Cryptocurrency Analysis

[IFX_Selena]

BTC analysis for August 24,.2020 - Inside days pattern and potential for the breakout



As I discussed in the previous review, the BTC got inside days pattern, which is sign of the contraction.

Further Development
Analyzing the current trading chart of BTC, I found that there is equilibrium on the market potential for the breakout in next period.

Key Levels:

Resistance: $11,900

Support level: $11,600




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

[IFX_Selena]

Technical Analysis of ETH/USD for 24 August 2020

Crypto Industry News:
The American IRS has released its draft income tax forms for 2020 where every American claiming income for the year will reply whether they used cryptocurrencies or not.

At the top of the front page, the latest Form 1040 asks, "Have you ever received, sold, shipped, exchanged or otherwise obtained any financial interest in any virtual currency in 2020?"

Chandan Lodha, founder of cryptographic software company Cointracker, said:

"The issue of cryptocurrencies is now at the forefront of IRS 1040 form for next year. It quite clearly shows that the IRS takes cryptocurrency taxes even more seriously" - we can read in one of his last tweets.


Technical Market Outlook:
The ETH/USD pair has felt from the level of $447.26 to $379.59 on the weekend, but this drop is still being considered as corrective, so the up trend remains intact. Currently, the market is testing the short-term trend line resistance locates close to the level of $392 and if the bulls will break through this level, then the Ethereum will be in full recovery mode. The nearest target is seen at the level of $407.03 - $414.11. The momentum is slowly increasing as the market bounces from the oversold conditions as well. All the bigger time frame charts looks very bullish and the up trend should be continued after the correction is completed.

Weekly Pivot Points:
WR3 - $491.79
WR2 - $470.70
WR1 - $424.12

Weekly Pivot - $402.20
WS1 - $357.21
WS2 - $333.72
WS3 - $286.54


Trading Recommendations:
The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500. The key mid-term technical support is seen at the level of $364.95.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 24 August 2020

Crypto Industry News:
Sergio Dermain Lerner, a researcher known for analyzing the mining yields of the first Bitcoin (BTC) miner, turned his attention once again to the Bitcoin blocks mined by Satoshi Nakamoto. His research is based on the analysis of the nonce block nonce irregular pattern of the least significant bit (LSB).

In June last year, Lerner published a blog where he expanded and continued his original 2013 research. He suggested that for some unknown reason Satoshi Nakamoto was holding back from mining in the first five minutes of the inter-block break. Other researchers also developed Lerner's research. TechMiX has shown that all the blocks mined by Satoshi can be grouped into five buckets, based on the frequency distribution of the nonce LSB values.

With each subsequent attempt to solve the "mining puzzle," nonce increases. Apparently, Satoshi's gear was not making use of all the available nonce space, focusing only on the limited range. Lerner's latest research indicates that Satoshi, instead of enlarging - decreased the value of nonce:

"It turned out that re-mining Satoshi Nakamoto blocks reveals a strong tendency in the Patoshi algorithm to select higher nonce values when scanning an internal nonce number. This trend suggests that the number of nonce has been reduced, which is the opposite of what client does in version 0.1. "

This leads to an even more interesting conclusion that perhaps ends the discussion of the type of equipment Satoshi Nakamoto used:

"Since the nonce imbalance decreases when analyzing the two sub-ranges together, this suggests that Patoshi scanned 5 sub-ranges in parallel, but each sub-range internally - sequentially. This contradicts the theory that Patoshi deployed the first mining farm of 50 independent computers [...] and supports the theory that Patoshi simply ran multiple threads on a high-end CPU. "

If Lerner's conclusions are correct, it would give credence to the hypothesis that Satoshi Nakamoto was one person and not a group of people. It would also mark another nail in Craig Wright's claim that he would be the creator of the cryptocurrency. Wright has repeatedly pointed out that dozens of computers are to be used to mine early blocks


Technical Market Outlook:
The BTC/USD pair has bounced from the level of $11,358 and broke through the short term trend line resistance around the level of $11,450. Despite the fact, that the BTC is clearly trying to bounce higher, the market is still trading below the supply zone located between the levels of $12,269 - $12,431. The nearest technical resistance is seen at the level of $11,646 (for intraday traders) and the level of $11,358 will act as a support from now. The key short-term technical support is seen at the level of $11,062.

Weekly Pivot Points:
WR3 - $13,245
WR2 - $12,828
WR1 - $12,122

Weekly Pivot - $11,728
WS1 - $11,022
WS2 - $10,628
WS3 - $9,978


Trading Recommendations:
The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic correction are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,463.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 21 August 2020

Crypto Industry News:
Due to the turmoil in the global aviation industry caused by the pandemic, the new Bulgarian start-up gives travelers the opportunity to receive compensation in Bitcoin.

