Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of BTC/USD for 09 December 2020

Crypto Industry News:
Speaking at the Singapore Fintech Festival 2020, Cameron and Tyler Winklevoss confirmed previous forecasts that Bitcoin's price will eventually exceed $ 500,000 for Bitcoin.

The twins noted that their $ 500,000 prediction is based on the assumption that Bitcoin's market capitalization will increase 40-fold to surpass gold's future market cap of around $ 9 trillion.

Cameron highlighted the "tremendous amount of money printing" in the debt and fiat regimes and concerns about inflation and the resulting increase in demand for "hard assets" such as gold and Bitcoin.

Cameron claims that Bitcoin offers significant advantages over gold as a money commodity, such as ease of transfer and resistance to external forces affecting its production rate.

Despite the optimistic outlook, the twins noted that the cryptocurrency sector has experienced very uneven geographic development, and the lack of regulatory clarity is hampering the development of technology-related business and services in many emerging economies.

However, they highlighted the technology's promise to deliver banking services to those currently unable to do so, highlighting a plan to expand their Gemini exchange into emerging regions.

The brothers advocated that lawmakers use regulatory sandboxes to reduce the barriers faced by cryptocurrency startups, warning that stringent regulatory requirements could inhibit innovation.


Technical Market Outlook:
The BTC/USD pair has been rejected from the higher price levels and broke out from the triangle pattern. The breakout was made to the downside and the price has hit the level of $18,000, which is a technical support for the price. Any further violation of this level will open the road to the level of $17,579 and $17,000. Please notice the market is finally coming off the extremely overbought conditions as well and the momentum is now weak and negative.

Weekly Pivot Points:
WR3 - $21,987
WR2 - $20,958
WR1 - $20,107

Weekly Pivot - $19,077
WS1 - $18,325
WS2 - $17,164
WS3 - $16,350


Trading Recommendations:
Bitcoin made a new ATH 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 $20,000, 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 $15,000 is broken.





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

[IFX_Selena]

Technical Analysis of ETH/USD for 09 December 2020

Crypto Industry News:

Digital asset regulation has been a hot topic in 2020 and is showing no sign of cooling off. The recent G7 meeting showed that the sector faces a continuing need for regulation.

In addition to discussing COVID-19 and economic issues, the group "also discussed current responses to the changing landscape of cryptographic and other digital assets and the work of national authorities to prevent their misuse for malicious purposes and illegal activities."

"There is strong support throughout the G7 for the need to regulate digital currencies. Ministers and governors reaffirmed their support for the G7 Joint Statement on digital payments issued in October," it read.

G7 members - as well as the International Monetary Fund, the Financial Stability Board and World Bank leaders - attended the meeting chaired by Steve Mnuchin, US Treasury Secretary, the statement read.

In recent months, regulators have increased their involvement in the cryptocurrency sector. The US Department of Justice, in particular, has appeared in numerous headlines. One of the biggest headlines of the year included the DoJ and the Commodity Futures Trading Commission, which chased the BitMEX crypto-native derivatives exchange for providing services to US clients.


Technical Market Outlook:

The ETH/USD pair has moved lower in a corrective slide towards the level of $548, which is the key short-term technical support for the price. If this level is violated, then the next important technical support is seen at $517.40 and $500. The momentum is now weak and negative, so the corrective cycle still have a room to go lower. Please notice, the market is finally starting to come off the extremely overbought levels as well.

Weekly Pivot Points:
WR3 - $712.54
WR2 - $673.34
WR1 - $636.36

Weekly Pivot - $596.47
WS1 - $560.79
WS2 - $521.20
WS3 - $484.02


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $700, so any correction or local pull-back should be used to open the buy orders. Moreover, the bulls has hit the 38% Fibonacci retracement located at the level of $587.53 on the weekly time frame chart, but the current up trend is still valid. This scenario is valid as long as the level of $360 is broken.





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

[IFX_Selena]

Bitcoin whales prepare for new heights

The current correction made it possible to enter the crypto market with a discount of 15%-35%, depending on the trading instrument.

Most crypto-currencies, including Bitcoin, have already played out the correction and are preparing for new achievements.

