Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of BTC/USD for 20 October 2020

Bitcoin continues the uptrend towards $12k

Crypto Industry News:
Rothschild Investment Corporation bought 27 Bitcoin stocks via GBTC Grayscale. The corporation is estimated to have $ 1.4 billion in assets (as part of its official structure), of which $ 235,000 is currently in Bitcoin.

This makes this fund one of the best known to buy Bitcoin. The purchase is likely to be finalized for one of their private clients, which is just one of the many private banks owned by Rotschild Investment.

Recently, the world has been circulating more and more new information on how various corporations or investment funds are entering the world of cryptocurrencies. The richest are increasingly favoring Bitcoin and altcoins. And it's not just about hedge funds, but whole clans of the wealthiest.

Already in 2018, the global media reported that the Rockefeller family, known for its dominance in the fuel sector, was investing in start-ups in the blockchain industry.


Technical Market Outlook:
The BTC/USD pair keeps trying to enter into the supply zone located between the levels of $11,646 - $11,785, so some kind of the bearish pressure might be seen. If bulls fail to break through to the next target seen at the level of $11,855 the price might pull-back towards the technical support seen at the level of $11,223 or $11,062. Any violation of the last one will likely result in a further correction towards the level of $10,940 or below.

Weekly Pivot Points:
WR3 - $12,229
WR2 - $11,973
WR1 - $11,678

Weekly Pivot - 11,375
WS1 - $11,077
WS2 - $10,755
WS3 - $10,461


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 20 October 2020

Crypto Industry News:
The Korean Blockchain Association has called for the government's plan to introduce a 20% tax on cryptocurrency trading to be delayed for another two years.

According to a media report, the Korea Blockchain Association, or KBA, is asking regulators to postpone the South Korean government's implementation of its long-awaited new tax strategy by January 1, 2023.

The KBA does not explicitly state that this is against a 20% tax rate, but has said cryptocurrency exchanges and industry companies need a "reasonable period" to prepare for the Income Tax Act.

One of the reasons for the delay is the short period between the regulations of the old tax system and the start of the new one. Cryptocurrency exchanges will be able to report transactions covered by the previous tax code by the end of September 2021. However, KBA argues that since the Ministry of Economy and Finance of Korea has specified a revised code to be enforced from October 1, 2021, it would be difficult to comply with the new regulations in potentially less than 24 hours.

The chairman of the Korea Blockchain Association, Oh Gap-soo, suggested that since the government has become involved in taxing digital assets for the first time, a temporary tax code suspension may be necessary. Regulators may not immediately accept reports from crypto companies, leading to uncertainty as to whether they will be able to continue operating in October.


Technical Market Outlook:
The ETH/USD pair has extended the retracement towards the level of 61% located at $381.85. The target for bulls is still seen at the level of $400, but for now the market pulled back towards the intraday support at $375.52 and is consolidating the recent gains. The nearest technical resistance is seen at the level of $389.90 and at the swing top at $394.95. On the other hand, the target for bears is seen at the level of $360.60 and $355.60 and the nearest technical support is seen at the level of $369.37.

Weekly Pivot Points:
WR3 - $424.52
WR2 - $408.88
WR1 - $391.97

Weekly Pivot - $376.47
WS1 - $357.63
WS2 - $341.22
WS3 - $328.22


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. Moreover, bulls had bounced from the weekly trend line support last week and now are away from it. The key mid-term technical support is currently seen at the level of $305.20 - $321.95, so 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 October 20,.2020 - BTC is heading towards my first target at $12.050. Potential for test of $12.400

Further Development



Analyzing the current trading chart of BTC, I found thatBTC is heading towards our first target at $12,050, which is good sign for further upside continuation.

My advice is still to watch for buying opportunities using the intraday charts with take profits at $12,050 and $12,400

The main cause of the most recent strength on the BTC was the breakout of the symmetrical triangle in the background.


Key Levels:

Resistance: $12,050 and $12,400

Support level: $11,200




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

[IFX_Selena]

Technical Analysis of ETH/USD for 21 October 2020

Crypto Industry News:
Speculation about Ethereum 2.0 continues, and there are newer and newer leaks from insiders. One recent speculation is where the developer of Ethereum 2.0 predicts that a smart protocol contract allowing their Ethers to be deposited on 2.0 networks will be released in a matter of days. The staking process itself would start later this year.

ConsenSys developer Ben Edgington posted an entry that predicts the genesis of the ETH 2.0 beacon chain will take place in the next six to eight weeks.

In a post announcing the launch of the zero version for client 1.0, Edgington revealed that the protocol's smart contract feature should be announced this week. A smart escrow contract that allows ETH sending between Network 1.0 and Network 2.0 and is one of the few remaining updates needed to facilitate Ethereum 2.0 rollout in Phase 0. To complete Phase 0 launch, 500,000 Ethers will need to be staked once the beacon chain has started. After that, the network will prepare for the official launch for several weeks.


