Outlook:
After the ETH/USD pair has been capped at the level of $355.24, the bears took control of the market and push it down again. Since then the market is locked in a narrow trading range located between the levels of $316.21 - $362.60 as it awaits the breakout in either direction. The nearest technical resistance is seen at the level of $362.60, $369.37 and $375.62. The nearest technical support is seen at the level of $305.20. The market conditions are oversold, but the momentum remains weak and negative, so another wave down might be just around the corner.

Weekly Pivot Points:
WR3 - $614.65
WR2 - $551.18
WR1 - $435.26

Weekly Pivot - $373.02
WS1 - $258.25
WS2 - $194.29
WS3 - $78.24


Trading Recommendations:
The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. The key mid-term technical support, seen at the level of $364.95 had been violated, but all the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500.






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

[IFX_Selena]

BTC analysis for September 08,.2020 - Sellers in control and there is potential for bigger drop towards the $8.615

Further Development



Analyzing the current trading chart of BTC I found that sellers are in control today and that we got the breakout of the balance in the background.

I would watch for selling opportunities on the rallies with the downside targets at $9,070 and $8,615

The short term trend shifted from upside to the downside by breaking the rising trend line in the background.


Key Levels

Resistance: $1,935

Support levels: $1,884 and $1,815.



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

[IFX_Selena]

Bitcoin and Altcoin prices start downside correction

It is scary to imagine, and even more scary to see a correction of 30, 40 and even 70% from the peak level, but this happens when you trade Altcoins via hype. And this moment came, the cryptocurrencies entered the red zone

With the onset of autumn, the market has dramatically changed, the hype of decentralized financial applications [DeFi-Decentralized Finance] like a vacuum cleaner dragged an enormous amount of money into the market, which led to large profits from cryptocurrencies. Income from 500% to 1,000% was something normal for DeFi as assets were growing and millions of new participants were entering the marker. Each of the new market participants wanted to get what mass media was writing about. It was an enormous profit from cryptocurrencies. Every day, the market was becoming more and more overheated. However, the DeFi bubble was also rising and finally reached $9.51 billion on September 2.

The day of judgment came, Altcoins dropped losing half of their value. Hamsters are in a panic, and only Bitcoin owners are not really scared. The first cryptocurrency went into correction, losing 15-20% of the peak level, which is still within the acceptable range.

Example

From September 2, Bitcoin has lost about 18% ($12,000 ---> $9,800), while Altcoin YFI for the same period of time, slumped by 45% ($32,500 ---> $18,000).

In order to recover to the levels logged on September 2, Bitcoin needs to advance by 22%, and Altcoin needs a rise of 80%.

The first cryptocurrency confirmed its title of a conservative crypto asset that can be invested in with less risk of drawdown.

The recovery process is expected to be difficult, the crypto market has an impressive correction, and it will take several weeks or even months to recover. Do not be discouraged, there are plenty of drivers for growth. For example, the upcoming IPO of Coinbase, which may encourage investors to take action. At the same time, we expect the early launch of large-scale crypto project DFINITY, which will push the community to a new level in digital development thus attracting new investors and boosting the crypto market.

Correction is not just stress, it is an opportunity to buy an asset at a discount.

You can set filtering of market leaders on coinmarketcap: TOP 10/15/25.




Current development of Bitcoin and its prospects

The quote is at the correction stage, where the psychological level of $10,000 is trying to keep market participants from further decline. Now, everything depends on the depth of fear and the spillage of the entire market, since the maximum correction for Bitcoin is $8,500, but this will be discussed if the price is fixed lower than $9,500.


Life hack

If Bitcoin declines to the level of $8,500, Altcoins will lose another 30-60% of the current value without any brakes.

A positive scenario considers the appearance of a flat formation on the market in the range of $9,800/$11,500, which will provide an opportunity to recover all crypto assets. The sideways movement will be the best scenario, which in the future may boost Bitcoin as well as the entire crypto market.




General background of the crypto market

Analyzing the total market capitalization of the crypto industry, you can see that Total market lost $70 billion just in a few days and currently stands at $323 billion.

The correction is everywhere, if we look at the volume chart in general terms, then first we need to return to the highest level of $385 billion logged in 2019 , which will reflect the recovery of the bullish trend. Then we will update the current maximum of $393 billion. After that, the price may return to the range of $245 billion / $285 billion.

Market Cap: $323,621,210,798

BTC Dominance: 57,4%




The index of emotions of the crypto market was stable above 80 points on September 2, but now it decreased by almost one half and it is at 41 points. The fear of a crash is not yet reflected in the index figures, but many traders/hamsters are in a panic, which has a detrimental effect on crypto assets.




Indicator analysis

Analyzing different sectors of timeframes (TF), it is clear that the indicators of technical instruments signal selling due to the correction stage. The weekly period holds the buy signal, reflecting the general trend of 2020.






Performed by Gven Podolsky
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

BTC analysis for September 09,.2020 - Watch for the breakout of the trading range to confirm further direction



As I discussed in the previous review, the BTC is trading in the defined trading range in past few days and I would watch for the breakout to confirm further direction.


