Cryptocurrency Analysis

[IFX_Selena]

Cardano remains trapped inside the triangle pattern.


Cardano price is trading around $2.19. Price as we mentioned in our last analysis, was trading inside a triangle pattern. Best strategy in cases like this is to wait and be patient for the triangle breakout. The upper triangle boundary is at $2.32 while the lower boundary is at $2.16.



Black lines - triangle pattern

Green lines - Fibonacci retracement

Cardano can continues its sideways movement inside the triangle pattern over the coming sessions. There is room to move around until the 15th of October. The latest date of a break out is at the 15th of October. So any time between now and the 15th, I expect Cardano to provide a trading signal. More aggressive traders would prefer to go long near the lower triangle boundary and go short near the upper boundary. Price has retraced more than 50% of the entire upward movement from $1 lows. The current price action with higher lows could be the start of a coming upward explosion towards new 2021 highs. However we need to remain patient. Front running the market is very risky.





Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for October 11, 2021

Crypto Industry News:
Bitmain, a Chinese cryptocurrency mining hardware maker, was forced to cease operations in China from October 11 under a ban imposed by local authorities.

In addition to banning crypto operations in China altogether, the company has decided to stop shipping cryptocurrency mining platforms in response to the government's carbon neutrality policy.

While the company has yet to disclose its aid plan to existing customers in China, Bitmain will continue to provide Antminer cryptocurrency mining platforms to users around the world, including Taiwan and Hong Kong.

To counteract a temporary slowdown in the Chinese market, Bitmain increased its production capacity for Antbox mobile mining containers. In November, the company will host the World Digital Mining Summit 2021 in Dubai, where it will discuss green energy opportunities "primarily from clean energy projects in Yunnan, Xinjiang," and other Chinese provinces.

Despite the recent ban on crypto activities in China, Bitcoin mining operations are on the way to full recovery as Chinese miners and investors relocate to friendly regions.


Technical Market Outlook:
The ETH/USD had pulled-back towards the technical support located at the level of $3,385 and bounced right back up during the weekend. There is a clear Bullish Engulfing pattern at the end of the pull-back and the bulls are back in control of the market. The next target is located at $3,677 and then at $3,830. The momentum is back into the positive zone, but is not that strong yet, so a more complex and time-consuming correction in a potential wave 4 is still possible.

Weekly Pivot Points:
WR3 - $4,097
WR2 - $3,885
WR1 - $3,704

Weekly Pivot - $3,473
WS1 - $3,298
WS2 - $3,083
WS3 - $2,876


Trading Outlook:
Ethereum have started the next wave up and violated the long-term target at the level of $3,550. The next long-term target for ETH is seen at the level of $4,394. Nevertheless, in order to continue the long-term up trend, the price can not close below the technical support at the level of $2,906. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls.








Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for October 11, 2021

Crypto Industry News:
Car For Coin, PacSun, and Nicklaus Children's Hospital Foundation are some of the newest organizations to add crypto payment options to their clients.

Even though Tesla has suspended Bitcoin payments for its electric vehicles, citing energy consumption as the reason, the online Exotic Car Market Car For Coin has once again made it possible.

According to a recent press release, an auction site featuring high-end vehicles such as Tesla, Porsche, Lamborghini, McLaren, Ferrari and others allowed customers to pay in US dollars or Bitcoin equivalent for the purchase of certain sports cars.

At the moment, the most expensive is the exclusive Porsche 911 GT3, which costs 110,000 or 2.02 BTC (in today's prices). Speaking of Tesla, the Model S can be purchased for $ 35,000 or 0.64 BTC.

Tom Hegedosh, founder of Car For Coin, explained in detail how people can use crypto payments in the new offering:

"During the auction, bidders and sellers do not have to worry about fluctuating cryptocurrencies. All bids and auction prices are quoted in USD because they know the value of the fiat currency. After winning the auction, buyers can pay for Tesla and other vehicles using either cryptocurrency or traditional currency. If the seller doesn't accept the crypto we'll convert; that's not a problem. "

On the other hand, Justice Conder, an expert at the company, does not recommend paying for luxury vehicles directly in crypto as the underlying virtual coin is quite an asset that people should keep for the future. Instead, risky altcoins may be a more suitable option.


