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Stan NorFX

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CryptoNews


- One of the US venture capital pioneers, Tim Draper, has once again reaffirmed his commitment to bitcoin. According to the financier, now is the time to invest in the main cryptocurrency, as it looks relatively stable against other assets. Even the dollar cannot compete with bitcoin on a number of parameters. Investing in altcoins will also definitely bear fruit, but the risk in this case is slightly increased. The financier did not rule out that even large banks, starting first just to work with cryptocurrencies, will then make them their main tool. And then the exchange rate of the dollar and the rest of the fiat will sink significantly.
“The effectiveness of each investment tool needs to be evaluated in times of crisis. If an asset sinks along with the entire market, the same can happen to it at any time. When a financial instrument shows relative stability, you need to use it for your own purposes. I'm sure bitcoin is the optimal asset to invest right now. The cryptocurrency market has a real support, so a serious drawdown is unlikely for it. In addition, digital assets are not associated with risky industries like the oil and the dollar. The cryptocurrency is almost unaffected by the geopolitical situation, which makes it stronger than any fiat asset,” Draper argued.

- According to the analytical portal Skew, the correlation between bitcoin and the S&P500 index has reached a historical high. The current rate is approximately 66.2 per cent. There has been an increase in correlation over the past few months, but now the value has reached its peak. If at the beginning of the year the correlation was traced only at serious collapses or spikes, now it takes place even at the lowest volatility. “Some people compare bitcoin with gold, but even if it is connected with the stock markets, it remains a risky asset,” experts say.

- The Binance-supported blockchain hotel reservation service Travala has announced a partnership with Expedia, an American tour operator. Thanks to this, it will be possible to pay for rooms in 700,000 hotels from the company's catalogue using BTC and another 30 digital currencies. Expedia previously accepted payments in bitcoins but abandoned this method in 2018 as it did not fit with their traditional financial model. And now a second attempt follows, apparently related to the general crisis in the tourism industry.

- The experts of The Tokenist information platform, having polled 4852 people aged 18 to 65 years from 17 countries, analysed how the attitude towards bitcoin has changed over the past three years. Since 2017, the number of people who prefer BTC to traditional assets has grown significantly. More than 45% of respondents would prefer to have this cryptocurrency instead of stocks, real estate and gold, which is 13% more than three years ago. Moreover, among millennials, their share is 92% against 68% earlier.
The number of people familiar with Bitcoin increased from 30% to 61%, with the number of respondents owning or having owned it rising from 2% to 6%. Among millennials, the number of people familiar with bitcoin rose from 42% to 78%, and cryptocurrency owners rose from 4% to 14%. Note that 44% of millennials claim that they will buy BTC within the next five years.
There is an increase аrom 18% to 47% in the number of people trusting bitcoin more than large banks. Among millennials surveyed, there are 51 percent of them, among older people, only 7 percent of them. It is noteworthy that the number of people over 65 who are familiar with cryptocurrencies has grown by 51%! The authors of the study believe that this is due to the growing mention of bitcoin in the media and the growing support for coins from the side of trade.

- A team of researchers from Bloomberg Agency published a report forecasting the rapid resumption of the rally of the leading cryptocurrency. According to analysts, the market has the most comfortable environment for the flow of capital into the crypto industry. Among the factors contributing to the strengthening of BTC, experts highlighted the weakening position of central banks, as well as the growth of investment in gold, the digital counterpart of which is bitcoin. The low volatility that we have observed over the past weeks also contributes to the flow of funds from the stock market to BTC. The result of the new bitcoin race should be a rise to $12,000. Recall that among Bloomberg analysts, Mike McGlone is an ardent supporter of the largest cryptocurrency. He said back in June that a BTC jerk was imminent, with the result by the end of the year being to overcome the psychological milestone of $20,000. In shaping his forecast, McGlone relied on statistics on the growth of active addresses in the BTC network.

- Anthony Trenchev, Managing Partner of Nexo Credit Platform, gave an even more optimistic forecast. In his opinion, the value of bitcoin may exceed $50,000 in a few months. During an interview at the Block Down conference, Anthony Trenchev said that the Nexo platform is growing tens of percent every month, new customers are constantly registering, both retail and institutional investors. And it is the increased participation of institutionals that can be the driver of growth.
Trenchev believes that from the point of view of fundamental factors, bitcoin is now stronger than ever. It looks particularly strong against the backdrop of quantitative easing policies pursued by central banks. “I think it's good for gold and especially for bitcoin. So, I'm sticking to my $50,000 forecast by the end of the year. I admit, this is a bold statement, but fundamental factors and a change in attitude towards cryptocurrency make it real,” Anthony Trenchev concluded.

- A popular crypto analyst under the nickname PlanB conducted a survey among Twitter users to find out what the price of BTC will be by December 2021. The survey involved 26,639 people. Most respondents believe that the largest cryptocurrency will not be able to break above $55,000. Nearly 30% of respondents named the $100,000 mark. And 17% do not exclude the option in which BTC will approach $ 300,000.

