Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for 12 December 2019

Crypto Industry News:
The Nike shoe giant patented shoes - named CryptoKicks - that are tokenized as a non-exchangeable token (NFT) in the Ethereum Blockchain.

The token would be "unlocked" when purchasing the appropriate physical shoe by combining the 10-digit shoe identification code with the owner identification code. The system aims to provide a way to guarantee the authenticity of goods, as described in the patent:

"Potential and current owners [...] can buy and sell digital assets through one or more Blockchain registers operating in a decentralized computer system. [...] the user can buy a new pair of highly sought after shoes from a verified seller who can provide certified documents of their origin. [...] After receiving the shoe box containing the purchased shoes, the user scans the UPC field using the barcode scanning function in the application running on the user's smartphone "- we read in the official description of the token.

Interestingly, Nike also suggests that the creation of tokens may be associated with the sale of footwear, which would also allow verification of footwear shortage in circulation. When footwear is sold, the ownership of the digital token can be transferred along with the physical product. Ownership of these tokens would be managed in a dedicated application, also aimed at increasing brand involvement.


Technical Market Overview:
The ETH/USD pair has broken out from the narrow horizontal zone and due to the increasing pressure from the supply side the market has made a new local low at the level of $138.22. It means the 61% Fibonacci retracement of the last wave up had been broken as well and the next target for bears is seen at the level of $136.98.

Weekly Pivot Points:
WR3 - $162.22
WR2 - $157.56
WR1 - $153.69

Weekly Pivot - $148.38
WS1 - $144.67
WS2 - $138.97
WS3 - $135.22


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






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

[IFX_Selena]

BTC 12.11.2019 - Watch for potential drop on the BTC

Bitcoin has been trading in consolidation mode at the price of $7.166. There is chance for the downside movement. Watch for selling opportunities on the rallies with the first target at $6.570.



Slow line on the MACD oscillator turned into bear mode, which is indication for potential downside movement in the next period.

Additionally, there is the breakout of the upward Pitchfork channel in the background, which is another indication that sellers are in control.

Support levels are found at the price of $6.569 and $5.910.

Resistance levels are found at the price of $7.611 and $7.800.




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

[IFX_Selena]

Technical Analaysis of ETH/USD for 11 December 2019

Crypto Industry News:
The Central Bank of France plans to launch a pilot of the Central Bank Digital Currency (CBDC) for financial institutions in 2020. Francois Villeroy de Galhau, President of the Bank of France, announced that the bank will start testing the digital euro project by the end of the first quarter of 2020.

The Bank of France confirmed the messages on Twitter, noting that it was announced at a conference co-organized by two major French financial supervisory authorities, the French prudential resolution authority and Autorite des marches financiers.

According to the publication, the digital euro release will only target private sector entities and will not include retail payments by individuals. Villeroy noticed that the digital currency for retail customers "would be the subject of particular vigilance."

The initiative aims to increase the efficiency of the French financial system while ensuring confidence in the currency. Moreover, the project aims to confirm France's sovereignty over initiatives related to private digital currencies such as Facebook's Libra stablecoin, said Villeroy.

Villeroy's position is in line with earlier statements by French Finance Minister Bruno Le Maire, who argued that regulators cannot allow Libra to be introduced in European territories because of concerns over monetary sovereignty. According to some reports, France fought against Libra along with Germany, Italy, Spain and the Netherlands.

According to the Bank of France tweet, its president emphasized that France should become the first country in the world to release CBDC and provide an exemplary model to other jurisdictions.


Technical Market Overview:
The ETH/USD pair has broken below the short-term trendline support located at the level of $145.00 and made a new local low at the level of $142.81, just below the old 50% Fibonacci retracement. From a wider perspective, the market is still trading inside of a narrow range located between the levels of $151.37 - $142.24 and the market participants are waiting for a breakout from this range. The downside momentum is increasing so the odds are more in favor of a downside breakout.

Weekly Pivot Points:
WR3 - $162.22
WR2 - $157.56
WR1 - $153.69

Weekly Pivot - $148.38
WS1 - $144.67
WS2 - $138.97
WS3 - $135.22


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







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

[IFX_Selena]

Technical Analysis of BTC/USD for 11 December 2019

Crypto Industry News:
The degree of adaptation of Blockchain technology in China continues to amaze, given that the Bank of China has reportedly issued $ 2.8 billion in special Blockchain-based financial bonds for small and micro-enterprises.

According to the publication of the local Sina Finance information point, the funds are specifically used to provide loans to Chinese small and micro enterprises to support their further development in the economy.

By the end of September, Bank of China had spent around $ 57.7 billion on 410,000 small and micro-business customers, a 35% increase over the previous year. By comparison, micro-enterprises generally have less than 10 employees, while small businesses have up to 50 employees.

The news comes as the Chinese government attaches increasing importance to the digital economy. At the beginning of December, Forkast Insights, the research arm of the Asian company Forkast, thoroughly and comprehensively looked at the integration of Blockchain technology in China.

