Cryptocurrency Analysis

[IFX_Selena]

BTC analysis for 05.11.2020 - Massive drop on the BTC casue by big liqudation and strong rejection of the $10.000 mark. More downside yet to come...

Corona virus summary:


In France, from Monday members of the public were able to walk outside without filling in a permit for the first time in nearly eight weeks, teachers will start to return to primary schools, and some shops – including hair salons – will reopen. Bars, restaurants, theatres and cinemas will, however, remain closed.

In Spain, urban hotspots such as Madrid and Barcelona remain under lockdown – but elsewhere people made plans to meet friends and family in bars and restaurants that have outdoor spaces.

FEARS GROW IN GERMANY OF SECOND WAVE OF CORONAVIRUS INFECTIONS

In the UK, Prime Minister Boris Johnson was criticised for being divisive, confusing and vague as he explained his blueprint for a gradual easing of the lockdown in England.


Trading recommendation:
Watch for selling opportunities on the rallies using the 1H and 4H time-frame. Downward targets are set at the price of $7,765 and $7,345.





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

[IFX_Selena]

Technical Analysis of ETH/USD for 11 May 2020

Crypto Industry News:
Vitalik Buterin believes that Ethereum can play a role in the future global crisis as a glue that helps unite nations.

Ethereum co-founder was interviewed at Ethereal Summit 2020. Describing the current global crisis as more than financial, Buterin said that levels of political discord and distrust between countries highlighted the need for a network like Ethereum.

"I strongly believe that the role of Blockchain chains - in particular Ethereum - is to play the role of a neutral global player for systems, currencies and applications for interaction. I think that anything created and maintained by nation states cannot play this role" - he said

Describing the current situation as financial only "one-third", co-founder Ethereum also discussed the current situation compared to the global financial crisis in 2008 and whether the event could help fuel a new wave of cryptocurrency. Buterin said that cryptocurrencies like Ethereum could grow this time, solving "non-financial problems" in the world.


Technical Market Outlook:
The ETH/USD pair has dropped significantly towards the level of $177.50, which is a 61% Fibonacci retracement for the price and is currently hovering around this level. The momentum remains weak and negative, so the next target for bears is seen at the level of $164.45. The immediate technical resistance is seen at the level of $188.86 and $193.78. Please bear in mind, that there is only 13 hours left to the halving, which is highly anticipated event for all cryptoenthusiasts.

Weekly Pivot Points:
WR3 - $241.59
WR2 - $228.78
WR1 - $204.66

Weekly Pivot - $191.03
WS1 - $168.45
WS2 - $154.83
WS3 - $130.49


Trading Recommendations:
The fear of the coronavirus consequences has decreased among the global investors on the financial markets, nevertheless the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 11 May 2020

Crypto Industry News:
Global losses from cryptocurrency fraud and theft increased sharply in 2019, doubling compared to 2018. Despite many efforts to combat cryptocurrency fraud programs, countries like Belgium continued to suffer heavy losses.

According to a report, the Belgian Economic Inspectorate reported EUR 2.94 million in losses due to cryptocurrency fraud in 2019. Recent figures show that the number of cryptocurrency scams in Belgium has been increasing in recent years. In 2018, the Belgian Federal Public Service, known as FPS Economy, reported $ 2.5 million in losses related to cryptographic fraud in the country. Furthermore, these growing numbers are apparently "just the tip of the iceberg" because most fraud cases remain unreported.

Nathalie Muylle, Belgian Minister of Economy and Consumer Affairs, said real losses were higher than USD 3.2 million. According to her, Belgium primarily used a preventative approach to combat cryptographic fraud, while criminal law measures are still uncertain. In 2019, the economic inspection sent a prosecutor's request for fraud and is still awaiting a decision.

The Belgian authorities have indeed taken many preventive measures to solve this problem in recent years. In February 2020, the Belgian Office for Financial Services and Markets (FSMA) blacklisted several fake cryptography websites. Earlier, FPS Economy launched a website to increase awareness of the risks associated with crypto investments.


Technical Market Outlook:
The BTC/USD pair has lost about 15% of its value over the weekend and is currently trading around the level of $8,600 after a low was made at the level of $8,046. Still the key level of support is still seen at $7,943, but the nearest technical support is currently seen at the level of $8,464. Any violation of this level will deepen the correction towards the level of $7,934 which is a key short-term technical support for bulls. Weak and negative momentum supports the short-term bearish outlook about 13 hours before halving.

