Cryptocurrency Analysis

[IFX_Selena]

BTC analysis for 02.19.2020 - Resistance on the test, potential for the downside rotation towards the level of $9.828

Industry news:


An $8 million ICO project is shutting down, citing regulatory uncertainty and difficulties in onboarding new users.

Content-sharing platform Contents Protocol announced Wednesday that following numerous attempts to turn its business into a success, the firm is closing down and refunding investors as much as $7.5 million-worth of the ether (ETH) raised in its initial coin offering (ICO).

"We inform you that due to continued regulatory uncertainties in cryptocurrency and lack of business prospect, we have decided to end our project," reads an announcement that has now wholly replaced Contents Protocol's website.

Contents Protocol was a relative latecomer to the ICO boom, only completing its crowd sale in December 2018. It was created as a subsidiary of WATCHA Play, a popular Korean streaming service, and was designed to incentivize content sharing by effectively rewarding users who rated and reviewed films and TV featured on the platform with its native CPT token.


Technical analysis:
BTC has been trading sideways at the price of $10.128. Anyway, I see potential for the downside due to rejection of the resistance and the outside bearish candle on the hourly time-frame.

Watch for selling opportunities if you see the breakout of the support at $10.028. Downward targets are set at the price of $9.828 and $9.614.

MACD slow line did turn to the downside and it is confirms downside rotation.

Resistance levels are seen at the price of $10.280 and $10.500

Support levels and downward targets are set at the price of $9.828 and $9.614.





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

[IFX_Selena]

Technical Analysis of ETH/USD for 19 February 2020

Crypto Industry News:
A successful tokenization attempt may lead to major changes in Russia's cryptocurrency legislation.

The Central Bank of Russia (CBR) today announced the end of pilot Blockchain tokenization using a platform developed by Nornickel as part of its regulatory sandbox. The bank then proposed to change Russian law on digital assets to bring it into tokenization platforms.

The platform is open to all organizations and allows them to issue hybrid tokens supported by a resource basket. It is said that this technology expands financing opportunities for enterprises, while also providing new investment opportunities for users.

The head of the CBR fintech department, Ivan Zimin, noted that it was one of the largest projects supported by the sandpit. He was particularly excited about the possibility of issuing hybrid tokens, believing that they could "quickly adapt to the requirements of companies and users."

Zimin also revealed that the bank proposed a regulatory change based on the results of the pilot project:

"Following the results of the pilot program, the Central Bank of Russia proposed amendments to the draft federal law" On digital financial assets "that are required to integrate and develop these solutions in the growing market of digital assets," he said.

The platform was developed by Nornickel, one of the largest mining companies in the world. The corporation previously developed a palladium tokenization platform and began testing the digital asset trading platform in December 2019.


Technical Market Overview:
The ETH/USD pair has broken through the short-term trendline resistance located at the level of $266 and shoots up towards the recent swing high. Nevertheless, the high has not been hit yet as the rally was capped around the level of $285.55. The local counter-trend corrective cycle might start any time soon and the first target for bears is seen at the level of $275.41 - $272.02 zone.

Weekly Pivot Points:
WR3 - $358.03
WR2 - $324.90
WR1 - $285.60

Weekly Pivot - $248.62
WS1 - $213.91
WS2 - $176.19
WS3 - $141.12


Trading Recommendations:
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. The current move up might be a wave 3 in developing in the overall long-term Elliott wave scenario and so far the top at the level of $288.01 might be the wave 1 of the overall wave 3.








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

[IFX_Selena]

Technical Analysis of BTC/USD for 19 February 2020

Crypto Industry News:
Lawmakers in Brazil received support to regulate the cryptocurrency market following allegations of fraud at Atlas Quantum, Zero10 and Trader Group last year. In February, the fruit of these activities appeared. The media reported that two large cryptocurrency exchanges based in Brazil have closed their operations due to the threat of high fines and direct effects of the regulations.

Acesso Bitcoin was one of the exchanges that voluntarily closed down. Its co-founder Pedro Nunes was quoted by a cryptographic portal said:

"After the introduction of these regulations by the Federal Tax Office, we noticed a significant decrease in trading volume. We also believe that the market has cooled down for smaller exchanges," he says.

Latoex, another cryptographic exchange from Brazil, has similar problems. Above the company hangs a fine of 100,000 Brazilian realities if it fails to comply with the suspension order issued by the Brazilian Securities and Exchange Commission.

