Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for 09 October 2019

Crypto Industry News:
The World Federation of Exchanges (WFE), a global trading association of publicly regulated exchanges, has asked the UK Financial Supervision Authority (FCA) not to limit cryptocurrency derivatives to retail investors.

WFE issued a statement today in response to a consultative document from the UK financial regulator regarding a potential ban on the use of cryptocurrency derivatives, such as futures contracts for Bitcoins and other cryptocurrency-related trading products. The WFE proposed that the FCA instead develop appropriate consumer protection.

WFE has included in its reply a number of recommendations, such as the potential implementation of standards for the above products, consideration of basic market structures and review of the ban - if it is introduced - in order to provide consumers with choice and access among others.

WFE Chief Executive Nandini Sukumar called on the authorities to create appropriate provisions enabling further market development, stating:

"Although cryptographic products have real potential, the market has suffered from unregulated suppliers distributing inappropriate products. Market infrastructures that meet stringent regulatory requirements include consumer protection under their mandate and understand that integrity is fundamental to well-functioning markets, they are best prepared to supply these products and support a growing market. "

WFE includes major exchanges from around the world, including the Nasdaq, CME Group, Korea Exchange, London Stock Exchange and Deutsche Boerse.


Technical Market Overview:
The recent low on ETH/USD was made at the level of $166.08, just above the local technical support located at the level of $163.98 - $162.50 and if the momentum will increase on the way up, then the next target for bulls is seen at the level of $187.37 and 195.88. Any violation of support located at the level of $166.08 will open the road towards the key technical support located at the level of $151.30. Currently, the market is hovering around the level of $180.00, but the bulls do not look ready for a breakout as the momentum is still decreasing, so the horizontal trend most likely will continue.

Weekly Pivot Points:
WR3 - $200.05
WR2 - $192.33
WR1 - $180.15

Weekly Pivot - $172.02
WS1 - $159.46
WS2 - $151.65
WS3 - $138.64


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 09 October 2019

Crypto Industry News:
The US Securities and Exchange Commission (SEC) has once again officially stated that Bitcoin is not a security. In a letter to Cipher Technologies, Bitcoin Fund SEC rejected the investment company's registration statement, justifying (among other things) that Bitcoin is not a security. According to a letter, Cipher tried to register an "investment company" in accordance with the 1940 Investment Companies Act, suggesting that Bitcoin is a security.

In turn, SEC employees counter-argued the reason for Cipher as part of the Howey test and the Digital Asset Analysis Framework published in April.

"We do not believe that current Bitcoin buyers rely on the necessary managerial and entrepreneurial efforts of others to make a profit. Therefore, since Cipher intends to invest essentially all its assets in Bitcoin under the current structure, it does not meet the definition of an" investment company "in accordance with the Act on investment companies and incorrectly submitted the N-2 form "- we read.

In addition, the SEC also noted that if Bitcoin were security, "it would cause significant other problems." More specifically, the cryptocurrency would be "an unregistered, publicly offered security and, among other things, would potentially make the proposed fund a guarantor of Bitcoins."

Finally, the securities regulator also noted that Cipher did not comply with legal and investor protection standards, respectively. The letter ends with the statement that "SEC employees will not carry out additional verification of Cipher in its current form."


Technical Market Overview:
The BTC/USD pair did not move out of the narrow price range located between the levels of $7,676 - $8,474 and the global investors keep waiting for the breakout. The bottom of the wave (A) at the level of $7,676 is then in the center of attention of bears now and if violated, then the next technical support is located at $7,405. The increasing downside momentum supports the short-term bearish outlook.

Weekly Pivot Points:
WR3 - $9,064
WR2 - $8,729
WR1 - $8,221

Weekly Pivot - $7,955
WS1 - $7,433
WS2 - $7,138
WS3 - $6,572


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]

What will the looped sideways lead to, to a cold winter or is there still a chance of growth? Bitcoin (October 8)

The cryptocurrency market has sagged very much since the end of September. The first cryptocurrency has lost an average of 20% relative to the $ 10,000 milestone, focusing within the $ 7,800 mark in the end. After that, disappointed investors went into the stage of a sluggish fluctuation of 7800/8500, where the quotation is still located. The return of the harsh winter of 2018 to colic scares already frightened traders. The cryptocurrency market is disappointingly declining, IEO, an analogue of the ICO hype, does not bring a decent profit and is already disappointingly going into existence. On the other hand, the launch of the Bakkt crypto platform, from which an influx of institutional investors was expected, was launched with ridiculous trading volumes, and regulators are increasingly skeptical about the future of the crypto industry. In the end, we have what we have, but I think this is not the end.



