Cryptocurrency Analysis

[IFX_Selena]

BTC analysis for July 16,.2020 - Fake breakout of resistance and potential drop towards the $7.800 on the way

Technical analysis:


BTC has been trading downwards. As I expected, the market is trading lower and approaching the key support level at $8,900. I see potential for the bigger drop in case of the downside breakout towards the $7,800


Trading recommendation:
Watch for potential selling opportunities in case of the downside breakout of support at $8,900.

Stochastic is showing fresh bear cross, which is another sign and confirmation for the downside rotation.

Bigger downside target is set at $7,800

Key resistance is set at $9,380




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

[IFX_Selena]

Technical Analysis of BTC/USD for 17 July 2020

Crypto Industry News:
The upcoming meeting of the Futures Trading Commission in the United States or CFTC will host discussions on a number of topics, including Distributed Ledger Technology or DLT, digital assets and trading.

The Technology Advisory Committee, or TAC, the CFTC Technology Consultation Wing, plans to organize a remote meeting on July 16, discussing a number of topics for discussion, as noted in the recently disclosed agenda.

"At this meeting, TAC will listen to the presentation of the TAC subcommittees for Automated and Modern Trading Markets, DLT technology and market infrastructure, virtual currencies and cyber security," CFTC said in a statement.

The CFTC statement discussed the upcoming meeting. "The TAC meeting program includes key issues that will be discussed and speakers from each panel," stated the CFTC statement.

Established at the peak of the technology boom in 1999, TAC provides CFTC with advice and feedback on technology intersection, finance and regulation. The published program of the meeting includes panels on cybersecurity, guidelines on technological innovation in trade, DLT and handling of important data. The outline also includes a discussion about the digital currencies of the central bank or CBDC.

In addition, the program includes a section mentioning Bitcoin, entitled: "Analysis comparing Bitcoin volatility with other assets and the impact of COVID-19 on the correlation of asset prices."

The CFTC previously ruled Bitcoin and Ethereum as commodities, placing them in the same category as gold, while other digital assets such as Ripple's XRP are still unofficially classified.


Technical Market Outlook:
The BTC/USD pair made another lower low after the 61% Fibonacci retracement has been broken. The low was made at the level of $8,989 and currently bulls are trying to bounce. If this level is violated again, then the drop might accelerate towards the level of $8,860. The momentum is hovering below the neutral level and there is no sign of increased bullish activity. Only a sustained breakout through the trend line resistance might put the bulls back to control over the market again.

Weekly Pivot Points:
WR3 - $10,016
WR2 - $9,728
WR1 - $9,448

Weekly Pivot - $9,161
WS1 - $8,884
WS2 - $8,576
WS3 - $8,302


Trading Recommendations:
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. The key mid-term technical support is located at the level of $7,897.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 20 July 2020

Crypto Industry News:
The Canadian regulator, the Ontario Securities Commission (OSC), accused the Coinsquare exchange of manipulating the market and misleading customers about the volume of trading.

OSC claims that Coinsquare, who was accused of "wash-trading" and hacking reports, "has engaged in conduct that goes against Ontario's security laws." The regulator also named its founders Virgile Rostand, CEO Cole Diamond and Compliance Director Felix Mazer as respondents. A meeting on this matter will be held on July 21.

In its complaint, the OSC said Diamond ordered Rostand to inflate it in March 2018. Then Rostand came up with a solution that allowed the stock exchange to start trading in the "wash" mode. "Wash-trading" refers to artificially inflating the volume of transactions by executing large market transactions on your own orders, so it appears that large transactions have taken place but no assets have changed hands. From July 17, 2018 to December 4, 2019, Coinsquare conducted approximately 840,000 transactions with a total value of approximately 590,000 BTC, OSC reported. They accounted for over 90% of the trading volume on the stock exchange.

Despite workers' concerns, Coinsquare continued its wash-trading business and thus manipulated the market and consumers, OSC said. The regulator asked for information on stock market activity, but Coinsquare did not report any irregularities and said it "is taking steps to prevent market manipulation and stressed that the controls it said could help detect such behavior." The OSC also said that Coinsquare was provided by an employee after expressing concerns about wash-trading.

Reddit users have become suspicious of Coinsquare's activity on two separate occasions. Vice also reported leaking documents that revealed diamonds were ordered.


Technical Market Outlook:
The ETH/USD pair has been testing the short-term trend line resistance around the level of $240. Any violation of this trend line will open the road towards the next technical resistance seen at the level of $244.66. It is worth to notice, that this trend line has been tested twice already and all bullish attempts had failed. If the history repeats again, then the nearest technical support is seen at the level of $235.42 and $230.02. The neutral momentum indicator doe not support neither bulls nor bears for the moment.

Weekly Pivot Points:
WR3 - $258.07
WR2 - $250.97
WR1 - $242.31

Weekly Pivot - $235.59
WS1 - $227.18
WS2 - $291.82
WS3 - $211.48


Trading Recommendations:
The volatility on Ethereum is now lower than usual, so all the dynamic moves up and down might reverse quickly. 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. The next key technical support is seen at the level of $174.82.






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