Compensation via the Colibra app is available for passengers who experienced a flight delay of one hour or more. Since its launch in June 2019, the Bulgarian start-up has been offering travelers cash compensation, and has now added the opportunity to receive money in cryptocurrencies.

Since BTC is a volatile asset, users can choose whether they want to lock in the price on the day they buy the ticket or the day they travel. For example, a person who flies frequently and booked a flight last week, with a $ 11,000 locked-in, would get a decent return on a delayed flight today when BTC is above $ 12,000.

Colibra states that it will guarantee a BTC payment to any user whose flight is delayed by one hour or more, no matter what the airline gives.

In the EU, airlines are required to compensate each passenger for delays of three hours or more due to the company's fault. The application works by submitting a claim for compensation for all eligible passengers with a flight delay of 3 hours or more and those with a delay of more than one hour. According to data published by the company, the likelihood of an airline delaying 90 minutes is 30 times more likely than a three-hour delay, and travelers are therefore compensated much more frequently.

In France, the insurance company AXA has implemented a similar blockchain-based compensation process for passengers whose flights are delayed by more than two hours.

Today, however, there are far fewer airplane passengers than last year, due to airlines and authorities trying to slow the spread of the coronavirus. Global travel data provider OAG says the number of scheduled flights on August 10 fell by 47.9% globally, with the number of flights from Hong Kong and Singapore falling by as much as 91%.


Technical Market Outlook:
Yet again the technical support located at the level of $11,646 has stopped the bearish pressure and the price bounced towards the technical resistance seen at the level of $11,855. Currently, the market is trading inside of a tight horizontal range between the levels of $11,855 - $11, 646, but any clear violation of $11,646 will result in sell-off acceleration towards the next technical support seen at the level of $11,220. On the other hand, the next target for bulls is seen at the level of $12,004 - $12,035 zone. The weekly time frame trend remains up.

Weekly Pivot Points:
WR3 - $13,201
WR2 - $12,569
WR1 - $12,222

Weekly Pivot - $11,635
WS1 - $11,298
WS2 - $10,689
WS3 - $10,325


Trading Recommendations:
The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic correction are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,463.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 21 August 2020

Crypto Industry News:
Tokyo District Court issued the first cryptocurrency seizure order in Japan. $ 46,000 worth of bitcoins were confiscated in connection with the Coincheck hack in 2018.

Kyodo said police had seized Bitcoins, which were being held by a Hokkaido doctor and a director from Osaka Prefecture. Two men were arrested in connection with the burglary. They are accused of knowingly buying stolen NEM via the dark web market, in violation of the country's organized crime laws.

The Coincheck exchange suffered a record break-in when NEM worth $ 534 million was stolen from its wallets. Research by Asahi Shimbun showed that personal computers belonging to Coincheck employees were infected with a virus related to Russian hackers.

According to the media, the exchange experienced another data breach in June 2020, involving unauthorized access to the platform's domain registration service.


Technical Market Outlook:
The ETH/USD pair has bounced from the level of $396.47 which is a 61% Fibonacci retracement, broke through the trend line resistance and made a new local high during the bounce at the level of $419.05. In order to continue the up trend, bull will have to push the price towards the next local technical resistance seen at the level of $430.71. The momentum is slowly increasing as the market bounces from the oversold conditions as well. All the bigger time frame charts looks very bullish and the up trend should be continued after the correction is completed.

Weekly Pivot Points:
WR3 - $542.08
WR2 - $493.82
WR1 - $466.95

Weekly Pivot - $411.50
WS1 - $387.37
WS2 - $337.80
WS3 - $311.68


Trading Recommendations:
The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500. The key mid-term technical support is seen at the level of $364.95.







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

[IFX_Selena]

Bitcoin gradually moving higher

Greetings to all crypto enthusiasts!

Two weeks have passed since our last publication, and bitcoin has already tested new highs of this year. Hype around the cryptocurrency is bringing more and more fresh investments into the crypto industry.

Today, we are going to talk about the best investment strategy when working with crypto assets. We will also see what bitcoin traders are guided by and how experienced players behave.

We have been dealing with crypto industry for quite a long time, but most traders still do not have a clear strategy and understanding of the market.

Let's consider several investment strategies.

The first and most profitable strategy is called HOLD which implies holding the asset for a long time. Even when bitcoin first appeared, it was possible to buy several thousand BTC for just $10. Now the price has surged to more than $11,000 per unit. At the beginning of 2017, it was possible to buy bitcoin for $1,000, and today you could have a profit of more than 1,000%. This is the main point of the HOLD trading strategy.

The HOLD strategy has high prospects for income, but the selected asset should meet the requirements needed for a long-term investment.