Because Brazil does not currently have a dedicated right to deal with cryptocurrencies, all exchanges fall under the scope of normative instruction No. 1888 issued by the Federal Revenue Department. All companies carrying out cryptographic transactions in Brazil must report them or be fined between $ 120 and $ 360.

Both chambers of the Brazilian National Congress are examining proposals to regulate the national cryptographic industry. Meanwhile, the Senate is reviewing two other laws, PL 3825/2019 and PL 3949/2019. Since February 2020, no specific legislation has been introduced to establish rules for the cryptocurrency market in Brazil.


Technical Market Overview:
The BTC/USD pair has rallied to the level of $10,000 again and made a new local high at the level of $10,227. It means that the 61% Fibonacci retracement has been clearly violated and currently the market is consolidating the recent gains around the level of $10,000, which is the nearest technical support for the price. If, however, the bulls will decide to continue the rally, then the next target is seen at the very top at the level of $10,452.

Weekly Pivot Points:
WR3 - $11,039
WR2 - $10,715
WR1 - $10,112

Weekly Pivot - $9,845
WS1 - $9,424
WS2 - $8,941
WS3 - $8,335


Trading Recommendations:
The market might have made the first impulsive wave up of a higher degree. 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 $10,433 is clearly broken.






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

[IFX_Selena]

BTC analysis for 02.18.2020 - Broken mini Pitchfork upward channel, early sell signal is present. First downward target at the price of $9.450

Industry news:



Decentralized finance (DeFI) protocol bZx has suffered a second attack, with a hacker this time making over $630,000 worth of ether thanks to a flash loan that manipulated the price of sUSD.

The attack seemingly saw a hacker take out a flash loan for 7,500 ETH and use half of it to buy the sUSD stablecoin close to the $1 mark. The funds were then subsequently used on bZx as collateral, and part of the initial loan was used to buy more sUSD on the Kyber and Uniswap exchanges to drive its price to over $2.

This way the attacker managed to take out a larger loan and borrow nearly 6,800 ETH on bZx. The funds were used to repay the original flash loan. His total profit was of 2,378 ETH, at press time worth over $630,000.


Technical analysis:
BTC has been trading sideways at the price of $9.712. Anyway, I found mini sell signal due to the breakout of the mini Pitchfork channel to the downside.

Downward targets are set at the price of $9.450 and $9.135.

MACD oscillator is showing neutral stance but the slow line made new low in the background, which is strong sign of selling pressure.

Major resistance is set at the price of $10.000

Support levels are seen at the price of $9.450 and $9.135




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

[IFX_Selena]

Technical Analysis of ETH/USD for 18 February 2020

Crypto Industry News:
IOHK, a Cardano software company, has announced a $ 500,000 donation in Cardano to support and develop the Blockchain Research and Development Lab of the University of Wyoming (UW).

Professor James Caldwell, Assistant Professor Mike Borowczak and Philip Schlump will head the Advanced Blockchain Research and Development Lab.

Professor Borowczak said that the IOHK donation will be used to support students and PhD students in developing practical applications of real Blockchain use cases.

IOHK, founded by the co-founder of Ethereum, Charles Hoskinson, is based on the principles of peer-reviewed academic research. The company is involved in the development of open source software, authentication and anti-counterfeiting measures. For example, New Balance uses IOHK's Blockchain Cardano chain to authenticate its products to consumers.

According to Professor Caldwell, the IOHK donation will specifically help study the practical applications of Blockchain, such as supply chain management, traceability of goods and the development of smart contracts.


Technical Market Overview:
After the Shooting Star candlestick pattern had been made at the H4 timeframe chart around the level of $288.01, the bears took control over the market of ETH/USD and pushed the prices towards the level of $235. Currently, the market is trading around the level of $270 after the bounce has broken through the short-term trendline resistnace. Nevertheless, only a sustained breakout below the level of $229.81 might result in a larger counter-trend corrective cycle as this is the key short-term technical support.

Weekly Pivot Points:
WR3 - $358.03
WR2 - $324.90
WR1 - $285.60

Weekly Pivot - $248.62
WS1 - $213.91
WS2 - $176.19
WS3 - $141.12


Trading Recommendations:
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. The current move up might be a wave 3 in developing in the overall long-term Elliott wave scenario and so far the top at the level of $288.01 might be the wave 1 of the overall wave 3.







