Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for 09 October 2020

Crypto Industry News:
Customers of the world-renowned car manufacturer will soon be able to receive blockchain tokens as rewards under a new program called BMW Vantage. Media reported today that BMW Korea is the first BMW Group subsidiary to test the new program and intends to fully introduce it in the country by the end of 2020.

The points-based rewards program uses blockchain technology to securely allocate and track customer tokens. People who buy new BMW models for the first time can receive between 300,000 and 500,000 points. Buyers of existing vehicles such as the X1, X2, BMW 1 and 2 Series could receive up to 600,000, and buyers of new BMW 5 Series or BMW 6 cars up to 900,000. For BMW buy-backs, customers will receive bonus points based on vehicle prices.

Buying BMW cars is not the only way to earn points. BMW Korea has released an application with games and social functions, thanks to which users can also earn contributions. Basically, the point system will aim to provide loyal users with discounts on car servicing and other BMW services. People with more points in the program are promised invitations to cultural events organized by BMW

In recent years, BMW has used blockchain solutions for both customer service and business-to-business operations. As a co-founder of the Mobility Open Blockchain Initiative, the manufacturer has collaborated with established blockchain developers and technology companies such as Hyperledger, IBM and IOTA.

In March, BMW announced plans to roll out its PartChain supply chain solution to 10 suppliers later this year.

Already in 2018, the car manufacturer experimented with a tokenized reward system to encourage drivers to track the mileage of leased vehicles.


Technical Market Outlook:
After the ETH/USD pair made a Pin Bar candlestick at the end of the recent down wave, it continued to move higher towards the technical resistance located at the level of $355.60. If this local technical resistance is not clearly broken, then the down move should resume and head towards the next target seen at the level of $322.87 - $321.95. The momentum remains negative and might accelerate down if the sell-off starts. Please keep an eye on the intraday technical support seen at the level of $342.30.

Weekly Pivot Points:
WR3 - $403.75
WR2 - $387.38
WR1 - $368.10

Weekly Pivot - $351.05
WS1 - $333.15
WS2 - $315.51
WS3 - $296.13


Trading Recommendations:
The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. The key mid-term technical support is currently seen at the level of $305.20 - $321.95, so all the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 09 October 2020

Crypto Industry News:
According to a landmark decision released on Tuesday by the UK's Financial Conduct Authority, companies in the country will no longer be able to offer retail clients cryptocurrency derivative products such as futures, options and stock quotes.

The decision came almost exactly a year after the regulator first proposed to ban these products. In a statement issued by the FCA, he stated that cryptocurrency derivatives are:

"(...) Inappropriate for retail consumers because of the damage they cause."

Several more specific reasons were given, including concerns that "they do not have a reliable basis for valuation", are subject to fraud and financial crime, and are extremely volatile. Other themes cited include "insufficient understanding of cryptocurrencies by retail consumers" and the claim that retail investors do not have a "legitimate investment need" for these products.

The ban will take effect on January 6, 2021, and the regulator has warned that "because the sale of derivatives and ETNs that refer to certain types of cryptocurrencies is currently banned, and any company offering these services to retail consumers is likely a scam."

"This ban reflects how seriously we take the potential harm to retail consumers associated with these products. Consumer protection is paramount here."

One of the companies most affected by the ban will be CoinShares, which last year ran a campaign to persuade the regulator to drop its plans. CoinShares offers ETN and other types of crypto products targeting traditional markets.


Technical Market Outlook:
The BTC/USD pair has suddenly spiked up towards the level of $10,890 and was stopped at the level of $10,909. This level is the target of 1:1 market geometry of the last wave up and the whole structure was made in three waves only, so the recent dynamic spike up looks very corrective in nature. Any violation of the level of $10,760 will confirm the correction is terminated and the market returns to the horizontal trend. The key short term technical resistance is seen at the level of $10,940.

