Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of BTC/USD for 27 January 2020

Crypto Industry News:
The World Economic Forum (WEF) has created, he claims, the first-ever global consortium to develop a framework for transnational management of digital currencies, including stablecoins.

A press release made available to the media reveals that the newly created Global Consortium for Digital Currency Management will focus on developing interoperable, transparent and inclusive policy approaches to regulating the digital currency space and supporting public-private cooperation in both developed and emerging economies.

WEF says the impulse to create a consortium is recognizing that well-designed global governance remains the key to delivering such a glorified promise that digital currencies will be conducive to financial inclusion by extending access to financial services to populations around the world who currently do not have access to them .

The consortium will bring together international companies, traditional financial institutions, government representatives, technical experts, scientists, international organizations, NGOs and WEF community members.

In addition to the current fragmentation of the state of global regulation of digital currencies, WEF says that it will focus on building trust and encourage innovative thinking about regulatory policies that can support public and private entities in the global cryptocurrency space.

Many famous personalities supported this initiative, including Bank of England Governor Mark Carney, WEF founder and executive president, Klaus Schwab, senior minister and chairman of the Monetary Authority of Singapore, Tharman Shanmugaratnam, as well as officials from the Ministry of Finance and central bankers from Egypt and Bahrain.


Technical Market Overview:
The BTC/USD pair has bounced from the level of $8,153, which is just below the 38% Fibonacci retracement located at the level of $8,236. The bulls have managed to push the price towards the level of $8,616 at the time of writing the analysis, but the target seems to be little higher, at the level of $8,693. If, however, this technical resistnace is violated as well, then the bulls might test the recent swing high at the level of $9,130 and continue the up trend.

Weekly Pivot Points:
WR3 - $9,339
WR2 - $9,028
WR1 - $8,796

Weekly Pivot - $8,458
WS1 - $8,222
WS2 - $7,890
WS3 - $7,647


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 27 January 2020

Crypto Industry News:
According to media reports, the rulers of the ruling party in Japan are working on a proposal to release a national digital currency, which seems to be a response to the fear of Chinese digital yuan.

The planned digital yen would be jointly developed by government and private companies and would be in line with many similar initiatives around the world.

A parliamentary group of 70 legislators from the Liberal Democratic Party is working on the proposal. The group plans to submit a proposal to the government in February.

The implementation of the digital yen will take some time due to the late start of Japan. The decision is a fundamental change for the country - representatives of the central bank did not see "demand" for the central currency of the central bank (CBDC) in December 2019.

Facebook Libra's announcement and the Chinese digital yuan forced central banks around the world to consider issuing their own CBDC. This was the main topic of discussion at the panel of the World Economic Forum on January 23.

However, each initiative aims to solve various problems. Libra is primarily offered as a global and trouble-free payment network, and the goal of the digital yuan is to increase China's financial strength, according to former Bank of Japan board member Takahide Kiuchi.

Japanese Finance Minister Taro Aso expressed concerns that the yuan would become a common accounting currency, which might have partly motivated the creation of the Japanese CBDC. However, Kiuchi believes that the main motivation for the Japanese CBDC is the exclusion from the use of cash. As a country that has already introduced negative interest rates, cash flow prevents this policy from expanding further.


Technical Market Overview:
The ETH/USD pair has bounced from the level of 50% of Fibonacci retacement after the low was made at the level of $154.32 and Bullish Engulfing candlestik pattern was made. So far the bulls have managed to test the short-term trendline form below, but no breakout occured just yet. If bulls will sucesfully break through this trendline, then the swing high located at the level of $178.12 might be tested soon. It is worth to keep an eye on the current developings on the Ethereum market, 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 cleary broken.

Weekly Pivot Points:
WR3 - $187.66
WR2 - $177.62
WR1 - $172.55

Weekly Pivot - $163.44
WS1 - $158.80
WS2 - $148.63
WS3 - $143.46


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 ETH/USD for 24 January 2020

Crypto Industry News:
The Gemini US cryptocurrency exchange has completed the SOC 2 Type 2 rating, confirming the security of the operation. This means that Gemini is the only cryptocurrency exchange that has demonstrated this level of security compliance:

"Type 2 is the highest level of security compliance that any organization can demonstrate," said Gemini risk chief Yusuf Hussain.

In preparation for the SOC 2 Type 2 assessment, Gemini carried out a SOC 2 Type 1 audit in 2019, carried out by the audit giant Deloitte. Hussain mentioned that the giant also took control of Gemini SOC 2 Type 2. Gemini Stock Exchange attaches great importance to compliance and security, in order to win the trust of customers, he explains.

Indeed, Gemini released an advertising campaign a year ago in which one of several slogans appearing on buses and boards was "Krypto needs rules." Given the importance of protection, Gemini's risk chief said: "Incorrect operation in the security industry will result in a direct loss of client funds."