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

[IFX_Selena]

Technical Analysis of BTC/USD for 18 February 2020

Crypto Industry News:
Bitcoin can reach and even exceed its record highs of $ 20,000 by the time of halving, which is expected to take place in May. This was the opinion of Mike Novogratz, a well-known venture capital investor who consistently supported Bitcoin.

Speaking in an interview with American television, Novogratz called Bitcoin "the best brand of the last eleven years" and said that 2020 will be the year in which it will challenge $ 20,000 again.

"At the moment Bitcoin seems to be a little crazy and we could see it growing, but I think that by the end of the year we could certainly pass old peaks, or at least reach them. We can literally be there for halving, i.e. in a few months" - he said .

Considering that altcoins beat Bitocin in terms of returns from January 1, Novogratz said Bitcoin "found its own path" as a unique means of thesaurization.


Technical Market Overview:
After the Bearish Engulfing candlestick pattern was made around the level of $10,430, the BTC/USD pair has moved south to the level of $9,412. Since then the bulls are trying to bounce and were able to almost hit the 38% Fibonacci retracement located at the level of $9,804. The momentum remains weak and negative so there is still a chance for another wave down. If the level of $9,555 is clearly violated, then the next target for bears is seen at the level of $9,508 and $9,123.

Weekly Pivot Points:
WR3 - $11,039
WR2 - $10,715
WR1 - $10,112

Weekly Pivot - $9,845
WS1 - $9,424
WS2 - $8,941
WS3 - $8,335


Trading Recommendations:
The market might have made the first impulsive wave up of a higher degree. 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 $10,433 is clearly broken.







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

[IFX_Selena]

BTC analysis for 02.17.2020 - Crash on the BTC as we expected. Our first downwarrd target at the priceof $9.660 is reached, next target at $9.135

Industry news:


Last month, BTC.TOP's Jiang Zhuoer had announced his plan to implement an 'Infrastructure Funding Plan' (IFP) for Bitcoin Cash, which aimed to direct 12.5% of BCH mining rewards to a fund that will support Bitcoin Cash infrastructure. This was mostly met with mixed reactions, eliciting concerns about the arbitrary nature of the percentage of rewards that would go into the fund, as well as misappropriation of funds. And some miners simply didn't want to contribute to the fund.


Technical analysis:
BTC has been trading downwards as I expected last Friday. Our first downward target from last week got reached at the price of $9.660.Strong rejection of the Pitchfork median line and the breakout of the rising wedge in the background were the keys for the crash on BTC.

Watch for selling opportunities on the rallies and our second target at the price of $9.130.

MACD oscillator is showing downside pressure and the slow line is turned to the downside, which is good confirmation for the further drop.

Short-term resistances are set at the price of $9.720 and $10.000

Major support level is set at the price of $9.135.




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

[IFX_Selena]

Technical Analysis of ETH/USD for 17 February 2020

Crypto Industry News:
Russia is apparently becoming an increasingly attractive market for cryptocurrency companies, as another large cryptocurrency platform adds Russian language support. Poloniex, a popular crypto exchange based in the United States, began offering Russian on its platform just three months after leaving the US market.

Announcing the news on the blog, Poloniex stated that he began to introduce a "partially local" version of Poloniex for Russian-speaking users.

The stock exchange noticed that the currently presented Poloniex interface in Russian is just a starting point, because the team translated only a small part of the platform. At the moment, the Russian Poloniex interface is indeed Russian, but only partially, because the main sections of the website, including ads, are still written only in English.

Many services, such as crypto exchange, margin trading and loans, have been translated along with the registration page. However, the main pages, including information such as Poloniex fees, user agreement, privacy policy and others are still presented in English in the Russian version of Poloniex.

In addition, the company also presented "local communities" along with Poloniex Poloneers on Twitter. The Poloniex Poloneers account on Twitter published the last posts before the announcement in Russian. The introduction of Russian on Poloniex Poloneers complements the already supported social posts in French, Spanish, German, Hindi and others.


Technical Market Overview:
The Ethereum market has finally made a move down over the weekend. After the Shooting Star candlestick pattern had been made at the H4 timeframe chart around the level of $288.01, the bears took control over the market and pushed the prices towards the levels of $259 first and then $235 next. Currently, the market is trading around the level of $251 after the shallow bounce has occurred. Only a sustained breakout below the level of $229.81 might result in a larger counter-trend corrective cycle as this is the key short-term technical support.

