Cryptocurrency Analysis

[IFX_Selena]

BTC analysis for 01.30.2020 - Median Pitchfork line at the prrice of $9.350 is main pivot to watch

Industry news:
The emergence of cryptocurrency as an investable asset has brought up an ongoing theme in the financial space. Traditional investors are only getting older, and the gap left behind them is not being filled by millennials and younger generations who are instead turning to Bitcoin and other modern alternatives.

This is a concern for the major financial houses, like Fidelity and Charles Schwab, who are now allowing their clients to trade fractions of stocks and exchange-traded funds. The hope is, by allowing investors to invest small amounts of money into big brands, like Apple, younger investors will be drawn in.

Of course, this fractional trading model is already something that is built into Bitcoin, helping the digital currency to be more inclusive and open, and indeed, one of the reasons why the younger generations find the digital currency so attractive.


Technical analysis:


As I alerted you yesterday, BTC did rotate around Pitchfork median line at $9.300. I do expect few pivot swings to form around median line. My analysis from yesterday Is still valid.

Stochastic oscillator is showing overbought condition and bearish divergence, which is sign that buying looks risky and those sellers may use that fast to establish sell positions.

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

Resistance levels are set at the price of $9.430 and $9.550

Support levels and downward targets are set at the price of $9.111, $8.970 and $9.790.





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

[IFX_Selena]

Technical Analysis of BTC/USD for 30 January 2020

Crypto Industry News:
The municipality of Zermatt in Switzerland is now second place in Switzerland where taxpayers can officially pay taxes in Bitcoin. To enable the new tax payment option, Zermatt authorities have partnered with the largest Swiss crypto company Bitcoin Suisse.

As announced by Bitcoin Suisse, Zermatt began to accept Bitcoin as a means of payment for local taxes and transactions on January 28, 2020.

By working with Bitcoin Suisse, Zermatt authorities are now able to convert taxpayer Bitcoins to Swiss francs through a company that then transfers the amount in fiscal currency to the municipality's bank account.

Local taxpayers will be able to pay taxes in Bitcoins using the sales tool installed in the Zermatt city hall or on the online payment portal. However, to pay taxes using Bitcoin online, taxpayers will have to apply directly to the Zermatt tax office for a cryptographic payment solution.

Romy Biner-Hauser, mayor of Zermatt, emphasized that the new tax payment option aims to meet the increased demand for Bitcoin-based tax payments:

While Switzerland is still developing its industry of crypto-financial services in terms of Bitcoin-based tax payments, some global authorities have recently found this option too risky due to the high volatility of Bitcoin values.


Technical Market Overview:
The BTC/USD pair has made yet another higher high overnight, this time it was located at the level of $9,383 and bulls are now consolidating the recent gains. The level of $9,130 will now act as short-term technical support, together with the level of $8,836. The strong and positive momentum supports the short-term bullish outlook and the next target for bulls is seen at the level of $9,539. There is only a couple of days to complete the month of January and the Bitcoin chart still looks very bullish.

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.

Attachment 2185




Attachment 2186
Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020

[IFX_Selena]

Technical Analysis of ETH/USD for 30 January 2020

Crypto Industry News:
New research has shown that the number of cryptocurrencies entering Darknet markets has doubled for the first time in four years.

In part of its 2020 Crypto Crime Report published on January 28, Chainalysis - a New York analytical company Blockchain - showed that Darknet markets significantly increased their share in incoming cryptographic transactions in 2019, doubling the result from 0.04% in 2018 to 0.08 %.

According to the study, total cryptocurrency market sales increased by 70% in 2019, which is over USD 790 million in cryptocurrencies after a slight decline in 2018. Sales for the first time exceeded USD 600 million.

Chainalysis believes that while the overall share of cryptographic payments in the Darknet network remains fairly low, recent increases in volumes indicate that darknet markets are resilient to increased regulatory control by global regulators. According to the company, the total number of active darknet markets has remained stable in recent years despite increased law enforcement.

In particular, the study showed that while some markets are closing, others still manage to fill the gap and meet customer demand. While eight active markets were closed in 2018, eight new markets were opened in 2019, keeping the total number of active markets worldwide at a stable level of 49.

According to Chainanlysis, the growing share of cryptocurrencies arriving on darknet markets is allegedly due to the implementation of new technologies, which makes the operating process more decentralized. The company noted that to avoid law enforcement closures, some darknet markets are implementing new infrastructures that have a fully decentralized structure similar to the Tor browser or "to the Blockchain chain itself."