Weekly Pivot Points:
WR3 - $11,485
WR2 - $10,709
WR1 - $9,512

Weekly Pivot - $8,760
WS1 - $7,652
WS2 - $6,835
WS3 - $5,708


Trading Recommendations:
The recent rally in Bitcoin was made in anticipation of Bitcoin halving and it is a classic pump and dump scheme. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated.







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

[IFX_Selena]

Technical Analysis of BTC/USD for 08 May 2020

Crypto Industry News:
It seems that Bitcoin has again started to stand out from traditional markets, as investors have again focused on the upcoming halving. While, the highest cryptocurrency in market value, it has gained almost 5.9% so far this month, while gold has fallen by 1%. Meanwhile, on Wednesday the S&P 500, the Wall Street stock index fell 2.2% against one month.

Bitcoin is also the best-selling asset, with a 28% increase over the previous year. Oil (WTI) recorded a correction of 66%, which is due to the huge drop in demand caused by the coronavirus pandemic.

Over the past two months, Bitcoin has been moving mainly in tandem with the stock markets. Its value dropped from $ 10,000 to $ 3,867 in the first two weeks of March, because the sale of global shares due to a coronavirus pandemic sparked a global cash spike. The cryptocurrency has risen above $ 7,000 over the next four weeks.

However, positive correlation weakened last week when Bitcoin recorded double-digit earnings, despite moderate share losses. At the time of writing, the cryptocurrency value is currently $ 9,300, a 4.4% increase over the week.

It seems that the situation on the cryptocurrency market has changed the stimulus from coronavirus to halving, which is expected to come into force on May 12 (though this may happen earlier). The supply change process and the recent increase in value from $ 7,600 to $ 10,000 could have been fueled by the fear of losing expected profits.

The Bitcoin network is also experiencing its busiest period for over two years. For example, the average of seven days the number of unique active addresses on the network increased on Wednesday to 947.088, which is why it reached its highest level since January 2018, according to data from Glassnode. This jump suggests an increase in investor interest in cryptocurrency.


Technical Market Outlook:
The BTC/USD pair has hit the level of $10,000 as anticipated and currently the market is consolidating the recent gains. The is only three days to halving, so the price might extend the gains towards the level of $10,248 - $10,430. Still the key level of support is still seen at $8,357, but the nearest technical support is currently seen at the level of $9,704. Any violation of this level will deepen the correction towards the level of $7,934 which is a key short-term technical support for the price. Weak and negative momentum supports the short-term bearish outlook.

Weekly Pivot Points:
WR3 - $11,425
WR2 - $10,480
WR1 - $9,720

Weekly Pivot - $8,578
WS1 - $7,824
WS2 - $6,750
WS3 - $5,970


Trading Recommendations:
The recent rally in Bitcoin was made in anticipation of Bitcoin halving and it is a classic pump and dump scheme. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 07 May 2020

Crypto Industry News:
The Ukrainian Ministry of Energy believes that the use of nuclear power plants to mine cryptocurrencies may be one of the best ways to counteract the current energy stagnation.

According to the statement, local nuclear power plants generated a surplus due to downtime due to COVID-19. Ukrainians now want to apply progressive solutions to avoid wasting energy as part of the government's course towards digitization supported by President Volodymir Zelenski. Leaving the status quo can create:

"[...] conditions for corruption crimes, which will eventually be paid at the expense of Ukrainian citizens," warns the ministry, while pointing out that mining cryptocurrencies may prove to be one of the effective solutions.

The acting head of the Ukrainian Ministry of Energy asked the state-owned enterprise Energoatom to explore potential ways to implement cryptocurrency mining at domestic nuclear power plants by May 8. Power plants were previously used to mine cryptocurrencies, although not on a government scale. A private power plant in the Finger Lakes region of New York switched to Bitcoin mining, adding $ 50,000 BTC per day to daily revenues.


Technical Market Outlook:
The ETH/USD pair has again plunged towards 38% Fibonacci retracement located at the level of $195.94. The short-term trend line support has been violated as well and the price is testing the technical support at the level of $193.78 after another Pin Bar candlestick was made. Nevertheless, the price bounced from lows seen at the level of $193.78 and is currently trying to test the trend line from below. The weak and negative momentum supports the short term outlook towards the next support located at $188.86 or even towards 50% retracement at $186.72.


