Cryptocurrency Analysis

[IFX_Selena]

Polkadot: Not having time to celebrate yesterday's record price mark, DOT swung to new all-time highs




Polkadot is one of the most discussed and desired crypto assets for investors. Its fundamental features and innovativeness allow the crypto asset to take a swing at new historical highs.

Well-known analyst Michael Van De Poppe said that Polkadot has very good prospects for a long bull run, and it will be able to grow to $75 by the end of the 4th quarter of this year if the current levels remain the same and there are no breakouts and corrections.

Yesterday, Polkadot reached its all-time high and was trading at $50.87.

Polkadot (DOT) is already ready to launch parachains in the near future, which is the reason that the price of the token has reached a record high, and will also grow further after the launch of the parachain.

Analysts are confident that if investors want to seriously invest in Polkadot, then they should wait for a local correction to the level of $45, and then to $43 - these two levels are the key levels that can be viewed for entry for institutional investors.

Today Polkadot is trading at $48.7, it has fallen by more than 10% in a day. The coin is steadily moving towards profitable entry points for many investors.

It is also known that this upward movement of the crypto asset is associated with the resolution of the registration of parachains. Now this decision will be put to a public referendum.

If this decision is approved at this referendum, then parachain-startart will be able to register their parachain and open crowdsames on November 4.

Back in early October, the developers announced that investors will be able to trade parachains for the first time, and the long-awaited first auction takes place on November 11.

Now many competing startups can use this crowdsourcing loan method to obtain funding in Dot tokens to launch their blockchain auctions.

Moonbeam is a platform that is compatible with the Ethereum virtual machine, this platform allows developers to transfer their code from Ethereum to Polkadot without any problems.






Vitaly Kolesnikov
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Major crypto market news for November 2, 2021



STEVE WOZNIAK CONSIDERS BITCOIN A "MATHEMATICAL MIRACLE."

One of the founders of Apple, Steve Wozniak, openly stated that he believes in bitcoin and is optimistic about how the world's first cryptocurrency is developing. Wozniak also noted that he himself does not own bitcoin, but believes that it will continue to gain popularity around the world, as Apple products did at the time.

Bitcoin, according to Wozniak, is a pure mathematical miracle that cannot be influenced by people. "Look at the US dollar! The government and the Fed can print dollars in unlimited quantities, borrow huge amounts, inflate the money supply, provoke an increase in inflation and currency depreciation. But bitcoin is purity, from a mathematical point of view. You can't print new bitcoins," he said in an interview with Yahoo Finance.

Wozniak also noted that nowadays there are a huge number of digital ways to make a payment for a product or service. Bitcoin is just one of them, and just a little more anonymous than the others. On the other hand, a person does not have to report to the whole world if he has made any purchase. "It is very difficult to track the cryptocurrency," Wozniak believes.

Also, the co-founder of Apple said that bitcoin is "better than gold." "Gold needs to be searched for, gold needs to be mined, and bitcoin already exists and it will no longer be in quantity," he stressed.


AN UNKNOWN ATTACKER TRIED TO ASSIGN SOMEONE ELSE'S BITCOINS UNDER THE NAME OF ELON MUSK.

Various scammers continue to get involved with the bitcoin cryptocurrency. This time, it does not apply to the cryptocurrency itself, but to persons who are somehow connected with it. According to the crypto enthusiast and Tesla CEO Elon Musk, as far as cryptocurrencies are concerned, many believe and are ready to conduct trade transactions if he [Musk] gives out his opinion or interesting information.

This was used by an attacker from Egypt, who registered a Facebook page under the name of Elon Musk, and the social network itself verified it, adding trust to it. Immediately after that, the attacker asked to send each of his subscribers $1,000 in bitcoins to his account in order to receive $2,000 back by the evening.




Bitcoin has stopped increasing in the last few weeks, but yesterday, it attempted to resume building an upward trend section. The picture below shows that the current upward section of the trend does not cause any doubts.

However, its internal wave counting raises very big questions. The three-wave upward trend is visible to the naked eye, but it is not completely clear what the numbering of these waves is. The construction of a new upward trend section began from the period when bitcoin was between $30,000 and $40,000 for a couple of months.

