Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for 28 December 2020

Crypto Industry News:
The Israeli Tax Office (ITA) reportedly sent notifications to dozens of Israelis who own digital currencies, asking them to fully disclose their assets and tax them accordingly. In addition to sending letters to local residents, the tax authority also sent inquiries to cryptocurrency exchanges operating in Israel and abroad.

Reports of notices and inquiries sent by the ITA were preceded by speculation in the Israeli media that tax appraisers across the country were exerting "pressure on the digital currency market." However, as the media now reports, ITA wants to "obtain information about Israeli currency trading." Before sending notifications and inquiries to cryptocurrency exchanges, the Israeli tax office received "data on European funds and accounts held by Israelis."

Israel receives these data in accordance with the provisions of the "EU Common Reporting Standards (CRS) for the automatic exchange of financial information". It has reportedly been reported that the Israeli tax office has different arrangements with its counterpart in the United States, with additional information coming from the FATCA agreement, which transfers US IRS data to Israel.

Before the recent interest in taxing cryptocurrency holders, the ITA published its position on cryptocurrencies in 2018. According to a published document, Israeli "investors in digital currencies are subject to a 25% capital gains tax as long as their activities do not turn into a commercial venture". However, in the event that this becomes a commercial activity, "landlords will be charged a two-tier corporate or marginal tax according to their individual tax brackets."


Technical Market Outlook:
The BETH/USD pair continues the up trend and after the pull-back towards the level of $550 (low at the level of $553.51), the market bounces back up again. The recent high was made at the level of $726. There is no sign of a trend reversal and the next target for bulls is seen at the level of $745.60 (50% Fibonacci retracement on the weekly time frame chart). The intraday support is seen at the levels of $700 and $673. The strong and positive momentum supports the short-term bullish outlook for Ethereum.

Weekly Pivot Points:
WR3 - $907.99
WR2 - $803.63
WR1 - $751.04

Weekly Pivot - $647.44
WS1 - $590.99
WS2 - $493.57
WS3 - $441.00


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $800, so any correction or local pull-back should be used to open the buy orders. Nevertheless, the momentum has decreased recently on the lower time frames and volatility is not that great either. This scenario is valid as long as the level of $500 is broken.





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

[IFX_Selena]

Technical Analysis of BTC/USD for 28 December 2020

Crypto Industry News:
Nouriel Roubini believes future US president Joe Biden will go much further than Donald Trump in controlling cryptocurrency. In a heated debate on Twitter on December 24, Roubini, who is known for both his aversion to cryptocurrencies and his ability to misjudge the bottom of the market, called the sector a "cesspool."

Roubini responded to Jake Chervinsky, a lawyer investigating the effects of recent news, where US lawmakers demanded stablecoin payments to be implemented in a chain of anti-money laundering and customer identification (AML / KYC) processes.

Czerwinski argued that this idea now has "exactly zero chance" to become an enforceable law. Rather, he represented the "personal views" of Steven Mnuchin, the treasury secretary under Trump, who was soon replaced by Biden's chosen one, Janet Yellen.

Biden's team, starting with Yellen who was my boss at CEA, will crack down on tax fraud and AML-KYC-TFC scams in cryptocurrency / shitcoin cesspools, much more so than Mnuchin.

Cryptocurrency skeptics were reinforced this week by news that the US regulator, the Securities and Exchange Commission, has decided to file a lawsuit against the Ripple blockchain payment network. The largest investor in the fourth-largest cryptocurrency, XRP, Ripple, saw a 60 percent decline in token value after the news went public.

At the same time, commentators noted that Bitcoin has barely responded to the legal challenge. However, in the long term, research has shown that many remain concerned about the possible impact of government bans on Bitcoin's success.


Technical Market Outlook:
The BTC/USD pair continues the up trend and recently hit the level of $28,183. After the pull-back towards the level of $26,000 (low at the level of $25,783), the market bounces back up again. There is no sign of a trend reversal and the next target for bulls is seen at the level of $30,000. The intraday support is seen at the levels of $27,000 and $26,000. The strong and positive momentum supports the short-term bullish outlook for Bitcoin.