Weekly Pivot Points:
WR3 - $296.61
WR2 - $243.36
WR1 - $224.05

Weekly Pivot - $205.69
WS1 - $188.49
WS2 - $168.64
WS3 - $150.80


Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 07 May 2020

Crypto Industry News:
The difficulty of mining Bitcoin, which is a measure of how difficult it is to compete for block prizes, has reached the highest level in the last adjustment of the network before halving occurs. The world's largest blockchain network in terms of market capitalization, corrected the difficulty of mining to 16.10 trillion T, which was close to the record level of 16.5 T, recorded in March this year.

Today's correction, which the difficulty of mining exceeded the threshold of 16 T, is also the final change before halving, which awaits us in less than a week. After halving the rewards, which will also reduce the number of newly extracted Bitcoins per day from 1,800 to 900 units, it is expected that computing power connected to the Bitcoin network will then decrease.

The difficulty of Bitcoin mining is to adapt to 2016 blocks, depending on the competition. If more people are involved in the game, the difficulty level will increase in the next correction. If the computing power is less, the difficulty will decrease.

The difficulty correction follows the rather unusual amount of bitcoin blocks mined at the end of last week, when miners registered 16 blocks in about an hour. Such a fast block production could be a sign that the current level of difficulty was too low. According to the data, the average mixing power connected to the Bitcoin network in the last seven days increased to over 119 EH / s, with the last average of three days oscillating around 125 EH / s.


Technical Market Outlook:
The BTC/USD pair has tested the technical resistance at $9,380, which is the last swing high. Nevertheless, there was a Doji candlestick pattern made at the top of the move. Still the key level of support is still seen at $8,357. Any violation of this level will deepen the correction towards the level of $7,934 which is a key short-term technical support for the price. Weak and negative momentum supports the short-term bearish outlook.

Weekly Pivot Points:
WR3 - $11,425
WR2 - $10,480
WR1 - $9,720

Weekly Pivot - $8,578
WS1 - $7,824
WS2 - $6,750
WS3 - $5,970


Trading Recommendations:
The recent rally in Bitcoin was made in anticipation of Bitcoin halving and it is a classic pump and dump scheme. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated.







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

[IFX_Selena]

Technical Analysis of BTC/USD for 06 May 2020

Crypto Industry News:
Most Chinese miners expect a huge influx of new Bitcoin buyers over the next six months. According to a survey conducted on 4 May by a cryptographic services company, 57% of Chinese miners expect a large number of new Bitcoin buyers to join the market in the near future. Over 71% of respondents also believe that the market has regained confidence in Bitcoin. In addition, 45% of respondents believe that the price of Bitcoin will be between $ 10,000 and $ 12,000 in the next six months, almost 24% believe that it will remain around $ 10,000 with low volatility, while over 14% believe that cryptocurrency will be worth over $ 15,000 .

Most respondents also believe that Bitcoin hashrate will not change significantly after the upcoming halving and expects it to be between 110 and 130 EH / s per day.

This seems to coincide with the expectations of crypto community members. As one of the foreign industry portals recently reported, 37% of the cryptocurrency community expects the hashrate to be higher a month after halving, compared to the current level.

Respondents also expect the US economy to affect Bitcoin in the future. As many as 64% of them expect that federal support will have a "moderately positive" impact on Bitcoin. Only 12% of respondents believe that these measures will have a very positive impact, and another 12% believe that this will not affect cryptocurrency.


Technical Market Outlook:
The volatility of Bitcoin has decreased since the beginning of the new week. The BTC/USD pair has broken through the trend line resistance located around the level of $8,819 and is heading towards the next technical resistance at $9,123. Nevertheless, the key level of support is still seen at $8,357. Any violation of this level will deepen the correction towards the level of $7,934 which is a key short-term technical support for the price. Weak and negative momentum supports the short-term bearish outlook.

Weekly Pivot Points:
WR3 - $11,425
WR2 - $10,480
WR1 - $9,720

Weekly Pivot - $8,578
WS1 - $7,824
WS2 - $6,750
WS3 - $5,970


Trading Recommendations:
The recent rally in Bitcoin was made in anticipation of Bitcoin halving and it is a classic pump and dump scheme. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated.







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

[IFX_Selena]

Technical Analysis of ETH/USD for 06 May 2020

Crypto Industry News:
The average daily transaction value on the Ethereum platform equaled the values in the Bitcoin network.

