Cryptocurrency Analysis

[IFX_Selena]

BTC analysis for August 19,.2020 - Completion of the ABC downside correction and potential for the upside continuation

Further Development


Analyzing the current trading chart of BTC, I found that there is potential completion of the downside correction ABC and continuation of the uptrend.

Key Levels:

Key pivot support level is set: $11,600

Resistance levels: $12,085 and $12,180





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

[Njoki]

Thanks Selina again , this is really good , and God bless you , I will be visiting here times and and again , so thank you so much for this , sometimes we get it wrong from all angles . am well informed with such threads am going to enjoy them perfectly and with good taste to them so am going to enjoy a lot to it

[IFX_Selena]

Technical Analysis of ETH/USD for 10 August 2020

Crypto Industry News:
A project led by partner company Bitbeat CIC Enterprise aims to provide crypto payment solutions on two of Korea's busiest beaches for tourists to use.

According to ZDNet Korea, the company worked with card and cash payment provider Innotech to provide a token-based payment solution with the Haeundae Beach System on Busan, South Korea's famous tourist beaches.

The program will allow you to pay for classes related to water sports, life jackets, and even the rental of umbrellas, including Bitcoin, Ethereum, as well as MCI and WAY ERC20 tokens via smartphone applications.

Bitbeat said such payments can be processed in less than 10 seconds, relying on the use of QR codes for any wallet in the world, which differs from similar projects that often require customers to download separate applications to complete the entire process.

The company adds:

"We hope the virtual currency used in the Haeundae-gu Beach System will be more widely used in real life. We will try to provide a cryptocurrency payment environment."

Busan authorities expect that on summer days, people will prefer to rent services on the beaches of Haeundae, rather than bring their own everyday items for fun and recreation to enjoy their time at the beaches. Another beach in Songjeong also runs a similar paid cryptocurrency pilot.

Also in Busan, a private-public consortium in South Korea announced on June 20 its intention to build a blockchain-based medical tourism platform. The release date has not yet been determined and, according to Gyeongnam Ilbo, the initiative will be Busan Bank.


Technical Market Outlook:
The ETH/USD pair has bounced from the level of $362.30, which is just below the short-term trend line support and is moving up towards the yearly high located at the level of $414,11. The momentum has increased and is back in positive territory, so the bulls are still in charge of the market, but the price is still trading inside of the range seen between the levels of $355.34 - $407.03. In a case of a breakout higher, the next target for bulls is seen at the level of $450. The key short-term support is still located at the level of $323.87- $323.85.

Weekly Pivot Points:
WR3 - $458.63
WR2 - $430.13
WR1 - $411.58

Weekly Pivot - $386.08
WS1 - $366.85
WS2 - $340.34
WS3 - $321.13


Trading Recommendations:
Due to the violation of the level of $351, Ethereum is now in the up trend on the long-term time frame. The next target for bulls is seen at the level of $500. The key long-term technical support is located at the level of $86.10, but the zone around $300 - $308 is an important technical support as well.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 10 August 2020

Crypto Industry News:
Researchers at the Technical University of Munich urge regulators to look beyond Bitcoin when it comes to considering the environmental impact of cryptocurrency mining.

According to an August 4 issue of the scientific journal Joule, researchers Ulrich Gallersdorfer, Lena Klaasen and Christian Stoll found that Bitcoin mining accounted for only 66% of the total energy consumption of the top 20 cryptocurrencies by market capitalization.

"Based on the underlying algorithms, up-to-date hash ratios, and the right mining equipment, we conclude that Bitcoin accounts for 2/3 of total energy consumption and that unexplored cryptocurrencies account for the remaining 1/3. Thus, undervalued currencies add almost 50% to satisfy Bitcoin, which alone can cause significant damage to the environment "- reads the report.

The study determined the energy consumption of altcoins by analyzing their mixing rates and mining equipment. The blockchains include Ethereum, Bitcoin Cash, Bitcoin SV, Litecoin, Monero, Dash, Ethereum Classic, Zcash, Dogecoin, Bitcoin Gold, Decred, RavenCoin, MonaCoin), SiaCoin, DigiByte, Horizen, Komodo and Bytecoin.

The research team stressed that while the energy requirements of cryptocurrency mining are a cause for concern for environmentalists, much research has focused solely on Bitcoin, not all cryptocurrencies.

"Energy consumption in itself is not a problem in the context of climate change," reads the report. However, it has been found that mining of cryptocurrencies causes an unexpected burden that requires additional resources. "Increasing the number of hours to fully load some production resources can lead to fuel switching effects and local emission intensity changes," thus worsening the environmental impact.

