Cryptocurrency Analysis

[IFX_Selena]

Bitcoin whales prepare for new heights

The current correction made it possible to enter the crypto market with a discount of 15%-35%, depending on the trading instrument.

Most crypto-currencies, including Bitcoin, have already played out the correction and are preparing for new achievements.

Bitcoin – 17.0% correction, 22.5% recovery

Ethereum – 23.2% correction, 32.5% recovery

Litecoin – 31.0% correction, 44.0% recovery

Yearn. Finance – 38.5% correction, 74.0% recovery


The correction for Bitcoin, which appeared on the market near the historical maximum, made it possible for the market giants to remove the cream from their large wallets, which has not moved for several years. Access to such impressive volumes was released by BTC, which was used by institutional investors, absorbing the sale of Bitcoin whales on the approaches of the quote to $20,000.

MicroStrategy, listed on the NASDAQ exchange, acquired an additional 2,574 BTC ($50 million) at the time of the correction, strengthening its position in the crypto industry. At the moment, the organization owns a total of 40,824 BTC. After that, it is said that MicroStrategy has the intention to raise $400 million for additional investment in Bitcoin.

The head of the company, Michael Saylor, said in an interview with Bloomberg that investing in cryptocurrencies was one of the surest decisions. MicroStrategy earned nine times more on investments in Bitcoin compared to 2019.

In turn, the management company, Grayscale Investments, acquired another 7188 BTC in its Bitcoin trust in just one day. The most striking phenomenon is that they purchased 55,015 BTC in November, which is almost twice the amount of mining during this period (27,881 BTC).

Such impressive figures indicate that institutional investors are firmly engaged in the crypto market. This not only gives an impetus to the development of the crypto environment but also serves regulations and increases confidence in new types of exchange instruments.

PayPal, which recently opened access to cryptocurrencies for its millions of customers, conducted a survey on whether users of their network are ready to pay for purchases and services with bitcoin. The results of the survey are striking: 65% of customers of the payment company said that they are ready to make payments in cryptocurrency. Let me remind you that PayPal allows you to pay with cryptocurrency in 28 million retail outlets.

The news from the Swiss stock exchange (SIX), which plans to give banks full access to digital assets, deserves a special mention today. Banks and their clients will be able to take advantage of trading, smart order routing, settlement, and storage of cryptocurrencies. Aside from this, there will also be access to secondary markets through the so-called institutional gateway of digital assets.

Once again, we confirm the antifragility status of the crypto industry.

"Everything that doesn't kill us makes us stronger" is a well-deserved slogan of cryptocurrencies and the entire industry as a whole.



Trading prospects

The Bitcoin quote recently updated the historical maximum of 2017 which was $19,891. Now, the new maximum is $19,916 (Coinbase). In fact, market participants are faced with an area of psychological value of $20,000, which deters buyers from the subsequent upward move.

I assume that this psychological level will not last for long. The market is still on a bullish wave. Trading volumes are replenished by both institutional investors and young blood, which as a result will lead to an update of the current maximum and a breakdown of the psychological level of $20,000. There is a chance of a breakdown until the end of 2020.

The most noteworthy point is the high level of HYIP, where global media publish news about Bitcoin on a daily basis, which positively affects the flow of cash injections into the crypto market.

The prospect of growth is quite wide, Many write them to be at 25,000, 30,000 and even 100,000 Dollars for one Bitcoin.

Do not forget to skim the cream from your profitable positions from time to time and to regroup the trading forces of the deposit during corrections.



General background of the crypto market

Analyzing the total market capitalization of the crypto industry, you can see that the total market has gained more than $50 billion in weight since our last article. At the moment it is at $553 billion.

The absolute maximum of the crypto market from January 2018 is still not broken. Our goal is not $831 billion anymore but $1 trillion.



The index of emotions (fear and euphoria) of the crypto market is still at the level of FOMO* (lost profit Syndrome*) which is 95 points. This means that the market is very active and the quote is conducive to growth.



Indicator analysis

Analyzing different sectors of timeframes (TF), it is clear that four-hour period is in the stage of rollback/stagnation. The daily and weekly periods follow the uptrend, signaling a purchase.