Weekly Pivot Points:
WR3 - $358.03
WR2 - $324.90
WR1 - $285.60

Weekly Pivot - $248.62
WS1 - $213.91
WS2 - $176.19
WS3 - $141.12


Trading Recommendations:
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. The current move up might be a wave 3 in developing in the overall long-term Elliott wave scenario and so far the top at the level of $288.01 might be the wave 1 of the overall wave 3.







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

[IFX_Selena]

Technical Analysis of BTC/USD for 17 February 2020

Crypto Industry News:
China leads the way when it comes to digital payments made by average consumers in the country. While payment methods such as Apple Pay in the United States are becoming more and more accepted, such methods are still relatively rare in nearby Japan. Alipay offers Chinese residents the chance to use fiat currency for everyday transactions, apparently acclimatizing them to the day when both payments and currency become 100% digital.

Although recently China has taken a slightly more liberal position on online and digital payments, the vast majority have responded to the increase in the number of cryptocurrencies by more authoritarian means. After it became clear that Chinese citizens were mining millions of Bitcoins, the government responded by banning the trade in all cryptocurrencies in the country from September 2017.

Despite the Chinese government's firm stance on cryptocurrencies, the country has also shown interest in Blockchain technology and the development of the central currency of the digital bank. It becomes clear that he has his own plans thanks to additional regulation.

According to media reports, the People's Bank of China has recently filed for more than 80 patents, paving the way for the introduction of a new digital currency. Virtually all of these patent applications relate to the integration of the digital currency system with existing banking infrastructure.


Technical Market Overview:
The anticipated correction on the Bitcoin has finally arrived as the BTC/USD market fell over 5% during the weekend. The price has tested the technical support located at the level of $9,555 after the Bearish Engulfing candlestick pattern was made around the level of $10,430. The momentum remains weak and negative so there is still a chance for another wave down. If the level of $9,555 is clearly violated, then the next target for bears is seen at the level of $9,508 and $9,123.

Weekly Pivot Points:
WR3 - $11,039
WR2 - $10,715
WR1 - $10,112

Weekly Pivot - $9,845
WS1 - $9,424
WS2 - $8,941
WS3 - $8,335


Trading Recommendations:
The market might have made the first impulsive wave up of a higher degree. 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 $10,433 is clearly broken.







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

[IFX_Selena]

Technical Analysis of ETH/USD for 14 February 2020

Crypto Industry News:
Blockchain Education Alliance initiated by MouseBelt Blockchain Accelerator has gained several noteworthy new members.

Ashlie Meredith, director of the University program for MouseBelt, said the new members include Mastercard dealing with payment processing, innovative support of the leading cryptographic exchange Binance, Binance X, Ripple accelerator - Xpring and cryptocurrency exchange KuCoin. The NEO smart contract platform, the IoTeX internet startup, and Blockchain security company - Quantstamp and Constellation Labs have also joined the alliance.

According to its official website, the Blockchain Education Alliance aims to support education to provide students with the skills and knowledge necessary to participate and contribute to the development of the Blockchain ecosystem.

During its premiere in October 2019, the alliance included the following companies as members: Stellar Development Foundation, Tron, Hedera, Icon, Ontology, Wanchain, Harmony One, Nervos, Orbs, LTO Network, Emurgo, Nem and ETC Labs.

In August 2019, MouseBelt launched the Blockchain educational initiative on three campuses in the University of California system.

The Blockchain and cryptocurrency industries have long suffered from a lack of specialized workforce. At the end of August 2019, Ripple's head of social impact, Ken Weber, said universities around the world should expand their educational programs to offer Blockchain technology and digital content training.


Technical Market Overview:
The ETH/USD pair has made a couple of bearish candlesticks at the end of the rally: Pin Bar ad Bearish Engulfing. The uptrend is still active despite extremely overbought market conditions and the next target for bulls is seen at the round level of $320. Only a sustained breakout below the level of $229.81 might result in a larger counter-trend corrective cycle. Currently, the market is consolidating in a triangle located around the level of $265, just above the technical support at the level of $259.81.

Weekly Pivot Points:
WR3 - $294.29
WR2 - $261.49
WR1 - $246.98

Weekly Pivot - $213.30
WS1 - $200.82
WS2 - $167.15
WS3 - $155.55


Trading Recommendations:
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. This might be a wave 3 in developing in the overall long-term Elliott wave scenario.







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