Cryptocurrency Analysis

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Crypto market news for October 20: World's first Bitcoin ETF launched, Bitcoin rose to $66,000




The first ETF was listed on the New York Stock Exchange.

Bitcoin's upward momentum continues. This behavior of the main cryptocurrency is explained by the fact that the US Securities and Exchange Commission has received several ETF applications and has already managed to approve some of them. The world's first trading in shares of the fund, which is completely based on bitcoin, started Wednesday. The shares became available on the New York Stock Exchange under the BITO ticket. The fund itself is called the Bitcoin Strategy ETF, and it was launched on behalf of ProShares.

For the cryptocurrency market, this is a small victory, as many other companies have been trying to get permission from SEC to launch exchange-traded bitcoin funds since 2013. Thus, it is now even easier for institutional investors to buy bitcoin and stocks of companies and funds associated with it.

Now large investors can buy not just bitcoin itself, but also various investment instruments derived from it. ETF is an investment fund that forms a portfolio of assets from cryptocurrencies. And each security of such a fund is tied to a part of the fund's assets. That is, ETFs actually allow you to buy cryptocurrency without directly owning it. In the case of ProShares, its shares will be pegged to Bitcoin futures, which are traded on the Chicago Mercantile Exchange.

According to experts in the field of investment and cryptocurrency, now any investors and traders will have access to bitcoin purchases through a regular brokerage account. They will not need to go out on their own to exchanges, transfer bitcoins to their wallets and store them.

Why ETFs are attractive to investors?

Experts point out that ETFs are another cryptocurrency market tool that allows you to invest from a different angle than buying cryptocurrencies directly. The more such tools there are, the better the US cryptocurrency market develops, which is especially important against the backdrop of a complete ban on cryptocurrencies in China.

According to many experts, ETFs will cause a significant influx of new investors in the cryptocurrency market. However, the problem in 2021 is still that many investors who would like to invest in cryptocurrencies have a low level of awareness of this area. In addition, the crypto industry is still very weakly regulated by law. Investing in bitcoin, albeit indirectly, through an ETA fund is a safer operation compared to buying a classic bitcoin. Also, the threshold for entering it is much lower. The price of one share at the beginning of Wednesday's trading was only $40, and anyone with a brokerage account could buy it. Thus, not only for institutional investors, the process of buying cryptocurrencies was greatly facilitated, but also for small investors.

Experts note that the SEC's permission to list shares of a bitcoin fund means that bitcoin itself is recognized by the regulator, which is perhaps the most important. Bitcoin fund shares will be less volatile, which will significantly increase interest among investors. And, of course, the chances of getting on the network to scammers are much less than with the usual purchase of bitcoin through exchanges and storing it in your wallet.

Thus, Bitcoin currently has an excellent foothold for further growth. Let me remind you that in the past few days, several forecasts have been made at once, according to which Bitcoin will grow to $100,000 in 2021-2022. However, I will also remind you that next year there is a high probability of a new bearish trend formation. Bitcoin still cannot grow constantly, but at the moment its growth has been going on for a year and a half.






Chin Zhao
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BTC analysis for October 20,.2021 - Strong buying pressure


Technical analysis:



BTC has been trading upside with good momentum and I see no signs of the reversal yet.


Trading recommendation:
Due to strong bullish condition, my advice is to watch for buying opportunities on the pullbacks.

Next upside targets according to the Fibonacci projections are set at the price of $67,600 and $68,500

Stochastic oscillator is now showing any signs for the reversal yet.

Support is set at $64,500






Petar Jacimovic
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin challenges all time highs.

Bitcoin is trading just above $64,000 price level and is challenging its all time highs. Although price has provided some bearish divergence signals and warnings, bulls have managed to keep price inside the bullish short-term channel.