- Developer and founder of startup Zap Inc. Jack Mullers announced the launch of the Strike product into the open beta stage. Strike will allow transfers in BTC via direct bank deposits, similar to how it works with dollars. 2Also, in order to enter the market in the most efficient way, the startup is preparing to release its own card in the Visa system.
This year, Visa accepted the Fold cryptocurrency cashback distribution program into Fast Track. There is also a debit card that allows you to pay with cryptocurrency. It is not yet known what option will be offered to Zap card holders.

- The chief organizer and principal perpetrator of the Olalekan crime scheme, Jacob Ponle, better known as Woodbery, has been extradited from the UAE and will be tried in the United States in a case of money laundering, fraud a particularly large scale and a number of crimes. The cybercriminal faces up to 20 years in prison. According to the FBI, about 2 million people and organizations have become victims of fraud over the past few years. The group included at least 11 people who were engaged in hacker attacks on computers and servers of large American companies, having stolen about $168 million.

- The ZUBR crypto derivatives exchange published a study according to which the daily mining of bitcoin by the end of this decade will be significantly lower than the demand for it from buyers. Based on the performance of Chainalysis, ZUBR estimates that by the time of the next halving in 2024, small investors will already absorb more than 50% of the supply. And if everything continues at this rate, the demand for bitcoins will significantly exceed the supply by 2028, which will entail a significant increase in the price of this cryptocurrency.


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Stan NorFX

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Forex and Cryptocurrency Forecast for July 13 - 17, 2020


First, a review of last week’s events:

- EUR/USD. The dollar is slowly weakening, the pair moved above Pivot Point 1.1240 last week, but is still within the five-week channel 1.1170-1.1350. As expected by 25% of experts, the bulls made an attempt to reach the level of 1.1400, but their attack choked quickly, and, turning at the height of 1.1370, the pair went down again, ending the five-day period in the 1.1300 zone.
The pressure on the American currency is explained by the improvement in the economic situation in a number of countries, including the EU. Enterprises have started working there, demand is recovering, buyers are returning to stores, unlike the United States, where even Fed officials doubt the ability of the economy to recover quickly. Thus, FOMC members Rosengren and Barkin noted that, having fulfilled the old orders, the industry has so far not received new ones. And this could lead to further printing of dollars and an increase in the quantitative easing (QE) program.
All this comes amid a new wave of the COVID-19 pandemic. On Wednesday, July 08, a new peak of infections was reached in the United States, 60 thousand people. The number of deaths doubled compared with average levels, reaching 1000 per day, which is a significant reason for the growth of pessimism among market participants.
The euro, on the contrary, feels better, thanks to the improvement of the epidemiological situation and the competent monetary and fiscal policy of the EU. Support for Europe is also provided by the rapidly strengthening yuan and, paradoxically, the US president Donald Trump. More precisely, his falling ratings, because of which he is now not up to the trade wars with China. And if Democrat Joe Biden becomes the new president, then Washington’s policy towards Beijing may change dramatically, which will lead to further growth of the Chinese and, as a consequence, European economies;

- GBP/USD. In the last issue of the forecast, we wondered whether the growth of the pound was considered a temporary correction or a serious turnaround in the trend. The vast majority of indicators, along with graphical analysis, predicted a further rise for the pair. A total of 50% of experts also spoke in favor of its northward movement, with 30% pointing to a resistance of 1.2680 as a limiter. And they were right: the week's high was recorded at 1.2670, followed by a slight bounce down and a finish at 1.2625.
The steady growth of the pound was facilitated by the widespread weakening of the dollar (the reasons are indicated above), as well as moderate optimism caused by the negotiations on the terms of the UK's exit from the EU;

— USD/JPY. Tokyo, like a number of US states, has also recorded a record rise in coronavirus cases. However, so far this is not very worrying for investors, especially since the data on actual orders for machine tools and equipment that became known this week turned out to be higher than forecast, which indicates some recovery in the Japanese economy.
Against the backdrop of a general weakening of the dollar, the yen was able to strengthen its position a bit: starting the week from 107.50, the pair sank to the horizon of 106.65 by Friday evening. The final chord of the week was set at 106.90;