From 12.04, the total value of assets transferred in one day to the Ethereum network began to compete with the results in the Bitcoin network. We are talking about the value of the transaction at the level of about USD 1.5 billion. The value transmitted to the Ethereum network includes both Ether (ETH) as well as the stablecoins supported by this blockchain - in particular Tether (USDT).


Ethereum beats Bitcoin in transactions per second. This is not the first indicator in which Ethereum beat Bitcoin. Transactions of the Bitcoin network per second (TPS) reached the highest level of 4.7 during the bull market at the end of 2017. Currently the indicator is falling. From March 12, the network processes almost three transactions per second.


Technical Market Outlook:
The ETH/USD pair has plunged towards 38% Fibonacci retracement located at the level of $195.94. Moreover, the short-term trend line support has been violated as well and the price is testing the technical support at the level of $193.78. Nevertheless, the price bounced from lows seen at the level of $193.78 and is currently trying to test the trend line from below. The weak and negative momentum supports the short term outlook towards the next support located at $188.86 or even towards 50% retracement at $186.72.

Weekly Pivot Points:
WR3 - $296.61
WR2 - $243.36
WR1 - $224.05

Weekly Pivot - $205.69
WS1 - $188.49
WS2 - $168.64
WS3 - $150.80


Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.







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

[IFX_Selena]

Technical Analysis of BTC/USD for 05 May 2020

Crypto Industry News:
The crypto market Paxful announced today the extension of its charity initiative in Africa, with the launch of Fund for Africa, which is to allocate donations in Bitcoin to purchase the necessary resources to fight the coronavirus pandemic.

As announced, the number of COVID-19 cases in Africa is increasing. The purpose of collecting funds is to purchase personal protective equipment, food and to provide people with so-called high risk of infection, food and handwashing stations.

Cryptocurrencies have so far been an obstacle when it comes to fundraising and charity activities during the coronavirus crisis. Humanitarian organizations will support the LAO campaign, such as Zam Zam Water, which provides access to clean water and builds schools in villages around the world.

The COVID-19 crisis has mobilized a cryptographic community around the world to join charity initiatives. It is worth mentioning here the initiative to raise money in cryptocurrencies for the Italian Red Cross, which tripled the initial goal of the campaign of about $ 10,000 in less than four weeks, which allowed them to build medical facilities to fight COVID-19 in this country.


Technical Market Outlook:
The BTC/USD pair has broken through the trend line resistance located around the level of $8,819 and is heading towards the next technical resistance at $9,123. Nevertheless, the key level of support is still seen at $8,357. Any violation of this level will deepen the correction towards the level of $7,934 which is a key short-term technical support for the price. Weak and negative momentum supports the short-term bearish outlook.

Weekly Pivot Points:
WR3 - $11,425
WR2 - $10,480
WR1 - $9,720

Weekly Pivot - $8,578
WS1 - $7,824
WS2 - $6,750
WS3 - $5,970


Trading Recommendations:
The recent rally in Bitcoin was made in anticipation of Bitcoin halving and it is a classic pump and dump scheme. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 05 May 2020

Crypto Industry News:
The number of Ethereum blocks has just reached 10 million. This is a significant milestone for the world's second cryptocurrency in terms of market capitalization.

According to Luit Hollander, the Ethereum network needed over 15 ZH computing power to extract this huge number of blocks in five years. We remind you that the genesis block of the largest altcoin was mined on July 20, 2015.

Hollander writes:
"A noticeable number of forks appeared on our way to this milestone. Although the forks always divide the chain, the old chain is often abandoned, which is why they are sometimes called "network updates".

10,000,000 Ethereum blocks is an achievement on the eve of the release of Ethereum 2.0. The transition to cryptocurrency to PoS (update referred to as Serenity) is expected to begin in July with the launch of Beacon Chain.


Technical Market Outlook:
The bears at ETH/USD pair has manage to push the price towards 38% Fibonacci retracement located at the level of $195.94. Moreover, the short-term trend line support has been violated as well and the price is testing the technical support at the level of $193.78.Nevertheless, the price bounced from lows seen at the level of $193.78 and is currently trying to test the trend line from below. The weak and negative momentum supports the short term outlook towards the next support located at $188.86 or even towards 50% retracement at $186.72.

Weekly Pivot Points:
WR3 - $296.61
WR2 - $243.36
WR1 - $224.05

Weekly Pivot - $205.69
WS1 - $188.49
WS2 - $168.64
WS3 - $150.80


Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in cryptocurrency, because they are being perceived as risky assets. The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.







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