Cryptocurrency Analysis

[IFX_Selena]

BTC analysis for 01.21.2020 - Consolidaio around the critical pivot at the price of $6.400, watch for rejection or breakout to confim further direction

Industry news:
Leading cryptocurrency exchange Binance has completed its Q4 2019 burn of the Binance coin (BNB). It was the 10th quarterly token burn the exchange has done since the launch of the BNB in July 2017.

The event, which took place during the weekend, saw a total of 2.2 million BNB worth more than $38 million destroyed. Although the figure represents a mere 1.1% of the total supply of BNB, it is Binance's second and third-biggest burn in terms of USD and BNB, respectively.


Technical analysis:


BTC has been trading sideways at the price of $8.646. I found that the level of $8.440 is critical pivot level for BTC and further direction. In case of the downside breakout of $8.440, watch for selling opportunities on the rallies with the main target at $7.725. In case of the rejection of the pivot $8.440, watch for buying on the dips with the main target at $9.000.

Stochastic is in overbought zone and we got fresh new bear cross

MACD oscillator is still showing positive reading above the zero.

Resistance level is seen at the price of $9.000

Main support pivots are set at $8.440 and $7.725





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

[IFX_Selena]

Technical Analysis of BTC/USD for 21 January 2020

Crypto Industry News:
The Bitcoin hash rate has reached a new one by marking the latest technical achievement of cryptocurrency. A new hash rate analysis by Glassnode shows that on January 7, the average has reached 119 hash quintillions per second - the best result ever.

Hash rate refers to the amount of computing power used by miners to validate Bitcoin's Blockchain chain. The more power, the more hypothetically secure Blockchain is. The high hash rate can also be considered as an expression of mining attractiveness for participants.

Glassnode reading comes from calculating the moving average hash rate in one day. Although the hash rate cannot be measured accurately, the data supports other estimates showing that the metric has reached a new record in recent weeks and months.

Progress was rapid. According to Glassnode, an average low hash rate of 36 hash quintillions per second - which was the basis for the last increase - occurred at the end of April 2019.

This year, Bitcoin has already shown many signs of renewed bullish transformation. In addition to the hash rate, commentators highlighted increased trading activity among investors interested in Bitcoin futures.


Technical Market Overview:
After the BTC/USD pair has made a new local high at the level of $9,130, the bears reaction for a new high was to push the prices lower again and they have managed to hit the level of $8,405 on the way down. This level has been tested before and it is clear that the bulls will treat this level as an important short-term key support, so it is worth to keep an eye on the current situation on this market. Any violation of the level of $8,405 will lead to the sell-off extension towards the next technical support at $8,298 and below. For now the market is consolidating in a narrow range between the levels of $8,405 - $8,693, but the breakout can happen any time now.

Weekly Pivot Points:
WR3 - $10,362
WR2 - $9,728
WR1 - $9,214

Weekly Pivot - $8,735
WS1 - $8,034
WS2 - $7,406
WS3 - $6,911


Trading recommendations:
There is a possibility that the wave 2 corrective cycles are completed at the level of $6,345, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation. This strategy is valid as long as the level of $7,582 is not violated. Nevertheless, the larger timeframe trend is still down and all the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend until the level of $10,278 is clearly broken.







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

[IFX_Selena]

Technical Analysis of ETH/USD for 21 January 2020

Crypto Industry News:
The new Chainalysis study shows that terrorists are improving their financial operations using cryptocurrencies.

Blockchain analysts identified the Izz ad-Din al-Qassam (AQB) Brigade, a Hamas military arm, and noted that the terrorist organization is the first confirmed case when terrorists use cryptocurrencies to support their activities.

AQB used the website to generate a new Bitcoin address for each donor to deposit funds. The site also contained an instructional video on donations with maximum anonymity. Compared to similar previous campaigns, AQB has collected the same amount of money from more donors, but almost half the rate.

Cryptocurrencies have previously been associated with crime, including Ponzi schemes and hate crimes. In other recent studies, Chainalysis has tracked down $ 2.8 billion in Bitcoins from criminal enterprises to stock exchanges. Over 50% - $ 1.4 billion in Bitcoins - went through the major Binance and Huobi exchanges.

Cryptocurrency crimes have caught the attention of regulators and government officials who would like more oversight of digital currencies. Last year, Treasury Secretary Steve Mnuchin, speaking at a meeting of the Special Group on the Prevention of Money Laundering (FATF), praised global regulatory standards that would combat cryptographic crimes.

The FATF, whose 200 countries, including the United States, are promoting measures to combat financial crime, are now demanding that exchanges know more about customers and transactions. More data will help identify money laundering and terrorist financing on stock exchanges that largely do not have the oversight needed to combat this growing problem.


