Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for 04 January 2020

Crypto Industry News:
A new law filed on Thursday, HR9067, aims to create an office that will "coordinate" federal blockchain applications.

The project, sponsored by Darren Soto, a Democrat representing Florida's 9th arrondissement, would:

"(...) establish an office within the Department of Commerce to coordinate all non-defense deployment and blockchain activities in the federal government."

On December 31, the project was submitted to the House of Representatives for Energy and Trade. Although the text of the act has not yet been published, its originator may indicate the types of blockchain technology applications that such an office would try to "coordinate".

In recent months, Soto has proved to be an increasingly strong supporter of both cryptocurrencies, which he accepts as donations for campaigns, and blockchain technology in general.

Following news that the U.S. Post Office has filed a patent for a blockchain-based postal voting system, Blockchain co-chair Caucus said he hoped it would be used in the near future. Additionally, in September, Soto announced the culmination of "almost two years of pushing" his colleagues in the Energy and Trade Committee: the Digital Taxonomy Act, which will result in research into the use of blockchain technology in government. The creation of an office as described in HR9067 would likely lead to faster adoption and implementation of such technologies.

Soto's backing for cryptocurrency has been particularly strong lately. The Florida politician was also one of nine congressmen who rebuked the Treasury for allowing just over two weeks to comment on a new cryptocurrency monitoring rule. The rule has led to a call to arms across the cryptocurrency community, with some speculating that the Treasury may face a breach of procedure lawsuit.


Technical Market Outlook:
The ETH/USD pair has made new swing high at the level of $1,156.10 during the weekend. The up trend is being continued and there is no sign of trend reversal. Moreover, the up trend is now going parabolic and the next mid-term target for bulls is seen at the level of $1,420. The nearest technical support is seen at the level of $1,000. Please notice, the level of $1,000 is very close to the 161% Fibonacci extension level of the main wave 1, located at $1,047.

Weekly Pivot Points:
WR3 - $1,394
WR2 - $1,185
WR1 - $1,086

Weekly Pivot - $847
WS1 - $791
WS2 - $545
WS3 - $496


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $1,420, so any correction or local pull-back should be used to open the buy orders. Please notice, the up trend starting to go vertical, so the volatility will be higher than average. The bullish scenario is valid as long as the level of $830 is broken.





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

[IFX_Selena]

Technical Analysis of BTC/USD on 04 January 2021

Crypto Industry News:
Bitcoin futures contracts currently open are at $ 10 billion, an all-time high, according to Skew Analytics. This means there is over $ 10 billion in "betting" on the future BTC price. This coincides with a record weekend for a cryptocurrency price that has surpassed $ 34,000.

Futures contracts are a type of bitcoin investment derivative where traders agree to buy bitcoin in the future at a pre-agreed price. Volumes on futures market picked up again on January 2, likely for two reasons. First, futures investors whose contracts have just expired have noticed a sharp rise in bitcoin's price and have made the decision to reinvest. Second, a whole host of new traders have witnessed Bitcoin's price dropping to below $ 30,000 recently. It is possible that they also wanted to join an uptrend at better market prices during a short pullback.


Technical Market Outlook:
The BTC/USD pair has made new all time high at the level of $34,777 during the weekend. The up trend is being continued and there is no sign of trend reversal. Moreover, the up trend is now going parabolic, almost vertical. The next mid-term target for bulls is seen at the level of $50,000. The nearest technical support is seen at the level of $32,000 and $30,000. Please notice, the level of $34,777 is very close to the 161% Fibonacci extension level of the main wave 1, located at $35,051.

Weekly Pivot Points:
WR3 - $46,938
WR2 - $40,854
WR1 - $37,989

Weekly Pivot - $31,477
WS1 - $28,840
WS2 - $22,622
WS3 - $19,555


Trading Recommendations:
Bitcoin made another 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 $35,051, 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 $20,000 is clearly broken.





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

[IFX_Selena]

Technical Analysis of ETH/USD for 31 December 2020

Crypto Industry News:
Ethereum's competitor, Polkadot (DOT), is making huge profits after receiving support from the Binance cryptocurrency exchange. According to CoinMarketCap, in the past seven days, DOT soared from its low of $ 4.77 on December 24 to a record high of $ 7.65 today. Traffic means an increase of 60% in six days.

Polkadot's growth comes the day after Binance announces $ 10 million funding for projects built around the Polkadot ecosystem. The multi-million dollar investment is part of the stock market's efforts to provide users with even better access to decentralized finance.

Since its announcement, Polkadot has replaced ETH on the Binance homepage. This has given the cryptocurrency more exposure and a basis for potentially competing with the world's second largest cryptocurrency.