Technical Market Outlook:
The BTC/USD pair has been seen moving up during the weekend and the next target is seen at the level of $59,661. The market conditions are still overbought, but the momentum remains strong and positive as the bulls are in control of the market. The immediate technical support is seen at the level of $55,748. The key short-term technical support is located at $52,209.

Weekly Pivot Points:
WR3 - $69,115
WR2 - $62,582
WR1 - $60,185


Weekly Pivot - $53,520
WS1 - $50,100
WS2 - $43,237
WS3 - $40,463


Trading Outlook:
According to the long-term charts the bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. The next mid-term target is seen at the level of $59,506. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).







Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading signal for ether for October 11 - 12, 2021: buy if it rebounds at $3,281 (EMA 200)



On Sunday, the ETH price fell to the low of 3,362. Could this be a sign of a correction for a new bullish move? We should expect a breakout and consolidation above the 21 SMA located at 3,568. Above this level, the ETH could reach the strong resistance of 8/8 Murray located at 3750 and up to the psychological level of 4,000.

The 200 EMA on the 4H charts is located at 3,300. Yesterday, the ETH approached this level. It is rebounding again. It means that the bullish force continues to prevail. It is also located below the SMA of 21 which limits that force and then makes a retracement.

Ether is likely to trade in the range between 7/8 of Murray (3,600) and 5/8 of Murray (3,300). A sharp break above or below could define the next movement of ETH and this could reach up to the level of 4,000 or it could drop to the level of 2,968.

The eagle indicator on October 7 gave an overbought signal. So far, it has moved away more than 50% from this level, which means that there could be a new bullish wave in the coming days. Ether continues trading above 3,300. A break above 3,593 will be the confirmation for the next bullish move.

The short-term outlook is still bullish, so the key is to wait for any retracement to continue buying only if ETH is above the 200 EMA. The situation may change dramatically after it drops below this level. Ether could fall to the psychological level of 3,000. If the downward pressure increases it could reach the key support of 2/8 of Murray at 2,812.


Support and Resistance Levels for October 11 - 12, 2021
Resistance (3) 3,693
Resistance (2) 3,636
Resistance (1) 3,571

Support (1) 3,403
Support (2) 3,367
Support (3) 3,281


Trading tip for Ethereum for October 11 - 12, 2021
Sell if pullback 3,531 with take profit at 3,281 (EMA 200), stop loss above 3,620.

Buy if rebound 3,281 (EMA 200) with take profit at 3,435 (6/8) and 3750 (8/8), stop loss below 3,200.





Dimitrios Zappas
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Triangle pattern in Cardano.


After the $1.90 low on September 22, Cardano has made no real progress to the upside or to the downside. Price is moving up and down in a tightening range and has formed a triangle pattern. The more times the triangle boundaries are tested, the more valid a possible signal will be.



Red lines - triangle boundaries

Cardano is now trading around $2.26. Recently price tested the lower triangle boundary at $2.10 and then the upper boundary at $2.36. These two price levels provide us with important information. Price will continue to trade sideways as long as price does not break either of the two levels. If price breaks above $2.36 we will get a bullish signal and price could continue higher towards $2.80-$3. If the lower triangle boundary is broken, we should expect new multi week lows for Cardano towards $1.60.





Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading signal for Ethereum for October 08 - 11, 2021: buy if it rebounds at $ 3,520 (SMA 21)



The price of Ethereum (ETH) is forming an ascending wedge technical pattern. This technical figure represents a trend reversal. Thus, we must wait for confirmation through the breakdown and consolidation below the lower line, and below the SMA of 21 located at 3,522.

