Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for 24 July 2020

Crypto Industry News:
China's Supreme People's Court said the country's legal system should strengthen the protection of property rights in digital currencies.

The new Supreme Court guidelines published in the section "Strengthening judicial protection of property rights and rights to capital" state that the legal system should strengthen the protection of new types of property rights, such as digital currencies, online virtual assets and data.

While the court has not elaborated on or provided a definition of "digital currencies", the guideline comes at a time as China is experiencing an increasing number of legal disputes over the ownership of digital assets, including major cryptocurrencies such as Bitcoin and Ethereum.

Previously, legal decisions were made by provincial and municipal courts in China, where digital currencies such as Bitcoin were treated as virtual real estate. This is the first time the country's highest judicial authority has addressed this issue.

The guidelines were published by the Supreme People's Court together with the National Development and Reform Commission (NDRC).

The NDRC is China's most important economic planning agency and one of the 26 cabinet-level ministries that make up the central government, namely the Council of State.

The opinion was issued in response to earlier guidance from the State Council in May calling for acceleration of improvements in the Chinese socialist market economy. The Supreme Court's guidelines reflect the opinion of the legal system at the highest level regarding judicial services and protection.


Technical Market Outlook:
The ETH/USD pair has been continuing the impulsive wave up and made another big up candle with the high at the level of $279.74. The bears has made a local pull-back and are pushing the ETH/USD up again. The nearest technical support is seen at the level of $259.81, but the key technical support is located between the levels of $252.03 - $248.86. The momentum is still positive abd strong, so the Ethereum bulls can still attack the next target seen at the level of $288.01, which is the high from February 2020.

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

[IFX_Selena]

BTC analysis for July 23,.2020 - Breakout of the Upper Bollinger band and potential for the test of $9.750 and $10.000

Technical Analysis:


BTC has been trading upside and I found that there is the breakout of the Bollinger upper band and contraction, which is strong sign for the further upside. I see potential for test of $9,750 and $10,000.


Trading recommendation:
Watch for potential buying opportuntiies on the dips since the BTC is on the breakout mode.

The upward targets are set at the price of $9,750 and $10,000

Stochastic oscillator is is showing new momentum up, which is good sign for the further upside continaution.





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

[IFX_Selena]

Technical Analysis of ETH/USD for 23 July 2020

Crypto Industry News:
Vitalik Buterin warns that the high fees that are in force on the Ethereum network today threaten the security of the project. He called for a reform of the fee system.

The co-author of the project believes that this is a dangerous phenomenon in terms of network security:

"High fees are dangerous. The point is that miners' increasing dependence on transaction fees may encourage them to engage in selfish practices that will allow them to generate more profits. But it may increase the risk of disruptions in the processing of the transactions themselves," Buterin said.

Buterin's comment comes now as web users notice that they already have to pay transaction fees higher than 100 gwei. He himself advocates implementing the Ethereum Enhancement (EIP) 1599. This is to help reform the Ethereum fee system. This includes "burning" base charges to reduce miners' reliance on transaction tariffs.


Technical Market Outlook:
The ETH/USD pair has been continuing the impulsive wave up and made a massive up candle with the high at the level of $269.47. The bears had tested the local support located at the level of $258.91 and are pushing the ETH/USD up again. The key technical support is located between the levels of $252.03 - $248.86. The momentum is still positive abd strong, so the Ethereum bulls can still attack the technical resistance located between the level of $272.02. The key target for bulls is seen at the level of $288.01, which is the high from February 2020.

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

[IFX_Selena]

Technical Analysis of BTC/USD for 23 July 2020

Crypto Industry News:
Russia has passed a major law related to cryptocurrencies like Bitcoin today.

The State Duma - Russia's legislative body - passed a law entitled "On Digital Financial Assets" in the last third reading, reports local news agency Regnum. After initiating the bill in 2018, Russian authorities finally agreed to legal status for cryptocurrencies in preparation for the implementation of the first major part of the industry regulations.

According to a recent Duma decision, the DFA law is expected to be officially adopted in Russia on January 1, 2021. The law provides a legal definition of digital assets and legitimates cryptocurrency trading in Russia. However, it prohibits the use of cryptocurrencies such as Bitcoin as a payment method.


Technical Market Outlook:
The BTC/USD pair has broken through the key short-term technical resistance located at the level of $9,432 and made a massive up candle during the move. The local high was made at the level of $9,559, which is above the technical resistance located at the level of $9,530. Currently, the market is consolidating the recent gains around the level of $9,470. The nearest technical support is seen at the level of $9,290. If violated, the next one is located at the level of $9,202. Please notice, that bulls might continue the rally towards the level of $10,000 before any significant pull-back.

Weekly Pivot Points:
WR3 - $9,569
WR2 - $9,411
WR1 - $9,271

Weekly Pivot - $9,117
WS1 - $8,968
WS2 - $8,812
WS3 - $8,862


Trading Recommendations:
The volatility on Bitcoin has been subdued for more than two months now, so 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]

Bitcoin on the wave of a bullish trend

Greetings to crypto-newbies and experienced crypto enthusiasts!