– cryptocurrencies. If a few months ago, the main topic of discussion was the question of whether Bitcoin can be considered a safe haven asset, now the topic of correlation of the main cryptocurrency with the stock market is constantly being discussed. For example, the Skew portal calculated that the correlation between bitcoin and the S&P500 index has now reached a historical high and currently its coefficient is approximately 66%. According to portal analysts, this means that Bitcoin has failed to become the antithesis of traditional finance and is moving in the same harness with them. Some even called bitcoin a "stock market startup."
There is a certain logic to this, since the main source of financing for both markets, both the stock and crypto, have been central banks in recent months, and, first of all, the US Federal Reserve, which pours the economy with a huge amount of cheap money.
But if you look at the graphs, a completely different picture emerges. Since the May halving of the BTC, the S&P500 index has risen by about 9%, the Nasdaq 100 - by 19%, but bitcoin, having failed to gain a foothold above $10,000, has gone down and now is consolidated in the $9,000-9,500 zone. So where's the correlation?
Unlike the stock market, bitcoin does not look like the most attractive asset at the moment, despite the entreaties of all kinds of crypto gurus. The main cryptocurrency continues to consume a huge amount of energy, and at its current price, it loses its supporters even among miners, whose revenue, according to Coindesk estimates, fell by 26% in June.
The cryptocurrency market capitalization has grown slightly over the past week, reaching $269 billion, and has only returned to where it was already on June 22 and 24. The Crypto Fear & Greed Index of Bitcoin has not changed at all for the week: its arrow is still at 41.
Such sluggishness of the main cryptocurrency plays into the hands of altcoins, especially since it has become much easier to buy them than a year or two ago. And if on May 15 the share of Bitcoin in the crypto market was 69.81%, now it has dropped to 62.79%. That is, in less than two months, the drop was 7.02% in absolute terms and 10% in relative terms.
Unlike BTC, many altcoins show impressive growth in July, and this can't help but attract investor attention. So, for example, the growth of Ethereum (ETH/USD) at the high of July 07 was about 10%, Ripple (XRP/USD) - 20%, Cardano - 34%. The record holders were Dogecoin, which added 79% after the viral video in TikTok and VeChain with 101%.


As for the forecast for the coming week, summarizing the opinions of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

- EUR/USD. If earlier the main reference point for investors was US stock indices, now everything has changed. At the beginning of July, the ball is ruled not at all by the American S&P500, but by the Chinese Shanghai Composite. And if before the US economy grew much faster than the European economy, fueled by trade wars with China, things have now turned 180 degrees. Now the Fed no longer has the ability to raise the interest rate, making the dollar more attractive compared to rival currencies. A black cloud over the US economyis the prospect of massive non-repayment of loans, which are the main driver of its growth.
The dollar index has already returned to the area of June lows, losing 1.4% since early July, and this trend threatens to become long-term. According to some experts, the American currency may lose up to 20% of its value within a few years, losing most of what has been won since 2014.
The average forecast of the 11 largest US banks indicates the EUR/USD pair at 1.1500 by the end of 2020. The only one to favor the strengthening of the dollar and lower the pair towards 1.0500 was investment bank Merrill Lynch. The reason for this forecast was the expectation of an expansion of the ECB's quantitative easing program by €400-600 billion.
If we talk about the forecast for the coming days, according to the Bloomberg Probability Calculator, based on the readings of the options market, the EUR/USD pair has a better chance to rise above 1.1500 than to fall below 1.1200. 80% of oscillators and 95% of trend indicators on D1 are also colored green. The remaining 15% of the oscillators give signals that the pair is overbought.

- GBP/USD. This week we expect: Monday, July 13, a statement by the head of the Bank of England, Andrew Bailey, Tuesday - data on GDP, Wednesday - on the consumer market, and Thursday - on the UK labor market. Particular attention should be paid to Tuesday 14 July: according to preliminary forecasts, GDP growth in May may be 5% compared with a drop of 20.4% a month earlier. And if the forecast proves correct, it could serve to further strengthen the British currency.
Its growth is expected by 65% of experts, supported by 80% of oscillators and 90% of trend indicators on H4, as well as 85% of oscillators and 95% of trend indicators on D1. The main goal is the high of June 10, 1.2810, resistance is located at levels 1.2670 and 1.2740.
The opposite point of view is shared by 35% of analysts and the remaining oscillators, painted red on H4 and located in the overbought zone on D1.
It should be noted that when switching from a weekly forecast to a monthly one, the number of bear supporters among experts increases to 60%. The goal is to return the pair to the 1.2250-1.2400 zone;

- USD/JPY. Except for a single release on June 2-05, the pair has been moving in the lateral corridor 106.00-108.10 for 13 weeks, and, according to experts, is not going to leave its limits yet. At the same time, 70% of analysts vote for further strengthening of the yen and reduction of the pair to the lower border of the corridor, supported by graphical analysis on H4, and 30% are for its growth to the upper border. Among the oscillators on both H4 and D1, 80% are colored red, 95% among trend indicators.
In terms of important economic developments, the Bank of Japan will decide on the interest rate on Wednesday, July 15, followed by a press conference of its management. However, surprises are most likely not worth waiting for, and the rate will remain negative at the level of -0.1%;

