Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for 26 October 2020

Crypto Industry Outlook:
The decentralized finance (DeFi) boom has caused the Ethereum network (ETH) to process more than twice the daily volume of bitcoin transactions per day.

According to the cryptocurrency market data aggregator Messari, the 30-day moving average for Ethereum's transaction volume is currently $ 7 billion. Bitcoin processes less than $ 3 billion. Messari predicts that if the current trend continues, Ethereum has a real chance of becoming the first public blockchain to account for $ 1 trillion in transfers in a calendar year. The previous, "best" calendar year of Ethereum compared to Bitcoin was 2018. At that time, the ETH network processed a volume of half a billion dollars. It was then 59% of the 849 million BTC volume.

Bitcoin is heading towards the second largest year in transaction volume after 2018. It is expected to process $ 800 million by the end of 2020.


Technical Market Outlook:
The ETH/USD pair keeps trading under the local trend line around the level of $407. There were three Bearish Engulfing candlestick patterns around the last swing high made every time the bulls tried to rally. This market behaviour indicates the developing bearish pressure, but so far the results from it are very poor. Only if the market break below the level of $389.90 the bulls will have a problem to control the price. The local technical support is seen at the level of $400, $394.85 and $389.90.

Weekly Pivot Points:
WR3 - $490.39
WR2 - $455.51
WR1 - $435.03

Weekly Pivot - $398.88
WS1 - $379.21
WS2 - $342.87
WS3 - $323.39


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $500, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $309.61 is broken.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 26 October 2020

Crypto Industry Outlook:
A Russian official argued that the country should have started researching the central bank's digital currency four years ago to gain a leadership position in this field. However, according to Dmitry Peskov, special representative of the President of the Russian Federation for Digital and Technological Development, the advantage of priority also carries a number of threats to financial stability.

According to the media, Peskov said a quick second strategy in developing CBDC could be more efficient than becoming the world's first issuer, stating:

"The financial risk is so great that I think a quick second strategy is much more effective than trying to be the first. Let's see what a leader can do and what obstacles they will encounter."

Peskov stated that the Russian CBDC - the digital ruble - could become a reality in three to seven years if development starts now.

Anatoly Aksakov, a member of the Russian Duma and representative of key cryptographic projects related to Russian legislation, argued that the digital currency would enter a pilot phase in the first half of 2021. Aksakov is convinced that the upcoming digital ruble "is the future", while decentralized crypto tokens like Bitcoin have no future.

Financial experts from other countries are also cautious about CBDC. On October 19, Jerome Powell of the US Federal Reserve said it was better to do it right than to be first. New Zealand's central bank has made a similar statement, saying there is "much work to do" in the CBDC area before releasing the national digital currency.


Technical Market Outlook:
The BTC/USD pair had made a new yearly high at the level of $13,300 and keeps trading around this level. The local lows are shallow, so the bulls are still in control of this market. If the level of $13,300 is clearly violated, then the next target is seen at the level of $13,698. The key short-term technical support is seen at the level of $12,625 and as long as is not broken the odds for another wave up are high.

Weekly Pivot Points:
WR3 - $15,886
WR2 - $14,555
WR1 - $13,946

Weekly Pivot - $12,537
WS1 - $11,955
WS2 - $10,713
WS3 - $10,093


Trading Recommendations:
Bitcoin is trading at the yearly highs and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $14,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $10,000 is broken.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 23 October 2020

Crypto Industry News:
Russian public officials will be required to declare all private crypto assets from early 2021. These requirements were announced by Russian Attorney General Igor Krasnov, after a meeting with 15 other Attorney General representing member states of the Shanghai Cooperation Organization (SCO).

"From next year, government officials will have to declare [virtual] currencies on a par with other assets," Krasnov said.

In 2018, Russia's labor ministry announced that public officials would not be required to declare their virtual assets in their tax reports due to the unregulated status of cryptocurrencies. As such, concerns remain that crypto assets may be the financial instrument of choice for bribery and corruption.