As long as the price continues to oscillate within this pattern, the bullish force is still prevailing and there could be a technical rebound from the 21 SMA, targeting the strong resistance of 8/8 murray located at 3,750. If the bullish force prevails, ETH could rise to the psychological level of 4,000.

The eagle indicator is showing an overbought signal. The oscillator has reached the level of 95 which is a sign of an imminent technical correction. Hence, we must wait for the ETH price to hold below 3,500. Then, the fall will occur until the 200 EMA located at 3,261.


Support and Resistance Levels for October 08 - 11, 2021
Resistance (3) 3,859
Resistance (2) 3,750
Resistance (1) 3,674

Support (1) 3,507
Support (2) 3,437
Support (3) 3,332


Trading tip for Ethereum for October 08 - 11,2021
Sell below 3,450 with take profit at 3,261 (EMA 200), stop loss above 3,535.




Dimitrios Zappas
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin: Institutional Investors Push Price Up By Buying Crypto And Ditching Gold


Bitcoin's skyrocketing growth has been fueled by an influx of institutional capital, according to JPMorgan. For the first time since mid-May, this caused the price to rise more than 35% above $55,000 per coin.

JPMorgan report: reasons for Bitcoin's rise

Investment bank JPMorgan reports that institutional investors are increasingly leaning towards buying bitcoins, preferring the benchmark cryptocurrency to gold as a hedge against inflation.

In a research note released Thursday, JPMorgan also indicated that Bitcoin's 35% rally has received some upward momentum due to positive news from US regulators and increased use of the Lightning Network as El Salvador continues to use Bitcoin as legal tender.

Regarding a regulatory issue that previously raised concerns, Fed Chairman Jerome Powell and US Securities and Exchange Commission (SEC) Chairman Gary Gensler recently stressed that the US would not ban cryptocurrency. The news also sparked a positive reaction in the market, pushing the main cryptocurrency earlier to $50,000 per coin.

Institutions Prefer Bitcoin Over Gold

According to a note by JPMorgan analysts, there is a growing interest in Bitcoin among institutions, as many of them seek to exit or ditch positions in gold in favor of cryptocurrency.

"Institutional investors appear to be returning to bitcoin perhaps seeing it as a better inflation hedge than gold," JPMorgan said.

The report also points to a reversal in the demand for defensive assets, with more funds invested in bitcoins than in gold over the past few months.

JPMorgan reports that over $10 billion came out of gold ETFs in 2021, while over $20 billion was seen in Bitcoin. According to the bank, this trend is indicative of an increase in institutional investment in bitcoin, pushing the cryptocurrency to multi-month highs.


Technical Forecast: Two Scenarios for BTCUSD

Meanwhile, bitcoin, having rolled back from the resistance level of 55,842.84, is again trying to test its strength on Friday. Against this background, two scenarios remain; a breakout with a consolidation above or a rebound, possibly even after a struggle for the level, and a false breakout.

The technical guidelines remain as follows:

In case of breakdown and consolidation above the current resistance of 55,842.84, the price of BTCUSD will be able to continue to rise to the level of 61,048.64.

In case of a rebound down, the target remains Thursday's lows, and in case of an update - the support zone 52,000.18 - 52,929.15.






Ekaterina Kiseleva
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for October 8, 2021

Crypto Industry News:
In the wake of new Bitcoin highs, cryptocurrency's dominance over altcoins has peaked in two months. The cryptocurrency hit a new, multi-month high yesterday, amounting to almost $ 56,000. BTC's dominance over altcoins also set a new record, even though most of the alternative digital assets remain green on the charts.

At least for now, October remains a very favorable month for bitcoin. Although the price of the cryptocurrency king was just over $ 43,000 at the beginning of the month, it jumped to around $ 48,000 in just the first few days, where it remained for a short time.

After a brief $ 1,000 pullback, the bulls took matters into their own hands again and pushed the BTC price to above $ 50,000 for the first time since early September. This time they managed to successfully break through. It was not the end of the fight to continue the growth. The next wave of purchases contributed to the impressive growth which brought BTC to a daily high of almost $ 56,000. This is the highest bitcoin price level so far since mid-May.