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

[IFX_Selena]

Technical Analysis of ETH/USD for 09 December 2020

Crypto Industry News:

Digital asset regulation has been a hot topic in 2020 and is showing no sign of cooling off. The recent G7 meeting showed that the sector faces a continuing need for regulation.

In addition to discussing COVID-19 and economic issues, the group "also discussed current responses to the changing landscape of cryptographic and other digital assets and the work of national authorities to prevent their misuse for malicious purposes and illegal activities."

"There is strong support throughout the G7 for the need to regulate digital currencies. Ministers and governors reaffirmed their support for the G7 Joint Statement on digital payments issued in October," it read.

G7 members - as well as the International Monetary Fund, the Financial Stability Board and World Bank leaders - attended the meeting chaired by Steve Mnuchin, US Treasury Secretary, the statement read.

In recent months, regulators have increased their involvement in the cryptocurrency sector. The US Department of Justice, in particular, has appeared in numerous headlines. One of the biggest headlines of the year included the DoJ and the Commodity Futures Trading Commission, which chased the BitMEX crypto-native derivatives exchange for providing services to US clients.


Technical Market Outlook:

The ETH/USD pair has moved lower in a corrective slide towards the level of $548, which is the key short-term technical support for the price. If this level is violated, then the next important technical support is seen at $517.40 and $500. The momentum is now weak and negative, so the corrective cycle still have a room to go lower. Please notice, the market is finally starting to come off the extremely overbought levels as well.

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:
Speaking at the Singapore Fintech Festival 2020, Cameron and Tyler Winklevoss confirmed previous forecasts that Bitcoin's price will eventually exceed $ 500,000 for Bitcoin.

The twins noted that their $ 500,000 prediction is based on the assumption that Bitcoin's market capitalization will increase 40-fold to surpass gold's future market cap of around $ 9 trillion.

Cameron highlighted the "tremendous amount of money printing" in the debt and fiat regimes and concerns about inflation and the resulting increase in demand for "hard assets" such as gold and Bitcoin.

Cameron claims that Bitcoin offers significant advantages over gold as a money commodity, such as ease of transfer and resistance to external forces affecting its production rate.

Despite the optimistic outlook, the twins noted that the cryptocurrency sector has experienced very uneven geographic development, and the lack of regulatory clarity is hampering the development of technology-related business and services in many emerging economies.

However, they highlighted the technology's promise to deliver banking services to those currently unable to do so, highlighting a plan to expand their Gemini exchange into emerging regions.

The brothers advocated that lawmakers use regulatory sandboxes to reduce the barriers faced by cryptocurrency startups, warning that stringent regulatory requirements could inhibit innovation.


Technical Market Outlook:
The BTC/USD pair has been rejected from the higher price levels and broke out from the triangle pattern. The breakout was made to the downside and the price has hit the level of $18,000, which is a technical support for the price. Any further violation of this level will open the road to the level of $17,579 and $17,000. Please notice the market is finally coming off the extremely overbought conditions as well and the momentum is now weak and negative.

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 09,.2020 - Completion of the ABC downside correction and possibility for test of $19.500

Further Development



Analyzing the current trading chart of BTCI found that there is potential for the another upside movement due to potential for the completion of the downside correction ABC.

Watch for buying opportunities with the targets at $19,520 and $19,900

Stochastic oscillator is in oversold area which is another confirmation for further upside movement.


Key Levels:

Resistance: $19,520

Support level: $17,500



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

[IFX_Selena]

Technical Analysis of BTC/USD for 10 December 2020

Crypto Industry News:
Representative of JPMorgan Chase & Co. Recently stated that bitcoin adoption among institutional investors has only just begun, while for gold its adoption by institutional investors is well advanced.

It has been calculated that only 0.18% of JP Morgan's assets are in bitcoin and 3.3% in gold. JPM suggests that some of this gold may end up in bitcoin. Strategists add that bitcoin's growth is at the expense of gold. Morgan Stanley's chief global strategist, Ruchir Sharma, however, says Bitcoin's rise is more tied to the dollar:

"Printing of the money is likely to continue even after the pandemic is over," Sharma said in a news article. "Trusted or not, bitcoin will benefit from increased distrust of traditional alternatives."