The report indicates that Blockchain technology is rapidly developing in China and has a multitude of "practical real-world use cases that go far beyond the experimental stage." In November, reports appeared that the development of the Chinese Blockchain sector would bring a total annual growth rate of 65.7% from 2018 to 2023. And that the technology would exceed $ 2 billion by the end of 2023.


Technical Market Overview:
The BTC/USD pair is still under pressure from the bears as it has been trading in a narrow range located between the levels of $7,210 - $7,090. The bears are now back to the level of 50% Fibonacci retracement locatee at $7,133 and are testing it again. The three-wave upwards move on Bitcoin was a counter-trend correction that ended up at the level of $7,809 in form of a Shooting Star candlestick pattern. Since then the bears are trying to take back the control over the market and are pushing the prices towards the next target. The recent sudden spike up was capped at the level of $7,700 again and it was retraced in 100%. Currently, the market participants wait for a clear breakout in either direction and it more looks like the direction to the south.

Weekly Pivot Points:
WR3 - $8,491
WR2 - $8,082
WR1 - $7,829

Weekly Pivot - $7,397
WS1 - $7,107
WS2 - $6,723
WS3 - $6,444


Trading recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still down. 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 12.10.2019 - Down cycle in the play, downward target set at the price of $6.570

Industry news:
China's inflation rate has jumped to 4.5 percent for the month of November — highlighting the value proposition of deflationary currencies, like Bitcoin.

China is notoriously hostile to cryptocurrencies, despite its government's commitment to blockchain. However, it's recent runaway inflation rate might force those in the country to see the other side of things.

As market analyst Mati Greenspan recently tweeted, China's inflation rate has been steadily rising. In the month of November, it saw a spike of 4.5 percent — with no indication that it will cease. Considering that China is the world's second-largest economy, this is cause for worry.


Technical analysis:


BTC is trading in consolidation at the price of $7.227 Anyway, there is chance for further downside and I expect down cycle with potential for test of $6.570 and $5.900.

MACD and Stochastic oscillators are showing increase on the downside, which is confirmation for the sellers in control.

Resistance levels are seen at $7.622 and $8.000. Main support level is set $6.570 and $5.900.





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

[IFX_Selena]

Technical Analysis of ETH/USD for 10 December 2019

Crypto Industry News:
Istanbul's Ethereum Hard Fork took place as planned and saw the light of day with block 9069000. Co-founder Ethereum Vitalik Buterin personally congratulated the node that brought the transition block to the new chain.The market did not pay attention to Istanbul, and Ethereum gained little after the hard-fork. One of the most anticipated updates seems not to have as much impact on the market as originally expected. The announcement of Istanbul's success was not accompanied by a high volume. Currently, several hours after the event, Ethereum is valued at slightly over $145.In the Ethereum network, there will be even more forks in the future. The problem with them is that it requires node operators to update their mining protocols. At the same time, it should be remembered that the Ethereum Foundation and investors, however, do not view this event like a hard fork. For them, this is one of many stages of the path that is taking great steps towards Ethereum 2.0.


Technical Market Overview:
The ETH/USD pair has broken above the short-term trendline during the weekend and made a local high at the level of $150.96. Currently, the market is coming off the highs and is testing the breakout from above (around the level of $145.00). From a wider perspective, the market is still trading inside of a narrow range located between the levels of $151.37 - $142.24 and the market participants are waiting for a breakout from this range.

Weekly Pivot Points:
WR3 - $162.22
WR2 - $157.56
WR1 - $153.69

Weekly Pivot - $148.38
WS1 - $144.67
WS2 - $138.97
WS3 - $135.22


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






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

[IFX_Selena]

Technical Analysis of BTC/USD for 10 December 2019

Crypto Industry News:
The Intercontinental Exchange (ICE) digital asset platform, Bakkt, introduced the first regulated Bitcoin options and cash-settled futures in the United States.

According to the announcement published today, Bakkt now uses physically settled Bitcoin contracts as a reference for creating complementary products.

"Starting with the physically delivered monthly Bitcoin Bakkt futures contracts, we have a benchmark agreement that forms the basis for developing complementary products based on the needs of our clients."

Two new products are Bakkt Bitcoin (USD) monthly options and Bakkt Bitcoin (USD) futures. According to the post, the monthly Bakkt option product is the first regulated Bitcoin futures contract regulated by the American CFTC commission.

The cash-settled futures product is a new contract that will initially be available on the approved ICE Futures Singapore stock exchange in Singapore. The contract is based on the settlement price of the reference monthly Bitcoin Bakkt contract and provides an option for participants who are unable to trade our physically delivered contract, we read in the blog.