– cryptocurrencies. The gurus of this market, as usual, compete in predictions regarding the rise of Bitcoin. So, a team of researchers from the Bloomberg Agency published a report, according to which the BTC/USD pair is expected to grow to $12,000 in the near future. Recall that among Bloomberg analysts, Mike McGlone is an ardent supporter of the largest cryptocurrency. He said back in June that a BTC jerk was imminent, with the result by the end of the year being to overcome the psychological milestone of $20,000.
- Anthoni Trenchev, Managing Partner of Nexo Credit Platform, gave an even more optimistic forecast. In his opinion, the value of bitcoin may exceed $50,000 in a few months. During an interview at the Block Down conference, Anthoni Trenchev said that the Nexo platform is growing tens of percent every month, new customers are constantly registering, both retail and institutional investors. And it is the increased participation of institutionals that can be the driver of growth. I admit, this is a bold statement, but fundamental factors and a change in attitude towards cryptocurrency make it real,” he concluded.
The fact that the attitude is changing is indisputable. According to the survey conducted by The Tokenist in 17 countries, 45% of respondents would prefer to have cryptocurrency instead of stocks, real estate and gold, and among millennials their share is 92%.
And now the results of another survey conducted on Twitter by popular cryptanalyst under the nickname PlanB with the aim of finding out what price BTC will be by the end of 2021. Of the nearly 27,000 surveyed, the majority (53%) were inclined to a high of $55,000. Nearly 30% of respondents named the $100,000 mark. And 17% do not exclude the option in which BTC will approach $ 300,000.
As for forecasts for the next week, the vast majority of analysts still consider the level of $9,000 as Pivot Point for the pair BTC/USD, citing the lower limit of fluctuations as $8,800, the upper - $9,700. And only 10 per cent believe the pair could drop to the $8,400 zone.


NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

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Stan NorFX

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CryptoNews


- Max Kaiser, the founder of Heisenberg Capital, told the world about the day when the first cryptocurrency will destroy all other coins, as well as which of these coins is "outright garbage". Bitcoin will rise to $100,000, the billionaire said during his Keiser Report show on Russia Today channel. He noted that the first cryptocurrency will destroy all other projects this or next year, including the XRP token, which is “outright garbage.” "This will solve the problem with all altcoins, especially those that receive state financial support. They will all be erased by bitcoin.”
Kaiser was sharply critical of projects that received government subsidies from the US government during the crisis. This list includes 75 companies related to the field of blockchain and cryptocurrencies.

- Weiss Crypto experts said that the cost of bitcoin will reach $70,000 by 2021. This can be indicated by the Stock-to-Flow model that the main cryptocurrency has chosen. It implies measuring the ratio of the value of an asset to its annual growth. Even if the coin quotes are almost unchanged, it remains promising for long-term investments.
According to the experts, if the Stock-to-Flow model is maintained, the value of bitcoin will approach the $50,000 mark by the end of this year. A slight downward correction is possible in January, which happens almost annually. A return to positive dynamics will follow, but it could end with an even stronger drawdown. If traders and investors survive the losses and do not arrange a massive sale of bitcoins, the value of the main coin will be about $70,000 by the middle of next year.
the experts noted that throughout the asset's history, the Stock-to-Flow model clearly reflected its growth and drawdown. The one factor experts cannot predict is external impact. If at the beginning of the year there was a certain correlation between the asset and gold, then now bitcoin is strongly correlated with stock markets. This makes it harder to make predictions.
“Long-term investors should study the weaknesses of this asset to find optimal entry points. Volatility works for the benefit of traders in this case. If it is not a question of reselling cryptocurrency, now is the time to invest in it. If it continues to follow the trends of the Stock-to-Flow model, the current price tag of the asset will be considered an annual minimum very soon”, said Weiss Crypto experts.

- A team of experts from ZenGo (a crypto-asset management project) discovered a BigSpender bug in many wallets for storing cryptocurrencies, such as Ledger Live, BreadWallet and some others. The bug allows hackers to steal bitcoins and other coins from such wallets, the Research and Markets Agency reports.
The fact is that some wallets have a feature that allows users to replace an outgoing unconfirmed transaction with a new, but with a different fee. Thanks to this feature, holders could pay miners a higher amount for cryptocurrency transfer so that they could confirm the operation faster. At the same time, it has become a loophole for hackers. For the theft, they replaced the transaction with another, but with an extremely low commission, which was a guarantee that the translation of the cryptocurrency will not be confirmed. The hackers then replaced the standby transaction with their own, leading to their wallet. As a result, the funds went to criminals, but the user’s application showed that the coins were supposedly delivered to the right recipient.
It is clarified that the Breadwallet and Ledger Live applications have already fixed this vulnerability.

- An unknown user made the first transfer of 50 BTC, mined 10 years ago, or rather, on May 24, 2010, after which they again froze motionless at the new address. The owner does not split them into small batches, which, as Goldfoundinshit's telegram-channel pointed out, may indicate the sale of “clean” bitcoins or the sender's desire to check the community’s reaction.
Recall that another 145 addresses created in 2009-2010 also woke up in May. Their managers signed a message accusing Australian entrepreneur Craig Wright of fraud. In the Kleiman v. Wright trial, the latter claimed that all of these addresses belonged to him.

- Economic bestselling author Robert Kiyosaki believes that investment in real estate and gold cannot be the future of finance, as cryptocurrencies are now in the spotlight. “It took me a while to get into the world of cryptocurrencies, but now I buy them,” Kiyosaki said in his radio show. - I think it’s especially important for such old guys like me to understand the world of cryptocurrencies, because now it comes into view. And there are fewer real estate agents and gold supporters like us.” According to Kiyosaki, the price of bitcoin could reach $75,000 within the next three years.