In this article, we will break down the main bullish market signals and apply them to trading Bitcoin.

Let's start with the most significant news, cryptocurrency company Coinbase, which is the largest cryptocurrency exchange in the United States, has begun preparing a procedure for placing shares on the stock market. The procedure for listing shares is still unknown, some rumors talk about a direct placement of shares, other insiders are considering an initial public offering, the timing is also not indicated: either the end of 2020, or maybe the beginning of 2021. Most importantly, one of the most influential companies in the crypto industry enters the US market and becomes a player in the global financial arena, which will entail investors and their trust in such a new trading instrument as a crypto asset. We will receive not only new cash infusions, but a full-scale advertising campaign that can set a bullish trend for both Bitcoin and other cryptocurrencies.

Let's pay attention to the details of Coinbase: at the end of 2018, its financial estimate was made in the region of $ 8 billion, and the annual profit could be $ 1.3 billion.With the current step, we will be able to see the company's capitalization by $ 15 - $ 30 billion, which will automatically bring it 3 (third) or even 2 (second) in terms of cryptocurrency market capitalization.

The second news reflects another HYIP of money injections in the crypto industry, where the well-known ICOs and IEOs are in the spotlight, on the basis of which billions of dollars were collected, as well as the lesser known to crypto hamsters DeFi.


What is DeFi?
DeFi [Decentralized Finance] is a decentralized finance industry that refers to a system of financial applications built on top of a blockchain network. The goal of this direction is to create an open and transparent ecosystem of financial services that is accessible to everyone and works without the intervention of an outside party or any government authorities. In this case, users will have full control over their assets and interact with this ecosystem through special applications. The main advantage of DiFi is easy and secure access to financial services.

Let's pay attention to the numbers, the total amount of locked funds in DiFi projects in 3.5 months has grown fivefold (!!!), from $ 571 million to $ 2.870 billion. their crypto projects DiFi prefix - and money "flows like a river". Reminds of a similar scenario in 2016-2017, when crypto projects for fundraising talked about blockchains, and hamsters, without even thinking, brought them money.

Now the scenario is similar, it is obvious that a bubble will appear, which will eventually burst. Now there is a hype, there are cash injections into the crypto industry, the price of crypto assets will rise, which has already affected altcoins, and this will affect Bitcoin.

Analyzing the above information, comes the comprehension of our previous article "Bitcoin-WHITES have activated dormant accounts", where millions of dollars came to the movement, and everything is not just that, WHITES have already started absorbing mega-profits.




Current development and prospects
For 80 days in a row, the Bitcoin quote has been in the $ 8,500/$ 10,000 range, as if preparing the first cryptocurrency for something grand; now, we know what exactly we are being prepared for - for a bullish trend. The external background favors the crypto industry, and if nothing dramatic in the information noise happens, then the accumulation process will collapse and lead to a consistent upward movement of the BTC price sooner or later.

If we proceed from the areas of accumulation of stop orders [StopLoss], then the focus is still on the values of $8,300/$10,500, where, in the event of a breakdown of the upper boundary, we will see an avalanche-like spiral of long positions. With the current information background, such a turn will easily lead the quote to the values of $ 12,000- $ 13,000.

Be prepared that you can make very good profit in this situation, but nothing can be forever, so do not forget to fix the profit.




General background of the crypto market
Analyzing the total market capitalization of the crypto industry, you can see that trading volumes, following the BTC rate, move in a conditional sideways channel, where the total market for the current hour is $ 277 billion.

If we look at the volume graph in general terms, we can see that the amplitude boundaries are the values of $245 and $284 billion.The maximum of the current year is $ 307 billion, the subsequent resistance is in the area of the 2019 maximum, $362 billion. As for the support levels, it is worth taking figures: $245 billion, $234 billion and $132 billion.



The index of emotions (aka fear and euphoria) of the crypto market is 43 points. The index is held at a stable level above 40 points, which indicates a characteristic ambiguity, but not fear. A breakdown of the $ 10,500 border will automatically lead to market euphoria and an increase in the index to 50 points.




Indicator analysis
Analyzing different sectors of time frames (TF), it can be seen that there is a buy signal relative to four-hour, daily and weekly periods, but while the quote moves in the conditional $8,500 / $10,000 range, you should not trust the signal due to its instability.







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

[IFX_Selena]

BTC analysis for July 22,.2020 - Watch for the breakout of the Bollinger bands to confirm further direction. Breakout mode is expected

Technical Analysis:



BTCis still in trading range and the Bollinger bands contraction, which is good conditions for the breakout. Watch for the clear breakout of the upper or lower Bollinger band to confirm further direction.




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

[IFX_Selena]

Technical Analysis of BTC/USD for 22 July 2020

Crypto Industry News:
Changpeng Zhao, CEO of the Binance cryptocurrency exchange, is not sure what will bring Bitcoin back to $ 10,000, but he pointed out the token's recent stability.