The Attorney General's Office says it has confiscated more than $ 440 million in undisclosed assets from public officials in the past three years.

These requirements are in line with a new law signed by President Vladimir Putin in July that will classify crypto assets as similar to physical goods from 2021 - recognizing virtual currencies in the country for the first time.

While the regulations do not recognize cryptocurrencies as legal tender, they will legitimize cryptocurrency activities throughout Russia.

In addition to the SOW member states: Russia, India, Kazakhstan, China, Kyrgyzstan, Pakistan, Uzbekistan and Tajikistan, the prosecutors general of Afghanistan, Belarus, Mongolia, Iran, Azerbaijan, Cambodia and Armenia - which are non-member and observer partners of the SCO, were also present at the meeting. The main topic of the meeting was the fight against corruption.

A Russian cryptocurrency reporting announcement suggests similar laws could soon be passed across the Eurasian region.


Technical Market Outlook:
The ETH/USD pair has made another higher high at the level of $420.18, just above the technical resistance located at $414.11. The next target for bulls is seen at the level of $430.71 and might be hit soon. On the other hand, the key technical support is seen at the level of $389.90. If this level is clearly violated, then the correction might extend towards the level of $383.32 and below. Please notice the bulls are making higher highs despite the overbought market conditions which might indicated the beginning of a new up trend.

Weekly Pivot Points:
WR3 - $424.52
WR2 - $408.88
WR1 - $391.97

Weekly Pivot - $376.47
WS1 - $357.63
WS2 - $341.22
WS3 - $328.22


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. Moreover, bulls had bounced from the weekly trend line support last week and now are away from it. The key mid-term technical support is currently seen at the level of $305.20 - $321.95, so 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.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 23 October 2020

Crypto Industry News:
Changpeng Zhao, CEO Binance, believes a sufficiently well-designed central bank digital currency could become a threat to Bitcoin.

In a video interview with Jeff Roberts of Fortune, he was asked how the People's Bank of China's digital yuan initiative would impact the cryptocurrency industry. Zhao replied that any blockchain or digital currency would be good for the entire industry as it legitimizes digital assets and widens awareness. He added that although there is now a race between the largest countries to launch such a currency, most CBDCs will initially be more restrictive, but will evolve over time.

When asked directly about the threat to Bitcoin, CZ replied that very few CBDCs would have the same freedom as Bitcoin and be highly centralized and controlled. However, in the long run, he warned:

If the government were to push for another cryptocurrency that is even more open, more free, has fewer restrictions than Bitcoin, and is faster and cheaper to use, it would put Bitcoin at risk. But it's good for the industry, it's just better than Bitcoin, and it could replace it".

Asked if Binance intends to release a yuan-anchored stablecoin in addition to existing stablecoins, CZ said nothing of the sort would come out any time soon. There are too many restrictions on capital flight from China, he added.


Technical Market Outlook:
The BTC/USD pair has made a new swing high at the level of $13,159 and a Pin Bar candlestick pattern was made at the end of the rally. The local correction that followed the high has hit the level of $12,648 and the market has started to consolidate. The momentum is still strong and positive, but the market conditions on the H4 time frame are clearly overbought. This situation might indicate a possible temporary pull back below the level of $12,648 before another wave up will develop. The old supply zone seen between the levels of $11,646 - $11,785 will now act as a demand zone for bulls.

Weekly Pivot Points:
WR3 - $12,229
WR2 - $11,973
WR1 - $11,678

Weekly Pivot - 11,375
WS1 - $11,077
WS2 - $10,755
WS3 - $10,461


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 corrections 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 $10,000.






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

[IFX_Selena]

BTC analysis for October 22,.2020 - Third upside target at the price of $12.460 has been reached. Potential for further rally towards $13.835

Further Development


Analyzing the current trading chart of BTCUSD, I found that the buyers are in control and tthat price reached our third upside target from yesterday at $12,460.