Weekly Pivot Points:
WR3 - $11,471
WR2 - $11,178
WR1 - $10,858

Weekly Pivot - $10,602
WS1 - $10,300
WS2 - $10,024
WS3 - $9,715


Trading Recommendations:
The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,000.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 08 October 2020

Crypto Industry News:
It is said that 150,000 Bitcoins from Mt. The Gox may hit the market on October 15. However, a number of factors suggest that this is unlikely given past events. In 2011-2013, Mt. Gox lost 850,000 BTC in the biggest hacker attack in Bitcoin history.

However, there are many hurdles that must be overcome before a refund can be made. The process has been consistently delayed since 2019, and returns are unlikely to happen any time soon.

On June 30, the trustee of Mt. Gox posted a statement on the official website of Mtgox.com, where it said the Tokyo District Court had extended the deadline to October 15. Based on this document, some investors have suggested that it could cause a movement of 150,000 BTC, potentially shaking the market.

However, there are two key reasons why the trustee would not want to transfer Bitcoin anytime soon. First, the extension concerns the submission of a rehabilitation plan, not the return of BTC. Simply put, October 15 sets the trustee to present the plan, not to reimburse the investors. Second, the trustee has continuously requested an extension over the past year. An identical statement was issued in March 2020 and April 2019, and the deadlines were extended.

October 15 is not an actual reimbursement deadline for users, and the trustee has delayed this process several times in the past. Based on these two factors, it's safe to assume that 150,000 BTC from Mt. The Gox trustee will not hit the markets in the short term.


Technical Market Outlook:
The BTC/USD pair has bounced from the local low made at the level of $10,495 and retraced 50% of the last spike down. Nevertheless, the supply side had capped the bounce around the level of $10,623 and currently the market is again moving downward. The next technical support is seen at the level of $10,430 and $10,344. If the yesterday's low is violated, then the sell-off might accelerate again. The level of $10,758 is now the local high and it is the key level for bulls and the level of $10,093 is the key level for bears.

Weekly Pivot Points:
WR3 - $11,471
WR2 - $11,178
WR1 - $10,858

Weekly Pivot - $10,602
WS1 - $10,300
WS2 - $10,024
WS3 - $9,715


Trading Recommendations:
The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,000.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 08 October 2020

Crypto Industry News:
The amount of computing power in the Ethereum network is currently at the level of the new ATH. According to Glassnode, on October 6 the hashrate on the Ethereum network reached a record level of over 250 TH / s. This means an increase of 80% from the beginning of the year. According to Glassnode, the boom in decentralized finance (DeFi) contributed mainly to the growth of hashrate.

Interestingly, data from the F2Pool mining pool shows that mining Ethereum (ETH) is currently up to three times more profitable than Bitcoin (BTC).

Hashrate is a key metric in determining blockchain security. It measures the computing power of the network. The last time Ethereum hashrate was close to ATH in August 2018, when the metric reached 246 TH / s.

The rapid growth of DeFi, coupled with the rapid growth of stablecoins, has pushed Ethereum's transaction fees to record levels. Data from Glassnode shows that Ethereum miners in September earned $ 166 million from transaction fees alone. BTC miners over the same period of time made only $ 26 million.


Technical Market Outlook:
After the ETH/USD pair made a Pin Bar candlestick at the end of the recent down wave, it bounced towards the level of $345.20, but did not make it and start to consolidate in a narrow range. If this local technical resistance is not clearly broken, then the down move should resume and head towards the next target seen at the level of $322.87 - $321.95. The momentum remains negative and might accelerate down if the sell-off starts.

Weekly Pivot Points:
WR3 - $403.75
WR2 - $387.38
WR1 - $368.10

Weekly Pivot - $351.05
WS1 - $333.15
WS2 - $315.51
WS3 - $296.13


Trading Recommendations:
The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. The key mid-term technical support is currently seen at the level of $305.20 - $321.95, so all the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500.






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

[IFX_Selena]

BTC analysis for October 07,.2020 -Contraction on the BTC. Watch for the breakout to confirm further direction

Further Development


Analyzing the current trading chart of BTC, I found that my idea from yesterday is still active.

I see well developed symmetrical triangle and my advice is to watch for the breakout to confirm further direction...

