Cryptocurrency Analysis

[IFX_Selena]

BTC analysis for December 02,.2020 - Potential for the upside continuation and test of $20.400

Further Development



Analyzing the current trading chart of BTC, I found that that BTC is in contraction and there is potential for the upside continuation.

My advice is to watch for buying opportunities on the dips with potential upside target at the price of $20,400.

Stochastic oscillator is starting to flip to the upside with potential test reject of the middle Bollinger band, which is sign that buyers are still in control.

Key resistance is set at thge price of $20,000


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

[IFX_Selena]

Technical Analysis of BTC/USD for 03 December 2020

Crypto Industry News:
The US dollar index plunged sharply, prolonging the 10-month loss streak that puts it at its lowest point since April 20. Reuters celebrated this with the headline: "The dollar plunges sharply on hopes for US stimulus; Bitcoin is reaching its all-time high. "

The article noted that the collapse coincided with reports of a second COVID relief discussed in Congress and the re-opening of negotiations between U.S. Treasury Secretary Steve Mnuchin and House Speaker Nancy Pelosi. The article contrasted the falling dollar with the rising price of Bitcoin, which recently briefly broke past highs.

"Looks like a 2024 headline." - noted Erik Voorhees, CEO of ShapeShift and longtime advocate of Bitcoin. "... But I think we should assume that it won't be one headline, but a lot in the years to come."

Some bitcoiners have compared the Reuters headline with the The Times headline embedded in Bitcoin's genesis block, "Chancellor on brink of second bailout for banks," noting the significance of the changes that have occurred since then.

Historically, Reuters is not known to have positive reports on Bitcoin. Paradoxically, last week the news agency published an article analyzing the probability of a hypothetical increase in Bitcoin's price to $ 100,000 by the end of 2021. A week earlier, a story appeared about how this year's "bubble" differs from the one in 2017.


Technical Market Outlook:
The BTC/USD pair had made a new all time high (ATH) at the level of $19,891, but then reversed quickly towards the level of $18,211, so the big Pin Bar candles was made at the H4 time frame chart. The market might be developing a triangle price pattern and any breakout from this pattern will determine the further BTC direction. The levels of $18,388, $18,000 and $17,644 will now act as a key technical support again. The momentum is still strong and positive, so the bulls have a chance to hit the level of $20,000 and then continue the up trend towards the new all time highs. Please notice, there is no indication of up trend termination on a daily, weekly and monthly time frame chart yet.

Weekly Pivot Points:
WR3 - $22,987
WR2 - $21,189
WR1 - $19,745

Weekly Pivot - $17,922
WS1 - $16,614
WS2 - $14,848
WS3 - $13,390


Trading Recommendations:
Bitcoin just made a new ATH and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $20,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $15,000 is broken.





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

[IFX_Selena]

Technical Analysis of ETH/USD for 03 December 2020

Crypto Industry News:
Senior Bank of Russia officials spoke out against the issue of private stablecoins linked to the Russian ruble.

Sergei Shvetsov, Russia's first deputy chairman of the central bank, said the bank intends to ban private companies from offering stablecoins backed by the domestic fiat currency.

Russian cryptocurrency developers will only be able to use the digital ruble of the Bank of Russia, Shvetsov said. According to a report by the local news agency, Prime said this approach is in line with the "uniqueness of means of payment philosophy".

Shvetsov referred to the Chinese digital Yuan laws that criminalize the issuance of Yuan-backed stablecoins by third parties:

"China has imposed a blanket ban on any Yuan-linked stablecoin. I think we are not far from that. The bank will stop anything that is positioned as tender. We assume that the ruble is the currency of the Russian Federation," he says.

Olga Skorobogatova, another first vice president of the Bank of Russia, noted the technical difficulties associated with the issuance of the digital ruble:

"So far, no regulator has figured out how, for example, to restore the rubles in case of losing a smartphone, but precisely because [...] technologies are developing, we ourselves understand that this problem can be solved in a second stage. [...] Technologically, this problem will be had to be resolved, "she said.

The Bank of Russia officially released its plan for the digital ruble in October 2020. According to the bank, the digital ruble should become an additional form of money alongside cash.