Weekly Pivot Points:
WR3 - $35,468
WR2 - $31,807
WR1 - $29,313

Weekly Pivot - $25,209
WS1 - $23,706
WS2 - $19,294
WS3 - $16,598


Trading Recommendations:
Bitcoin made another ATH and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $30,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $20,000 is clearly broken.





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

[IFX_Selena]

BTC analysis for December 23,.2020 - First target at the price of $24.170 has been reached, Potential test of next target at $25.800

Further Development


Analyzing the current trading chart of BTC, I found that BTC tested our first upside target from yesterday at the price of $24,170.

Anyway, I still expect upside continuation and the confirmation will happen if the BTC breaks the resistance at $24,085.


Key Levels:

Resistances: $24,170

Support levels: $22,400



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

[IFX_Selena]

Technical Analysis of ETH/USD for 23 December 2020

Crypto Industry News:
Riot Blockchain, a Nasdaq-listed cryptocurrency mining company, has signed another purchase agreement with the Chinese mining giant Bitmain. Riot has bought 15,000 Antminers. The company expects the purchase to increase their total hash rate by 65%.

The purchase cost $ 35 million. 3000 Antminer S19 Pro and 12000 Antminer S19j Pro were purchased. Riot blockchain expects to receive and deploy new excavators between May 2021 and October 2021.

With this latest purchase, Riot is further expanding its bitmain range of machines. With over 37,000 miners fully deployed, Riot estimates that the hash rate will increase from 2.3 EH / s to 3.8 EH / s. The energy consumption is estimated at around 120 megawatts of energy.

Bitmain consistently delivers its latest Antminers to Riot Blockchain as part of an affiliate agreement. In October 2020, the companies signed a contract to deliver 2,500 Antminer S19 Pro. These were the next contracts, apart from orders from the previous batch of 5,100 units and another for 8,000 devices from September.


Technical Market Outlook:
The ETH/USD pair had made a Pin Bar candle at the top of the rally at $673.52 at the H4 time frame chart, so now the local pull-back is in progress. The bears have managed to push the price to the level of $592.93 before the bounce towards $632. The momentum has declined and is currently below the level of fifty, so the sentiment had changed to negative. This means the bulls might not attack the level of $700 again soon, because the corrective cycle has not been completed yet. The next technical resistance is seen at the level of $673.52 and the technical support is located at $600 and $620.52.

Weekly Pivot Points:
WR3 - $777.02
WR2 - $722.62
WR1 - $678.76

Weekly Pivot - $626.41
WS1 - $580.02
WS2 - $527.98
WS3 - $482.35


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $700, so any correction or local pull-back should be used to open the buy orders. Nevertheless, the momentum has decreased recently on the lower time frames and volatility is not that great either. The bulls has hit the 38% Fibonacci retracement located at the level of $587.87 on the weekly time frame chart, but the current up trend is still active. This scenario is valid as long as the level of $360 is broken.





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

[IFX_Selena]

Technical Analysis of BTC/USD for 23 December 2020

Crypto Industry News:
U.S. Treasury Secretary Steven Mnuchin recently rejected a proposal whereby exchanges and crypto platforms verify the identity of customers exporting digital assets to self-service wallets. The cryptocurrency exchange OKCoin noted that this proposal would create additional work for the exchanges.

After the initial review of the FinCen [Financial Crimes Enforcement Network] proposal as well as the wallet verification requirements, I think the proposal to extend the CTR requirement to cryptocurrency exchanges and the need to collect the recipient's physical address would mean additional work for the exchanges.

Rumors of potential new cryptocurrency wallet regulations circulated the cryptocurrency space for several weeks before Mnuchin finally dropped the bomb on December 18, before his expected departure from office. This is just a proposal at this stage, the new regulation would require the identification of information about sites sending cryptocurrencies in excess of $ 3,000 to an independent wallet. If it is transferred between exchanges, the limit increases to $ 10,000. Industry websites have 15 days to comment on the proposal.