Technical Market Overview:
The BTC/USD pair is still under pressure from the bears as it has been trading in a narrow range located between the levels of $7,322 - $7,579 during the whole weekend. Yesterday the short-term trendline has been violated and now the market is testing the breakout from the upside. The three-wave upwards move on Bitcoin was a counter-trend correction that ended up at the level of $7,809 in form of a Shooting Star candlestick pattern. Since then the bears are trying to take back the control over the market and are pushing the prices towards the next target. The recent sudden spike up was capped at the level of $7,700 again and it was retraced in 100%. Currently, the market participants wait for a clear breakout in either direction and it more looks like the direction to the south.

Weekly Pivot Points:
WR3 - $8,491
WR2 - $8,082
WR1 - $7,829

Weekly Pivot - $7,397
WS1 - $7,107
WS2 - $6,723
WS3 - $6,444


Trading recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still down. 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 12.09.2019 - Consolidaiton mode active, potential for upside move

Bitcoin has been trading in consolidation mode at the price of $7.520. There is chance for the upward cycle first and potential test of $7.830-$8.360. Anyway, my advice is to watch for potential selling opportunities



Slow line on the MACD oscillator turned into bull mode, which is indication for potential upside movement in the next period.

Support levels are found at the price of $7.128 and $6.500. Resistance levels are found at the price of $7.830 and $8.360.





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

[IFX_Selena]

Technical Analysis of ETH/USD for 09 December 2019

Crypto Industry News:
The cryptocurrency exchange Kraken adds support for the latest fiat asset, the Swiss franc.

According to a post on the stock market blog, Kraken said that in cooperation with the bank Frick from Liechtenstein, the Swiss franc will join the list of other fiat exchange currencies already supported by Kraken, namely the US dollar, Canadian dollar, euro, pound sterling and Japanese yen.

The Kraken team also revealed that trading the Swiss franc will start today, December 6, and that the stock exchange will introduce trading pairs between the Swiss franc and Bitcoin and Ethereum, with the future option of adding more trading pairs.

Kraken, one of the largest and oldest Bitcoin exchanges in the world, recently announced that it is joining the Silvergate Exchange Network (SEN) to allow its customers to deposit and withdraw US dollars from Silvergate accounts without fees.

Earlier, Kraken introduced the mobile version of its Kraken Future commercial application, which was created earlier this year and previously was only available in a web browser. The application will be available on iOS and Android platforms.


Technical Market Overview:
The ETH/USD pair has broken above the short-term trendline during the weekend and made a local high at the level of $150.96. Currently, the market is coming off the highs and is testing the weekly pivot around the level of $148.38. From a wider perspective, the market is still trading inside of a narrow range located between the levels of $151.37 - $142.24 and the market participants are waiting for a breakout from this range.

Weekly Pivot Points:
WR3 - $162.22
WR2 - $157.56
WR1 - $153.69

Weekly Pivot - $148.38
WS1 - $144.67
WS2 - $138.97
WS3 - $135.22


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






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

[IFX_Selena]

Technical Analysis of BTC/USD for 09 December 2019

Crypto Industry News:
The Ukrainian government has approved the final version of the Money Laundering Act that will address virtual assets and virtual asset service providers (VASPs) in accordance with the FATF guidelines.

The Council, the legislative body of Ukraine, has published the final version of the law, which recognizes virtual assets as a means of thesaurization, while recognizing their potential use in financial crimes such as money laundering, fraud and terrorist financing.

The new law provides some guidelines on how the government intends to monitor and regulate cryptocurrency trading. One guideline focuses on individual cryptographic transactions worth less than $ 1,300, from which the government will only collect the sender's public key for financial monitoring purposes.

However, when the transaction exceeds this amount, the government will apply verification to both the sender and recipient. This process will include identity verification as well as verification of the nature of the business relationship.

For VASP, the threshold is over $ 1,600. In this case, the VASP should provide authorities with information if traders are registered in jurisdictions that do not comply with anti-money laundering recommendations, when traders are family members when traders are foreigners, and when there are cash transactions.

Leading cryptocurrency exchange Binance is working with the Ukrainian authorities to establish regulations related to cryptocurrencies in this country. Binance has signed a memorandum of understanding with the Ministry of Digital Transformation of Ukraine to work together on the legal status of cryptocurrencies. Binance CEO Changpeng Zhao (CZ) said in November that the legalization of cryptocurrencies and the adoption of progressive regulations could play a key role in ensuring positive economic growth as well as attracting additional investment.


Technical Market Overview:
The BTC/USD pair did not make any important move during the weekend as it has been trading in a narrow range located between the levels of $7,322 - $7,579. The three-wave upwards move on Bitcoin was a counter-trend correction that ended up at the level of $7,809 in form of a Shooting Star candlestick pattern. Since then the bears are trying to take back the control over the market and are pushing the prices towards the next target. The recent sudden spike up was capped at the level of $7,700 again and it was retraced in 100%. Currently, the market participants wait for a clear breakout in either direction.

Weekly Pivot Points:
WR3 - $8,491
WR2 - $8,082
WR1 - $7,829

Weekly Pivot - $7,397
WS1 - $7,107
WS2 - $6,723
WS3 - $6,444


Trading recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still down. 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