At this time, several small corrective waves were built, and now the wave from June 22 can be interpreted as the first of a new upward trend segment, or maybe as the last of a downward correction. If we assume that it is not a wave in the composition of the current upward trend, then its first wave is the increase of the instrument between July 20 and September 7. And in this case, bitcoin can easily transform the entire section of the trend into a five-wave one, and the last fifth wave can turn out to be proportional to the first and third waves. That is, to have a length of $23,000-27,000. And it hasn't even started its formation yet.





Chin Zhao
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Short-term analysis on Bitcoin.


Bitcoin is trading at $63,000 having broken above the horizontal resistance of $62,400. Price has started making higher highs and higher lows in the 4 hour chart. This is an important step in order to build up the next upward move. Bulls need to defend $59,700-$60,000 price level.



Black lines - Fibonacci retracement

Red rectangle -horizontal resistance

Bitcoin is climbing higher. Will this be a lower high? Resistance is at $63,380 and next at $64,900. A rejection at any of these levels will be a sign of weakness. Short-term trend is reversing to bullish as price has started making higher highs. Failure to hold above $59,700-$60,000 will signal another trend reversal back to bearish and will imply that our next target should be below the $57,700 lows.






Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin: Encouraging Statistics and Technical Uncertainty


The approval of the Bitcoin ETF, as expected, has ushered in a record flow of institutional money into investment products based on the main cryptocurrency. The total value of bitcoin assets has reached $53 billion.


BILLION-DOLLAR INVESTMENT INFLOW INTO THE CRYPTO MARKET - THE RESULT OF UPTOBER

Over the last week of October, institutional inflows into Bitcoin totaled $269 million. In general, during this period, the volume of investments in crypto products reached $288 million. And if we take into account the entire time of the bullish period, including before the appearance of funds, then the investments of institutions are measured in billions of dollars.


OF ALL CRYPTOCURRENCIES, INVESTORS CHOOSE BITCOIN

A recent report from CoinShares on Digital Asset Fund Flows highlights that Bitcoin remains the preferred choice for large institutional investments. In the first 10 months of 2021, BTC investment products received $6.3 billion. It should be noted that this is already 30% higher than in 2020.

In terms of market capitalization, Bitcoin retains its dominant position and remains the preferred crypto asset for large market participants. And the total value of global crypto assets under management exceeded $78.7 billion last week. Bitcoin accounts for almost 70% of this volume.


COINSHARES ALTCOIN DEMAND STATISTICS

Data from CoinShares shows that investors are choosing a single-line exposure strategy and are very interested in Bitcoin. In addition to BTC, other digital assets have been popular among institutional investors over the past week: Solana, Cardano, and Polkadot.

The CoinShares report noted that the inflows of Solana, Cardano, and Polkadot amounted to $15 million, $5 million, and $6.2 million, respectively. And for investment products with several assets, the outflow of funds amounted to a record $23 million. Now we are talking about the third week of the outflow from altcoins.


HOW TO INTERPRET INSTITUTIONAL INFLOW DATA

As expected, it can be seen that bitcoin is in demand among large investors. On the one hand, the reason is inflation, which makes the assets of the traditional sector unprofitable.

On the other hand, it is an indicator of prospects - institutions expect the main cryptocurrency to continue to rise.

And if you look at it from a different angle, the demand from large organizations suggests that the market is maturing. This means that volatility is likely to decrease slightly. Institutional will not panic to sell coins with minimal price fluctuations, and in the event of rollbacks, they will most likely buy more at cheaper prices.


DEEP CORRECTION: CANCELED OR NOT?

Today, the consolidation of bitcoin in the range of 59,000 and 62,500 continues. BTCUSD is trading under the resistance at 62,637.96. Does this mean that the head and shoulders pattern has lost its relevance?

It is hard to say. If the price breaks the level of 62,637.96 from the bottom up and even consolidates above it, it will be possible to say that the reversal is canceled and wait for growth to $67,000 and above.

But if now the price turns sideways again, then, most likely, it will go to the support at 59,383.67, near which we will probably again talk about a possible deepening of the correction.








Ekaterina Kiseleva
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading signal for Bitcoin Cash (BCH) on November 02 - 03, 2021: sell below $593,75 (EMA 200)



On the daily chart, Bitcoin Cash (BCH) is trading below the 200-day moving average and below the 21 SMA. Please be aware that a bearish pressure line is projected from October 21 and the BCH has not been able to break it more than 3 times.