Technical Market Outlook:
The ETH/USD pair has hit the level of $635.46 before it was capped and reversed towards the level of $561.91. Since then the market is trading inside of a narrow consolidation zone located between the levels of $578.09 - $600. The momentum is still strong and positive, so the up trend might be still continued. The level of $548.16 will now act as temporary technical support for the price. The nearest technical resistance is seen at the level of $600 and $620.52. The is no indication of the up trend reversal on the higher time frames like weekly and monthly.

Weekly Pivot Points:
WR3 - $771.53
WR2 - $696.42
WR1 - $633.11

Weekly Pivot - $557.97
WS1 - $496.01
WS2 - $420.20
WS3 - $358.90


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $700, so any correction or local pull-back should be used to open the buy orders. Moreover, the bulls has hit the 38% Fibonacci retracement located at the level of $587.53 on the weekly time frame chart, but the current up trend is still valid. This scenario is valid as long as the level of $360 is broken.





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

[IFX_Selena]

Technical Analysis of BTC/USD for 04 December 2020

Crypto Industry News:
S&P Dow Jones Indicies, one of the most established index providers in the world, is opening up to cryptocurrencies. Yesterday it was announced that the index provider of the US financial giant S&P Global will add indices for cryptocurrencies in 2021.S&P will initially launch two products. The indices will use data on over 550 cryptocurrencies using Lukka, a blockchain company based in New York.

Peter Roffman of S&P Dow Jones Indices today made the following statement on the S&P Global website:

"As digital assets such as cryptocurrencies are becoming a rapidly growing asset class, it's time for independent, reliable and user-friendly benchmarks. We are delighted to be working with Lucca, a leader in digital asset data services, to promote greater transparency in this emerging sector. "

Lucca will help to provide the S&P Dow Jones indices with information on a range of cryptocurrency assets, described by CEO Robert Materazzi as "the most trusted in the industry". S&P Dow Jones Indices is perhaps the world's best-known index provider. It is home to the S&P 500 and the Dow Jones Industrial Average, two indices that are among the best known in the global financial markets.


Technical Market Outlook:
The BTC/USD pair had made a new all time high (ATH) at the level of $19,891 and since then had been consolidating in a narrow zone located between the levels of $18,559 - $19,500. The idea of a triangle pattern as a form of the consolidation has been abandoned after a local higher high was made. The levels of $18,388, $18,000 and $17,644 will now act as a key technical support again. The momentum is still strong and positive, so the bulls have a chance to hit the level of $20,000 and then continue the up trend towards the new all time highs. Please notice, there is no indication of up trend termination on a daily, weekly and monthly time frame chart yet.

Weekly Pivot Points:
WR3 - $22,987
WR2 - $21,189
WR1 - $19,745

Weekly Pivot - $17,922
WS1 - $16,614
WS2 - $14,848
WS3 - $13,390


Trading Recommendations:
Bitcoin just made a new ATH and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $20,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $15,000 is broken.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 04 December 2020

Crypto Industry News:
The Libra Association, uniting 27 global corporations, announced yesterday that it has changed its name to Diem. The new name means "day" in Latin.

In addition to changing the brand name, there have also been changes in the management positions of the Association. The new hires include Stuart Levey as new CEO, James Emmett as MD, Sterling Daines as Chief Compliance Officer, Ian Jenkins as Chief Financial Officer, and Saumya Bhavsar as General Counsel. Other changes include the Chief Technology Officer Dahlia Malkhi, Christy Clark as Chief of Staff, Steve Bunnell as Chief Legal Officer. At the same time, Kiran Raj has become executive vice president of development and innovation and deputy attorney-at-law.

The Libra issue started in earnest when the Association first presented its plan in June 2019. With Facebook at the forefront of this mission, the project faced challenges from members of the cryptocurrency community and regulators.

This was due to the fact that Facebook shared data of its users with third parties for profit. Given the amount of personal data that the giant has access to, venturing into the financial world could give Facebook much more power than the US government itself.

As mentioned earlier, Libra's rebranding to Diem is a new start for the Association and a restructuring of the previous plan that still needs to be approved by the financial authorities.


Technical Market Outlook:
The ETH/USD pair has made a new local high after the low of the pull-back wave was made at $561.91. The market keeps trading above the $600 level and the next target is the recent swing high seen at $635.45. The momentum is still strong and positive, so the up trend might be still continued. The level of $548.16 will now act as temporary technical support for the price. The nearest technical resistance is seen at the level of $600 and $620.52. The is no indication of the up trend reversal on the higher time frames like weekly and monthly.