"Don't assume that your traditional currencies are the only store of value or medium of exchange that people will ever trust. Tech-savvy people are likely to continue looking for alternatives until they find or invent them. And intervention to regulate the digital currency boom, which some governments are already considering, can only accelerate this populist revolt, "he says.

Research has shown that another reason for bitcoin's growth is simply because it is a brand new, uncorrelated asset. The May halving of the cryptocurrency king's network also contributed to this, the market capitalization of which has literally increased from zero to $ 560 billion in the last 12 years. These things don't usually last 12 years, so there are good reasons for that.


Technical Market Outlook:
The BTC/USD pair has dropped to the level of $17,682 where the Pin Bar candlestick was made at the H4 time frame chart and the market was able to bounce a little. The bounce has made a local high at the level of $18,578, so just a little above the technical resistance seen at the level of $18,444. The level of 418,000 is still a valid technical support and any further violation of this level will open the road to the level of $17,579 and $17,000. Please notice the market is finally coming off the extremely overbought conditions as well and the momentum is now weak and negative.

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 10 December 2020

Crypto Industry News:
GrayScale, the US stock provider of ethereum fund exempt from the Securities Act, announced that it has purchased another 105,927.51301273 Ethereum worth $ 62,975,646.

The last report was made by Grayscale exactly one week ago. This means that another 100,000 ETH has been sold this week, up from 78,229.44246893 ETH, which is $ 44,239,108 as of December 1st. In addition, the asset manager appears to remain intent on buying ETH 3 million, making it one of the world's largest ETH custodians.

However, the Grayscale Ethereum Trust (ETHE) is limited to accredited investors, that is, wealthy individuals or institutional investors. This leads GrayScale to currently handle assets of over $ 12 billion.

Demand further led to a significant ETH trading premium of around $ 1,200 in ETHE at 0.1 ETH per share. Consequently, calls for an ETF are rising again. Many expect the new administration to approve them right now, when the cryptocurrency industry is receiving great interest from institutional investors.


Technical Market Outlook:
The ETH/USD pair has moved lower in a corrective slide towards the level of $531.05, way below the key short-term technical support for the price seen at the level of $548.16. If the low is violated again, then the next important technical support is seen at $517.40 and $500. The momentum is now weak and negative, the price is still trading below the short-term trend line, so the corrective cycle still have a room to go lower. Please notice, the market is finally starting to come off the extremely overbought levels as well.

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]

BTC analysis for December 10,.2020 - Balancing mode on BTC and potential for the imbalanced regime to the upside

Further Development



Analyzing the current trading BTC, I found that there is potential for the upside continuation and end of the downside correction ABC.

Watch only for long opportunities on the pullbacks with the potential targets at $19,520 and $19,900


Key levels:

Resistance: $19,520 and $19,900

Support level: $17,700



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

[IFX_Selena]

Technical Analysis of BTC/USD for 11 December 2020

Crypto Industry News:
Fidelity Digital Assets, the crypto arm of the asset management conglomerate, will allow institutional clients to pledge their Bitcoins as collateral for a cash loan.

As reported Wednesday by Bloomberg, the company worked with the cryptocurrency lender BlockFi to withdraw loans. Institutional clients of the Fidelity fiduciary solution will be able to take out cash loans from stored Bitcoins without having to transfer them, as long as they have an account with BlockFi.

The primary customers for this feature are hedge funds, miners, and OTC outlets. In addition, secured loans are typically used to gain access to liquidity without losing a long position on the underlying assets. Cash can be used to enter leveraged positions and build a hedging strategy or cover the cost of the business.

The loan-to-value ratio will be set to 60%, which means that each $ 1,000 of collateral can pay back a maximum of $ 600. However, this parameter may vary depending on the specific needs of the client. Fidelity explained that it does not play any role in setting the terms of the loan, limiting its contribution to the tripartite agreement to hold Bitcoin.