Red lines -bullish channel

Blue line- bearish divergence

As we mentioned again in the past, the bearish RSI divergence signals are only warnings and not reversal signals. They warn us that the current trend is weakening. Traders should take them under serious consideration but they should not interpret the warning as reversal signals. In our last analysis we noted that for a reversal to be confirmed, price should break below $60,000 and exit the bullish channel. So far bulls respect the channel boundaries and remain in control of the trend.





Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

First Bitcoin-linked ETF surpasses $1 billion in trading volume. BTC approaches new all-time high


This week, Bitcoin is getting even stronger. The launch of the first Bitcoin futures-based ETF in the US is going smoothly, and the price of the number one cryptocurrency is approaching a new record high. Meanwhile, large institutional investors keep buying up more tokens. This positive background is accompanied by rising hashrate and extreme greed in the market. This indicates that after a week of stabilization, the price of BTC is set to test new all-time highs.

Despite all criticism and cautious attitude towards the Bitcoin futures ETF, the debut of the exchange-traded fund was quite successful. On the first day of trading, more than 24 million shares of the ProShares Bitcoin Strategy ETF (BITO) were traded which is equivalent to $1 billion in trading volume. According to Bloomberg, this is the second-best result among all ETFs. Thanks to such a smooth start, BTC managed to leave the channel between $62,000 and $64,000 and is now trying to settle above the selling range. Market euphoria may continue on October 20 as today options on BITO will start trading on the NYSE Arca Options and NYSE American Options. Given a strong start on the exchange, we can expect a similar result on options trading, which may bring Bitcoin closer to its peak levels today.

Amid a successful debut of Bitcoin futures-based ETF and a surge in crypto quotes, the number of large companies interested in Bitcoin is rapidly increasing. Since early October, the number of institutional investors has gone up by 2%. This indicates that the trend of accumulating BTC by major market players has come back. It is very likely that by the end of the current bullish rally, the percentage of institutional investors choosing Bitcoin will reach 70%. Besides, the expansion of large companies that want to invest in BTC at this bullish phase of the market may serve as an additional bullish driver. What is more, this factor will help offset the pressure from speculative holders who began to sell their assets in order to take profit. Massive purchases done by crypto whales can also be traced through the total bitcoin market value and its realized value which slipped below zero and stopped at -9.5%. This means that there was a large purchase of BTC at a rather high price, and most newcomers to the crypto market are now facing losses. Given the current situation and a prolonged rally of the number one crypto asset, market participants believe that the uptrend will continue.



We should not forget that the SEC is set to approve the creation of 7 more Bitcoin futures ETFs. Yet, it is also possible that the regulator will not rush to make this decision after such a successful launch of the first BTC futures-linked ETF. In the meantime, BTC/USD has firmly settled above the resistance area of $59,500 on the daily chart. However, the price still hasn't broken through the range of $62,000-$64,000. At the same time, the buzz around successful trading in the futures market and bullish signals on the horizontal charts indicate that bulls will attempt to reach the level of $64,000 today, on October 20. After that, the price is likely to stabilize and pass the peak level in pursuit of new records.

Despite an upside movement on smaller time frames, daily indicators start to weaken. The Stochastic Oscillator moved lower and is set to form a bearish crossing in the near term. The Relative Strength Index dropped below the mark of 70 and continues to decline. At the same time, the MACD indicator maintains the upside momentum which signals bullish strength and their attempt to engulf the existing volumes. Given the overbought status of technical indicators this week, increased bearish pressure amid profit taking as well as a prolonged uptrend, BTC is approaching the phase of a local correction. This is also confirmed by the number of unique Bitcoin addresses where the divergence between the price and the number of users has emerged. Bitcoin is likely to start declining after passing its record high and when the excitement in the crypto market reaches its peak.









Artem Petrenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin soars amid first US ETF launch



The first US Bitcoin ETF launched on Tuesday, and its debut did not disappoint.

Traded under the ticker "BITO", the ProShares Bitcoin Strategy ETF jumped more than 3% yesterday morning, as in just 20 minutes about 6.4 million shares worth about $ 264 million changed hands.

