Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of BTC/USD for 04 October 2019

Crypto Industry News:
Patrick Harker, president of the Federal Reserve Bank of Philadelphia, said central bank digital currencies are inevitable. The financier, however, believes that the United States should not lead the way, given the role of the dollar as a global reserve currency:

"It's inevitable ... I think it's better for us to start doing it," he said.

Harker spoke in response to a question about the Federal Reserve's decision to create its own instant payments system - known as FedNow - announced in early August.

"I'm looking at the next five years after that. What's next? I think it's something around the digital currency," he says.

As the financial media recently reported, banks in the Federal Advisory Council have informed the Federal Reserve that the Libra cryptographic project will potentially create a "parallel banking" system - risking a potential decrease in the number of demand deposit accounts and the size of bank payments.


Technical Market Overview:
Another lower low was made after the BTC/USD pair has failed to rally above the level of $8,474, which is a technical resistance for the price. The bears have pushed the price back to the new lows and the technical support at the level of $7,935 has been tested again. There is still a chance for the wave (C) terminated already, but if the bears will keep making pressure on bulls then the price might reverse and target the level of $7,419. The upward momentum is decreasing, so are the chances for another leg higher, which is why it is worth to keep an eye on the current situation on Bitcoin.

Weekly Pivot Points:
WR3 - $11,446
WR2 - $10,627
WR1 - $9,093

Weekly Pivot - $8,403
WS1 - $6,727
WS2 - $6,011
WS3 - $4,444


Trading Recommendations:
Due to the short-term impulsive scenario invalidation, the best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

BTC. Downward trending channel in control

GBPP has been trading upwards, exactly what I expected yesterday. My second upward target has been met at the price of $1.501. My advice is to exit your long entries due to resistance on the test and watch for potential sell scalp with potential target at $1,487.



Yellow rectangle – Important resistance levels

Blue rectangle – Support

I found important resistance at the price of $1,500 on the test and I do expect at least downward correction. Support level is found at $1,487 (recent swing highs). MACD oscillator is showing decreasing on the upside momentum, which is sign that buying looks risky.My advice is just to take profits from yesterday and eventually try sell scalp and target potential test of $1,487.





Performed by Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of ETH/USD for 03 October 2019

Crypto Industry News:
An interesting phenomenon has emerged over the past few months: Ethereum blockchain began to gain popularity, even when the ETH price dropped. At the same time, volume as well as overall network activity have improved considerably. In addition, transaction fees at Ethereum recorded a decrease of about 50% compared to the maximum values recorded last week.

The attention of crypto enthusiasts was caught when the transaction fees paid by Ethereum users last month exceeded those of Bitcoin users. From September 22, the average ETH transfer cost between $ 0.045 to $ 0.064, while the Bitcoin confirmation fee was just $ 0.03.

Last week, Ethereum had to pay tens of cents on average. A huge number of transfers followed, and the cost of using the network increased significantly. The reason could be a FairWin scam, but it is now known that FairWin has fallen. Along with this, there was a significant decline in Ethereum network activity as well as a decrease in transaction fees: fees paid by Ethereum users dropped from 1627 ETH in the peak of last week to 500 ETH yesterday.


Technical Market Overview:
The ETH/USD pair has bounced from the technical support located at the level of $172.82 and still trades above the short-term trendline support. Nevertheless, the momentum is clearly decreasing and there is no new local high made yet, so the bears might counter-attack any time now. In the case of a spike down, the nearest technical support is located at the level of $163.98 - $162.50. Please notice, that so far the move upward does not look like an impulsive wave, but more like a kind of a Zig-Zag pattern, which is corrective pattern.

Weekly Pivot Points:
WR3 - $256.80
WR2 - $233.68
WR1 - $197.61

Weekly Pivot - $174.45
WS1 - $137.03
WS2 - $112.52
WS3 - $77.73


Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of BTC/USD for 03 October 2019

Crypto Industry News:
One of the main providers of payment services in cryptocurrencies, BitPay, has been subjected to a check on compliance with the principles of security and confidentiality, Service Service Control 2 (SOC 2).

According to the published press release, Aprio consulting company confirmed the compliance of BitPay with SOC 2 - it is a technological audit and a requirement for technology companies that ensures that clients' personal data is secure and confidential.

Passing the SOC 2 audit means that the company has met the criteria set by the American Institute of Certified Public Accountants in terms of confidentiality, security, privacy, processing integrity and availability. Commenting on the assessment, Dan Schroeder, the partner responsible for information control services at Aprio, said:

"After careful analysis, we confirmed that the design and use of the BitPay payment system meet the standards set out in SOC 2 in the field of customer data protection. SOC 2 reporting is a standard of best industry practices that assesses the company's control on issues such as transaction security and other confidential customer data ".