In a media interview, Zhao, also known as CZ, commented on the cryptocurrency's record low volatility. Bitcoin has made very few big moves in weeks and the token remained between $ 9,000 and $ 9,500.

"I think it will explode sooner or later. But now Bitcoin was really stable. People were now calling it stablecoin," said CZ.

The president of Binance said Bitcoin was currently too closely correlated with traditional markets to be a safe haven that many investors hope for.

"The stock market is probably a thousand times bigger than the cryptocurrency market. When it goes down and many people lose a lot of money, many people who have investments in cryptocurrencies will want to convert those investments into cash." Says Zhao.

However, in the long run, the CEO of Binance says "Bitcoin's safe haven properties will become apparent over time."


Technical Market Outlook:
The BTC/USD pair has broken above the short-term trend line resistance and moved up towards the supply zone located at the level of $9,381. The momentum behind the move is strong and positive, but the Pin Bas candlestick pattern has been made at the top of the move, so the market is consolidating in a narrow range. The nearest technical support is seen at the level of $9,290. If violated, the next one is located at the level of $9,202. Please notice, that bulls might continue the rally towards the level of $9,381 - $9,431.

Weekly Pivot Points:
WR3 - $9,569
WR2 - $9,411
WR1 - $9,271

Weekly Pivot - $9,117
WS1 - $8,968
WS2 - $8,812
WS3 - $8,862


Trading Recommendations:
The volatility on Bitcoin has been subdued for more than two months now, so 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 22 July 2020

Crypto Industry News:
Mastercard is reaching out to cryptocurrency companies and encouraging them to apply for partner status as part of its newly expanded cryptocurrency card program. The company announced that it is simplifying access to its Accelerate program for cryptographic card issuers, allowing candidates to join the program as partners "within a few weeks."

The Accelerate program, now upgraded for crypto card applicants, provides partners with go-to-market support, continual growth and international expansion. The new crypto partners will be helped to integrate Mastercard's technology and will be able to benefit from the company's knowledge of cybersecurity and market research. While Mastercard is streamlining access to its program for crypto companies, it insists that all partners must adhere to its "core rules".

These include ensuring sound consumer protection (ensuring the privacy and security of users), complying with relevant laws and regulations, such as anti-money laundering laws, and establishing a level playing field for all stakeholders such as financial institutions, retailers and mobile operators.

"The cryptocurrency market is still maturing and Mastercard is driving it forward, creating a secure experience for consumers and businesses in today's digital economy."

Said Raj Dhamodharan, executive vice president of digital assets, Blockchain products and partnerships at Mastercard.

In parallel to addressing its cryptocurrency partners, Mastercard also announced that London-based crypto payment processor Wirex has become the first native cryptocurrency platform to be awarded a major Mastercard membership, allowing it to issue crypto payment cards directly.


Technical Market Outlook:
The ETH/USD pair has finally broke through the short-term trend line resistance and made a new local high at the level of $246.34. Since then the price has been consolidating around the level of $243.00. The nearest technical support is seen at the level of $241.32 and $239.33. The momentum is still positive abd strong, so the Ethereum bulls can still attack the supply zone located between the levels of $248.86 - $252.03.

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

[IFX_Selena]

BTC analysis for July 21,.2020 - Watch for the breakout of the Bollinger Contraction to confirm further direction

Technical Analysis:


BTC has been trading upwards most recently but it is still within the Bollinger bands. I would wait for the breakout of the Bollinger band contraction to confirm further direction.




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

[IFX_Selena]

Technical Analysis of ETH/USD for 21 July 2020

Crypto Industry News:
The Banque de France selected eight potential candidates to test the integration of CBDC into interbank settlements, according to an announcement published today.

The list of approved entrants includes large companies such as Accenture, HSBC, and Societe Generale, as well as smaller cryptocurrency focused players such as Seba Bank and LiquidShare.

The announcement follows a central bank's call for proposals to experiment with the digital euro it published in March. The institution announced then that it would select up to 10 applications related to CBDC, with "innovative nature" being one of the main selection criteria.

The French central bank will begin working with each of the eight players on their proposed experiments "in the coming months" to explore "new methods of exchanging financial instruments". In addition, pilot projects will try to establish how CBDCs can be distributed and used for cross-border payments.

It is worth noting that the Banque de France appears to be exploring wholesale rather than retail uses of the digital euro, which means that the CBDC has been designed according to "interbank regulation" and not for consumer purposes.

France has so far been at the forefront of European CBDC experiments. In May, it was the first country to successfully test the digital euro on Blockchain as part of an ongoing project with Societe Generale.

While it is unclear whether the French CBDC experiments will ever be adopted on an EU scale, a central bank was recently selected to represent the Eurosystem along with the Deutsche Bundesbank in the global BIS Innovation Hub of the Bank for International Settlements.


Technical Market Outlook:
The ETH/USD pair has been capped again at the short-term trend line resistance around the level of $240 and made a local low at the level of $233.68. 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