Investors are now watching closely to see if BTC will hit new all-time highs below $ 65,000.

Although the ETF is tied to Bitcoin futures and has no direct impact on the spot price, sentiment over its approval has lifted it in recent days.

Bitcoin hit $ 63,000 shortly after the ProShares ETF began trading. But now it is down at $ 62,500, posting an increase of about 1.3% over the day.



Coinbase Global (COIN) also traded 3% higher, while Marathon Digital (MARA) recovered from early losses and traded 1.7% higher. MicroStrategy (MSTR), on the other hand, fell by 2.2%, despite owning $ 5 billion worth of cryptocurrency.

SEC Chairman Gary Gensler said crypto ETFs that comply with his strict laws can provide investors with significant protection.

The agency did not directly explain why it allowed ProShares ETFs to start trading, but Gensler hinted that it was due to the fact that futures are already controlled by the Commodity Futures Trading Commission (CFTC).

"I think what we have here is a product that's been overseen for four years by a US federal regulator and CFTC," Gensler said. "It's being wrapped within our jurisdiction called the Investment Company Act of 1940, so we had to bring it inside for investor protection," he added.

Gensler also warned that it is still "a very speculative asset class."

ProShares isn't the only ETF associated with Bitcoin. There are already several Bitcoin-related ETFs ready to launch in the coming months. But Invesco suspended its futures ETFs late Monday night without giving a reason.

Aside from the symbolic meaning in terms of mass acceptance, there is even more at stake after what is likely to be a tipping point for cryptocurrency.

The initial performance of the ETF can dictate where the Bitcoin goes next. As such, strong demand is needed to break new records. According to Oanda analyst Edward Moya, if traders view early results as promising, next resistance will come from the $ 70,000 level. Conversely, low trading volumes could trigger a sell-off.





Andrey Shevchenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for October 20, 2021


Crypto Industry News:
Shares of the ProShares Bitcoin Strategy exchange fund, the first BTC-related ETF to trade in the US, initially rose 3% when trading started, and recently climbed 1.6% to $ 40.63 on its debut on Tuesday in the stock market New York.

The fund operates under the symbol BITO and is linked to Bitcoin futures contracts traded on the Chicago Mercantile Exchange.

ProShares filed for a BTC ETF last summer after SEC chairman Gary Gensler made it clear his preference for a bitcoin fund linked to the futures market rather than the cryptocurrency itself. Other Bitcoin ETF futures trading is expected to start soon.

While the fund's approval was pending, Bitcoin's price spiked upwards above $ 60,000 for the first time in nearly six months. Bitcoin's price has remained more or less stable over the past 24 hours on Tuesday at around $ 61,862 at the time of writing.


Technical Market Outlook:
The ETH/USD pair has bounced from the technical support located at the level of $3,677, but there is no significant increase in the momentum (RSI indicator) as the price is moving towards the level of $4,000 again. This might be the last wave in the impulsive cycle, the wave 5 of the overall wave progression, so a some kind of correction might be expected soon. The momentum is strong and positive, so the bulls might risk to push the prices towards the level of $4,000 before any meaningful correction will occur, but any breakout below $3,677 will be a negative in the short-term.

Weekly Pivot Points:
WR3 - $4,596
WR2 - $4,262
WR1 - $3,971

Weekly Pivot - $3,631
WS1 - $3,394
WS2 - $3,073
WS3 - $2,777


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 20, 2021


Crypto Industry News:
Chainalysis, a $ 4.2 billion software company announced Tuesday that it had purchased an undisclosed amount of BTC through NYDIG, an institutional Bitcoin management company popular on Wall Street.

CEO Michael Gronager called it Chainalysis's first cryptocurrency purchase.

"We will continue to look for other digital assets as potential future investments," he said in a statement.

Keeping Bitcoins as reserve assets was popularized last year by MicroStrategy. However, so far, few public and private companies have taken a step in this direction. It is worth noting, however, that Coinbase and BitGo stand out from the rest.