Bitcoin – 17.0% correction, 22.5% recovery

Ethereum – 23.2% correction, 32.5% recovery

Litecoin – 31.0% correction, 44.0% recovery

Yearn. Finance – 38.5% correction, 74.0% recovery


The correction for Bitcoin, which appeared on the market near the historical maximum, made it possible for the market giants to remove the cream from their large wallets, which has not moved for several years. Access to such impressive volumes was released by BTC, which was used by institutional investors, absorbing the sale of Bitcoin whales on the approaches of the quote to $20,000.

MicroStrategy, listed on the NASDAQ exchange, acquired an additional 2,574 BTC ($50 million) at the time of the correction, strengthening its position in the crypto industry. At the moment, the organization owns a total of 40,824 BTC. After that, it is said that MicroStrategy has the intention to raise $400 million for additional investment in Bitcoin.

The head of the company, Michael Saylor, said in an interview with Bloomberg that investing in cryptocurrencies was one of the surest decisions. MicroStrategy earned nine times more on investments in Bitcoin compared to 2019.

In turn, the management company, Grayscale Investments, acquired another 7188 BTC in its Bitcoin trust in just one day. The most striking phenomenon is that they purchased 55,015 BTC in November, which is almost twice the amount of mining during this period (27,881 BTC).

Such impressive figures indicate that institutional investors are firmly engaged in the crypto market. This not only gives an impetus to the development of the crypto environment but also serves regulations and increases confidence in new types of exchange instruments.

PayPal, which recently opened access to cryptocurrencies for its millions of customers, conducted a survey on whether users of their network are ready to pay for purchases and services with bitcoin. The results of the survey are striking: 65% of customers of the payment company said that they are ready to make payments in cryptocurrency. Let me remind you that PayPal allows you to pay with cryptocurrency in 28 million retail outlets.

The news from the Swiss stock exchange (SIX), which plans to give banks full access to digital assets, deserves a special mention today. Banks and their clients will be able to take advantage of trading, smart order routing, settlement, and storage of cryptocurrencies. Aside from this, there will also be access to secondary markets through the so-called institutional gateway of digital assets.

Once again, we confirm the antifragility status of the crypto industry.

"Everything that doesn't kill us makes us stronger" is a well-deserved slogan of cryptocurrencies and the entire industry as a whole.



Trading prospects

The Bitcoin quote recently updated the historical maximum of 2017 which was $19,891. Now, the new maximum is $19,916 (Coinbase). In fact, market participants are faced with an area of psychological value of $20,000, which deters buyers from the subsequent upward move.

I assume that this psychological level will not last for long. The market is still on a bullish wave. Trading volumes are replenished by both institutional investors and young blood, which as a result will lead to an update of the current maximum and a breakdown of the psychological level of $20,000. There is a chance of a breakdown until the end of 2020.

The most noteworthy point is the high level of HYIP, where global media publish news about Bitcoin on a daily basis, which positively affects the flow of cash injections into the crypto market.

The prospect of growth is quite wide, Many write them to be at 25,000, 30,000 and even 100,000 Dollars for one Bitcoin.

Do not forget to skim the cream from your profitable positions from time to time and to regroup the trading forces of the deposit during corrections.



General background of the crypto market

Analyzing the total market capitalization of the crypto industry, you can see that the total market has gained more than $50 billion in weight since our last article. At the moment it is at $553 billion.

The absolute maximum of the crypto market from January 2018 is still not broken. Our goal is not $831 billion anymore but $1 trillion.



The index of emotions (fear and euphoria) of the crypto market is still at the level of FOMO* (lost profit Syndrome*) which is 95 points. This means that the market is very active and the quote is conducive to growth.



Indicator analysis

Analyzing different sectors of timeframes (TF), it is clear that four-hour period is in the stage of rollback/stagnation. The daily and weekly periods follow the uptrend, signaling a purchase.





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

[IFX_Selena]

BTC analysis for December 08,.2020 - Downside breakoutt of symmetrical triangle pattern and potential for test of $17.400

Further Development



Analyzing the current trading chart of BTC, I found that there is the downside breakout of the symmetrical triangle pattern, which is good sign ofr further downside movement.