Weekly Pivot Points:
WR3 - $771.53
WR2 - $696.42
WR1 - $633.11

Weekly Pivot - $557.97
WS1 - $496.01
WS2 - $420.20
WS3 - $358.90


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $700, so any correction or local pull-back should be used to open the buy orders. Moreover, the bulls has hit the 38% Fibonacci retracement located at the level of $587.53 on the weekly time frame chart, but the current up trend is still valid. This scenario is valid as long as the level of $360 is broken.





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

[IFX_Selena]

Technical Analysis of BTC/USD for 07 December 2020

Crypto Industry News:
During November's 42% rally on Bitcoin, approximately 185,600 BTC that hadn't moved in at least 12 months were carried over in the chain. November's increase in Bitcoin prices caused more than 1% of BTC supply to come out of long-term storage.

According to 'hodlwaves' Unchained Capital, which measures the time that has elapsed since Bitcoin was transferred to the chain, about 15% of BTC that had not been transferred in five to seven years was eventually transferred in the chain.

Surprisingly, Bitcoin's short-term transfers in the chain fell in November, and the share of supply, which recently moved between one day and a week, fell from 3.72% at the start of the month to 2.94% on November 30. The biggest change in November happened in one week to one month, which shows the share of BTC supply, which recently moved between 7 and 30 days. In November, it rose from 6.28% to 8.20%.

Glassnode, a cryptocurrency market data aggregator, released another bullish indicator, estimating that nearly 19.6 million Bitcoin addresses were active in November. As such, November saw the second largest number of active wallets per month in Bitcoin's history, second only to 21.6 million active wallets in December 2017.


Technical Market Outlook:
The BTC/USD pair has been trading inside of the narrow range for most part of the weekend. The range is located between the levels of $18,559 - $19,625. However, the short term trend line had been violated recently and the bulls are trying to break out of the range towards the new ATH. If the level of $19, 888 (ATH) is clearly violated, then the next target for BTC is seen at the level of $20,000. Please notice, the momentum is not that strong as it was for the last two weeks, but it is still positive, so the bulls have the control over the market.

Weekly Pivot Points:
WR3 - $21,987
WR2 - $20,958
WR1 - $20,107

Weekly Pivot - $19,077
WS1 - $18,325
WS2 - $17,164
WS3 - $16,350


Trading Recommendations:
Bitcoin made a new ATH and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $20,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $15,000 is broken.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 07 December 2020

Crypto Industry News:
The US Congress recently faced a new bill to regulate stablecoins. The law would require companies and service providers in the cryptocurrency market to obtain government approval before offering them to users. If they do not get approval and continue to work with them, the law will make this type of digital asset illegal. The bill presented to the US Congress reads as follows:

"It is illegal to issue stablecoins, products, provide related services or otherwise engage in any commercial activity..., including activity involving the use of stablecoins issued by others, is illegal without prior written consent."

Companies would need approval from various government agencies. Some of the institutions that permit the operation and provision of trading in this type of asset include the Board of Governors of the Federal Reserve System and others.


Technical Market Outlook:
The ETH/USD pair has been trading below the short-term trend line since the yearly top at the level of $635.46 had been made. It moved below the level of $600 briefly during the weekend, but bounced back up towards the level of $610. The sentiment is still positive, so the bulls should continue the rally towards the higher levels as soon as possible. The nearest technical resistance is seen at the level of $620.52 and the nearest technical support is located at $558.85.

Weekly Pivot Points:
WR3 - $712.54
WR2 - $673.34
WR1 - $636.36

Weekly Pivot - $596.47
WS1 - $560.79
WS2 - $521.20
WS3 - $484.02


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $700, so any correction or local pull-back should be used to open the buy orders. Moreover, the bulls has hit the 38% Fibonacci retracement located at the level of $587.53 on the weekly time frame chart, but the current up trend is still valid. This scenario is valid as long as the level of $360 is broken.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 09 December 2020

Crypto Industry News:
The Russian digital ruble is expected to lower the costs of doing business, but it could also lower the profits of commercial banks, says Elvira Nabiullina, president of the Bank of Russia.

At a meeting on December 3, "Resistance Russia," a non-governmental organization of small and medium-sized enterprises, Nabiullina said the digital ruble could undercut commercial bank profits from commissions and transaction fees.