Bitcoin pioneer Hal Finney noted back in 2009 that mining could cause an environmental nightmare due to energy demand, and this was before the creation of altcoins.

Most of the energy needed to mine Bitcoin already comes from renewable energy sources. According to a report by the research company CoinShares in December 2019, approximately 73% of BTC mining is powered by renewable energy.


Technical Market Outlook:
The BTC/USD pair has bounced from the level of $11,470, which is just below the short-term trend line support and is moving up towards the yearly high located at the level of $12,035. The momentum has increased and is back in positive territory, so the bulls are still in charge of the market. In a case of a breakout higher, the next target for bulls is seen at the level of $12,269. The key short-term support is still located at the level of $10,940 - $10,890.

Weekly Pivot Points:
WR3 - $12,981
WR2 - $12,405
WR1 - $12,075

Weekly Pivot - $11,487
WS1 - $11,099
WS2 - $10,537
WS3 - $10,124


Trading Recommendations:
Due to the level of $12,000 violation, the Bitcoin is now in the up trend on the long-term time frame. The next key target for bulls is seen at the level of $13,712 and $15,000. The key long-term technical support is located at the level of $7,897, but the zone around $9,500 - $10,500 is an important technical support as well.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 07 August 2020

Crypto Industry News:
Someone with access to 119,756 Bitcoins stolen from the Bitfinex cryptocurrency exchange in 2016 transferred $ 12 million to unknown wallets in the last six days.

According to a series of tweets posted by Whale Alert on Twitter on August 3, wallet addresses known to be linked to one of the largest attacks in the history of cryptocurrency exchanges resulted in the transfer of 620 Bitcoins - with a current value of around $ 7 million - using 4 transactions. On July 29, nearly $ 5 million - or 448 BTC - was transferred in a single transaction.

Coupled with the last move of $ 39 million from July 27-28, this is about $ 51 million in Bitcoin that was transferred in over 17 transactions during the week.

On August 2, 2016, hackers compromised Bitfinex by stealing 119,756 BTC - worth $ 72 million at the time. After four years and recent growth movements, their total value is now $ 1.3 billion.

However, despite the recent movement of $ 51 million, burglars only transferred 1-2% of stolen funds. This suggests that criminals may struggle as they enforce the new anti-money laundering (AML) laws.


Technical Market Outlook:
The BTC/USD pair keeps hovering around this year's highs and the market sentiment is clearly bullish. The price has broken out from a narrow zone located between the levels of $10,895 - $11,317 and then the local high was made at the level of $11,738 on increased momentum, so bulls are showing their strength. The next target for bulls is of course the last yearly high seen at the level of $12,035. The immediate support for the intraday traders are seen at the levels of $11,646, $11,395 and $11, 317. The volatility is now quite subdued, but it might increase again once any important technical level is tested and broken.

Weekly Pivot Points:
WR3 - $14,325
WR2 - $13,003
WR1 - $12,116

Weekly Pivot - $10,976
WS1 - $9,784
WS2 - $8,681
WS3 - $7,717


Trading Recommendations:
Due to the level of $12,000 violation, the Bitcoin is now in the up trend on the long-term time frame. The next target for bulls is seen at the level of $13,712 and $15,000. The key long-term technical support is located at the level of $7,897, but the zone around $9,500 - $10,500 is an important technical support as well.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 07 August 2020

Crypto Industry Outlook:
The People's Bank of China (PBoC) allegedly plans to use its Digital Currency Electronic Payment system (DCEP) - another term for a central bank's digital currency - to undermine the dominance of tech giants such as Alibaba and Tencent in the digital payments industry.

The report comes just days after the central bank's claims prompted a leading antitrust agency to investigate Alipay and WeChat Pay for using their dominance to stifle competition.

Even regulators and executives from Alibaba Ant's financial group have agreed that the PBoC will seek to undermine the market dominance of Alipay and WeChat Pay, according to the financial media.

Currently, Alibaba's financial subsidiary Alipay and Tencent's WeChat Pay control most of China's digital payments, while banks are lagging far behind. In the first quarter of 2020, Alipay processed nearly 56% of all mobile payments in China.

According to details received by the media from several officials familiar with central bank strategies, the PBoC will use DCEP to provide banks with a level playing field in digital payments, as it has done to tech giants before.

Reflecting on the unprecedented use of digital payments by tech giants, head of Asian economic research at a major international bank said former PBoC governor Zhou Xiaochuan had allowed Alipay and WeChat Pay to "grow into monsters" despite complaints from Chinese banks and the China Banking Regulatory Commission.