Watch for selling opportunities on the rallies with the downside target projected at the price of $17,400


Key Levels:

Resistance:$19,400

Support level: $17,400



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

[IFX_Selena]

Technical Analysis of ETH/USD for 08 December 2020

Crypto Industry News:
According to the director of the European Central Bank, financial authorities in Europe may develop a research agenda for the digital Euro as early as next year.

Holger Neuhaus, Head of Market Innovation and Integration at the ECB, joined the Singapore FinTech Festival 2020 to discuss the global development of central banks' digital currencies, the CBDC. During an online discussion, Neuhaus said the ECB expects European financial authorities to assess whether they will launch the digital Euro initiative by mid-2021:

"In mid-2021, the Eurosystem will consider whether to launch a digital Euro project. However, I would like to emphasize that this would be a research phase and not a decision to implement. In fact, this would allow us [...] to come up with a real plan and identify what a digital Euro could be, what it might look like, how could they be implemented, if and when a political decision would be made" - he said.

Neuhaus stressed that the digital Euro would complement, not replace, cash or central bank deposits. He also noted that central bank digital money poses a major challenge when it comes to using CBDC abroad, especially with regard to the management of capital flows and the issue of relative remuneration.

As for CBDC in Europe, Neuhaus drew attention to the ECB's public consultation on the potential digital Euro. The consultation, which was published in mid-October 2020, aims to gather feedback from public and private stakeholders to assess whether Europe needs a digital Euro.

In November 2020, ECB President Christine Lagarde called on the bank to decide on the introduction of the digital Euro in January 2021.


Technical Market Outlook:
The ETH/USD pair has been trading below the short-term trend line since the yearly top at the level of $635.46 had been made on the 1st of December. It moved below the level of $600 briefly, but bounced back up towards the level of $610. The bulls tried to break through the trend line 4 time already, but no avail. The sentiment is still positive, so the bulls should continue the rally towards the higher levels as soon as possible. The nearest technical resistance is seen at the level of $620.52 and the nearest technical support is located at $558.85.

Weekly Pivot Points:
WR3 - $712.54
WR2 - $673.34
WR1 - $636.36

Weekly Pivot - $596.47
WS1 - $560.79
WS2 - $521.20
WS3 - $484.02


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $700, so any correction or local pull-back should be used to open the buy orders. Moreover, the bulls has hit the 38% Fibonacci retracement located at the level of $587.53 on the weekly time frame chart, but the current up trend is still valid. This scenario is valid as long as the level of $360 is broken.





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

[IFX_Selena]

Technical Analysis of BTC/USD for 09 December 2020

Crypto Industry News:
The Russian digital ruble is expected to lower the costs of doing business, but it could also lower the profits of commercial banks, says Elvira Nabiullina, president of the Bank of Russia.

At a meeting on December 3, "Resistance Russia," a non-governmental organization of small and medium-sized enterprises, Nabiullina said the digital ruble could undercut commercial bank profits from commissions and transaction fees.

In addition, she stated that a central bank's digital currency is a natural way to improve financial services:

"This is a natural move in the development of the financial system: financial intermediaries should become less burdensome to the economy and profit from new products and services instead of reaping the benefits of monopoly and the lack of alternatives. [...] We believe that small and medium-sized companies should definitely benefit from this." - she said.

She also highlighted a number of digital ruble benefits, including safer and faster payments.

"We are now considering several models where a digital ruble may exist, where the interactions of customers, central bank and commercial banks are organized differently, but these advantages remain across all models. It's fast, reliable and secure payments," she said.

In October 2020, Nabiullina said the digital ruble will not have the same level of anonymity as cash, noting that the Bank of Russia expects to strengthen user privacy. The chairwoman's comments came shortly after the Russian central bank officially announced its plans for the CBDC on 13 October. According to the bank, the digital ruble could soon be used as an additional form of money alongside cash.