Digest of days gone by:
A lawsuit for $ 1.4 trillion was filed against the cryptocurrency Tether and Bitfinex exchange. According to lawyers, in this case, there is a violation of the antitrust laws and the law "On commodity exchanges", since Tether controls more than 80% of the stablecoins market in the USA and the world. The exchange is also accused of manipulation, money laundering and the provision of knowingly false information.

Not the best information for the crypto industry, but similar raids on the Bitfinex structure have already been in history. Let's see how things go this time.

German Finance Minister Olaf Scholz called on EU leaders to create a cryptocurrency analogue of the euro so as not to lag behind the US, China and Russia, as well as private companies that create digital payment assets.

These calls from the Europeans have already sounded before, but to a greater extent - the result is zero.

The World Federation of Exchanges [WFE] turned to the financial regulator of Britain [FCA] with a request not to prohibit cryptocurrency derivatives trading in the country for retail investors. Let me remind you that the World Federation of Exchanges unites 70 operators, such as ICE, Nasdaq, Deutsche Boerse, CME, etc.

The US Securities and Exchange Commission (SEC) has contributed to the current market once again by stating that they do not consider Bitcoin to be valuable paper, as investors are not dependent on third parties for making a profit. Valdis Dombrovskis, Vice President of the European Commission [EC] for Financial Services and Economics, has promised that the EC will introduce new rules for regulating the cryptocurrency industry, but with one comment - its re-election to this position.

As we can see, the information background has a considerable burden of alertness, which fully reflects the current behavior of the first cryptocurrency [BTC].



What do we have on the trading chart?
Monday favored Bitcoin, and the quote locally managed to increase as much as $ 444, but this did not change anything in the current situation since we continue to fluctuate within the given frames 7800/8500.

What are the assumptions for further development? At the moment, nothing dramatic in terms of changing market sentiment is visible. Movement in a given amplitude [7800/8500] can still be maintained throughout the week. The speculative mood is very skeptical, and it is necessary for some kind of clear impulse here in terms of information in the form of the hope of traders that the harsh winter of 2018 is postponed. Perhaps, a yield higher than 8800-9000 will give optimism to speculators, but I think not earlier than this. Therefore, we sit outside the market and observe what is happening, preferably in USD, and as soon as there is a prerequisite for the movement in the region of 8800-9000, you can go for an exchange of USD ---> BTC.

Key coordinates for the upward direction: 8500; 9400; 10000; 10,950; 12330; 13130; 13970.

Key coordinates for the downward direction: 7800; 7000; 6500; 6000.

The general background of the cryptocurrency market
Analyzing the general market capitalization, we see a very sluggish development in the range of $ 209 and $ 225 billion. Over a month, more than $ 62 billion was lost from the piggy bank of total market capitalization, At the moment, we are at around $ 222.19 billion.

If we consider the volume chart in general terms, then the current ceilings are 225 ---> 272 ---> 281 ---> 320 ---> 356 ---> $ 385 billion.



The index of emotions, which is also fear and the euphoria of the crypto market, is surprisingly at 39p, which is almost the same as it was in September before the fall. Nevertheless, optimism among crypto enthusiasts still persists. Thus, let's hope for the best.



Indicator analysis
Analyzing a different sector of timeframes (TF), we see that indicators on the short and intraday interval signal about purchases, and the medium-term outlook about sales. It is worthwhile to understand that the price movement is in a given range as written above, and, obviously, depending on the development of a particular boundary, the indicators on the short-term and intraday interval will change. That is, we have local indicators, taken into account in the work.






Performed by Gven Podolsky
Analytical expert
InstaForex Group © 2007-2019

[IFX_Selena]

BTC. Sell zone for Bitcoin, bearish flag in creation
08 October 2019

BTC has been trading sideways at the price of $8,190. Anyway,I found that bearish flag is in creation based on the 1H time-frame and that there is possibility for more downside.



Purple lines – Bear flag

Purple falling line – Expected path

Green rectangle – Important support levels

Red Rectangle – Resistance zone

My advice is to watch for selling opportunities on the BTC since it is still in the downtrend. The downward channel is active and there is more chance for downside. Potential downward targets are set at the price of $8,054 and $7,770.





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

[IFX_Selena]

Technical Analysis of ETH/USD for 08 October 2019

Crypto Industry News:
The Hong Kong regulatory authority, the Securities and Futures Commission (SFC), has officially issued regulations for cryptographic fund managers. The SFC has published a regulatory circular on its website.

The document entitled "Proforma Terms and Conditions for licensed corporations that manage portfolios investing in virtual assets" has 37 pages. According to this document, Hong Kong Virtual Asset Fund managers should always maintain liquid capital of at least Hong Kong 3 million ($ 383,000) and its variable required liquid capital.