- According to cryptocurrency trader Josh Rager, historical bitcoin volatility is on the verge of falling below $40. Based on the price movement of the coin, it is likely to indicate that the rally is not far off. BTC volatility at this low historically resulted in a significant price change of 30-60% in subsequent weeks. Moreover, it can be both an increase of up to $12,000 and higher, and a collapse of quotations to $6,500. “Fasten your seat belts,” advises Rager.
Another specialist, CoinCorner CEO Danny Scott claims that due to an unprecedented price movement, bitcoin is gradually turning into stablecoin. The average volatility of bitcoin has fallen to 1.57 per cent over the past 30 days, and it has moved closer to the performance of stablecoin over the past 3 months.

- Glassnode analytics company reports that there are more than 13,000 addresses storing bitcoins worth more than $1 million. At current prices, it takes about 108 BTC to become a dollar millionaire. Since this indicator depends on the bitcoin price in dollars, it is quite volatile. The largest number of bitcoin millionaires was recorded at the end of 2017, when the BTC rate reached $20,000.

- Crypto-entrepreneur Alistair Milne decided to respond by action to the statements of skeptics claiming that bitcoin is facing an imminent collapse to the zero mark. Ht placed a bid to buy 18.52 million BTC ($174 billion at the current rate) on the Bitfinex exchange, he is ready to pay just one cent for each coin. “I hereby confirm that bitcoin will never go down to zero,” Milne wrote. “I buy them all at $0.01.” Milne's bid was $185,000. With this money, you can buy about 20 bitcoins now.


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Stan NorFX

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170 1
Forex and Cryptocurrency Forecast for July 20 - 24, 2020


First, a review of last week’s events:

- EUR/USD. Relations between Beijing and Washington continue to heat up, the onslaught on coronavirus goes with great difficulty. 1.3 million people applied for primary unemployment benefits last week in the United States. For more than 17.3 million it was not the first time that they received them, which is 10 times higher than the pre-crisis norm. But at the same time, the risk appetite of investors does not fade away, the stock markets continue to grow. The S&P500 index has been climbing since March 23 and is already approaching February highs. The Nasdaq 100 has broken all records, jumping over the 10,650 mark.
Some analysts attribute this to low expectations of a post-crisis economic recovery. Investors had expected to see a complete disaster, but everything turned out to be not so bad, and 80% of the companies that reported showed very optimistic results, fueling the craving for risky assets.
Amid the growth of the stock market, the US dollar as a safe-haven currency is not so attractive. If in March its USDX index, showing the ratio of the dollar to a basket of six major currencies (EUR, JPY, GBP, CAD, SEK and CHF), was approaching at 103, it has now fallen below 95.
The dollar weakened against the European currency as well. Since Monday the EUR/USD has gone up steadily. However, it fell slightly short of the 1.1500 height predicted by the Bloomberg probability calculator, and stopped at 1.1450 on Wednesday, July 15. A day later, on July 16, following the ECB meeting, a slight rebound followed, but then the dollar retreated again, and the pair ended the five-day period at 1.1435;

- GBP/USD. The absence of any significant drivers last week led to the British currency moving into a side trend, gradually consolidating in the 1.2560 zone. The pair failed to rise above the resistance of 1.2670 and fall below 1.2480, and as a result it placed the final chord almost in the middle of this corridor: at 1.2570;

— USD/JPY. The share of the Japanese currency in the USDX is not so large - only 13.6%, but some analysts consider the behavior of the USD/JPY pair to be a good indicator that determines the risk appetite of the markets. However, it should be noted that during the COVID-19 pandemic, the dollar has sharply strengthened its position as a protective asset, and it has become much more difficult to use this indicator. So last week it gave almost no signals. The pair demonstrated a classic sideways trend of two parabolic waves within 106.65-107.40, completing the trading session in the central part of this channel, at the horizon 107.00