As long as the crypto remains below 604.98, we expect a bearish move to 2/8 of a murray. BCH could fall to the psychological level of 500 which coincides with the uptrend channel formed since July 20.

On October 27, BCH fell to the 1/8 murray support around 531.25. After this point, it managed to bounce back to the 200 EMA level. It has been testing this zone for more than 5 days, trying to consolidate above, but with no success. This level has now become strong resistance for Bitcoin cash, a daily close above this 20-day average could be the beginning of a new bullish scenario with targets at 656 (5/8) and up to 687 (6/8).

If in the coming days, BCH consolidates above the 21 SMA and 200 EMA, this would mean that long-term investors have probably taken advantage of the drop to accumulate. It would give BCH strong bullish momentum and push it towards its annual high of 1639.

Our trading plan is to continue selling below 593, where the EMA of 200 is located. Our targets will be 562 and 531. On the other hand, if in the next few days BCH consolidates above 604, we should avoid selling. Therefore, we should wait for the buy signal with targets at 625 and 654. The eagle indicator is showing a slightly bullish signal. We could confirm this signal when BCH breaks the level of 604, then it will be an opportunity to buy.


Support and Resistance Levels for November 02 - 03, 2021
Resistance (3) 625,00
Resistance (2) 608,33
Resistance (1) 596,16

Support (1) 566,29
Support (2) 554,12
Support (3) 543,61


A trading tip for Bitcoin Cash for November 02 - 03, 2021
Sell below 593,75 (EMA 200) with take profit at 562,50 (2/8) and 531,25 (1/8), stop loss above 604,50.





Dimitrios Zappas
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BTC analysis for November 02,.2021 - First upside objective reached, potential for bullish continuation

Technical Analysis:



BTC has been trading upside and the price reached first upside objective from yesterday at $63,500.


Trading recommendation:
Due to the breakout of the bull flag and strong upside trend, I see potential for the further upside continuation.

Watch for buying opportunities on the pullbacks.

Next upside objective is set at the price of $66,600

Stochastic oscillator got fresh bull cross, which is sign for further bullish movement.

Key support is set at $59,450





Petar Jacimovic
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading plan for Bitcoin for November 02, 2021




TECHNICAL OUTLOOK:
Bitcoin has rallied through $63300 mark at the time of writing and is facing resistance around $63500-800 zone. It is not displayed on the daily chart but fibonacci 0.618 retracement of the recent drop between $6700 and $56400 has been tested. Bears might remain inclined to be back in control from here, dragging lower towards $50000 level.

Also note that $49000-50000 remains potential bullish reversal zone due to the following convergence: 1. The Fibonacci 0.618 retracement of rally between $40000 and $67000 and 2. The channel support trend line passing through. Bitcoin could resume its uptrend if a bullish turn is produced at the above convergence marked with a rectangle on the daily chart here.

On the flip side, a break below the channel support and subsequently $40000 initial support will confirm a deeper correction lower. Bitcoin could drop up to $28600 mark in the next several weeks confirming a bearish reversal ahead. For now, we remain focussed on $49000-50000 zone, for a potential bullish reversal.


TRADING PLAN:
Potential drop to $50000 against $67000.

Good luck!





Oscar Ton
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Facebook leaps into metaverse and rebrands itself "Meta Platforms"




Facebook's recent rebranding is said to be positive for tokens as they are likely to be used as currency in the world of online gaming and e-commerce.

This leap into metaverse - the broader concept of a new generation of immersion virtual worlds where people can work, play games, conduct e-commerce, and communicate on social media - will benefit many companies and cryptocurrencies.

Facebook (ticker: FB) announced its transformation into a metaverse company and renamed itself "Meta Platforms" (while retaining the Facebook name for its main social media platform) last week, and it was widely received by people.

Investors especially liked the idea, which is why FB gained more than 5% since Thursday.

And as mentioned earlier, many benefit from the leap forward, but the biggest winners are online gaming platforms and marketplaces that use NFTs as in-game tokens and collectibles. Many of these companies saw the statement made by Meta Platforms CEO Mark Zuckerberg as "confirmation of their efforts," said BTIG analyst Mark Palmer.

Palmer said the people who have never heard of "metaverse" began to discuss it, so now it is possible that the industry will get bigger

He mentioned Decentraland as an example. Decentraland is an online community where users can create their own avatars and interact with each other. It positions itself as "the first ever virtual world owned by its users."