However, the proposal did not turn out to be as paralyzing as initially rumored. Prior to its release, many US congressmen spoke out against potential details of the legislation that included a whitelist of allowed addresses not included in the proposal.


Technical Market Outlook:
The BTC/USD pair has keeps trading around the short-term technical resistance and ATH seen at the level of $24,000. The momentum is still strong and positive, so the next target for bulls is seen at the level of $25,000. There is no indication of trend reversal on daily and weekly time frame. The key short-term technical support is seen at the level of $23,000 and $21,858.

Weekly Pivot Points:
WR3 - $31,175
WR2 - $27,625
WR1 - $25,844

Weekly Pivot - $22,429
WS1 - $20,661
WS2 - $17,171
WS3 - $15,431


Trading Recommendations:
Bitcoin made another ATH and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $30,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $20,000 is clearly broken.






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

[IFX_Selena]

BTC analysis for December 22,.2020 - Rejection of the main pivbot at $23.400 and potential for rise towards $24.125

Further Development


Analyzing the current trading chart of BTC, I found that there was the selling climax from yesterday and successful test on lower volume, which is sign for the further rise.

My advice is to watch for buying opportunities with the upside target at $21,122

The trend still bullish with no evidence of any reversal yet...

Additionally, there was the hidden divergence on the Stochastic oscillator, which is good confirmation for the rise...


Key Levels:

Resistance: $24,125

Support level: $23,400




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

[IFX_Selena]

Technical Analysis of BTC/USD for 22 December 2020

Crypto Industry News:
VTB, the second largest bank in Russia after Sberbank, has piloted a new blockchain-based system for issuing bank guarantees. According to an official announcement last Wednesday, VTB has issued a blockchain-enabled bank guarantee to the country's largest mobile operator, MTS.

As part of the development, the bank issued MTS a guarantee of payment obligations worth 392 million rubles, or 5 million dollars. The commercial operation implemented Masterchain, an Ethereum-based blockchain prototype backed by the Russian central bank.

The parties finalized the transaction in real time and VTB issued a digital guarantee signed with an enhanced qualified signature. The MTS then approved the document by sending the appropriate notification to the bank.

Vadim Kulik, vice president and president of the board of VTB, said that the new integration allows the bank to speed up the process of issuing guarantees and significantly reduces paperwork. He noted that the implementation of blockchain also eliminates the risk of fraud related to bank guarantees.

Alexander Smirnov, Director of Corporate Finance at MTS, stressed that the Masterchain-based bank guarantee system will also reduce operating costs and increase competition between participating banks.

Introduced in 2016, Masterchain is known to be Russia's first certified blockchain platform to use local cryptographic data protection methods. The platform was developed by the Russian Fintech Association together with the Bank of Russia and major financial players such as Sberbank, Alfa-Bank, Tinkoff Bank and Qiwi. VTB's efforts to introduce blockchain-based guarantees are popping up among many major Russian banks actively researching blockchain technology.

Earlier in December, Alfa-Bank, one of the largest private commercial banks in Russia, announced a blockchain-based project to automate services for freelancers. In September, Sberbank - the country's largest state-owned bank - joined a blockchain-based platform to finance commodity trading through a Swiss subsidiary.


Technical Market Outlook:
The BTC/USD pair has moved below the level of $22,000 and made a local low at the level of $21,858 during the pull-back. Since then the market keeps trading around the short-term technical resistance seen at the level of $23,000. The momentum is still strong and positive, so the next target for bulls is seen at the level of $25,000. There is no indication of trend reversal on daily and weekly time frame. The key short-term technical support is seen at the level of $22,000 and $21,858.

Weekly Pivot Points:
WR3 - $31,175
WR2 - $27,625
WR1 - $25,844

Weekly Pivot - $22,429
WS1 - $20,661
WS2 - $17,171
WS3 - $15,431


Trading Recommendations:
Bitcoin made another ATH and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $30,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $20,000 is clearly broken.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 22 December 2020

Crypto Industry News:
While users affected by Ledger data dump threaten legal action, some wallet owners may be at risk of being visited by criminals. Moreover, some users started receiving threatening emails asking for $ 500. However, if they do not follow these guidelines, they may be attacked in their homes.