In mid-August, BitPay introduced new security measures on its platform, where users must undergo a one-time verification process that requires entering data such as a social security number or passport number, as well as photo ID. These measures have met with some skepticism, given the resistance that many members of the cryptocurrency community have to locate their personal data in centralized files.


Technical Market Overview:
The BTC/USD pair has failed to rally above the level of $8,474, which is a technical resistance for the price. The bears has pushed the price back to the range zone and the technical support at the level of $8,102 has been tested again. There is still a chance for the wave (C) terminated already, but if the bears will keep making pressure on bulls then the price might reverse and target the level of $7,419. The upward momentum is decreasing, so are the chances for another leg higher, which is why it is worth to keep an eye on the current situation on Bitcoin.

Weekly Pivot Points:
WR3 - $11,446
WR2 - $10,627
WR1 - $9,093

Weekly Pivot - $8,403
WS1 - $6,727
WS2 - $6,011
WS3 - $4,444


Trading Recommendations:
Due to the short-term impulsive scenario invalidation, the best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.







Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

BTC. Sellers in control, watch for selling opportunities

BTC is trading lower exactly what I expected yesterday.My analysis from yesterday is still active and I still expect more downside in the future and potential test of $7,730.



Red rectangle – Important resistance levels

Green rectangle – Important support and objective

Purple falling line – Expected path

I found broken bearish flag in the background based on the 1H time-frame and I do expect more downside yet to come. My advice is to watch for selling opportunities due to rejection of the important resistance level at $8,500 and the broken bearish flag most recently. The downward target is set at the price of $7,730.




Performed by Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of ETH/USD for 02 October 2019

Crypto Industry News:
Testnet network Ethereum under the name Istanbul (which operates under the Ropsten testnet) was launched on September 30. Considering the existing problems related to the dates of the planned hard forks, this can be considered a great success. The whole was able to run even two days before the earlier announced date, which fell on October 2.

Unfortunately, after the activation of Ropsten an unplanned fork occurred. So now two chains are working.

The issue of the community centered around the Vitalik Buterin platform was explained by the community manager at the Ethereum Hudson Jameson Foundation. In his tweet from yesterday, he described what happened. Today, some miners are still mining the old version of Ropsten. Another copy of its new, updated version. The programmer, however, calms down. The problem is to be solved. Information should not worry investors: they are testnets, so that such errors come out during their duration.

Jameson also explains what exactly happened. The genesis of the problem is the nature of blockchains based on the proof-of-work algorithm, including Ethereum. The miners in them must independently update the software to be able to dig as part of a new chain. This time some of them did not and the result was an unplanned division.


Technical Market Overview:
The ETH/USD pair has made a new local high at the level of $185.05, but so far couldn't make it to the 50% of Fibonacci retracement located at the level of $187.37. The supply zone located between the levels of $172.82 - $176.66 has been clearly broken, the momentum is now increasing significantly, so there is a chance for the bulls to hit the level of 50% of even the 61% shortly if the trendline dynamic support around the level of $172.82 will provide the bounce. In the case of a trendline violation, the nearest technical support is located at the level of $163.98.

Weekly Pivot Points:
WR3 - $256.80
WR2 - $233.68
WR1 - $197.61

Weekly Pivot - $174.45
WS1 - $137.03
WS2 - $112.52
WS3 - $77.73


Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.







Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of BTC/USD for 02 October 2019

Crypto Industry News:
The Bitcoin network experienced fresh turbulence on September 30, while at the same time there was information about a fire that destroyed $ 10 million mining platforms.

According to Marshall Long, one of Bitcoin's first active miners, the giant data center of the mining company Innosilicon began to burn on Monday. We still know very little details about the incident, but there was a movie showing that the machines were supposedly still working, although they were on fire.

Dovey Wan, the founding partner of Primitive Ventures, added that the total value of the equipment involved was about $ 10 million. Innosilicon has not published any public comments yet.

Commentators on social media quickly voiced concerns that the fire is to blame for the reported decline in Bitcoin's hash rate. On the day the incident occurred, the estimates of the computing power of the network involved in transaction processing fell from 86 quintillions h / s to 82 quintillions h / s.

However, as mentioned earlier, hash rate estimates give only a limited picture of the overall state of Bitcoin. Last week the indicator seemed to fall by 40% - later it was widely ignored by technical charts.


Technical Market Overview:
The BTC/USD pair has made a new local high after a bounce towards the level of $8,474, but the momentum is now decreasing. The bounce then is ratehr shallow and the technical resistance located at the level of #9,046 has not been hit as the price is still far away from it. There is still a chance for the wave (C) terminated already, but if the bears will keep making pressure on bulls then the price might reverse and target the level of $7,419.