Technical Market Overview:
The ETH/USD pair has hit the supply zone located between the levels of $176.95 - $178.12, but no breakout occurred just yet as the rally was capped by bears. The local correction has broken through the local technical support at the level of $172.91 and made a low at the level of $169.78, but the key short-term technical support seen at the level of $168.92 has not been broken yet. It is worth to keep an eye on the current developments 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 clearly 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]

BTC analysis for 01.29.2020 - Watch for potential downside opportuntiies and few swing pivots to form around median line

Industry news:
The trading volume of the Bitcoin options being traded on the Intercontinental Exchange (ICE)-owned trading platform Bakkt has dropped to zero over the past week, one month after the product was launched.

According to data from the ICE's website, the last day where its Bitcoin options were traded was January 17, when 20 contracts were traded. Since then, no trades have been taking place. Bakkt's bitcoin options contracts were launched last month, and are regulated by the Commodity Futures Trading Commission (CFTC).


Technical analysis:


As I alerted you yesterday, BTC did rotate around Pitchfork median line at $9.300. I do expect few pivot swings to form around median line.

Stochastic oscillator is showing overbought condition and bearish divergence, which is sign that buying looks risky and that sellers may use that fast to establish sell positions.

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

Resistance levels are set at the price of $9.430 and $9.550

Support levels and downward targets are set at the price of $9.111, $8.970 and $9.790.





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

[IFX_Selena]

Technical Analysis of ETH/USD for 29 January 2020

Crypto Industry News:
Tim Draper, a billionaire investor, recommended millenials to buy Bitcoins during a TV interview. Draper believes that Bitcoin is particularly important for the millennium generations who want to set aside sufficient capital for retirement. He suggested that the traditional banking system is outdated.

Draper also blamed traditional finances for pulling hundreds of thousands of dollars into debts. He explained that with current salaries they cannot pay it off completely. It is a really hard time and they have become tenants and not buyers because they have to. He also emphasized that it is important to be able to move freely and move capital and goods freely around the world.

For these reasons, Draper recommends millennials to build their "empire in the new model", which, unlike the dollar, does not impose high fees and regulations on transactions. He noted that putting money aside as older generations would do nothing to today's economy, concluding:

"If you really want it to work, I think you will choose Bitcoin or crypto," said Draper.

Many believe that Bitcoin is a highly inflationary and debt-based financial system solution. In order for Bitcoin to solve some of these problems, sellers would have to start setting prices in Bitcoins instead of in local currency. The reason is that if prices are set in the local fiat currency, inflation will continue to affect the prices of goods and services.


Technical Market Overview:
The ETH/USD trendline test has been completed and the bulls broke through it. The next target for them is the swing high located at the level of $178.12. It is worth to keep an eye on the current developments 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 clearly 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 BTC/USD for 29 January 2020

Crypto Industry News:
Iran's Ministry of Industry, Mining and Trade have issued over 1,000 licenses to mine cryptocurrency for domestic operations.

According to a report published by Iran Banking and Economic System Reference Media (IBENA), member of the Blockchain Committee of the Information and Communication Technology Guild (ICT), Amir Hossein Saeedi Nai, informed the public about the number of licenses issued.

He explained that before mining operations in the country, entrepreneurs must apply for a license, adding that the government has issued over 1,000 permits so far, and several mining farms have already started operations. Nai estimated that if the local mining industry were to operate at full capacity, it would bring $ 8.5 billion to the local economy.

Bank sanctions from the United States and other Western countries have hit Iran's economy hard. Nai said the digital currency can facilitate trade and can also be used to avoid economic sanctions.

The official explained that ICT is currently working on improving the conditions for mining cryptocurrency in Iran. It is possible that local mining activities will revive by changing electricity rates and strengthening cooperation between local cryptocurrency miners and gas-fired power plants.

Iran has one of the lowest energy prices in the world, at $ 0.007 per kilowatt-hour. However, recent energy shortages and power outages have led regulators to take a more active role in managing energy supply in the country and therefore have adopted a strict approach to mining cryptocurrencies.

The increase in cryptocurrency mining in Iran has led the government to significantly raise electricity tariffs for the sector from the above 0.007 dollars to 0.07 dollars per hour - the same as exports of electricity.


Technical Market Overview:
The BTC/USD pair has made yet another higher high overnight, this time it was located at the level of $9,370. The level of $9,130 will now act as short-term technical support, together with the level of $8,836. The strong and positive momentum supports the short-term bullish outlook and the next target for bulls is seen at the level of $9,539. There is only a couple of days to complete the month of January and the Bitcoin chart looks very bullish.