Technical Market Outlook:
The BTC/USD pair is heading towards the ATH located at the level of $64,920 and the last high was made at the level of $64,460. The immediate technical support is seen at the level of $62,888, but the corrective cycle might extend lower towards the key short-term technical support is located at $53,331. Please keep an eye on this level as any violation of this level will be negative for bulls.

Weekly Pivot Points:
WR3 - $72,401
WR2 - $67,700
WR1 - $63,611

Weekly Pivot - $58,705
WS1 - $54,810
WS2 - $49,233
WS3 - $45,621


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 $64,920 (the previous AT level). 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 plan for Bitcoin for October 20, 2021




TECHNICAL OUTLOOK:
Bitcoin had raised through $64,500 level on Tuesday, shy by a few points to hit all-time highs before pulling back. The crypto is facing resistance around the backside of the previous support trend line as seen on the daily chart. A corrective drop remains possible towards the $48,000 levels in the near term, before resuming its rally further.

Bitcoin could also reach fresh highs from current levels without producing any meaningful correction. Please note that prices are reaching overbought territory hence it is advised not to initiate fresh long positions now. Traders might keep booking profits at each high as Bitcoin reaches the $65,000 mark.

Bitcoin bears need to break below its channel support around the $48,000 mark to be back in control. Until that happens, the crypto is good to be bought on dips, with risk below the $40,000 mark. The next buying zone lies between $48,000 and $50,000 levels, which could push prices through the $70,000 mark going forward.


TRADING PLAN:
Potential target at $65,000 is almost reached. Wait for a corrective drop towards $48,000-50,000.

Good luck!





Oscar Ton
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Long-term BTC investors began to take profits en masse: how will this affect the further price movement?


Bitcoin continues to confidently occupy the $62k-$64k range, and on Wednesday it may test its absolute maximum for the first time since April. At the same time, the first signs of weakness are noticeable on the technical charts of the coin, which may signal a further aggravation of this trend. However, a natural question arises: what could have contributed to the emergence of bearish signals with a positive news background and the greed of investors? Ironically, Bitcoin's problems lie in its successes.

Simply put, the first cryptocurrency was covered by a wave of additional pressure caused by the actions of long-term investors. It all started on October 17, when BTC began to approach the $60k mark, which meant that all coins in circulation were fully recouped. It is logical to assume that when crossing the line of primary payback, part of the audience will want to make a profit by fixing it in bitcoin. Again, it would be logical to assume that long-term investors who have held coins for at least 150 days will be the first to delve into this process. This suggests that most of these traders purchased BTC during its fluctuations in the $30k-$45k range and are already within the highest payback on the market right now.

The on-chain analysis also confirms the fact that coins stored in users' wallets for more than 150 days have started to move actively. This confirms the thesis that part of the audience sells their assets, speculatively making a profit. As of October 19, the pressure on the BTC price is felt only on narrow timeframes, which indicates small volumes of coins sold. However, the first preconditions for the emergence of corrective structures and bearish sentiments suggest that the trend may strengthen and move to wider time ranges.

As bitcoin moves above the $65k mark, the pressure on the price will increase as more investors want to sell the coins for a medium to short term profit. In the worst case scenario, this is fraught with a decline to local lows due to an aggravated correction or a local sell-off provoked by negative news. In the best case, the market will simply pause and move to the accumulation stage, after which the growth of quotes will resume.

Despite the possible appearance of an additional pressure on the price, bitcoin continues to move confidently towards a historical record. The coin has consolidated above $62.5k, which may become an important support zone in the near future. At the same time, the cryptocurrency completed the previous day with the formation of a bullish engulfing candlestick and is moving above the supertrend line, which indicates the strength of buyers on the eve of the $64.3k storm.

Technical indicators continue to remain bullish and indicate the continued upward trend. MACD completes the implementation of the bullish crossover, while the stochastic has just completed its formation and is also starting to grow. The relative strength index has again broken through the line at 70 and is moving upward into the overbought zone.