Weekly Pivot Points:
WR3 - $11,446
WR2 - $10,627
WR1 - $9,093

Weekly Pivot - $8,403
WS1 - $6,727
WS2 - $6,011
WS3 - $4,444


Trading Recommendations:
Due to the short-term impulsive scenario invalidation, the best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

BTC. Sell zone for Bitcoin, bearish divergence on the MACD
01 October 2019

BTC is trading near the important resistance levels at the price of $8,629 and $8,800, which is sign that there is potential for reaction from sellers. I do expect more downside in the next period.



Red rectangles – Resistance levels

Falling purple line – Expected path

Green rectangle – Support and downward target

MACD oscillator is showing bearish divergence on the last move up on BTC, which is sign that buyers are losing power and that sellers may react. Resistance levels are set at $8,629 and $8,800. Support level is set at the price of $7,750. Watch for selling opportunities.




Performed by Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of ETH/USD for 01 October 2019

Crypto Industry News:
Leading US cryptographic companies such as Coinbase and Kraken have joined forces to launch a rating system to jointly determine which digital assets are securities.

To provide greater transparency about what tokens you can trade without regulatory oversight, major US stock exchanges have created the so-called Crypto Ratings Council, according to financial media.

According to the publication, other members of the Crypto Ratings Council include Circle Internet Financial, Bittrex, Genesis Global Trading, Grayscale Investments, Anchor Labs and the DRW Holdings unit. As the report notes, the group is still recruiting participants.

The officially launched new cryptography council is expected to publish online digital asset ratings on a scale of 1 to 5, where the highest value means that the specific token is considered a security that cannot be issued, sold or traded through unregulated companies. Bitcoin is considered "1" because regulators have publicly stated that Bitcoin is not a security.

Brian Brooks, Coinbase's chief lawyer, who reportedly invented the rating system, stressed that the question of whether a given token is a security or not is "one of the biggest uncertainties around cryptocurrencies and the reason why more asset managers don't feel with them well.

Mary Beth Buchanan, Kraken attorney at law, expressed the hope that the US Securities and Exchange Commission (SEC) would consider the initiative a positive step, claiming that the board intends to show supervisors the efforts of stock exchanges to make decisions on this matter.


Technical Market Overview:
The ETH/USD pair keeps has bounced from the level of $163.98 which was local technical support for the bulls and now is heading towards the 50% of Fibonacci retracement located at the level of $187.37. The technical supply zone located between the levels of $172.82 - $176.66 has been clearly broken, the momentum is now increasing significantly, so there is a chance for the bulls to hit the level of 50% of even the 61% shortly.

Weekly Pivot Points:
WR3 - $256.80
WR2 - $233.68
WR1 - $197.61

Weekly Pivot - $174.45
WS1 - $137.03
WS2 - $112.52
WS3 - $77.73


Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

Technical Analysis of BTC/USD for 01 October 2019

Crypto Industry News:
The Venezuelan central bank is investigating the storage options for Bitcoins and Ethereum, according to anonymous sources that supposedly have direct insight into this matter.

According to financial media articles, the central bank of Venezuela is taking a closer look at whether it has the ability to store cryptocurrencies. The state-owned oil and gas company Petroleos de Venezuela SA (PSDV) asked the central bank to investigate the case after the oil producer encountered difficulties in receiving payments from international clients due to US sanctions against the current Venezuelan regime of President Venezuela Nicolas Maduro.

Anonymous sources have stated that PSDV wants to transfer Bitcoin and Ethereum to the Venezuelan central bank and then instruct the central institution to pay cryptocurrency suppliers.

In the hope of overcoming isolation from the global financial system, the Venezuelan central bank is reportedly analyzing proposals in which cryptocurrencies will be included in the country's international reserves, which are currently reaching the lowest level in 30 years of $ 7.9 billion.


Technical Market Overview:
The BTC/USD pair has bounced from the technical support located at the level of $7,676, broke through the technical resistance at $8,282 and is currently heading higher towards the level of $9,046. The momentum is now increasing, so the AO oscillator crossed the zero line on green bars. There is still a chance for the wave (C) terminated already, but if the bears will keep making pressure on bulls then the price might reverse and target the level of $7,419.

Weekly Pivot Points:
WR3 - $11,446
WR2 - $10,627
WR1 - $9,093

Weekly Pivot - $8,403
WS1 - $6,727
WS2 - $6,011
WS3 - $4,444


Trading Recommendations:
Due to the short-term impulsive scenario invalidation, the best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2019