In addition, she stated that a central bank's digital currency is a natural way to improve financial services:

"This is a natural move in the development of the financial system: financial intermediaries should become less burdensome to the economy and profit from new products and services instead of reaping the benefits of monopoly and the lack of alternatives. [...] We believe that small and medium-sized companies should definitely benefit from this." - she said.

She also highlighted a number of digital ruble benefits, including safer and faster payments.

"We are now considering several models where a digital ruble may exist, where the interactions of customers, central bank and commercial banks are organized differently, but these advantages remain across all models. It's fast, reliable and secure payments," she said.

In October 2020, Nabiullina said the digital ruble will not have the same level of anonymity as cash, noting that the Bank of Russia expects to strengthen user privacy. The chairwoman's comments came shortly after the Russian central bank officially announced its plans for the CBDC on 13 October. According to the bank, the digital ruble could soon be used as an additional form of money alongside cash.


Technical Market Outlook:
The BTC/USD pair has been trading inside of the narrow range, developing the triangle pattern. The range is located between the levels of $18,559 - $19,625. However, the short term trend line had been violated recently and the bulls are trying to break out of the range towards the new ATH after the triangle pattern is completed. If the level of $19,888 (ATH) is clearly violated, then the next target for BTC is seen at the level of $20,000. Please notice, the momentum is not that strong as it was for the last two weeks, but it is still positive, so the bulls have the control over the market.

Weekly Pivot Points:
WR3 - $21,987
WR2 - $20,958
WR1 - $20,107

Weekly Pivot - $19,077
WS1 - $18,325
WS2 - $17,164
WS3 - $16,350


Trading Recommendations:
Bitcoin made a new ATH and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $20,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $15,000 is broken.





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

[IFX_Selena]

BTC analysis for December 08,.2020 - Downside breakoutt of symmetrical triangle pattern and potential for test of $17.400

Further Development



Analyzing the current trading chart of BTC, I found that there is the downside breakout of the symmetrical triangle pattern, which is good sign ofr further downside movement.

Watch for selling opportunities on the rallies with the downside target projected at the price of $17,400


Key Levels:

Resistance:$19,400

Support level: $17,400



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

[IFX_Selena]

Technical Analysis of ETH/USD for 08 December 2020

Crypto Industry News:
According to the director of the European Central Bank, financial authorities in Europe may develop a research agenda for the digital Euro as early as next year.

Holger Neuhaus, Head of Market Innovation and Integration at the ECB, joined the Singapore FinTech Festival 2020 to discuss the global development of central banks' digital currencies, the CBDC. During an online discussion, Neuhaus said the ECB expects European financial authorities to assess whether they will launch the digital Euro initiative by mid-2021:

"In mid-2021, the Eurosystem will consider whether to launch a digital Euro project. However, I would like to emphasize that this would be a research phase and not a decision to implement. In fact, this would allow us [...] to come up with a real plan and identify what a digital Euro could be, what it might look like, how could they be implemented, if and when a political decision would be made" - he said.

Neuhaus stressed that the digital Euro would complement, not replace, cash or central bank deposits. He also noted that central bank digital money poses a major challenge when it comes to using CBDC abroad, especially with regard to the management of capital flows and the issue of relative remuneration.

As for CBDC in Europe, Neuhaus drew attention to the ECB's public consultation on the potential digital Euro. The consultation, which was published in mid-October 2020, aims to gather feedback from public and private stakeholders to assess whether Europe needs a digital Euro.

In November 2020, ECB President Christine Lagarde called on the bank to decide on the introduction of the digital Euro in January 2021.


Technical Market Outlook:
The ETH/USD pair has been trading below the short-term trend line since the yearly top at the level of $635.46 had been made on the 1st of December. It moved below the level of $600 briefly, but bounced back up towards the level of $610. The bulls tried to break through the trend line 4 time already, but no avail. The sentiment is still positive, so the bulls should continue the rally towards the higher levels as soon as possible. The nearest technical resistance is seen at the level of $620.52 and the nearest technical support is located at $558.85.

Weekly Pivot Points:
WR3 - $712.54
WR2 - $673.34
WR1 - $636.36

Weekly Pivot - $596.47
WS1 - $560.79
WS2 - $521.20
WS3 - $484.02


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $700, so any correction or local pull-back should be used to open the buy orders. Moreover, the bulls has hit the 38% Fibonacci retracement located at the level of $587.53 on the weekly time frame chart, but the current up trend is still valid. This scenario is valid as long as the level of $360 is broken.





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