One of the key criteria for selecting an asset suitable for the HOLD strategy is the prospects of its future demand. Over the entire period of the crypto industry, tens of thousands of crypto coins have been created. However, only some of them gained popularity among investors. It is important to evaluate the activity of the company which issued this particular crypto asset. You should pay attention to whether the company is actively developing and how it is integrating its coin in the community.

Life hack

You should also pay attention to the way in which the crypto community is interacting with the stock exchanges.

The first in space is the first on the Moon. The №1 cryptocurrency bitcoin will always have a special status. This is why bitcoin has a strong foundation for development which is being constantly improved and it is already integrated into the community. All this makes bitcoin a perfect HOLD asset.

Many experienced traders prefer to follow this strategy. For example, quite recently a large business analytics company MicroStrategy, whose shares are listed on the Nasdaq exchange, invested $250 million in bitcoin, having bought about 21,454 BTC.

"Our investment in Bitcoin is part of our new capital allocation strategy that aims to maximize long-term value for our shareholders," said Michael J. Sailor, CEO of MicroStrategy Incorporated.

According to the US Securities and Exchange Commission (SEC), investment company Pantera Capital and its bitcoin-focused Pantera Venture Fund III have raised about $164 million over the past 12 months. And this is the money of huge institutional investors which means that suggests that interest in cryptocurrency is gaining momentum.



The second strategy is of a local nature and is called HYPE. This is a surge in popularity that leads to a sharp change in the value of an asset during a given hype period. Currently, all the hype is going around Decentralized Finance (DeFi) which has logged $6.34 billion in DeFi services in several months.

Let me explain how it works. Community members invest into newly created DeFi projects, and in return they receive new coins. The coins instantly show an income of 100%, 200%, 800%, 1,000% as soon as they are listed on the exchange.

A good example is the DeFi yEarn Finance project, an aggregator platform that collects the best offers from the crypto market on a landing page. The users of this application make a deposit and receive a fixed income on their deposit. In order to deposit funds on the yEarn Finance account, the users need to convert their currency into a local currency, the so-called token (YFI), which will be used inside the service.

Basically, the company itself and its coin have no value. But thanks to the hype around DeFi and the listing of the YFI token on popular cryptocurrency exchanges, the value of one YFI coin has reached unprecedented highs. In just one month after it was issued, YFI surged from $35 to $12,900 (!!!).

HYPE + SPECULATIONS = JACKPOT

This kind of record profitability spurs more interest in cryptocurrency and brings massive inflow of new funds. Notably, the existing crypto projects, as well as just newly created ones, may declare that they are also engaged in DeFi , and the value of their tokens will soar.

With the HYPE strategy, it is difficult to fail. Later on, the coins with record-high profitability turn into more stable assets such as bitcoin.

The HYPE strategy is a local phenomenon, and sooner or later it will lose its steam. This happened to ICO and IEO. It is important to take profit in US dollars or in the most stable crypto instruments BTC.

Bitcoin's current trend and forecasts


After a two-week fluctuation of BTC price within $11,000 and $12,000, market participants managed to hit new local highs. So the value of bitcoin jumped to $12,486 and confirmed that the bullish momentum will continue in the future. The level of $13,868 remains the main target for many investors. This was the high of 2019. When the price tests the level of $13,868, it will be clear where the market will move next. It is possible that within the uptrend bitcoin will break above $13,868 and send the quotes to new highs.

Background for crypto market

Looking at the total market capitalization of the crypto industry, we can observe the long-awaited event. Finally, the total market capitalization exceeded the high of $366 billion in 2019 and rose to $367 billion in 2020. This indicates a strong bullish trend which pushes the value of the first cryptocurrency, as well as of all other altcoins, to record highs.

If we look at the chart showing volumes, we can see that the total market capitalization has been growing since in 2018 in the following way: $472 billion, $571 billion, $834 billion.



Bitcoin Fear and Greed Index is currently showing 75 points, which indicates a high level of interest in crypto assets. On August 11, the index settled at 84 points. However, the peak of 2019 – 90 points – has not yet been surpassed.



Indicator analysis
Now let's have a look at the different sectors of time frames (TF). On H4 time frame we can see that technical indicators give a sell signal after the pullback of the price. Yet, on the daily and weekly time frames we can see a clear buy signal which is confirmed by the general sentiment in the crypto market.




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

[IFX_Selena]

BTC analysis for August 20,.2020 - Completion of the ABC downside correction and potential for the upside continuation towaryds $12.095

Further Development


Analyzing the current trading chart of BTC, I found that the sellers got exhausted today and the uspide roattion would be probably to correct strong downside movement from yesterday.

I aslo see potential completion of the ABC and new fresh up swing is epxected

Watch for buying opportunities with the targets at $12,095 and $12,175

Additionally, there is the bull divergence on the Stochastic oscillator, which is another sign that sellers became exhausted.