Technical Market Outlook:
The ETH/USD pair has extended the retracement towards the level of 61% located at $381.85, then the market pulled back towards the intraday support at $375.52 and bounced to the $381.85 again. The target for bulls is still seen at the level of $400 and the bulls are consolidating the recent gains. The nearest technical resistance is seen at the level of $389.90 and at the swing top at $394.95. On the other hand, the target for bears is seen at the level of $360.60 and $355.60 and the nearest technical support is seen at the level of $369.37.

Weekly Pivot Points:
WR3 - $424.52
WR2 - $408.88
WR1 - $391.97

Weekly Pivot - $376.47
WS1 - $357.63
WS2 - $341.22
WS3 - $328.22


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. Moreover, bulls had bounced from the weekly trend line support last week and now are away from it. The key mid-term technical support is currently seen at the level of $305.20 - $321.95, so 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]

Technical Analysis of BTC/USD for 21 October 2020

Crypto Industry News:
The United States Financial Crimes Enforcement Network has just dealt another blow to Bitcoin privacy enthusiasts. According to FinCEN in an official announcement, it imposed a $ 60 million civil penalty on Larry Dean Harmon, the man responsible for several Bitcoin privacy services. Larry Dean Harmon was the brain behind the Lightning Network Wallet Dropbit and the Bitcoin anonymization services (known as Tumblers, Blenders or Mixers) Coin Ninja and Helix.

According to FinCEN, the Bitcoin Helix and Coin Ninja mixers operated as unregistered money services business (MSB) companies. Accordingly, FinCEN concluded that Harmon acted in breach of US law. Thus, he was to avoid paying taxes and act without the relevant regulations that would apply to his activity if it were registered.

FinCEN claimed that between 2014 and 2020, Harmon's bitcoin mixers facilitated the anonymization of at least $ 311 million in the pending over 1 million different BTC transactions.


Technical Market Outlook:
The BTC/USD pair has finally broken above the $12,000 level (third time this year) and made a new swig high at the level of $12,255, so just above the WR3 located at $12,229 (at the time of writing the article). The momentum is still strong and positive, but the market conditions on the H4 time frame are clearly overbought. This situation might indicate a possible temporary pull back towards the level of $12,035 before another wave up will develop. The old supply zone seen between the levels of $11,646 - $11,785 will now act as a demand zone for bulls.

Weekly Pivot Points:
WR3 - $12,229
WR2 - $11,973
WR1 - $11,678

Weekly Pivot - 11,375
WS1 - $11,077
WS2 - $10,755
WS3 - $10,461


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]

BTC analysis for October 21,.2020 - Both targets reached and potential for test of third target at $12.460

Further Development



Analyzing the current trading chart of BTC, I found that buyers are in control today and that BTC reached our upside targets at $11,675 and $12,00.

Support level is set at $11,870


Key Levels:

Resistance: $12,460

Support level: $11,870




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

[IFX_Selena]

Technical Analysis of ETH/USD for 22 October 2020

Crypto Industry News:
Line, a Tokyo-based subsidiary of South Korean company Naver, is building a platform to expand central banks' digital currencies, South Korean news agency Chosun Ilbo said. Sources familiar with the case have reportedly told Chosun Ilbo that Line aims to support the development of so-called "adapted CBDC".

According to the report, the communications company is discussing the application of its blockchain-based CBDC platform with several central banks in major Asian countries. Line directors said they could not reveal which countries are considering using the platform.

A Line spokesman said the company's goal is:

: (...) To provide a blockchain platform that is suitable for CBDC based on Line Blockchain. "

Line is actively exploring the cryptocurrency and blockchain industry. In August 2020, it launched a blockchain development platform for decentralized applications and services, and a digital asset portfolio called Bitmax. Earlier this year, Line's cryptocurrency subsidiary, LVC Corporation, began trading its proprietary cryptocurrency (LN) link in Japan.

A number of Asian countries are planning to introduce CBDC. On October 9, Japan's central bank officially announced that it will begin reviewing the CBDC concept in 2021. On October 7, the South Korean central bank reportedly announced that it would begin the distribution phase of its CBDC pilot program next year.


Technical Market Outlook:
The ETH/USD pair has been seen rallying to the level of $400 and this is the new swing high. The nearest technical resistance is seen at the level of $407.70 and at the swing top at $414.11. On the other hand, the nearest technical support is seen at the level of $389.90. If this level is clearly violated, then the correction might extend towards the level of $383.32 and below. Please notice the overbought market conditions.

