Cryptocurrency Analysis

[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]

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