Key Levels:

Resistance:$12,095 and $12,175

Support level: $11,600




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

[Dave10428]

Good this is highly helpful

[IFX_Selena]

Technical Analysis of ETH/USD for 20 August 2020

Crypto Industry News:
The Bank of England will attend a key meeting tomorrow to discuss Central Bank Digital Currencies (CBDCs) and their possible infrastructure projects.

The event is hosted by the global central banking think tank, OMFIF (Official Monetary and Financial Institutions Forum). The event will take place on August 19 this year, among others, with the participation of Simon Scorer, a senior BoE fintech specialist. Delegates from Swiss National Bank, ING Nederland and Hungarian National Bank (Magyar Nemzeti Bank) are also expected to arrive. Additionally, Sky Guo, CEO of the Cypherium enterprise-focused blockchain platform, will join the discussion.

The main topic of the meeting will be to discuss the ways in which blockchain technology can benefit various CBDC models. This includes the use of smart contracts, for example, as in the case of 'programmable money' projects and blockchain interoperational models both within and outside national borders.

"As long as CBDCs remain at an early stage of concept development, we need to discuss the advantages and disadvantages of infrastructure concepts, especially with regard to how these instruments will interact and function" - Guo said.

Each central bank delegate, Simon Scorer from the Supervisory Board, Anko Szombati, Cees Van Wijk, IT specialist in the ING blockchain team, and Thomas Moser, a board member of Swiss National Bank, will present the results of internal CBDC research at their institution.

As the OMFIF notes, the pressure from the private sector is enormous. It has resulted in around 80% of central banks in the world taking CBDC issues seriously and evaluating various infrastructure options, including blockchain.

In March 2020, the Economic Council issued a document based on the discussion on CBDC. In it, she analyzed the rapidly changing payment model and the potential role of digital currency in supporting the bank's tasks in managing monetary and financial stability.


Technical Market Outlook:
The ETH/USD pair has retraced 61% of the last wave up and bounced from the level of $396.47 (61% Fibonacci retracement).However, the market is still trading below the short-term trend line resistance, so in order to resume the up trend, the bulls will have to break through the level of $414.11. If they fail to break, then the next target for bears is seen at the level of $362. 60. All the bigger time frame charts looks very bullish and the up trend should be continued after the correction is completed.

Weekly Pivot Points:
WR3 - $542.08
WR2 - $493.82
WR1 - $466.95

Weekly Pivot - $411.50
WS1 - $387.37
WS2 - $337.80
WS3 - $311.68


Trading Recommendations:
The weekly and monthly time frame trend on the ETH/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $500. The key mid-term technical support is seen at the level of $364.95.







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

[IFX_Selena]

Technical Analysis of BTC/USD for 20 August 2020

Crypto Industry News:
Expobank, a commercial bank in Russia, issued the country's first cryptocurrency-backed loan.

According to a report by the local news agency Kommersant on August 19, Expobank granted a loan by issuing an individual bank loan powered by Waves tokens (WAVES).

Waves CEO and founder Alexander Ivanov confirmed this information, noting that the loan used Waves tokens as collateral. A new loan was made to local entrepreneur Mikhail Uspensky earlier this week. The businessman said he is obligated to continue using Waves tokens and has no plans to sell them. According to data, the Waves token can be purchased for about $ 4. This means a decrease of over 5% in the last 24 hours.

Some legal experts are convinced that a new type of loan has the potential to be recognized by Russian law. However, there is still a lot of uncertainty, as cryptocurrencies do not have many sympathizers among the Russian authorities.

Kirill Nikitin, a lawyer at Vegas Lex, admitted that the circulation of digital assets in Russia still involves a lot of legal uncertainty. In fact, it is still unknown what type of cryptocurrency transaction is legal and what is prohibited. This is related to the recently passed cryptocurrency law in Russia, which prohibits payments using digital assets. More regulatory clarity will emerge under another draft law to be adopted at the end of 2020.

Some legal experts are sure that Waves tokens can be legally used in Russia as they are not a payment tool. Yuri Brisov, a local attorney who advised on a bank loan powered by Waves, said the Waves are absolutely legal in Russia.


Technical Market Outlook:
The BTC/USD pair has reverses all the recent gains above the $12,000 and is currently testing the technical support located at the level of $11,646 as anticipated. Any clear violation of this level will result in sell-off acceleration towards the next technical support seen at the level of $11,220. In order to bounce and resume the up trend, bulls have to break through the short-term trend line resistance around the level of $11,855, which is the nearest technical resistance. The weekly time frame trend remains up.

Weekly Pivot Points:
WR3 - $13,201
WR2 - $12,569
WR1 - $12,222

Weekly Pivot - $11,635
WS1 - $11,298
WS2 - $10,689
WS3 - $10,325


Trading Recommendations:
The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic correction are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,463.






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