This situation opens up another risk factor for Ledger users whose private information has been exposed by the hacker. In addition to the home invasion, the affected Ledger owners also have to deal with phishing and SIM replacement exploits, among others.

Actual Bitcoin-related attacks are not uncommon, especially when the victim is known to be the holder of a popular cryptocurrency. In September 2019, a Norwegian millionaire was reportedly forced to jump off a second-floor balcony in order to escape with armed robbers.

Ledger ledger dump also provides a clear relief from the dangers of centralized customer data storage. In the meantime, the US government is striving for tighter compliance with Know Your Customer principles for unsecured wallet owners.


Technical Market Outlook:
The ETH/USD pair had made a Pin Bar candle at the top of the rally at $673.52 at the H4 time frame chart, so now the local pull-back is in progress. The bearish have managed to push the price to the level of $592.93 before the bounce. The momentum has declined, but is still strong and positive at the higher time frame, so the bulls might attack the level of $700 again soon. The next technical resistance is seen at the level of $673.52 and the technical support is located at $635.46 and $620.52.

Weekly Pivot Points:
WR3 - $777.02
WR2 - $722.62
WR1 - $678.76

Weekly Pivot - $626.41
WS1 - $580.02
WS2 - $527.98
WS3 - $482.35


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $700, so any correction or local pull-back should be used to open the buy orders. Nevertheless, the momentum has decreased recently on the lower time frames and volatility is not that great either. The bulls has hit the 38% Fibonacci retracement located at the level of $587.87 on the weekly time frame chart, but the current up trend is still active. This scenario is valid as long as the level of $360 is broken.






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

[IFX_Selena]

BTC analysis for December 21,.2020 - Rejection of the pivot level at $22.340

Technical Analysis



BTC has been trading downwards today but the sellers found strong pivot level at $22,340, which is good sign that there is potential for the upside recovery.

The trend is still bullish and the support at the price of $22,340looks like the nice pivot level for further rise (previous swing lowon daily).

My advice is to watch for buying opportunities on the dips with the upside target at $24,050

Support level: $22,340

Resistance levels: 24,050




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

[IFX_Selena]

Technical Analysis of BTC/USD for 21 December 2020

Crypto Industry News:
In a published announcement, FinCEN announced proposed regulations requiring registered cryptocurrency exchanges to verify "the identity of their clients" if a counterparty is using an unhosted or otherwise secured wallet and the transaction exceeds $ 3,000.

The recipe is currently only a suggestion. The Treasury gave interested parties 15 days to reply with comments. Rumors about the proposed rule changes have been circulating for a month.

"This provision addresses serious national security concerns in the CVC market and aims to fill the gaps that malicious actors are trying to exploit in the record keeping and reporting system," said Steven Mnuchin.

Many leading lawmakers have already opposed the proposed change, which many see as an attack on the nature of peer-to-peer transactions. However, in the absence of a formal law, the Treasury has considerable regulatory power in this area.

That said, the current proposal is not as radical as some feared. Instead, the existing requirements for storing transaction reports - the $ 3,000 threshold for the so-called Travel Rule - to registered entities that interact with self-hosted wallets.


Technical Market Outlook:
The BTC/USD pair has been trading around the level of $24,000 for all the weekend. The local pull-backs were made down to $23,000 and then quickly reversed. The momentum is still strong and positive, so the next target for bulls is seen at the level of $25,000. There is no indication of trend reversal on daily and weekly time frame. The technical support is seen at the level of $23,000 and $22,000.

Weekly Pivot Points:
WR3 - $31,175
WR2 - $27,625
WR1 - $25,844

Weekly Pivot - $22,429
WS1 - $20,661
WS2 - $17,171
WS3 - $15,431


Trading Recommendations:
Bitcoin made another ATH and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $30,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $20,000 is clearly broken.





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