Technical Market Outlook:
The BTC/USD pair has been trading inside of the narrow range, developing the triangle pattern. The range is located between the levels of $18,559 - $19,625. However, the short term trend line had been violated recently and the bulls are trying to break out of the range towards the new ATH after the triangle pattern is completed. If the level of $19,888 (ATH) is clearly violated, then the next target for BTC is seen at the level of $20,000. Please notice, the momentum is not that strong as it was for the last two weeks, but it is still positive, so the bulls have the control over the market.

Weekly Pivot Points:
WR3 - $21,987
WR2 - $20,958
WR1 - $20,107

Weekly Pivot - $19,077
WS1 - $18,325
WS2 - $17,164
WS3 - $16,350


Trading Recommendations:
Bitcoin made a new ATH 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 $20,000, 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 $15,000 is broken.





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

[IFX_Selena]

Technical Analysis of ETH/USD for 07 December 2020

Crypto Industry News:
The US Congress recently faced a new bill to regulate stablecoins. The law would require companies and service providers in the cryptocurrency market to obtain government approval before offering them to users. If they do not get approval and continue to work with them, the law will make this type of digital asset illegal. The bill presented to the US Congress reads as follows:

"It is illegal to issue stablecoins, products, provide related services or otherwise engage in any commercial activity..., including activity involving the use of stablecoins issued by others, is illegal without prior written consent."

Companies would need approval from various government agencies. Some of the institutions that permit the operation and provision of trading in this type of asset include the Board of Governors of the Federal Reserve System and others.


Technical Market Outlook:
The ETH/USD pair has been trading below the short-term trend line since the yearly top at the level of $635.46 had been made. It moved below the level of $600 briefly during the weekend, but bounced back up towards the level of $610. The sentiment is still positive, so the bulls should continue the rally towards the higher levels as soon as possible. The nearest technical resistance is seen at the level of $620.52 and the nearest technical support is located at $558.85.

Weekly Pivot Points:
WR3 - $712.54
WR2 - $673.34
WR1 - $636.36

Weekly Pivot - $596.47
WS1 - $560.79
WS2 - $521.20
WS3 - $484.02


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $700, so any correction or local pull-back should be used to open the buy orders. Moreover, the bulls has hit the 38% Fibonacci retracement located at the level of $587.53 on the weekly time frame chart, but the current up trend is still valid. This scenario is valid as long as the level of $360 is broken.






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

[IFX_Selena]

Technical Analysis of BTC/USD for 07 December 2020

Crypto Industry News:
During November's 42% rally on Bitcoin, approximately 185,600 BTC that hadn't moved in at least 12 months were carried over in the chain. November's increase in Bitcoin prices caused more than 1% of BTC supply to come out of long-term storage.

According to 'hodlwaves' Unchained Capital, which measures the time that has elapsed since Bitcoin was transferred to the chain, about 15% of BTC that had not been transferred in five to seven years was eventually transferred in the chain.

Surprisingly, Bitcoin's short-term transfers in the chain fell in November, and the share of supply, which recently moved between one day and a week, fell from 3.72% at the start of the month to 2.94% on November 30. The biggest change in November happened in one week to one month, which shows the share of BTC supply, which recently moved between 7 and 30 days. In November, it rose from 6.28% to 8.20%.

Glassnode, a cryptocurrency market data aggregator, released another bullish indicator, estimating that nearly 19.6 million Bitcoin addresses were active in November. As such, November saw the second largest number of active wallets per month in Bitcoin's history, second only to 21.6 million active wallets in December 2017.


Technical Market Outlook:
The BTC/USD pair has been trading inside of the narrow range for most part of the weekend. The range is located between the levels of $18,559 - $19,625. However, the short term trend line had been violated recently and the bulls are trying to break out of the range towards the new ATH. If the level of $19, 888 (ATH) is clearly violated, then the next target for BTC is seen at the level of $20,000. Please notice, the momentum is not that strong as it was for the last two weeks, but it is still positive, so the bulls have the control over the market.

Weekly Pivot Points:
WR3 - $21,987
WR2 - $20,958
WR1 - $20,107

Weekly Pivot - $19,077
WS1 - $18,325
WS2 - $17,164
WS3 - $16,350


Trading Recommendations:
Bitcoin made a new ATH 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 $20,000, 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 $15,000 is broken.