Key Levels:

Resistance: $9,785

Support level: $9,000





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

[IFX_Selena]

BTC analysis for September 10,.2020 -Breakout of the rising trendline in the background. Watch for breakout of the most recent sideways range to confirm further direction

Further Development



Analyzing the current trading chart of BTC, I found that there is the breakout of the rising trendline on the Daily time-frame and potential for the more downside.

My advice is to watch for selling opportunities on the rallies with the targets at $9,140 and $8,400

Good area of resistance is set at the price of $11,000

BTC is still trading in the defined balanced regime, so watching for the stronger breakout is preferable under current condiiton.





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

[IFX_Selena]

Technical Analysis of BTC/USD for 14 September 2020

Crypto Industry News:
At a virtual conference hosted by the Brookings Institute, Andrew Bailey, Governor of the Bank of England (BoE), stressed that crypto assets are simply "inappropriate for the payment world."

In his prepared comments on the future of cryptocurrencies and stablecoins, Bailey categorized Bitcoin as an asset that "has nothing to do with money." He has also shown hesitant to believe that crypto assets are a suitable investment opportunity as "their value can fluctuate quite, widely and unexpectedly."

This is what Bailey made when he spoke of accelerating the pace of innovation in payments. However, in the case of stablecoins, the governor said it could offer some "useful benefits", such as reducing friction in payments, while warning:

"If stablecoins are to be widely used as a means of payment, they must have standards equivalent to those currently in force for other forms of payment and money transfer through them."

In June, UK-based L3COS submitted a proposal to the Bank of England (BoE) for a blockchain-based operating system that would power the digital currency issued by the central bank. In addition, in March, the BoE published an in-depth discussion on CBDC which analyzed the rapidly changing payment landscape and the potential role that CBDCs could play in supporting a bank's mandate to manage monetary and financial stability.


Technical Market Outlook:
The BTC/USD pair keeps hovering around the level of $10,000 again as this is very important psychological level for market participants. The market has been consolidating in a narrow range located between the levels of $9,825 - $10,586. The nearest technical resistance is seen at the level of $10,890 and $10,940 and the key short-term technical support is seen at the level of $9,922. The market conditions are oversold and the momentum remains neutral on H4 time frame chart. The weekly time frame trend remains up.

Weekly Pivot Points:
WR3 - $11,302
WR2 - $10,908
WR1 - $10,609

Weekly Pivot - $10,206
WS1 - $9,887
WS2 - $9,466
WS3 - $9,157


Trading Recommendations:
The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,000.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 14 September 2020

Crypto Industry News:
Yearn Finance launched yETH vault earlier this week. The protocol attracted over 137,000 ETH on the very first day of its launch. YETH vault pays profits to those who have blocked their resources on the platform. They come from the profits generated by the bonus obtained from ETH blocked on various platforms.

The ETH community has expressed concerns about the unusually large number of blocked ETH resources as the yETH protocol could theoretically control and lead to an unprecedented 51% attack on the Ethereum network.

Vitalik Buterin commented on the whole situation, who replied that the risk associated with a 51% attack against the upcoming update is unjustified. In a tweet, he stated that someone could indeed attempt an attack, but would quickly lose control of the network as a result of the actions of other participants:

"We need to get past the myth that it's * fatal * if one entity gets enough to 51% attack PoS. The reality is they could attack * once *, and then they either get slashed or (if censorship attack) soft-forked away and inactivity-leaked, and they lose their coins so can't attack again ".

Concerns came days after Ethereum Classic experienced its third 51% attack in just one month. The security of this network has been heavily criticized and questioned since then.


Technical Market Outlook:
The ETH/USD pair has been moving up in an ascending channel towards the level of $388 where it was capped due to the upper channel line resistance level. The market had made a Bearish Engulfing candlestick pattern at this level and reversed towards the lower channel line. Currently, the market is consolidating in a narrow zone between the levels of $355.24 - $369.37 and due to the fact, that the last move inside the channel is corrective in nature, more weakness is expected in ETH/USD pair. The next technical support is seen at the level of $332.28 (outside of the channel). The key demand zone is seen between the levels of $305.20 - $321.95 and if violated, then the next key long term support is seen at the level of $288.

Weekly Pivot Points:
WR3 - $460.14
WR2 - $422.13
WR1 - $395.03

Weekly Pivot - $357.60
WS1 - $326.67
WS2 - $291.16
WS3 - $261.17


Trading Recommendations:
The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. The key mid-term technical support, seen at the level of $364.95 had been violated, but all the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500.






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

[IFX_Selena]

BTC analysis for September 14,.2020 - Breakout of the rising channel in the background and potential for test of $9.140 and $8.400

Further Development



Analyzing the current trading chart of BTC, I found that there is no change since my last analysis and I still expect another downside movement towards the $9,135 and $8,400.

There is the breakout of the rising channel in the background and I see the current rally like the re-test phase after the downside breakout, which is another confirmation for the downside continuation.

Watch for selling opportunities on the rallies...


Key Levels:

Resistance: $11,000

Support level: $9,135 and $8,40



Performed by Petar Jacimovic
0Analytical expert
InstaForex Group © 2007-2020