Hussain also said that the SOC 2 Type 2 exam includes the Gemini trading and investment platform as well as custody services.


Technical Market Overview:
The ETH/USD has hit the level of $157.37 which is just a tad above the 50% Fibonacci retracement located at the level of $156.19 (low was made at the level of $156.55 at the time of writing the analysis). The bears are clearly in control of the market and the downward momentum is increasing. There is a visible Bearish Flag price pattern at the H4 chart (thick orange line), so if the bearish pressure intensifies again, then the next target for bears is seen at the level of 151.37.

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.

Attachment 2144



Attachment 2145
Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

Technical Analysis of BTC/USD for 24 January 2020

Crypto Industry News:
The Reserve Bank of India (RBI) said that regulated entities cannot offer cryptographic assets in this country, but this does not amount to a general ban on digital assets.

A published press article quoted a document that the RBI submitted to the Supreme Court in September, which wrote:

"First, RBI did not prohibit VCs (virtual currencies) in that country. RBI ordered its regulated entities not to provide services to persons or entities dealing with or settling VCs."

As part of the regulation, the Central Bank of India issued a statement in April 2018 restricting the use of services to all persons involved in the use of cryptographic assets.

"Due to the associated risk, it was decided that with immediate effect, entities regulated by the RBI will not deal with or provide services to individuals or business entities dealing with or settling VCs," reads the statement.

Following a statement from the RBI, the Internet and Mobile Association of India (IAMAI), a non-profit group dealing with digital development, has proposed repealing the cryptocurrency regulation.


Technical Market Overview:
The BTC/USD pair has broken through the technical support at the level of $8,405 and hit the 38% Fibonacci retracement level located at the level of $8,236. The bears have control of the market now and the downward momentum increases. As there are no signs of a trend reversal, the next target for bears is seen at the level of $7,961 (50% Fibonacci retracement) or just a tad lower, at the $7,934 - $7, 897 zones.

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]

BTC analysis for 01.23.2020 - Broken upward Pitchfok channel and main pivot support at $8.400, watch fo potential drop and test of $7.740

Industry news:
As China slips, the world economy remains on edge as markets posted relatively anemic trading yesterday. Bitcoin was no exception, slipping downward by around -2.5 percent. It is currently trading at around $8,450.

Although Bitcoin is often characterized as a hedge against global chaos, this has not been backed up by historical trends. In fact, it's been determined again and again that Bitcoin's price tends to follow the S&P 500. In order words, a healthy stock market means that Bitcoin will see healthy price growth.

That's what makes the panicked Chinese stock market so concerning — it could cause a domino effect that could severely impact world markets. The end result would destructive not only for the S&P500 but also for Bitcoin (BTC).

All eyes are on China now as it looks to regain the losses it recently incurred. However, the panic likely won't subside completely until the Wuhan coronavirus is fully under control.


Technical analysis:


BTC finally managed to break important pivot support at the price of $8.400, which is good confirmation for further downside movement.

The rejection of the Pitchfork upward channel is the early trigger for the downside. My advice is to watch for selling opportunities on the rallies using intraday-frames 5/15 minutes.

MACD oscillator is showing decrease on the upside momentum, which is sign of the weak buying.

Stochastic is in overbought zone and with fresh new bear cross

Resistance levels are set at the price of $8.740 and $9.000

Support levels and downward targets are set at the price of $7.736 and $6.930.





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

[IFX_Selena]

Technical Analysis of ETH/USD for 23 January 2020

Crypto Industry News:
Ethereum developers have presented a way of communication between individual blockchains. This solution is called the interface standard for transaction transfers. Multichain Ethereum is becoming a fact, and this is how the whole process is explained by the developers of the second most popular cryptocurrency network in the world:

"The process of verifying the transaction sender's address by verifying the signed transaction in every Ethereum compatible wallet is the same. The enforcement of smart contracts by posting gas to relays using the signed meta-transactions in the standard Ethereum portfolio looks the same on the main chain and chains compatible with Ethereum. "

In this case, they use a centralized relay - Klaytn Service Provider, however, anyone can act as a message relay as long as it supports both chains. Interestingly, a test version of the Enterprise Ethereum Alliance private blockchain was also selected. Combining private and public blockchain would be a big step towards creating decentralized and objective side chains, which would help to solve scalability problems.


Technical Market Overview:
The ETH/USD has broken out form the local consolidation zone located between the level of $178.12 - $172.91 and managed to hit the 38% Fibonacci retracement at the level of $161.38 again ( the low was made at the level of $159.93). There is a visible Bearish Flag price pattern at the H4 chart (thick orange line), so 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 23 January 2020

Crypto Industry News:
AB InBev, the company behind the Budweiser brand, helps local African farmers prove their income using Blockchain technology. The Blockchain-based system developed in cooperation with BanQu tracks all local AB InBev suppliers, replacing the paper version.