Despite a correction of several thousand dollars, the cryptocurrency market capitalization is still well above $ 1 trillion. Moreover, bitcoin increased its dominance over altcoins to almost 45%, which is the highest result in the last two months.


Technical Market Outlook:
The BTC/USD pair has pulled-back towards the technical support after the new swing high at the level of $55,720 was made. This means the target for the wave 3 in our Elliott wave analysis scenario had been completed and the market might be ready to develop the corrective wave 4. The nearest technical support is seen at the level of $52,902 and $52,330. Please notice the extremely overbought market conditions on the H4 time frame chart support the possibility of the corrective wave 4 to happen soon.

Weekly Pivot Points:
WR3 - $61,007
WR2 - $54,857
WR1 - $52,632

Weekly Pivot - $42,280
WS1 - $43,798
WS2 - $38,065
WS3 - $35,092


Trading Outlook:
According to the long-term charts the bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. The next mid-term target is seen at the level of $59,506. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).







Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for October 8, 2021

Crypto Industry News:
The Ukrainian parliament adopted the long-awaited law on virtual assets in early September, when lawmakers approved it in the second and final reading. Laws to regulate cryptocurrency activities in the country passed its first reading last December, before being revised and re-presented to the Verkhovna Rada of Ukraine in June this year.

In order to enforce the new regulations, the authorities in Kiev must amend the Tax Code and persuade the president to sign the law on virtual assets. However, Volodymyr Zelensky decided to return him to the Ukrainian deputy and demand some changes.

In addition to introducing key legal definitions relating to cryptocurrencies, such as "financial virtual assets", the document also sets out obligations between government institutions that are to oversee the circulation of digital assets under the jurisdiction of Ukraine. For example, if the assets are collateralized by currencies, they will be regulated by the National Bank of Ukraine, and if the underlying asset is a security, the National Securities and Exchange Commission will have the task.

The Act "On Virtual Assets" also provides for the establishment of a new regulatory body for the cryptocurrency market, reporting to the executive. This, according to Zelensky, "will require significant expenditure from the state budget," the press release explained. The reasons for the request for further amendments to the act were also given.

The newly adopted law recognizes virtual assets as intangible goods and divides them into two main categories: secured and unsecured. Cryptocurrencies will not be accepted as legal tender in Ukraine, and their direct exchange for other goods or services will not be allowed.


Technical Market Outlook:
The ETH/USD pair has been consolidating the recent gains around the level of $3,600 in extremely overbought market conditions. The bulls are not that keen to continue the rally straight away, so the short-term pull-back might occur soon. The key short-term technical support is located at the level of $3,489 and the next target for bulls is seen at the level of $3,677. Please notice the bearish divergence between the price and the momentum oscillator supports the short-term bearish view and even a deeper corrective cycle towards the level of $3,252.

Weekly Pivot Points:
WR3 - $4,444
WR2 - $3,970
WR1 - $3,761

Weekly Pivot - $3,277
WS1 - $3,057
WS2 - $2,590
WS3 - $2,360


Trading Outlook:
Ethereum have started the next wave up and violated the long-term target at the level of $3,550. The next long-term target for ETH is seen at the level of $4,394. Nevertheless, in order to continue the long-term up trend, the price can not close below the technical support at the level of $2,906. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls.








Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical analysis of Litecoin for October 8, 2021



Litecoin is showing the first signs of upside acceleration as we would expect it within Livermore's accumulation cylinder. Litecoin is likely to move all the way to resistance in the 491 - 567 area before complete point 6 of Livermore's acc. cylinder and setting the stage for a decline in point 7. Ideally, point 7 will move all the way down to the support line, but it does not have to do so. We have lots of examples, where the decline in point 7 of the acc. cylinder terminates in the middle of the cylinder before taking off in the blow-off phase to much higher levels way above 567.





Torben Melsted
Analytical expert of InstaForex
© 2007-2021