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

[IFX_Selena]

Technical Analysis of ETH/USD for 04 December 2020

Crypto Industry News:
The Libra Association, uniting 27 global corporations, announced yesterday that it has changed its name to Diem. The new name means "day" in Latin.

In addition to changing the brand name, there have also been changes in the management positions of the Association. The new hires include Stuart Levey as new CEO, James Emmett as MD, Sterling Daines as Chief Compliance Officer, Ian Jenkins as Chief Financial Officer, and Saumya Bhavsar as General Counsel. Other changes include the Chief Technology Officer Dahlia Malkhi, Christy Clark as Chief of Staff, Steve Bunnell as Chief Legal Officer. At the same time, Kiran Raj has become executive vice president of development and innovation and deputy attorney-at-law.

The Libra issue started in earnest when the Association first presented its plan in June 2019. With Facebook at the forefront of this mission, the project faced challenges from members of the cryptocurrency community and regulators.

This was due to the fact that Facebook shared data of its users with third parties for profit. Given the amount of personal data that the giant has access to, venturing into the financial world could give Facebook much more power than the US government itself.

As mentioned earlier, Libra's rebranding to Diem is a new start for the Association and a restructuring of the previous plan that still needs to be approved by the financial authorities.


Technical Market Outlook:
The ETH/USD pair has made a new local high after the low of the pull-back wave was made at $561.91. The market keeps trading above the $600 level and the next target is the recent swing high seen at $635.45. The momentum is still strong and positive, so the up trend might be still continued. The level of $548.16 will now act as temporary technical support for the price. The nearest technical resistance is seen at the level of $600 and $620.52. The is no indication of the up trend reversal on the higher time frames like weekly and monthly.

Weekly Pivot Points:
WR3 - $771.53
WR2 - $696.42
WR1 - $633.11

Weekly Pivot - $557.97
WS1 - $496.01
WS2 - $420.20
WS3 - $358.90


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $700, so any correction or local pull-back should be used to open the buy orders. Moreover, the bulls has hit the 38% Fibonacci retracement located at the level of $587.53 on the weekly time frame chart, but the current up trend is still valid. This scenario is valid as long as the level of $360 is broken.





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

[IFX_Selena]

Technical Analysis of BTC/USD for 04 December 2020

Crypto Industry News:
S&P Dow Jones Indicies, one of the most established index providers in the world, is opening up to cryptocurrencies. Yesterday it was announced that the index provider of the US financial giant S&P Global will add indices for cryptocurrencies in 2021.S&P will initially launch two products. The indices will use data on over 550 cryptocurrencies using Lukka, a blockchain company based in New York.

Peter Roffman of S&P Dow Jones Indices today made the following statement on the S&P Global website:

"As digital assets such as cryptocurrencies are becoming a rapidly growing asset class, it's time for independent, reliable and user-friendly benchmarks. We are delighted to be working with Lucca, a leader in digital asset data services, to promote greater transparency in this emerging sector. "

Lucca will help to provide the S&P Dow Jones indices with information on a range of cryptocurrency assets, described by CEO Robert Materazzi as "the most trusted in the industry". S&P Dow Jones Indices is perhaps the world's best-known index provider. It is home to the S&P 500 and the Dow Jones Industrial Average, two indices that are among the best known in the global financial markets.


Technical Market Outlook:
The BTC/USD pair had made a new all time high (ATH) at the level of $19,891 and since then had been consolidating in a narrow zone located between the levels of $18,559 - $19,500. The idea of a triangle pattern as a form of the consolidation has been abandoned after a local higher high was made. The levels of $18,388, $18,000 and $17,644 will now act as a key technical support again. The momentum is still strong and positive, so the bulls have a chance to hit the level of $20,000 and then continue the up trend towards the new all time highs. Please notice, there is no indication of up trend termination on a daily, weekly and monthly time frame chart yet.

Weekly Pivot Points:
WR3 - $22,987
WR2 - $21,189
WR1 - $19,745

Weekly Pivot - $17,922
WS1 - $16,614
WS2 - $14,848
WS3 - $13,390


Trading Recommendations:
Bitcoin just made a new ATH 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 $20,000, 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 $15,000 is broken.






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