– cryptocurrencies. News of the week: The night of July 16 saw the largest hacking attack in Twitter history. Crypto scammers hacked over 50 accounts, including profiles of Tesla and Space X CEO Elon Musk, Microsoft founder Bill Gates, Amazon CEO Jeff Bezos, musician Kanye West, former U.S. President Barack Obama, current Democratic presidential candidate Joe Biden, Wall Street legend billionaire Warren Buffett, as well as Bloomberg, Apple and Uber, official profiles of Bitcoin, Ripple, Cash App, Coindesk, Coinbase and Binance. There appeared reports of bitcoin giveaways on all of these pages. The scammers acted according to the classic scammer scheme: they asked to send them a certain amount of cryptocurrency, promising to return twice as much.
Although the real account owners and social network employees tried to delete these messages, they immediately appeared again. Even the two-factor authentication used for most of these accounts did not help.
This hacking attack is called by many a coordinated attack on bitcoin and Twitter, whose founder is a well-known supporter of the first cryptocurrency. However, bitcoin hardly noticed this event. The bears failed to break through the $9,000 level, and the BTC/USD pair rose to $9,180 by the evening of July 17.
The main cryptocurrency continues to consolidate after the May halving, the amplitude of fluctuations did not exceed $ 350 last week, which, together with a decrease in trading volume to $15 billion, suggests that most players are not interested in the current levels: they see no reason to open either long or short positions. Bitcoin's Crypto Fear & Greed Index is at 41 for the third week in a row.
There is another interesting version. According to Paolo Ardoino, technical director of the Bitfinex crypto exchange, the reason for the decrease in the bitcoin volatility could be an increase in the number of companies engaged in high-frequency trading (HFT). So, according to him, 80-90% of trading volumes on Bitfinex for the BTC/USD and ETH/USD pairs are generated precisely due to this type of transactions.
Speaking of Ethereum. We have repeatedly written about the increase in investor interest in this altcoin, quotations of which have increased by almost 80% since the beginning of 2020. In addition, ??? shows more than twofold growth in the number of active wallets and is seriously ahead of BTC in this indicator. However, in order to catch up with the leading cryptocurrency, it is necessary that the capitalization of Ethereum grow by more than 6 times, which, of course, is hardly possible in the near future.


As for the forecast for the coming week, summarizing the opinions of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

- EUR/USD. The ECB left the interest rate unchanged at 0.0% on July 16. A day earlier, the Bank of Japan remained in the same positions with a negative rate of -0.1%. Of course, when the pandemic comes to an end, inflation figures and which regulators will start raising their interest rates faster will play a decisive role. In the meantime, factors directly related to COVID-19 continue to play a crucial role on market sentiment.
Recall that a week ago the Bloomberg probability calculator, based on the options market readings, showed that the EUR/USD pair is more likely to rise above 1.1500 than fall below 1.1200. And now this forecast is supported by 80% of experts, pointing to the zone 1.1470-1.1530. Only 20% expect the pair to decline to the area of 1.1200-1.1300.
75% of oscillators and 95% of trend indicators on H4 and D1 are also painted green. The remaining 15% of the oscillators give signals that the pair is overbought. Graphical analysis on H4 expects the pair to grow up to 1.1500 as well, after which, according to its readings, it should return to the 1.1385 zone.
There is such a strategy - to trade “against the crowd”, that is, see where most traders are looking, and do the opposite. The current nearly unanimous “green” sentiment “for some reason” makes us remember it...

- GBP/USD. The vast majority of experts (70%) expect that market interest in protective assets such as the dollar will continue to weaken, and this will help the GBP/USD pair to continue its northward movement, which began on June 30. The main goal is the high of June 10, 1.2810, the resistance is located at levels 1.2670 and 1.2740. Bullish sentiment is supported by 60% of oscillators and trend indicators on D1. As for their readings on the H4 timeframe, there is complete confusion caused by the sideways trend of the past week.
The remaining 30% of analysts support the pair's fall. Support levels: 1.2480, 1.2350 and 1.2250;

- USD/JPY. Except for a single release on June 02-05, the pair has been moving in the lateral corridor 106.00-108.10 for 14 weeks, and, according to experts, is not going to leave its limits yet. Moreover, this channel has narrowed even more in the last week, to just 75 points. In such conditions, opinions of experts were divided equally, 50% by 50%, but indicators on D1 give priority to the bears: 85% of oscillators and 100% of trend indicators are painted red.
They are opposed by 15% of oscillators giving signals about the pair being oversold and graphical analysis on H4, confidently indicating the height of 108.10;

– cryptocurrencies. As usual, first about crypto guru predictions. - Max Keiser, the founder of Heisenberg Capital, told the world about the day when the first cryptocurrency will destroy all other coins, as well as which of these coins is "outright garbage". Bitcoin will rise to $100,000, the billionaire said during his Keiser Report show on the Russia Today channel. He noted that the first cryptocurrency will destroy all other projects this or next year, including the XRP token, which is, in his view, “outright garbage.” Keiser was sharply critical of the projects that received government subsidies from the US government during the crisis. This list includes 75 companies related to the field of blockchain and cryptocurrencies.
A more modest forecast was made by economic bestselling author Robert Kiyosaki, stating that the BTC/USD pair could reach $75,000 within the next three years.
But Weiss Crypto experts said that the cost of bitcoin will reach $70,000 by 2021. This can be indicated by the Stock-to-Flow model that the main cryptocurrency has chosen. It implies measuring the ratio of the value of an asset to its annual growth. Even if the coin quotes are almost unchanged, it remains promising for long-term investments.
According to the experts, if the Stock-to-Flow model is maintained, the value of bitcoin will approach the $50,000 mark by the end of this year. A slight downward correction is possible in January, which happens almost annually. A return to positive dynamics will follow, but it could end with an even stronger drawdown. If traders and investors survive the losses and do not arrange a massive sale of bitcoins, the value of the main coin will be about $70,000 by the middle of next year.
As for forecasts for the next week, the vast majority of analysts (55%) expect the pair to rise to the zone of $9,400-9,700. 10% are in favor of the pair's movement in the channel $9,000-9,400, and 45% think that it could drop to the $8,400-8,700 zone.
And at the end news for skeptics claiming bitcoin faces an imminent collapse to the zero mark. "This will never happen!" – this is what crypto entrepreneur Alistair Milne decided and placed a bid on the Bitfinex exchange to buy 18.52 million BTC ($174 billion at the current exchange rate) at the price of 1 cent for 1 coin. “I hereby confirm that bitcoin will never go down to zero,” Milne wrote. “I buy them all at $0.01.” Milne's application amounted to $185,000 - that's the money for which you can now buy only about 20 bitcoins.


NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

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Stan NorFX

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CryptoNews


- Experts from Fidelity and BitOoda said China currently controls about 50% of the world's mining capacity. Previously, the share of China was even higher and reached about 65%, but now many companies have decided to temporarily suspend their work. There are still companies on the market that have the most energy efficient equipment, which allows them not to have losses even at the lowest cost of bitcoin. As for the United States, this country is gradually losing its market due to various legislative restrictions. The American segment now accounts for only 14% percent. According to expert Max Keizer, the bitcoin hashrate may soon become a factor in a serious confrontation between the United States, on the one hand, and Iran and Venezuela on the other hand, which are gradually taking the American "piece of this pie."

- Head of Grayscale Investments Barry Silbert is convinced that the US government will not be able to ban bitcoin. He announced this during his address to investors. “We have overcome the perceived risk of a Bitcoin ban for the first time. There is enough support from politicians and regulators in Washington for bitcoin to exist,” he said. “In terms of our relationship with Washington, we as an industry are experiencing the best period ever. Two groups - the Blockchain Association and the Coin Center - are bringing the benefits of this technology and asset class to policymakers. The catastrophic legal risk that may have existed earlier is now over,” added Silbert.

- Bill Barhydt, the head of Abra, believes that bitcoin can be called "digital gold", since it not only has a huge potential for development, but already has a lot of advantages over fiat and precious metals. “Cryptocurrencies today are not only a safe haven asset, but also a full-fledged payment instrument. Until a few years ago, they were considered something like an Internet trend that might not have developed. It's hard to believe, but everyone who is involved in the financial industry knows about the existence of coins, - said Barkhydt. - Bitcoin now has a full-fledged ecosystem and its own adherents. Some of its holders even prefer to completely abandon fiat and use only coins due to the possibilities in each individual country."
As a reminder, Abra is the world's first global investment application that allows users to simultaneously invest in hundreds of cryptocurrencies such as BTC, ETH, XRP, LTC, Stellar, Monero and many others.

- Analytical service Whale Alert announced that the number of unspent bitcoins attributed to the creator of the cryptocurrency Satoshi Nakamoto is 1,122,693 BTC. This equals to more than $10 billion at the current exchange rate. The service experts have calculated the exact number of coins mined by the so-called Patoshi miner. This term was coined by researcher Sergio Lerner. He identified a certain pattern in the blocks of one of the large early bitcoin miners who used different software. Whale Alert believes that Satoshi Nakamoto was the miner.

- The famous Canadian astronaut and fan of blockchain technology Chris Hadfield has become the owner of the first bitcoins in his life, symbolically receiving them from a space satellite located 35 thousand kilometers from Earth. The event was televised during the Asia Blockchain Summit 2020 held last week. The BTC transaction worth $100 was made by Pixelmatic CEO and Director of Strategic Development at Blockstream Samson Mow.He used the Blockstream Satellite service to send bitcoins. The signal was sent to users on several continents who relayed the transaction to the bitcoin blockchain via the terrestrial internet. Initially, the entry appeared in the block explorer, and only after that the coins ended up in Chris Hadfield's wallet.

- The payment giant Mastercard opens access to its payment system for cryptocurrency companies. The first issuer of crypto cards will be the British startup Wirex, which has received the status of a licensed participant in the system. Wirex cards will allow you to store and spend both fiat and digital currencies, as well as convert some assets to others.
While making it easier for cryptocurrency companies to access their Mastercard Accelerate program, Mastercard emphasizes that they must follow general principles: provide strong consumer protection, operate in accordance with laws and regulations, adhere to standards in the fight against money laundering, and create a level playing field for all stakeholders such as financial institutions, retailers and mobile operators.

- Cryptocurrency companies are preparing to file a class action lawsuit against Google, Facebook and Twitter over the damage caused by the ban on advertising of digital currencies on these platforms. Recall that in 2018, social networks began to restrict advertising of cryptocurrencies one after another. And now, representatives of bitcoin companies claim that such actions have undermined the legitimate development of their business. The interests of the cryptocurrency community are represented by the Australian law firm JPB Liberty. The damage amount was initially estimated at $600 million. However, it may increase to $300 billion, as, according to lawyers, a large number of people could suffer from the actions of social networks. “The class action is aimed at recovering losses of participants in the crypto industry and investors around the world. The ban on cryptocurrency advertising has collapsed the crypto asset market by hundreds of billions of dollars,” the lawyers say.