I still see strong bullish conduit and potential for test of $13,830.

Watch for buying opportunities on the dips wit hthe target at $13,835


Key Levels:

Resistance: $13,225, $13,833

Support level:$12,200




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

[IFX_Selena]

Technical Analysis of ETH/USD for 22 October 2020

Crypto Industry News:
Line, a Tokyo-based subsidiary of South Korean company Naver, is building a platform to expand central banks' digital currencies, South Korean news agency Chosun Ilbo said. Sources familiar with the case have reportedly told Chosun Ilbo that Line aims to support the development of so-called "adapted CBDC".

According to the report, the communications company is discussing the application of its blockchain-based CBDC platform with several central banks in major Asian countries. Line directors said they could not reveal which countries are considering using the platform.

A Line spokesman said the company's goal is:

: (...) To provide a blockchain platform that is suitable for CBDC based on Line Blockchain. "

Line is actively exploring the cryptocurrency and blockchain industry. In August 2020, it launched a blockchain development platform for decentralized applications and services, and a digital asset portfolio called Bitmax. Earlier this year, Line's cryptocurrency subsidiary, LVC Corporation, began trading its proprietary cryptocurrency (LN) link in Japan.

A number of Asian countries are planning to introduce CBDC. On October 9, Japan's central bank officially announced that it will begin reviewing the CBDC concept in 2021. On October 7, the South Korean central bank reportedly announced that it would begin the distribution phase of its CBDC pilot program next year.


Technical Market Outlook:
The ETH/USD pair has been seen rallying to the level of $400 and this is the new swing high. The nearest technical resistance is seen at the level of $407.70 and at the swing top at $414.11. On the other hand, the nearest technical support is seen at the level of $389.90. If this level is clearly violated, then the correction might extend towards the level of $383.32 and below. Please notice the overbought market conditions.

Weekly Pivot Points:
WR3 - $424.52
WR2 - $408.88
WR1 - $391.97


Weekly Pivot - $376.47
WS1 - $357.63
WS2 - $341.22
WS3 - $328.22


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. Moreover, bulls had bounced from the weekly trend line support last week and now are away from it. The key mid-term technical support is currently seen at the level of $305.20 - $321.95, so 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.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 22 October 2020

Crypto Industry News:
One of the world's leading online payment processors, PayPal, will enable US customers to buy bitcoin and other cryptocurrencies in the coming weeks. Availability of the service for customers from other countries is expected to appear in the first half of 2021.

PayPal has joined the cryptocurrency market and will enable its customers to store, buy and sell bitcoin and other cryptocurrencies using fiat currency. PayPal customers will be able to spend BTC on purchases from over 26 million vendors who have already been on its network since early 2021, reports Reuters.

The company said it "works with central banks and thinks of all forms of digital currencies, and PayPal can play a role." The president of PayPal also hopes that this service will encourage the continued use of virtual currencies, as well as prepare its network for central bank digital currencies (CBDC).

US customers will be able to buy, sell, and store cryptocurrencies via their PayPal wallets in the coming weeks. PayPal also plans to expand this offer to Venmo and other countries in the first half of next year.


Technical Market Outlook:
The BTC/USD pair has hit the level of $13,000 after the PayPal news had been released. The new swing high had been made at the level of $13,159 and a Pin Bar candlestick pattern was made at the end of the rally. The momentum is still strong and positive, but the market conditions on the H4 time frame are clearly overbought. This situation might indicate a possible temporary pull back towards the level of $12,621 before another wave up will develop. The old supply zone seen between the levels of $11,646 - $11,785 will now act as a demand zone for bulls.

Weekly Pivot Points:
WR3 - $12,229
WR2 - $11,973
WR1 - $11,678

Weekly Pivot - 11,375
WS1 - $11,077
WS2 - $10,755
WS3 - $10,461


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 corrections 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 $10,000.