SFC advised managers to have sufficient human and technical resources to properly perform their duties, and adopted risk and compliance management policies as well as anti-money laundering and anti-terrorist financing policies.

To ensure the security of fund assets, SFC also requires cryptographic fund managers to appoint a functionally independent trustee. The regulator emphasized that the manager of the virtual asset fund should ensure that the fund's assets are separated from its own assets as well as the assets of other clients unless the fund's assets are kept on the client's omnibus account.

If the manager receives the fiat currency on behalf of the fund, one or more separate bank accounts must be created to hold clients' money, SFC said. Bank accounts should be opened and maintained with an authorized financial institution in Hong Kong or a bank in a jurisdiction agreed by the SFC, as indicated in the document.

In addition, the virtual asset fund manager should assess the features of a diverse trustee system, including hardware and software infrastructure, security controls for key generation, storage, management, and transactions, as well as the process of handling Blockchain forks, the agency said.


Technical Market Overview:
The ETH/USD pair has moved higher towards the technical resistance located at the level of $185.05 again, but the wave is clearly corrective in the structure. The recent low was made at the level of $166.08, just above the local technical support located at the level of $163.98 - $162.50 and if the momentum will increase on the way up, then the next target for bulls is seen at the level of $187.37 and 195.88. Any violation of support located at the level of $166.08 will open the road towards the key technical support located at the level of $151.30.

Weekly Pivot Points:
WR3 - $200.05
WR2 - $192.33
WR1 - $180.15

Weekly Pivot - $172.02
WS1 - $159.46
WS2 - $151.65 WS3 - $138.64


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 08 October 2019

Crypto Industry News:
According to a recently published announcement, the financial regulator of New York employs a specialist with experience in the field of virtual currencies and Blockchain.

The Financial Services Department wants to hire a deputy curator in the research and innovation department who has experience in cryptocurrency, blockchain, DLT technology and other related fields. The person in this position will be responsible for political decisions and regulation of emerging and innovative markets.

The person will be responsible for managing the development of law enforcement procedures, policies and communication strategies in the field, maintaining engagement with industry players, and developing compliance initiatives and measures.

In recent months, government organizations are actively employing cryptography and Blockchain specialists. The US Department of Commerce wanted to hire an IT specialist specializing in Blockchain and identity management in August. He noted that the role of the candidate will focus on cyber security opportunities.

At the end of September, NASA announced a vacancy for a scientist in the field of cryptography and Blockchain at the Jet Propulsion Laboratory in California, whose primary function is the construction and operation of an unmanned planetary spacecraft and conducting orbiting missions.

In the spring, the US Securities and Exchange Commission (SEC) employed an employee who would provide expertise in cryptocurrency. The job application read at the time that the SEC would pay up to $ 239,000 a year for its cryptography specialist who would perform various advisory roles.


Technical Market Overview:
The BTC/USD pair has moved higher towards the level of $8,282, but the bounce was rather shallow, with a top located at the level of $8,282 in form of a Doji candlestick pattern, so the bulls did not manage to get to the higher technical resistance located at $9,048. The bottom of the wave (A) at the level of $7,676 is then in the center of attention of bears after the weekend and if violated, then the next technical support is located at $7,405. The increasing downside momentum supports the short-term bearish outlook.

Weekly Pivot Points:
WR3 - $9,064
WR2 - $8,729
WR1 - $8,221

Weekly Pivot - $7,955
WS1 - $7,433
WS2 - $7,138
WS3 - $6,572


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. Downwrad target reached, new sell zone at $8,200.
07 October 2019

BTC is trading lower exactly what I expected last week. The BTC has reached our main downward target at $7,750. I found strong rejection of the support at $7.750 and most recently there is test of the resistance at $8,210, which is sign that buying looks risky.



Red rectangle – Important resistance levels

Green rectangle – Important support and objective

Purple falling line – Expected path

Bitcoin is still trading in the consolidation phase and most recently there is the test of the key short-term resistance at the price of $8,210. I do expect potential pullback to at least $8,053, which might be an intraday scalp play. Watch for potential selling opportunities on the rallies as long as the resistance at the price of $8,210 is holding.




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

[IFX_Selena]

Technical Analysis of ETH/USD for 07 October 2019

Crypto Industry News:
The United States Financial Services Committee has invited Facebook COO, Sheryl Sandberg, to respond to the company's plans for stablecoin Libra. According to the media report, one key condition has an invitation: the consent of CEO Mark Zuckerberg to appear before the committee before January 2020.