The upside breakout of resistance at the price of $10,800 might confirm test of $11,090 and $12,000

The downside breakout of support at the price of $10,370 might confirm further downside movement towards $9,815 and $8,975


Key Levels:

Resistance: $10,800

Support level: $10,370





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

[IFX_Selena]

Technical Analysis of ETH/USD for 07 October 2020

Crypto Industry News:
According to a recent SEC disclosure by the Greyscale Ethereum Trust, or ETHE, Ethereum's impending shift to proof-of-stake consensus is a risk that could have a "material adverse effect" on its stock.

ETHE has recently applied to the regulator to become a SEC reporting company. Such companies are required to discuss risk factors that may adversely affect their results in all quarterly and annual reports.

In one section, which aims to outline the potential threats to the fund's future, it was noted that upgrading to ETH 2.0 may cause some difficulties for investors:

"The digital asset network's consensus mechanism is an essential aspect of its source code, and any failure to properly implement such a change could have a significant negative impact on the ETH value."

The report mentions that the inability to properly implement these changes may result in a temporary or permanent bifurcation which could have a negative impact on ETHE's stock.

It seems that the upcoming modernization so far does not diminish investors' interest in the fund. On the contrary, the assets of the Trust it manages have grown exponentially over the past year, from $ 67 million to over $ 800 million at the time of publication.


Technical Market Outlook:
The ETH/USD pair had failed to break through the 61% Fibonacci retracement of the last wave down and suddenly reversed all the previous gains. The local trend line support had been violated as well and the pair made a new local low seen at the level of $332.46. There was some Pin Bar candlestick made at the end of the move down, so a small bounce is possible up to the level of $345.20. If this local technical resistance is not clearly broken, then the down move should resume and head towards the next target seen at the level of $322.87 - $321.95.

Weekly Pivot Points:
WR3 - $403.75
WR2 - $387.38
WR1 - $368.10

Weekly Pivot - $351.05
WS1 - $333.15
WS2 - $315.51
WS3 - $296.13


Trading Recommendations:
The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. The key mid-term technical support is currently seen at the level of $305.20 - $321.95, so all the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 07 October 2020

Crypto Industry News:
More than 45,000 Bitcoins have been withdrawn from BitMex since the U.S. government filed allegations against the stock exchange and its management. October 1 brought two devastating blows from BitMex. First, the CFTC and DOJ brought charges against the stock exchange. Soon after, its founders (including CEO Arthur Hayes) were indicted by the US government. The market reacted to this news with a sharp drop in many of its largest assets.

This is not the first time in recent months that BitMex has contributed to a downward return. The stock market began to lose trust of its participants after the Black Thursday crash that prevented users from trading or recovering their assets. While users have withdrawn more than 100,000 Bitcoins in the six months between this episode and the latest allegations, the effects of the past two days appear to be unprecedented in scale.

According to Crystal Blockchain data, in less than 48 hours the net outflows from the exchange exceeded 45,000 Bitcoins. Meanwhile, Gemini and Binance appear to be the biggest beneficiaries of these outflows, which OKEx and Huobi are following. Over 20,000 BTC have been transferred from BitMex to these four exchanges.

It is unclear whether BitMex will disappear into the abyss of time like many previous failed exchanges, or whether the company will survive. Lance Morginn, CEO of Blockchain Intelligence Group and former Specialist Oversight Agent of the Department of Homeland Security, said the most likely outcome would be fines and a promise from BitMex management not to engage in illegal activities in the future.


Technical Market Outlook:
The BTC/USD pair has broke below the short-term trend line support at the H4 time frame chart around the level of $10,701 and made a local low at the level of $10,490. The next technical support is seen at the level of $10,430 and $10,344. If the yesterday's low is violated, then the sell-off might accelerate again. The level of $10,758 is now the local high and it is the key level for bulls and the level of $10,093 is the key level for bears.

Weekly Pivot Points:
WR3 - $11,471
WR2 - $11,178
WR1 - $10,858

Weekly Pivot - $10,602
WS1 - $10,300
WS2 - $10,024
WS3 - $9,715


Trading Recommendations:
The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,000.






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

[IFX_Selena]

BTC analysis for October 06,.2020 - Watch for the breakout of symmetrical triangle to confirm further direction

Further Development


Analyzing the current trading chart of BTC, I found that the BTC is still in big contraction and that there is symmetrical triangle completed.