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]

BTC analysis for 01.28.2020 - Median line reached, possible rotation around it and even short-term decline

Industry news:
The Japanese Economy Minister Yasutoshi Nishimura recently stated that the coronavirus outbreak is causing serious threats to the global economy. On a local level, he said that he's concerned a lot, especially when it comes to tourism. Chinese tourists account for 30% of the people who visit Japan for that purpose. As such, transportation hurdles, as well as cancellations are among the minister's prime concerns. If China's affected cities remain closed, Nishimura fears that it will have more

Technical analysis:


BTC reached Pitchfork median line at the price of $9.400. This is sign that we might have short term topping activity and potential rejection. Usually, after the price reach Pitchfork median line we can form few pivots around it.

Stochastic oscillator is showing overbought condition, which may cause short-term decline on BTC and potential test of $8.910 or $8.700.





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

[IFX_Selena]

Technical Analysis of ETH/USD for 28 January 2020

Crypto Industry News:
According to a notification from the Ukrainian Ministry of Finance, the Ukrainian authorities will be able to "block cryptographic portfolios" in order to take over illegally acquired assets.

Oksana Markarova, Minister of Finance of Ukraine, reportedly said that the State Financial Monitoring Service of Ukraine (SFMS) will be responsible for tracking the sources of funds in the cryptocurrency portfolios of citizens.

As part of regulatory policy, SFMS will not only be able to get information about the origin of cryptocurrencies but also detect how these funds were spent, said Markarova in a report published on the official website of the Ukrainian Ministry of Finance.

In particular, SCFM claims to have access to an "analytical product" that allegedly allows investigators to look at the origin and use of cryptographic resources. According to Markarowa, there have been many "successful cases" of investigations through him.

According to the statement, the new SCFM liability will be part of the new cryptocurrency law that was approved by the Ukrainian government in December 2019.


Technical Market Overview:
The ETH/USD has been fighting over the short-term trendline resistance and it looks like the bulls are winning so far. If bulls will successfully breakthrough 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 developments 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 clearly 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 BTC/USD for 28 January 2020

Crypto Industry News:
Adena Friedman, CEO of Nasdaq, the world's second largest stock exchange, confirms that the platform is considering launching futures that would be based on Bitcoin (BTC). Apparently, talks are being held with a certain business partner.

In a recent interview the CEO of Nasdaq gave Bloomberg, she says

"We work with the industry and a great partner to see if this is right for us [move]. And I think we still evaluate it. We've talked to the industry to tell [its representatives] that this is something [special.] We already have two futures [based on] Bitcoin ... And if you're going to create a product, you want to make sure people use it and use it differently than [do it] today. In addition, we would have to self-certify as a futures exchange. We will use our NFX license for this, but we must ensure that we are fully prepared for it from the point of view of risk management. And these are two things we are still working on. "

Friedman also believes that cryptocurrencies need to be viewed from a broader perspective:

"I would say that in our opinion, digital currencies and cryptocurrencies will have an impact on the global economy. The question is whether they will mature into a state in which they are really used for [financial] transfers. But in the meantime, I think there is definitely a high demand for them and the opportunity to trade them. It's just a question of whether we can create a structure that is unique enough and different from what already exists. "

A positive Nasdaq decision on bitcoin futures would be a breakthrough. It is worth noting that the stock exchange is opening up to cryptocurrencies in installments. She has already started to show, for example, BTC and ETH quotations.


Technical Market Overview:
The BTC/USD pair continues to move higher after the bounce from 38% Fibonacci retracement. The bulls have managed to push the price towards the level of $9,090 at the time of writing the analysis, but the target seems to be little higher, at the level of $9,130. If, however, this technical resistnace is violated as well, then the next target for bulls is seen at the level of $9,513. The strong and positive momentum supports the short-term bullish outlook.

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]

BTC analysis for 01.27.2020 - Major pivot level at the price of $8.750 on the test, watch fo the price action around it to confirm further direction

Industry news:
How close is bitcoin (BTC) to becoming money? New data from BitMEX Research claims that although BTC transactions are now more precise than ever, the cryptocurrency still remains a long way off elusive money status – and believe that precision could actually hurt BTC's hopes of becoming money.

The big news is that there has been a "marked increase in [BTC] precision in the last 10 years, which surprisingly continued even beyond 2018."


Technical analysis:


Major short-term pivot level is on the test at the price of $8.750-$8.800. Watch carefully for the price action around our main pivot level.

The rejection of the main pivot at $8.750 may lead us for test of $8.426-$8.232.

The upside breakout of the main pivot at $8.75 may lead us to test of $8.990.

MACD oscillator is showing positive reading and the slow ling is slopping to the upside.

Main resistance level is seen at the price of $8.750-8.880

Support levels and downward targets are set at the price of $8.426 and $8.232.





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