AB InBev is an international conglomerate resulting from the merger of several recognized beer producers. One of the most recognizable brands are Budweiser, Stella Artois and Corona.

The company has adopted a strategy of using local suppliers, thanks to which they receive tax breaks for their additional contribution to the country's economy. However, this proved more difficult in Africa, a continent on which the banking infrastructure remains underdeveloped and it is difficult for farmers to obtain paper documents.

Working with BanQu, a company specializing in Blockchain supply chain solutions, AB InBev introduced a distributed accounting system that tracks all local farmers who supply barley and malt to the company. This allows them to prove their income to local banks and thus open bank accounts and credit lines.

Access to banking allows local farmers to finance more efficient farming tools, increasing yields and getting more money. The system also helps reduce corruption introduced by brokers who have consolidated shipments to breweries.


Technical Market Overview:
After the BTC/USD pair had made a swing high at the level of $9,130, the supply side has taken temporary control of the market and have managed to push the prices towards the key short-term technical support level located at $8,405. The long lower shadows of the candles that are visible on the H4 chart indicated an increased bullish activity: they are still defending this support level. 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]

BTC analysis for 01.22.2020 - Coling market, watch for the breakout of rejection of the main pivot at $8.400 to confirm further direction

Industry news:
Trading volume for Bitcoin (BTC) options from the Chicago Mercantile Exchange, or CME Group, has increased by over 100 percent in just the first week after their launch.

Bitcoin options volumes more than doubled in the seven days following their introduction on January 13, 2020. The volume recorded, as of January 17, was 122 contracts, valued at 610 BTC, which is currently worth $5.27 million. On day one of their launch, BTC options volume was only 55 contracts, or 275

BTC, which is presently worth $2.37 million.

Open interest on Bitcoin options contracts remained steady at 219 contracts on Friday, which is valued at an estimated 1,095 BTC, or $9.45 million at current prices.


Technical analysis:


BTC has been trading sideways at the price of $8.626. I found that the level of $8.440 is critical pivot level for BTC and further direction. My analysis from yesterday is still valid. 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 but the momentum is decreasing to the upside.

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 20 January 2020

Crypto Industry News:
Central banks of Canada, Great Britain, Japan, the European Union, Sweden and Switzerland formed a group with the Bank for International Settlements (BIS) to jointly study the central bank's digital currencies (CBDC).

According to a press release published by the Bank of England, these institutions will share their experiences with other members of the group, investigating the potential use of CBDC in their jurisdictions.

"The group will assess the use of CBDC; economic choices, economic, functional and technical design, including cross-border interoperability, will also share knowledge about new technologies. It will closely coordinate cooperation with relevant institutions and fora - in particular the Financial Stability Board and "Payments and Market Infrastructures Committee (CPMI)" - we read in a statement.

The research group will be co-chaired by the head of BIS Innovation Hub, Benoit Coeure, and Jon Cunliffe, deputy governor of the Bank of England and chairman of the Payments and Market Infrastructure Committee. The group will include senior representatives of participating central banks and BIS.

Many central banks around the world have begun researching, piloting and actively implementing various forms of digital currencies, including CBDC. As previously reported, the president of the European Central Bank, Christine Lagarde, supports the institution's efforts to develop the CBDC. Lagarde said there is an urgent need for fast and cheap payments, and that the ECB should take a leading position instead of remaining an observer of the changing world.


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. The long lower shadows of the candles that are visible on the H4 chart indicated an increased bullish activity: they are still defending this support level. 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 22 January 2020

Crypto Industry News:
The situation in the cryptocurrency space in Thailand is still developing - the country recently received another licensed cryptographic exchange, which increases the total number of exchanges to six. According to the announcement of the Thai SEC, the latest trading platform that has received the Bitcoin trading license is known as Zipmex.

The emergence of Zipmex on the Thai cryptographic scene has brought even greater competition to the developing cryptographic sector in this country. The SEC's new move came after the regulator recently announced that it plans to update the list of companies that have obtained a license to trade in digital assets.

The regulator's website shows that Zipmex is now officially on the list of licensed cryptographic trading services. This is the sixth stock exchange that received such a license, after BX, Satang Pro, Bitkub, Bitherb and Huobi.

The company's website has not yet disclosed when the service may start, although the message "Get ready for a meeting with Zipmex" suggests that the stock market may start working in the near future.

Mentioned earlier, Bx was the oldest Bitcoin trading platform in Thailand, although it is no longer operational. The platform announced the closure on September 30, 2019, giving its clients a month to withdraw funds before the stock exchange closes on November 1.

The company allegedly decided to "focus on other business opportunities", which is why it announced that it would not demand a license to continue operating in 2020. However, its closure has left a serious hole in the Thai cryptographic market, which has led to strong competition in the country's cryptographic sector.


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. There is a visible Bearish Flag price pattern at the H4 chart (thick orange line). 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