Key Levels:

Resistance: $10,950

Support level: $10,360




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

[IFX_Selena]

Technical Analysis of ETH/USD for 06 October 2020

Crypto Industry News:
More than half of all exchanges in the world have poor KYC identification protocols - with exchanges in Europe, the United States and the UK, according to a new study from blockchain analytics firm CipherTrace

CipherTrace has analyzed over 800 decentralized, centralized and automated exchanges and found that 56% of them do not comply with the KYC guidelines at all, despite AML anti-money laundering regulations. Most of these exchanges are in Europe, a region known for its stricter regulations. However, 60% of European virtual resource service providers have inappropriate KYC practices.

The US, UK and Russia are the three countries with the most exchanges with a weak KYC. Singapore is also at the top of the pack when it comes to VASP numbers. The research found that many exchanges do not bother to list the country of origin on their website. This seems purposeful as 85% of these exchanges had a poor KYC framework. This means that some exchanges hide their jurisdictions to avoid having to register or comply with AML regulations.

The report notes that 70% of exchanges registered in the Seychelles have poor KYC standards, making this small island a breeding ground for potential money laundering people.

The study also analyzed 21 DEX and found that as many as 81% of people used KYC practices that were weak or not knowing their client. However, DEX is not necessarily a good place for money laundering. CipherTrace noted that while the $ 7.9 million of cryptocurrency stolen during the KuCoin hack was sold on the decentralized Uniswap exchange, it was not laundered there.


Technical Market Outlook:
The ETH/USD pair keeps moving higher and is currently approaching the 61% Fibonacci retracement of the last wave down. This level is seen at $356.34 and if violated, the road to the level of $362.60 and $369.37 is open. The momentum is positive, but not that strong, so the move up might take some time. The immediate technical support is seen at the level of $345.40.

Weekly Pivot Points:
WR3 - $403.75
WR2 - $387.38
WR1 - $368.10

Weekly Pivot - $351.05
WS1 - $333.15
WS2 - $315.51
WS3 - $296.13


Trading Recommendations:
The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. The key mid-term technical support is currently seen at the level of $305.20 - $321.95, so all the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 06 October 2020

Crypto Industry News:
According to the BTCparsers bot, which monitors the Bitcoin blockchain, someone transferred 50 BTC inside the network that had been dug back in the Satoshi Nakamoto era - in 2010 to be exact.

According to media reports, a similar incident took place on May 20, when 50 BTC was transferred from a wallet that had been intact since February 2009. This rare transaction can be feared by investors. Since someone of the earliest early adopters decided to start their coins, there is a risk that they will throw huge amounts of cryptocurrencies into the market. This would lead to market drops.

The last such move, reported by the authors of BTCparsers, took place on October 2, so theoretically, it could have additionally fueled the latest price correction. But at the same time, concerns about the BitMEX scandal or about Donald Trump's COVID-19 appeared on the market.

Traffic in the blockchan at such an old address led to speculation that it was Satoshi Nakamoto himself who began to cash his fortune. In the end, it was later found that the address was not part of the so-called "Patoshi's" blocks, which researchers believe in the fate of the Bitcoin wizard were excavated by the creator of the cryptocurrency.

Satoshi is believed to own (assuming he is no longer alive) around 1 million BTC. This would currently make a fortune of about $ 10.5 billion.


Technical Market Outlook:
The BTC/USD pair has been broken above the level of $10,679, which was the 61% Fibonacci retracement of the last wave down. As long as the short-term trend line support (marked as black dash line on the chart) is not clearly violated, there is a chance for the market to continue to move higher. The key level here is $10, 697 - it can not be violated. The next target for bulls is seen at the level of $10,890, which is the last swing high. On the other hand, the nearest technical support is seen at the level of $10,586 and $10,547.

Weekly Pivot Points:
WR3 - $11,471
WR2 - $11,178
WR1 - $10,858

Weekly Pivot - $10,602
WS1 - $10,300
WS2 - $10,024
WS3 - $9,715


Trading Recommendations:
The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,000.






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