Technical Market Overview:
The ETH/USD has reversed from the level of $178.12 after the Pin Bar candlestick pattern was made. The bears have broken out form the local consolidation zone located between the level of $178.12 - $172.91 and managed to hit the technical support at the level of $163.11 and the low was made at the level of $159.93. Currently, the market has bounced slightly and is consolidating around this level because the bounce is very shallow so far. If the bearish pressure intensifies again, then the next target for bears is seen at the level of $157.37 and $151.37. Please notice that this is a quite strong technical support zone due to the short-term ascending trendline presence around these levels.

Weekly Pivot Points:
WR3 - $219.38
WR2 - $198.31
WR1 - $181.78

Weekly Pivot - $161.46
WS1 - $144.93
WS2 - $123.85
WS3 - $107.13


Trading recommendations:
There is a possibility that the wave 2 corrective cycles are completed at the level of $115.05, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation. This strategy is valid as long as the level of $146.94 is not violated. Nevertheless, the larger timeframe trend is still down and all the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend until the level of $196.61 is clearly broken.







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

[IFX_Selena]

BTC analysis for 01.20.2020 - Important pivot level at the price of $8.440 is on the test, watch carefuly price action around it...

Industry news:
Block.one, the firm that developed the EOS.IO software, won't be using the public EOC mainnet to launch its cryptocurrency-powered social media platform Voice.

According to the company's frequently asked questions page, Voice will instead be using a "purpose-made EOSIO blockchain." In time, the page adds, it hopes Voice will "leverage the EOS Public Blockchain."


Technical analysis:


BTC has been trading downwards. As we expected, the price tested the level of $8.440. I found that the level of $8.440 is critical pivot level for BTC and further direction.

In case of the downside breakout of $8.440, watch for selling opportunities on the rallies with the main target at $7.725.

In case of the rejection of the pivot $8.440, watch for buying on the dips with the main target at $9.000.

MACD oscillator is still showing positive reading above the zero.

Resistance level is seen at the price of $9.000

Main support pivots are set at $8.440 and $7.725




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

[IFX_Selena]

Technical Analysis of ETH/USD for 20 January 2020

Crypto Industry News:
Binance, one of the leading cryptocurrency exchanges in the world, has started discussions on a strategic partnership with two Japanese companies. According to a press release on January 17, Binance began negotiations with Z Corporation, a subsidiary of Z Holdings formerly known as Yahoo Japan and TaoTao, a Japanese licensed cryptocurrency.

The exact details of the collaboration have not been revealed at the moment, but Binance said Z Corporation and TaoTao will "continue talks and discussions with Binance and begin preparations to launch commercial services for users in Japan."

"We are looking forward to our joint efforts with Z Corporation / TaoTao in providing our services to Japan. First of all, we want to ensure that we operate in full compliance with Japanese laws and regulations, in which local and global standards play a key role in establishing sustainable development in the entire industry and greater public acceptance, "said Binance CEO.

On January 14, the Financial Services Agency (FSA) proposed lowering the leverage ratio in trading the cryptocurrency margin from 4x to 2x. In addition, the amended versions of the Payment Services Act and the Financial Instruments and Stock Exchanges Act, which some consider being harsh and unclear, will be implemented in April.

Binance noted that all parties to the partnership will work with the Financial Services Agency to ensure full compliance with regulations in the Japanese market.


Technical Market Overview:
The ETH/USD has reversed from the level of $178.12 after the Pin Bar candlestick pattern was made. The bears have broken out form the local consolidation zone located between the level of $178.12 - $172.91 and managed to hit the technical support at the level of $163.11. Currently, the market is consolidating around this level and the bounce is very shallow so far. If the bearish pressure intensifies again, then the next target for bears is seen at the level of $157.37 and $151.37. Please notice that this is a quite strong technical support zone due to the short-term ascending trendline presence around these levels.

Weekly Pivot Points:
WR3 - $219.38
WR2 - $198.31
WR1 - $181.78

Weekly Pivot - $161.46
WS1 - $144.93
WS2 - $123.85
WS3 - $107.13


Trading recommendations:
There is a possibility that the wave 2 corrective cycles are completed at the level of $115.05, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation. This strategy is valid as long as the level of $146.94 is not violated. Nevertheless, the larger timeframe trend is still down and all the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend until the level of $196.61 is clearly broken.







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

[IFX_Selena]

Technical Analysis of BTC/USD for 20 January 2020

Crypto Industry News:
The Canadian authorities have issued new guidelines to determine which digital currency trading platforms are subject to derivative rules.