Bitcoin is inexorably moving towards a historical record and local asset sales are leveled by the powerful positions of institutions. In addition, the first US ETF for bitcoin futures launched trading Tuesday, and there are 7 more applications in the queue. Also, the famous Grayscale Trust fund has filed an application for reorganization into an exchange-traded fund on bitcoin futures, which will add excitement and permanent investment in newly created institutions. Therefore, at the moment, the main question is how far BTC will be able to advance and where a new historical record will be set.





Artem Petrenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin's global bullish trend will end soon: can BTC reach $100k and what will happen to the market next?


The current week may be a turning point for Bitcoin and the entire cryptocurrency market due to a confident upward movement and making fundamental decisions for the development of the digital asset industry. Bitcoin is close to its all-time high, while other coins continue to gain in value. The bull market is entering the stage of a broad movement upside and is only gaining momentum. However, the consequences of euphoria on the market can be dire for the entire industry, since there is a possibility that the current rally in price is the final one in this development cycle of the crypto market.

This opinion was expressed by the well-known analyst Alessio Rastani. The trader is confident that Bitcoin is approaching the final stage of the global bull market, which has been going on since 2019. According to him, Bitcoin and all digital coins are moving towards a global bearish trend. Rastani's calculations are based on a wave analysis of the movement of bitcoin and according to this data, the first cryptocurrency is capable of reaching the $100k mark. However, subsequently, the market will be covered with a powerful and long wave of corrections and bear traps.

According to the analyst, the BTC bull trend was launched in 2019 and will end next year, after which the entire market will begin to decline. As of October 19, the crypto market is entering the fifth wave structure, which should become the final one in the upward trend. Rastani also uses data from classical financial markets in his analysis and believes that they may be covered by the crisis in the next few years. According to the trader, this will negatively affect the dynamics of investments in BTC, as well as affect the movement of the price of cryptocurrencies. At the same time, the first digital asset will manage to reach an absolute maximum of around $100k, but this will be a fly in the ointment.

Meanwhile, Bitcoin continues to fight for the $64k mark, and as of 14:00 UTC, it is trading in the $62.8k region. Over the past day, the coin has increased by 2% in value and is confidently moving towards breaking a historical record. Cryptocurrency technical indicators signal that BTC will be able to test its all-time high Wednesday this week. Thanks to a strong upward movement in MACD, Stochastic and Relative Strength Index, Bitcoin will move out of the $ 61k- $64k range by the end of Tuesday's trading. Right now, the news background and the confidence of the bitcoin audience leave no doubt about setting a new all-time record this week.



It is likely that after such a protracted growth and confident overcoming of the 78 mark on the Fear and Greed Index, the market expects a strong correction. However, to assume the onset of a full-fledged bear market in the context of several years looks like a premature statement due to the increasing autonomy of the crypto market and the start of a new period of development. Important areas of digital assets are the DeFi and NFT markets, which find their audience and begin to influence cryptocurrency quotes more than economic factors.



In addition, the downturn of the entire market may be associated with BTC, since Rastani uses its wave analysis, but many crypto-assets can avoid direct correlation with Bitcoin. By developing their own ecosystems, the quotes of the coins will have less influence from the main asset, and the developers of the leading coins have already begun to invest in the development of ecosystems.

A recent example is the statement of Vitalik Buterin, who noted the priority of the development of other sides of the ether since it is they that affect the price of the asset. The ADA and SOL projects also broke into the top 10 thanks to the wide capabilities of the blockchain. The DOT project management has allocated more than $800 million for the development of the ecosystem of the coin.

All this makes cryptocurrencies more versatile and independent in their attempts to occupy their niche in the developing digital financial world. Therefore, the indicators of the spot market will fade into the background, and the functionality of the network will become a priority for market participants.





Artem Petrenko
Analytical expert of InstaForex
© 2007-2021