Weekly Pivot Points:
WR3 - $424.52
WR2 - $408.88
WR1 - $391.97


Weekly Pivot - $376.47
WS1 - $357.63
WS2 - $341.22
WS3 - $328.22


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. Moreover, bulls had bounced from the weekly trend line support last week and now are away from it. The key mid-term technical support is currently seen at the level of $305.20 - $321.95, so 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]

Technical Analysis of BTC/USD for 22 October 2020

Crypto Industry News:
One of the world's leading online payment processors, PayPal, will enable US customers to buy bitcoin and other cryptocurrencies in the coming weeks. Availability of the service for customers from other countries is expected to appear in the first half of 2021.

PayPal has joined the cryptocurrency market and will enable its customers to store, buy and sell bitcoin and other cryptocurrencies using fiat currency. PayPal customers will be able to spend BTC on purchases from over 26 million vendors who have already been on its network since early 2021, reports Reuters.

The company said it "works with central banks and thinks of all forms of digital currencies, and PayPal can play a role." The president of PayPal also hopes that this service will encourage the continued use of virtual currencies, as well as prepare its network for central bank digital currencies (CBDC).

US customers will be able to buy, sell, and store cryptocurrencies via their PayPal wallets in the coming weeks. PayPal also plans to expand this offer to Venmo and other countries in the first half of next year.


Technical Market Outlook:
The BTC/USD pair has hit the level of $13,000 after the PayPal news had been released. The new swing high had been made at the level of $13,159 and a Pin Bar candlestick pattern was made at the end of the rally. The momentum is still strong and positive, but the market conditions on the H4 time frame are clearly overbought. This situation might indicate a possible temporary pull back towards the level of $12,621 before another wave up will develop. The old supply zone seen between the levels of $11,646 - $11,785 will now act as a demand zone for bulls.

Weekly Pivot Points:
WR3 - $12,229
WR2 - $11,973
WR1 - $11,678

Weekly Pivot - 11,375
WS1 - $11,077
WS2 - $10,755
WS3 - $10,461


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]

BTC analysis for October 22,.2020 - Third upside target at the price of $12.460 has been reached. Potential for further rally towards $13.835

Further Development


Analyzing the current trading chart of BTCUSD, I found that the buyers are in control and tthat price reached our third upside target from yesterday at $12,460.

I still see strong bullish conduit and potential for test of $13,830.

Watch for buying opportunities on the dips wit hthe target at $13,835


Key Levels:

Resistance: $13,225, $13,833

Support level:$12,200




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

[IFX_Selena]

Technical Analysis of ETH/USD for 23 October 2020

Crypto Industry News:
Russian public officials will be required to declare all private crypto assets from early 2021. These requirements were announced by Russian Attorney General Igor Krasnov, after a meeting with 15 other Attorney General representing member states of the Shanghai Cooperation Organization (SCO).

"From next year, government officials will have to declare [virtual] currencies on a par with other assets," Krasnov said.

In 2018, Russia's labor ministry announced that public officials would not be required to declare their virtual assets in their tax reports due to the unregulated status of cryptocurrencies. As such, concerns remain that crypto assets may be the financial instrument of choice for bribery and corruption.

The Attorney General's Office says it has confiscated more than $ 440 million in undisclosed assets from public officials in the past three years.

These requirements are in line with a new law signed by President Vladimir Putin in July that will classify crypto assets as similar to physical goods from 2021 - recognizing virtual currencies in the country for the first time.

While the regulations do not recognize cryptocurrencies as legal tender, they will legitimize cryptocurrency activities throughout Russia.

In addition to the SOW member states: Russia, India, Kazakhstan, China, Kyrgyzstan, Pakistan, Uzbekistan and Tajikistan, the prosecutors general of Afghanistan, Belarus, Mongolia, Iran, Azerbaijan, Cambodia and Armenia - which are non-member and observer partners of the SCO, were also present at the meeting. The main topic of the meeting was the fight against corruption.

A Russian cryptocurrency reporting announcement suggests similar laws could soon be passed across the Eurasian region.


Technical Market Outlook:
The ETH/USD pair has made another higher high at the level of $420.18, just above the technical resistance located at $414.11. The next target for bulls is seen at the level of $430.71 and might be hit soon. On the other hand, the key technical support is seen at the level of $389.90. If this level is clearly violated, then the correction might extend towards the level of $383.32 and below. Please notice the bulls are making higher highs despite the overbought market conditions which might indicated the beginning of a new up trend.

Weekly Pivot Points:
WR3 - $424.52
WR2 - $408.88
WR1 - $391.97

Weekly Pivot - $376.47
WS1 - $357.63
WS2 - $341.22
WS3 - $328.22


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. Moreover, bulls had bounced from the weekly trend line support last week and now are away from it. The key mid-term technical support is currently seen at the level of $305.20 - $321.95, so 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