Technical Market Outlook:
The ETH/USD pair has been trading in a narrow range after the pair had broken out from the narrow range located between the levels of $379.59 - $392.79 and made a new local high at the level of $407.03. For now the price is trading close to the recent ATH, around the level of $393 and the up trend is still being continued. The next target for bulls is seen at the level of $414.00 and $425.25. The nearest technical support is seen at the level of $363.20 - $355.24, but the key short-term support is seen at the level of $300. The momentum is still strong and positive, which supports the short-term bullish outlook.

Weekly Pivot Points:
WR3 - $532.98
WR2 - $470.84
WR1 - $423.16

Weekly Pivot - $365.99
WS1 - $312.04
WS2 - $255.55
WS3 - $208.47


Trading Recommendations:
Due to the violation of the level of $351, Ethereum is now in the up trend on the long-term time frame. The next target for bulls is seen at the level of $500. The key long-term technical support is located at the level of $86.10, but the zone around $300 - $308 is an important technical support as well.






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

[IFX_Selena]

BTC analysis for August 06,.2020 - Upside breakout of the ascending triangle and potential for test of $12.150



As I discussed in the previous review, the BTC managed to trade higher and break the ascending triangle pivot at $11,450, which is strong sign for further upside continuation.


Further Development
Analyzing the current trading chart, I found that buyers are still in control and there is potential for test of $12,140.

Key Levels:

Resistance: $12,150

Support levels: $11,450




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

[IFX_Selena]

Technical Analysis of ETH/USD for 06 August 2020

Crypto Industry Outlook:
The launch of the Ethereum Medalla test network, scheduled for 1pm, did not go as smoothly as expected. While the network was successfully launched and offered a sufficient number of blocks at its supposed time of construction, the participation rate was only 57% - well below the expected 80%.

This means that only 57% of the rate is implemented for network validation. This is a serious problem because block finality cannot be achieved until the network starts cutting off validators that are offline. Finality means that the block history is irreversible, which is equivalent to the block confirmation threshold in Ethereum 1.0. According to the developers, this could be because many validators signed up by paying 32 ETH without running the validation software. However, customer issues with Nimbus and Lodestar could account for around 10% of that participation gap, said Danny Ryan of the Ethereum Foundation.

The network is expected to fix the problem on its own as inactive validators are kicked out, however it may take at least several hours to restore the finality. Meanwhile, developers investigate customer issues.


Technical Market Outlook:
The ETH/USD pair has broken out from the narrow range located between the levels of $379.59 - $392.79 and made a new local high at the level of $407.03. For now the price is trading close to the recent ATH, around the level of $400 again and the up trend is still being continued. The next target for bulls is seen at the level of $414 and $425.25. The key short-term support is seen at the level of $300. The momentum is still strong and positive, which supports the short-term bullish outlook.

Weekly Pivot Points:
WR3 - $532.98
WR2 - $470.84
WR1 - $423.16

Weekly Pivot - $365.99
WS1 - $312.04
WS2 - $255.55
WS3 - $208.47


Trading Recommendations:
Due to the violation of the level of $351, Ethereum is now in the up trend on the long-term time frame. The next target for bulls is seen at the level of $500. The key long-term technical support is located at the level of $86.10, but the zone around $300 - $308 is an important technical support as well.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 06 August 2020

Crypto Industry News:
The Russian Federation has banned anonymous contributions to online wallets as part of an action that will affect 10 million users nationwide.

Online wallets through services such as Yandex, WebMoney, PayPal and Kiwi are very popular in Russia. These services support approximately 10 million users who use their accounts anonymously, topping them up with cash. Some people use these anonymous wallets to buy cryptocurrencies, although the exact numbers are unknown.

Economist Antonina Levashenko, quoted by RBK, believes that these measures will not initially affect the Blockchain space. However, as Russia tightens up anti-money laundering procedures, the existing ban may ultimately also apply to virtual currencies.

Maria Stankevich, EXMO's cryptocurrency exchange business development manager, believes the ban could only affect exchanges that do not take compliance seriously and that would have cause a decline in demand for such services.


Technical Market Outlook:
The BTC/USD market sentiment is clearly bullish as the price has broken out from a narrow zone located between the levels of $10,895 - $11,317. The local high was made at the level of $11,738 on increasing momentum, so bulls are showing their strength. The next target for bulls is of course the last yearly high seen at the level of $12,035. The immediate support for the intraday traders are seen at the levels of $11,646, $11,395 and $11, 317. The volatility is now quite subdued, but it might increase again once any important technical level is tested and broken.

Weekly Pivot Points:
WR3 - $14,325
WR2 - $13,003
WR1 - $12,116

Weekly Pivot - $10,976
WS1 - $9,784
WS2 - $8,681
WS3 - $7,717


Trading Recommendations:
Due to the level of $12,000 violation, the Bitcoin is now in the up trend on the long-term time frame. The next target for bulls is seen at the level of $13,712 and $15,000. The key long-term technical support is located at the level of $7,897, but the zone around $9,500 - $10,500 is an important technical support as well.