Decentraland has its own token called "MANA", which has grown more than 225% since Meta was announced last week. MANA tokens can also be used to purchase LAND tokens, which represent virtual property on Decentraland. These plots sold for over $ 900 billion in June, bought by digital real estate fund Republic Realm.

Auction house Sotheby's also purchased a house on Decentraland. It opened a virtual gallery in June, creating an NFT auction space.

Of course, Decentraland tokens are not the only ones grabbing attention. Other gaming tokens such as SAND from The Sandbox, WILD from Wilder Worlds and TLM from Alien Worlds have also jumped since last week.

Many of these tokens are based on the Ethereum blockchain or its side chains, and this can be of great benefit to the Ethereum token.






Andrey Shevchenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for November 2, 2021


Crypto Industry News:
For the first time since the introduction of the fee-burning mechanism, the Ethereum network reached its first deflationary week in history. The main reason for this result is increased network load and high fees.

Net emissions hit -59 ETH this week, equivalent to $ -250,700. Tipping for miners remained at $ 56 million, and the amount burned was close to $ 400 million in one week.

The total number of Ethereum coins burned is 712,000 ETH, which at the time of writing this publication was worth just over $ 3 billion. As the grid burn rate continues to increase, ETH may experience more "negative" weeks or even months in the near future.

The persistence of negative emissions will confirm that ETH has become a deflationary asset. In times of accelerated inflation, this may attract more and more investors.


Technical Market Outlook
The ETH/USD pair has made a new ATH at the level of $4,459, but the rally from the level of $3,890 had ended with exhaustion candlestick pattern, so the corrective cycle is currently developing. Recently, the bulls has manage to break out of the descending channel as well. The nearest technical support is seen at the level of $4,274 - $4,243 and the key short-term technical support is currently located at the level of $4,121. The larger time frame trend remains up and the outlook for the nearest week is bullish.

Weekly Pivot Points:
WR3 - $5,137
WR2 - $4,787
WR1 - $4,556

Weekly Pivot - $4,216
WS1 - $3,997
WS2 - $3,650
WS3 - $3,426


Trading Outlook:
The next long-term target for ETH is seen at the level of $5,000. Nevertheless, in order to continue the long-term up trend, the price can not close below the technical support at the level of $2,906. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls. The level of $3,677 is the key mid-term technical support for bulls.








Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for November 2, 2021


Crypto Industry News:
Two Bitcoin mining giants are fighting for cheap electricity in a tiny town in Texas.

Both Bitdeer, the mining company that emerged from the Chinese giant Bitmain, and Riot Blockchain, one of the leading publicly traded mining companies in the United States, run data centers at a former aluminum smelting facility in the Texas city of Rockdale.

The municipal aluminum smelter was previously the largest in the world until the company that ran it, Alcoa, began shutting down operations in 2008. According to Lee Bratcher, president of the Texas Blockchain Council, the facility's energy capacity was wasted from the time Alcoa left until the miners founded mine.

Despite being a small rural town of just 5,600 inhabitants, Rockdale exhibits all the benefits sought by industrial-scale miners - cryptocurrency-friendly politicians, large plots of land with abandoned industrial infrastructure ripe for re-use, and cheap electricity prices thanks to the deregulated market in Texas.

Rockdale Mayor John King describes the relationship between the local grid operator, the Texas Electrical Reliability Council, and miners as mutually beneficial. He stressed that miners regularly use electricity that would otherwise be wasted, and that they could also cease operations immediately if energy was needed elsewhere.


Technical Market Outlook
The BTC/USD pair has broken above the short-term trend line resistance around the level of $62,000 as the momentum starts to pick up again. The market made a local low at the level of $57,740 during an increased volatility session and since then the Bitcoin price is rising again. The next target for bulls is seen at the level of $62,898 and $63, 966. On the other hand, the first Fibonacci retracement level, the 38% level, is seen at $56,934. The larger time frame trend remains up.

Weekly Pivot Points:
WR3 - $70,127
WR2 - $66,705
WR1 - $64,387

Weekly Pivot - $60,937
WS1 - $58,287
WS2 - $54,685
WS3 - $52,480


Trading Outlook:
According to the long-term charts the bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. The next mid-term target is seen at the level of $66,974 (the previous ATH level). This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).








Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021