Technical Market Outlook:
The ETH/USD pair keeps struggling with the level of $745.60 which is a 50% Fibonacci retracement on the weekly time frame chart of the last, big, main wave down from the ATH located at the level of $1,422. During the quick pull-back the market hit the level of $688.26, but bounced right back up. The last high was made at the level of $756.12, but the price reversed quickly under the level of $745 again. The intraday support is seen at the levels of $700 and $673. The additional support is being provided by the short-term trend line as well. The strong and positive momentum supports the short-term bullish outlook for Ethereum.

Weekly Pivot Points:
WR3 - $907.99
WR2 - $803.63
WR1 - $751.04

Weekly Pivot - $647.44
WS1 - $590.99
WS2 - $493.57
WS3 - $441.00


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $800, so any correction or local pull-back should be used to open the buy orders. Nevertheless, the momentum has decreased recently on the lower time frames and volatility is not that great either. This scenario is valid as long as the level of $500 is broken.





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

[IFX_Selena]

BTC analysis for December 30,.2020 - First target at $28.400 reached and pottential for downside rotattion towards $27.500

Further Development



Analyzing the current trading chart of BTC, I found that BTTC reached my major upside target from yesterday at the price of $28,400.

It is very important to watch price action around key pivot at $28,400 in order to confirm further direction.

There is potential for the downside rotation towards support levels at $27,000 and $25,760.

Stochastic oscillator got the fresh bear cross, which is another sign for the potential downside rotation.....




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

[IFX_Selena]

Technical Analysis of ETH/USD for 30 December 2020

Crypto Industry News:
Lebrija, a small town in the province of Seville in Spain, introduced a cryptocurrency called Elio to support local transactions between residents and traders during the ongoing pandemic. The newly launched cryptocurrency is linked to the Euro.

According to a report by the Spanish news agency Europa Press, the Elio cryptocurrency will enable the Lebrija City Council to send economic aid to 593 selected beneficiaries. Beneficiaries will receive aid in the amount of 50 to 200 euros. In addition, the City Council announced that as part of the City's Reactive Plan, it will pay out economic aid of 400 euros to 393 local businesses through its virtual currency Elio. According to the said report, 165 stores in the city joined the platform.

Digital currencies gained popularity across Europe as governments began exploring opportunities in the cryptocurrency market. The European Central Bank published a report on the development of CBDC in early November. ECB President Christine Lagarde mentioned that the ECB could introduce digital Euro in the next 2-4 years. In addition to government efforts, some private financial companies in Europe have started issuing stablecoins.


Technical Market Outlook:
The ETH/USD pair has been seen trading under the level of $745.60 which is a 50% Fibonacci retracement on the weekly time frame chart of the last, big, main wave down from the ATH located at the level of $1,422. During the quick pull-back the market hit the level of $688.26, but bounced right back up. The intraday support is seen at the levels of $700 and $673. The additional support is being provided by the short-term trend line as well. The strong and positive momentum supports the short-term bullish outlook for Ethereum.

Weekly Pivot Points:
WR3 - $907.99
WR2 - $803.63
WR1 - $751.04

Weekly Pivot - $647.44
WS1 - $590.99
WS2 - $493.57
WS3 - $441.00


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $800, so any correction or local pull-back should be used to open the buy orders. Nevertheless, the momentum has decreased recently on the lower time frames and volatility is not that great either. This scenario is valid as long as the level of $500 is broken.





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

[IFX_Selena]

Technical Analysis of BTC/USD for 30 December 2020

Crypto Industry News:
Binance will expand its cryptocurrency trading directory by introducing European Bitcoin Options Contracts.

The launch announced today follows a successful trial in November. The press release also shows that the new options contract will be priced and settled in Tether.

According to Binance, the debut of the new product took place due to the growing appetite for BTC options. In early December, Bitcoin options surpassed $ 1 billion for the first time, with total open interest reaching nearly $ 6 billion. Commenting on the launch, Binance CEO Changpeng Zhao noted that Bitcoin's recent $ 28,000 hit highlighted the growing level of investment in the crypto space.

"The growth of the cryptocurrency industry can largely be attributed to a combination of factors, including broader public education and institutional interest, innovation in DeFi protocols and smart contracts, and the development of a solid derivatives market," he added.

In April, Binance joined a growing number of exchanges introducing Bitcoin options trading by launching American-style BTC options contracts. The main difference between the US and European format is that traders can only use the latter after the contract expires.

The previous iteration of Bitcoin Options on Binance has been criticized for being one-sided as users were unable to "write" options and reap bonuses. Consequently, Binance options were generally more expensive due to the inability to conduct arbitrage.


Technical Market Outlook:
The BTC/USD pair has made a new ATH at the level of $28,526 (at the time of writing the article), so the up trend is continued. The local low during the pull-back was made at the level of $25,801, but there is no sign of a trend reversal and the next target for bulls is seen at the level of $30,000. The intraday support is seen at the levels of $28,000 and $28,186. The strong and positive momentum supports the short-term bullish outlook for Bitcoin. Moreover, the market still trades above the short-term trend line support (market orange on chart).