The Canadian Securities Authority (CSA) explained the new rules in the "Guidance on the Application of Securities Legislation to Cryptographic Assets facilitators" published on January 16.

Essentially, the agency has established a line between transactional platforms that immediately provide cryptographic resources to their users and those that store transactions related to cryptographic resources until the user makes a subsequent request.

After analyzing trading techniques on various platforms, CSA came to the conclusion that some of them only provide their users with a contractual right or claim to a cryptographic resource and do not immediately transfer it to the user. Such cryptocurrency trading platforms are subject to securities laws, and therefore are subject to derivatives laws.

Potentially, the user will rely on the platform and depend on it until it is transferred to a user-controlled wallet. Until then, the user would not have ownership, possession or control over cryptographic resources without relying on the platform. The user will be exposed to continuous risk related to insolvency (credit risk), fraud risk, performance risk and proficiency risk from the platform "- we read.

The CSA will not apply securities laws to cryptographic exchanges where the underlying cryptographic component is not a security or derivative and cryptographic assets are immediately provided to you.


Technical Market Overview:
The BTC/USD pair has broken slightly above the last high and made a new local high at the level of $9,130, but this breakout did not last long. The bear's reaction for a new high was to push the prices lower again and they have managed to hit the level of $8,405 on the Bitcoin way down. This level has been tested before and it is clear that the bulls will treat this level as an important short-term key support, so it is worth to keep an eye on the current situation on this market. Any violation of the level of $8,405 will lead to the sell-off extension towards the next technical support at $8,298 and below.

Weekly Pivot Points:
WR3 - $10,362
WR2 - $9,728
WR1 - $9,214

Weekly Pivot - $8,735
WS1 - $8,034
WS2 - $7,406
WS3 - $6,911


Trading recommendations:
There is a possibility that the wave 2 corrective cycles are completed at the level of $6,345, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation. This strategy is valid as long as the level of $7,582 is not violated. Nevertheless, the larger timeframe trend is still down and all the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend until the level of $10,278 is cleary broken.







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

[IFX_Selena]

Technical Analysis of BTC/USD for 17 January 2020

Crypto Industry News:
The Russian Prime Minister urged the country to prioritize the development of the digital economy. According to the national daily, Mikhail Mishustin - who took office as prime minister today - highlighted some of the key priorities of his work and pointed to the need for institutional reforms in Russia.

Mishustin said the country should implement modern information technologies, including the development of a national digital economy program, adding:

"The state should become a digital platform made for people."

Mishustin issued a statement after that former prime minister of Russia, Dmitry Medvedev, announced that he was resigning. The decision was made in connection with the message of Russian President Vladimir Putin addressed to the Federal Assembly, in which he presented a number of fundamental changes to the country's constitution.

Large Russian companies, including some in which the state has a significant share, are beginning to test and apply Blockchain technology to various aspects of their business. Last December, Russian energy network operator Rosetti began testing the Blockchain payment solution in the electricity retail sector to automate and increase transaction transparency between energy producers, suppliers and consumers.

Last November, Russia's largest bank, Sberbank, pioneered the Blockchain solution for repurchase agreements. The bank has received a patent for a solution that uses smart contract technology to automate transactions between parties.

Major players in the cryptocurrency and Blockchain space also praised Russia's role in the development of the industry. Last year Binance cryptocurrency exchange president Changpeng Zhao praised programming talent coming out of the country and called Putin the most influential person in the Blockchain industry.


Technical Market Overview:
The BTC/USD pair has broken through the key technical resistance located at the level of $8,836 and made a local high at the level of $8,938 at the time of writing the analysis. Please notice, that this high was again made on lower momentum than the previous one, so there is another negative divergence present. Before, the pair har tested the technical support located at the level of $8,573 and bounced higher, which means, the support had been recognized by the market participants as valid and they wanted to resume the recent uptrend. Moreover, there is no possibility to move lower at the price of Bitcoin unless the key support at the level of $7,601 is clearly violated.

Weekly Pivot Points:
WR3 - $9,744
WR2 - $9,058
WR1 - $8,561

Weekly Pivot - $7,905
WS1 - $7,428
WS2 - $6,754
WS3 - $6,270


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. There is a possibility that the wave 2 corrective cycles are completed, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation.







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

[IFX_Selena]

Technical Analysis of ETH/USD for 17 January 2020

Crypto Industry News:
In the announcement published on the Japanese support site Binance, the stock exchange revealed that it would limit access to the stock exchange for the inhabitants of Japan on an indefinite date. The announcement states that the restriction is being implemented gradually and the details will be disclosed later.