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

[IFX_Selena]

Bitcoin moves "to the Moon". Collapse to come soon.

Good afternoon, dear colleagues!

The previous article was written two weeks ago. It is really good news that Bitcoin is gaining in value. It means that hype is gaining momentum.

In this article, we will take a close look at the reasons of the Bitcoin's rise and find out the main signal of the future slump.

Bitcoin needed 86 days to start rising. Before that, it was fluctuating within the range of $8,500/$10,000.

What are the main reasons for a rise in the Bitcoin price? There are a lot of factors. In May, there was the first sign of the increase. It was Bitcoin halving that significantly complicated the process of the digit gold generating. However, the main driver came in mid-June, when there was a boom in decentralized financial applications [DeFi-Decentralized Finance], which triggered a sharp influx of funds into the crypto industry. In absolute value, the DeFi hype has brought more than $3 billion since the beginning of June.

Let's switch to the analysis of crypto accounts. During the last week of July, the number of wallets that store at least $1 million in Bitcoins increased by 38% (to 18,000 BTC addresses). Large investors were actively purchasing crypto assets for large amounts of money.

On July 27, there was a breakdown of the upper limit of the $8,500/$10,000 range. The $10,500 range immediately fell. It was a signal for stop orders. Thus, the upward movement, which we were waiting for so long, finally began. Traders' activity was extremely high. The best proof of such activity is the average commission amount in the Bitcoin network, which during one month (from June 28 to July 28) increased by 750% to $5.80 from $0.68.

The highest commission for a transfer in the BTC system was recorded in December 2017, it was 58 US dollars. Everyone remembers this hype of the cryptocurrency.

On August 2, the most expected level of $12,000 was reached. This quickly led to the fixing of long positions on BTC. We are talking about more than $1.5 billion closed positions, judging only by the main crypto exchanges.

Amid such a sharp profit fixing, the Bitcoin exchange rate fell from $12,000 to $10,546 in six minutes, but after that it recovered to $11,500.



Getting ready for a jump
Bitcoin has proved that it is not an "outsider" in the cryptocurrency market. A local slowdown near $11,000/$11,500 was perceived by traders as an accumulation of trading volumes and may result in further growth of the BTC rate.


Main prospects
Excitement about the decentralized financial applications is still intense as not all money volumes have flowed through the market. This phenomenon means that a breakdown of the $12,000 level could occur any time. For traders the main goal is the local high of $13,868 logged in 2019 (June 25, 2019). At this level, the first attempt to restore the uptrend after the market reversal in 2018 was recorded. A similar scenario of fixing long positions will take place in the area of $13,868.


Main risks
The bitter experience of the ICO (Initial Coin Offering) of 2016-2018 and the IEO (Initial Exchange Offering) of 2019 points to the fact that the DeFi boom will end. The hype of the decentralized financial applications will eventually reach its limit, and the yield of the DeFi will go into a negative zone. This, in turn, will dampen investors' activity and result in a loss of interest in crypto assets.

In each article, we will tackle the issue of the DeFi hype in order not to miss its fading, and most importantly, to identify the end of the BTC's growth in advance.


Life hack
Amid extremely high activity, many crypto assets gained in value. If you trade Altcoins, you should learn a certain rule of the market.

If Bitcoin soars, Altcoin slows down.

If Bitcoin after a rose goes into a temporary sideways movement, Altcoins usually start advancing, adding 10,20,30 and even 100% of the cost.



General background of the crypto market
Analyzing the overall market capitalization of the crypto industry, you can see impressive changes. In two weeks, Total market increased from $272 billion to $347 billion (+$75 billion), which indicates the bullish mood of the crypto market. Not only the dominant Bitcoin is growing, but also Altcoin, which have a positive impact on the emotional component of the crypto industry.

If we look at the volume chart, we can see that the borders of $284 billion and $307 billion have already been passed, and the main level of $366 billion is on the way. It reflects the local maximum of 2019.



The indicator of emotions of the crypto market is at the level of 75 points, which is 31 points higher than two weeks ago. If the reading is above 50 points, the market sentiment is bullish. A score of 75 points indicates high excitement in the market, which can bring impressive changes in the value of the asset.

During the local high of 2019, the Fear&Greed index was at the level of 90 points.



Indicator analysis

Analyzing different time frames, we can see that there is a distinct buy signal on the four-hour, daily, and weekly periods. It is also confirmed by the general mood of the crypto market.





Performed by Gven Podolsky
Analytical expert
InstaForex Group © 2007-2020