Fidelity Digital Assets has been providing Bitcoin storage services since October 2019. It has also recently started offering its services to the Asian market.


Technical Market Outlook:
The BTC/USD pair has been capped at the level of $18,571 where the Pin Bar candlestick was made at the H4 time frame chart. This level will now act as a technical resistance for the price. The level of $18,000 is still a valid technical support and any further violation of this level will open the road to the level of $17,579 and $17,000. Please notice the market is finally coming off the extremely overbought conditions as well and the momentum is now weak and negative.

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 14 December 2020

Crypto Industry News:
The new crypto plugin will allow WordPress publishers to profit from advertising directly to their Ethereum wallets, according to the plugin's description on December 10 posted on the official WordPress site.

A plug-in called "EthereumAds" will allow content publishers to sell ad space to ETH using smart contracts.

"After inserting our widget, your ad space is automatically auctioned using our smart contract every two weeks to the highest bidder," we read in the official description.

According to the EthereumAds website, the WordPress plugin plans to compete with Google AdSense by allowing publishers to monetize ETH through banner ads. EthereumAds promises in particular to provide publishers with lower commissions:

"Google Adsense only pays 68% of your advertising earnings. On the other hand, we pay you as much as 90%."

The new advertising plugin is applicable to all kinds of content such as websites, blogs, billboards and is not limited to cryptocurrency related content. As EthereumAds intends to compete with major ad-monetization platforms like Google AdSense, it remains to be seen how traditional ad platforms handle their cryptocurrencies.

Providing the world's largest ad-monetization platform, Google has had some issues with cryptocurrencies in the past. In April 2020, the media reported that Google AdSense was displaying fake cryptographic ads while banning some legitimate crypto companies from using its services. Google Ads previously blacklisted keywords that mention Ethereum, as reported in January 2019.


Technical Market Outlook:
The ETH/USD pair has bounced from the local low made at the level of $534.46. The bounce has hit the level of $594.80 and currently is consolidating. Please notice, the level of $587.87 is the 38% Fibonacci retracement on the weekly time frame. The momentum has increased as well and is strong and positive, so the bulls might attack the level of $600 again soon. The next technical resistance is seen at the level of $620.52 and the technical support is located at $558.85.

Weekly Pivot Points:
WR3 - $699.05
WR2 - $651.58
WR1 - $626.59

Weekly Pivot - $578.29
WS1 - $553.79
WS2 - $505.49
WS3 - $481.34


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. Nevertheless, the momentum has decreased recently on the lower time frames and volatility is not that great either. The bulls has hit the 38% Fibonacci retracement located at the level of $587.87 on the weekly time frame chart, but the current up trend is still active. 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 14 December 2020

Crypto Industry News:
Russian Federation is the latest country to officially require its government officials to report their cryptocurrencies. President Vladimir Putin signed a decree obliging Russian officials to disclose their crypto investments by June 30, 2021, the local news agency reported on December 10.

The decree, which was officially released on Thursday, provides for new measures related to Russia's federal cryptographic law "On Digital and Financial Assets" (DFA). The form requires officials to disclose information such as the name of the digital asset, the date of acquisition, the total amount of assets held, and information about the issuer of the asset such as the country of registration.

The declarations must contain information on cryptocurrencies and tokens belonging to officials, as well as their spouses and minor children. As we read in the decree, the disclosure process will start on January 1, 2021. According to some local crypto players, the new regulatory initiative will have a positive impact on the Russian cryptocurrency ecosystem.


Technical Market Outlook:
The BTC/USD pair has bounced from the level of $17,579 and went straight up towards the $19k target. The local high was made at the level of $19,359 and since then the market is consolidating in a narrow range. The nearest technical support is seen at the level of $19,000 and the next technical resistance is located at $19,625. The momentum is strong abd positive, so the higher time frame trend remains up.

Weekly Pivot Points:
WR3 - $21,188
WR2 - $20,624
WR1 - $20.024

Weekly Pivot - $18,707
WS1 - $18,177
WS2 - $16,940
WS3 - $16,341


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