There are currently no restrictions and Japanese users can use the exchange normally.

Binance was based in Japan as soon as he left China. As previously reported, the stock exchange has moved to Malta following an official warning from Japanese regulators due to the lack of a national license to operate the stock exchange.

Since then, several headquarters have registered with the regulatory authority. Huobi, a rival of Binance, obtained a license in January 2019, and the BitBox exchange of the Japanese corporation LINE secured it in September.

It is possible that Binance has encountered similar regulatory difficulties despite not being in this country. The Kraken crypto exchange ceased to provide services to Japanese residents in April 2018, citing the rising costs of doing business - potentially due to the requirement to obtain a license.


Technical Market Overview:
The ETH/USD bulls keep consolidating just under the recent swing high at the level of $170.72 and it looks like they are preparing for another wave up. The target is seen at the level of $172.91. Nevertheless, this price rally looks like a classic pump made on extreme volumes, which indicates that some part of the market participants has been actively selling the ETH on the way up. So far the rally has ended with a High-Tide Doji candlestick pattern and since then the bears are trying to push the prices lower to test the broken levels. The next technical support is seen at the levels of $156.77, $150.94 and $146.94.

Weekly Pivot Points:
WR3 - $163.70
WR2 - $155.20
WR1 - $149.53

Weekly Pivot - $140.92
WS1 - $136.16
WS2 - $127.09
WS3 - $122.67


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. There is a possibility that the wave 2 corrective cycles are completed, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation.






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

[IFX_Selena]

BTC analysis for 01.16.2020 - Is this end of the upward correction ? Watch for selling opportunities

Industry news:
In a Jan. 15 announcement on Binance's Japanese support website, the exchange revealed it would restrict access to residents of Japan at an unspecified later date.

The restriction is said to be implemented gradually, with details to be revealed later, according to the announcement.

Currently, there are no restrictions in place and Japanese users are able to operate the exchange normally.

Binance was previously headquartered in Japan after exiting China. As Cointelegraph reported in March 2018, the exchange moved its operations to Malta following an official warning by Japanese regulators due to its lack of a national exchange license.


Technical analysis:


Bitcoin has been trading inside of the consolidation at the price of $8.677 and potential for the further downside movement. I do see potential completion of the upward cycle, which is a sign that selling is in play... Watch for selling opportunities and targets at the price of $8.470 and $8.186.

MACD oscillator did show big decreasing to the upside momentum, which was one of the main reasons for most recent downside swing.

Resistance levels are seen at the price of $8.700 and $8.888

Support levels are set at the price of $8.560, $8.470 and at the price of $8.186.




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

[IFX_Selena]

Technical Analysis of ETH/USD for 16 January 2020

Crypto Industry News:
The United Nations warned that participation in a North Korean cryptocurrency conference in February could be a violation of sanctions.

The report tracks last week's indictment of Ethereum Foundation researcher Virgil Griffith accusing him of plotting to violate the International Economic Allowances Act.

Griffith went to North Korea for the first Blockchain and cryptocurrency conference in April last year. He and other conference participants allegedly discussed cryptocurrencies and Blockchain technologies. The US government claims that Griffith's presence may have helped North Korea bypass international sanctions.

Prosecutors in the Griffith case say he encouraged other US citizens to attend the conference this year. The conference website states that people from any country except South Korea, Japan and Israel have permission to visit, adding that guest passports will not be stamped.

North Korea has been subject to UN sanctions since 2006 for conducting nuclear and missile programs. These sanctions oblige, inter alia, countries to prevent "financial transactions, technical training, advice, services or assistance" if they could contribute to the implementation of missile programs or help to avoid sanctions.

The alleged "clear discussions about cryptocurrencies to avoid sanctions and money laundering" appear to be a direct violation of this sanction.


Technical Market Overview:
After the new high was made at $170.42, the ETH/USD pair has been consolidating the recent gains in a narrow range located between the levels of $170.42 - $156.77. Nevertheless, this price rally looks like a classic pump made on extreme volumes, which indicates that some part of the market participants has been actively selling the ETH on the way up. The rally has ended with a High-Tide Doji candlestick pattern and since then the bears are trying to push the prices lower to test the broken levels. The next technical support is seen at the levels of $156.77, $150.94 and $146.94.

Weekly Pivot Points:
WR3 - $163.70
WR2 - $155.20
WR1 - $149.53

Weekly Pivot - $140.92
WS1 - $136.16
WS2 - $127.09
WS3 - $122.67


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. There is a possibility that the wave 2 corrective cycles are completed, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation.

Attachment 2088



Attachment 2089
Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020