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

[IFX_Selena]

BTC analysis for October 21,.2020 - Both targets reached and potential for test of third target at $12.460

Further Development



Analyzing the current trading chart of BTC, I found that buyers are in control today and that BTC reached our upside targets at $11,675 and $12,00.

Support level is set at $11,870


Key Levels:

Resistance: $12,460

Support level: $11,870




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

[IFX_Selena]

Technical Analysis of ETH/USD for 21 October 2020

Crypto Industry News:
Speculation about Ethereum 2.0 continues, and there are newer and newer leaks from insiders. One recent speculation is where the developer of Ethereum 2.0 predicts that a smart protocol contract allowing their Ethers to be deposited on 2.0 networks will be released in a matter of days. The staking process itself would start later this year.

ConsenSys developer Ben Edgington posted an entry that predicts the genesis of the ETH 2.0 beacon chain will take place in the next six to eight weeks.

In a post announcing the launch of the zero version for client 1.0, Edgington revealed that the protocol's smart contract feature should be announced this week. A smart escrow contract that allows ETH sending between Network 1.0 and Network 2.0 and is one of the few remaining updates needed to facilitate Ethereum 2.0 rollout in Phase 0. To complete Phase 0 launch, 500,000 Ethers will need to be staked once the beacon chain has started. After that, the network will prepare for the official launch for several weeks.


Technical Market Outlook:
The ETH/USD pair has extended the retracement towards the level of 61% located at $381.85, then the market pulled back towards the intraday support at $375.52 and bounced to the $381.85 again. The target for bulls is still seen at the level of $400 and the bulls are consolidating the recent gains. The nearest technical resistance is seen at the level of $389.90 and at the swing top at $394.95. On the other hand, the target for bears is seen at the level of $360.60 and $355.60 and the nearest technical support is seen at the level of $369.37.

Weekly Pivot Points:
WR3 - $424.52
WR2 - $408.88
WR1 - $391.97

Weekly Pivot - $376.47
WS1 - $357.63
WS2 - $341.22
WS3 - $328.22


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. Moreover, bulls had bounced from the weekly trend line support last week and now are away from it. The key mid-term technical support is currently seen at the level of $305.20 - $321.95, so 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.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 21 October 2020

Crypto Industry News:
The United States Financial Crimes Enforcement Network has just dealt another blow to Bitcoin privacy enthusiasts. According to FinCEN in an official announcement, it imposed a $ 60 million civil penalty on Larry Dean Harmon, the man responsible for several Bitcoin privacy services. Larry Dean Harmon was the brain behind the Lightning Network Wallet Dropbit and the Bitcoin anonymization services (known as Tumblers, Blenders or Mixers) Coin Ninja and Helix.

According to FinCEN, the Bitcoin Helix and Coin Ninja mixers operated as unregistered money services business (MSB) companies. Accordingly, FinCEN concluded that Harmon acted in breach of US law. Thus, he was to avoid paying taxes and act without the relevant regulations that would apply to his activity if it were registered.

FinCEN claimed that between 2014 and 2020, Harmon's bitcoin mixers facilitated the anonymization of at least $ 311 million in the pending over 1 million different BTC transactions.


Technical Market Outlook:
The BTC/USD pair has finally broken above the $12,000 level (third time this year) and made a new swig high at the level of $12,255, so just above the WR3 located at $12,229 (at the time of writing the article). The momentum is still strong and positive, but the market conditions on the H4 time frame are clearly overbought. This situation might indicate a possible temporary pull back towards the level of $12,035 before another wave up will develop. The old supply zone seen between the levels of $11,646 - $11,785 will now act as a demand zone for bulls.

Weekly Pivot Points:
WR3 - $12,229
WR2 - $11,973
WR1 - $11,678

Weekly Pivot - 11,375
WS1 - $11,077
WS2 - $10,755
WS3 - $10,461


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 corrections 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 $10,000.






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