The committee, chaired by Representative Maxine Waters, recently announced its plans to prioritize the examination of Facebook's proposal for Libra and its Calibra digital portfolio as part of the autumn 2019 program.

According to press sources, Sandberg will be asked about Libra as well as Facebook's advertising policies. The social media titan reached a $ 5 million settlement in March with civil rights groups because of allegations that its advertising had facilitated discriminatory practices in the housing market.

If the testimony came to pass, Sandberg would be Facebook's second director to testify before the Libra Committee. In mid-July, Calibra CEO David Marcus testified in matters such as anti-money laundering and other compliance measures, as well as public and government confidence in the company's oversight and data collection measures.

As reported by the media dealing with cryptographic issues, Rep. Maxine Waters has proved to be one of the more skeptical legislators in the US in Libra, expressing her concern that the technology giant "has shown that it does not keep consumer data confidential on a similar scale to Equifax" and "allowed malicious Russian state entities to buy and target "to" allegedly influence the presidential election in the US in 2016. In mid-June, she asked Facebook to stop working on Libra, citing "the company's troubled past."

This week, leaks from two internal Q&A sessions between Zuckerberg and Facebook staff in July 2019 revealed an early CEO strategy to launch Libra. During the session, the CEO confirmed that the project encountered "real problems. Finance is a very tightly regulated space [...] preventing money laundering, terrorist financing and people with whom you cannot do business according to various governments. "


Technical Market Overview:
The ETH/USD pair has managed to retrace almost 50% of the previous wave down and made a local top at the level of $185.05, less than two dollars away from the retracement. After this wave up, the market made another local wave down that is clearly corrective in the structure. The recent low was made at the level of $166.08, just above the local technical support located at the level of $163.98 - $162.50. Any violation of this support will open the road towards the key technical support located at the level of $151.30.

Weekly Pivot Points:
WR3 - $200.05
WR2 - $192.33
WR1 - $180.15

Weekly Pivot - $172.02
WS1 - $159.46
WS2 - $151.65
WS3 - $138.64


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 07 October 2019

Crypto Industry News:
Apple is not going to follow Facebook in creating its own digital currency, said company president Tim Cook in an interview with the press. He negatively expressed the idea that Apple could issue its own currency tokens.

"I really think that the currency should remain in the hands of the state. I do not like the idea that a private entity can create a modern currency," - he said.

His comments have a distinctly different tone than Facebook, which is developing its digital currency Libra, as well as competitors.

In the area of payments, Apple aims to participate in the market with players such as Visa, Mastercard and PayPal via Apple Pay. All three companies have signed up to participate in Libra, despite information disclosed this week that they may all be considering a 180-degree return on this issue.

Those who support decentralized cryptocurrencies like Bitcoin criticize the way countries and central banks corrupt the money supply and support of fiat currency. For Cook, however, they are the right guardians of economic tools.

"Currency, like defense, should remain in the hands of states - it is at the heart of their mission. We select our representatives to assume the responsibilities of the government. Companies are not elected - they should not enter this space," said Cook.


Technical Market Overview:
The BTC/USD pair is again close to the key technical support located at the level of $7,676. The last bounce was rather shallow, with a top located at the level of $8,474, so the bulls did not manage to get to the higher technical resistance located at $9,048. The bottom of the wave (A) at the level of $7,676 is then in the center of attention of bears after the weekend and if violated, then the next technical support is located at $7,405. The increasing downside momentum supports the short-term bearish outlook.

Weekly Pivot Points:
WR3 - $9,064
WR2 - $8,729
WR1 - $8,221

Weekly Pivot - $7,955
WS1 - $7,433
WS2 - $7,138
WS3 - $6,572


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]

Technical Analysis of ETH/USD for 04 October 2019

Crypto Industry News:
Mark Branson, head of the Swiss financial regulator FINMA, said he was more worried about the dark corners of cryptocurrency than Facebook's stablecoin Libra.

Reuters reported that Bronson is more distrustful of cryptographic projects that are developing outside official control than the Libra project, which he believes is "transparent."

"I'm more worried about projects that develop somewhere in a dark corner of the financial system, spread to cyberspace and one day become too big to stop" - he added.

Branson explained that Libra will be subject to the same strict rules that apply to banks, in addition to strict anti-money laundering rules, and that Switzerland will do nothing to block the project by adding:

"We are not here to prevent such projects. We will respond to them with an open mind, with the attitude that the same risk requires the same principles. Our principles and standards are not negotiable."


Technical Market Overview:
The ETH/USD pair has broken below the short-term trendline support located around the level of $175.00. Moreover, all of the technical supports located close to this level has been violated as well and the market made a new local low at the level of $168.57. In the case of another 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