Weekly Pivot Points:
WR3 - $35,468
WR2 - $31,807
WR1 - $29,313

Weekly Pivot - $25,209
WS1 - $23,706
WS2 - $19,294
WS3 - $16,598


Trading Recommendations:
Bitcoin made another 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 $30,000, 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 $20,000 is clearly broken.





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

[IFX_Selena]

BTC analysis for December 29,.2020 - Potential upside continuation towards $28.400

Further Development



Analyzing the current trading chart of BTC, I found that there is potential for the upside continuation towards the $28,400.

Watch for potential buying opportunities on the dips with the the target at $28,400. I found that there is bull flag pattern in creation on the 4H time-frame, which is good indication for the upside continuation.


Support level is set at $25,760




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

[IFX_Selena]

Technical Analysis of BTC/USD for 29 December 2020

Crypto Industry News:
Deputy CEO of the Central Bank of Russia, Olga Skorobogatova, says that a total of around 30 central banks are currently exploring the potential of digital currencies. Russian media reports that many of the projects that rely on them are expected to go live in the next five to seven years.

Skorobogatova comments that the digital version of fiat currency can be so efficient that the international payment network SWIFT (Society for Worldwide Interbank Financial Telecommunications), which currently operates with some 11,000 financial institutions and sends over 33 million transactions per day, may soon become needed.

"Then we will be able to deal with direct integration issues. In this case, SWIFT may not be necessary as it will be a different type of technological interaction. '

Russia is currently working on a digital version of the ruble. According to CBR, the digital ruble must be simple, high-speed, high-reliability, low-cost, as well as secure online and offline payments. An official release date has not been set, but testing is expected to start next year.

Russian leaders say the digital currency can be used for international money transfers as soon as other countries launch digital versions of their own currencies.


Technical Market Outlook:
The BTC/USD pair has been seen trading below the level of $27,000 during the ongoing pull-back from ATH. The local low was made at the level of $25,801, but there is no sign of a trend reversal and the next target for bulls is seen at the level of $30,000. The intraday support is seen at the levels of $26,000 and $25,000. The strong and positive momentum supports the short-term bullish outlook for Bitcoin. Moreover, the market still trades above the short-term trend line support (market orange on chart).

Weekly Pivot Points:
WR3 - $35,468
WR2 - $31,807
WR1 - $29,313

Weekly Pivot - $25,209
WS1 - $23,706
WS2 - $19,294
WS3 - $16,598


Trading Recommendations:
Bitcoin made another 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 $30,000, 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 $20,000 is clearly broken.





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

[IFX_Selena]

Technical Analysis of ETH/USD for 29 December 2020

Crypto Industry News:
According to data from CryptoCompare, the all-time high price of Ethereum (ATH) - $ 1,422.86 - was reached on Jan. 13, 2018. Spencer Noon, an investor in the cryptocurrency-focused investment firm Variant, notes that the current price of ETH still offers a pretty juicy discount at compared to ATH. Given the current degree of positive correlation between BTC and ETH, it would not be unreasonable to expect the price of ETH to exceed ATH. That's why Noon calls ETH "the best asset that offers possibly the best risk-reward ratio of all cryptocurrencies at the moment."

Ki Young Ju, CEO of the South Korean blockchain analytics startup CryptoQuant, called ETH "the most undervalued asset in cryptocurrencies." Already in early December, he found it optimistic that ETH "floats from centralized exchanges".

Anthony Sassano, Product Marketing Manager at Set Labs, co-founder of ETH Hub and co-host of the podcast "Into the Ether", expects ETH to reach a new level of ATH next month.


Technical Market Outlook:
The ETH/USD pair has hit the level of $745.60 which is a 50% Fibonacci retracement on the weekly time frame chart of the last, big, main wave down from the ATH located at the level of $1,422. The intraday support is seen at the levels of $700 and $673. The strong and positive momentum supports the short-term bullish outlook for Ethereum.

Weekly Pivot Points:
WR3 - $907.99
WR2 - $803.63
WR1 - $751.04

Weekly Pivot - $647.44
WS1 - $590.99
WS2 - $493.57
WS3 - $441.00


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $800, so any correction or local pull-back should be used to open the buy orders. Nevertheless, the momentum has decreased recently on the lower time frames and volatility is not that great either. This scenario is valid as long as the level of $500 is broken.






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

[IFX_Selena]

BTC analysis for December 28,.2020 - Major target at $28.000 reached.. Potential for another re-test of tthe $28.00 level...

Further Development



Analyzing the current trading chart of BTTC, I found that BTC reached our Friday's targets at the price of $24,176 and $26,500.

The strong up cycle is still active on the BTC and my advice is to watch for buying opportunities for the potential re-test of the $28,300.

Based on the 4H time-frame, I see potential bullish flag pattern in creation, which is good sign for continuation.


Key Levels:

Resistance: $28,300

Support level: $25,785



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