- The village of El Zonte in El Salvador has become a bustling area of bitcoin operations, Forbes reports. The cryptocurrency is used to buy food, pay for utilities, repair water pipes and roads. Education grants, bus rides and school meals are also paid in BTC. This has become possible by the initiative of the villager native of California, Michael Peterson, after he received an anonymous donation in bitcoins to help the residents of El Zonte. Most of them could not open a bank account because they did not meet the requirements of financial institutions, and now this problem has been completely resolved.


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Stan NorFX

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Forex and Cryptocurrency Forecast for July 27 - 31, 2020


First, a review of last week’s events:

- EUR/USD. The USA does not bring good news to the markets. Escalating tensions between Beijing and Washington, rising jobless claims, and the ongoing COVID-19 offensive frighten investors, raising doubts about the imminent recovery of the American economy. The Nasdaq and S&P500 indexes turned red at the end of the week. However, their decline is not yet large enough to return investor interest to the dollar - the USD (DXY) index continues to fall and has already reached 94.4, which is even below the low of March 09, 2020.
In his speech on Thursday, July 23, the head of the Treasury Department, Steven Mnuchin drew attention to the weakening of the dollar and noted that the USA intends to protect its stability. However, the same Mnuchin said in the same speech that in addition to the fourth package of economic stimuli worth $ 1 trillion, which is currently being discussed in Congress, a fifth one may also be required. And this, coupled with cheap liquidity from the Fed and the possible emergence of a vaccine against the coronavirus, means that stock markets can turn north again, and the dollar can continue to move further south.
In the future, additional pressure on the US currency can be exerted by the issue of bonds worth €750 billion, which the European Commission plans to carry out. The lion's share of China's gold and foreign exchange reserves is denominated in dollars now. That is just over $3 trillion. And if Beijing, offended by the United States and PresidentTrump, decides to transfer some of them into Eurobonds, this will cause another dollar collapse, which has already yielded 465 points to the euro in July alone. Of these, 215 points were made over the past week.
This development was expected by 80% of analysts, supported by 75% of oscillators and 95% of trend indicators. And this forecast turned out to be correct, except that the EUR/USD pair did not just break through the 1.1500 resistance, but reached the 1.1650 high, where it ended the five-day session;

- GBP/USD. The vast majority of experts (70%) expect that market interest in the dollar will continue to weaken, and this will help the GBP/USD pair to continue its northward movement, which began on June 30. The main target was the June 10 high of 1.2810, and this target was practically reached: the pair rose to the height of 1.2803 on the evening of Friday July 24. This was followed by a slight rebound and a finish at 1.2790;

— USD/JPY. Apart from a single blowout on June 02-05, the pair has not left the 106.00-108.10 side corridor for 15 weeks. Moreover, this channel has narrowed even more in the last week, to just 75 points. In such conditions, the opinions of experts were divided equally: 50% for the growth of the pair, 50% for its fall. But 85% of the oscillators and 100% of the trend indicators on D1 pointed to the south and were right. The first attempt to break through the 106.65 support on Tuesday July 21 ended in failure. But the bears did not stop there, and the pair went for a new breakthrough on Thursday July 23, this time successful. It reached a local bottom at 105.65 by Friday evening, and the final chord of the week sounded in the 106.00 zone four hours later;

– cryptocurrencies. The past week did not bring anything extraordinary to the crypto market. There was both good news and bad news. Let us start with the crime.
Cisco Talos specialists discovered a botnet that infected about 5,000 computers for hidden mining of Monero. And this is good. However, it was not possible to identify the hacker, tentatively from Eastern Europe. And that's bad. And in China, hackers stole 10,000 bitcoin mining devices from one of Bitmain's farms, which is bad for Bitmain and probably good for the hackers.
As for more global news, we note the decision of the world giant Mastercard to open access to its payment system for cryptocurrency companies. The first Issuer of crypto cards will be the British startup Wirex, whose cards will allow you to store and spend both fiat and digital currencies, as well as convert one asset to another.
The names of lobbyists who prevent the US government from completely banning bitcoin have become known. They were named by the head of Grayscale Investments, Barry Silbert. “In terms of our relationship with Washington, we as an industry are experiencing the best period ever. Two groups - the Blockchain Association and the Coin Center - are bringing the benefits of this technology and asset class to policymakers. The catastrophic legal risk that could have existed earlier is now over,” he said addressing his investors.
And although the situation in the US has improved for bitcoin, it is still very far from ideal. According to experts from Fidelity and BitOoda, the US is gradually losing the mining market due to various legal restrictions. The US segment now accounts for only 14%, while China controls about 50% of the world's capacity. And according to expert Max Keyser, the hashrate of bitcoin may become a factor of serious confrontation between the United States, on the one hand, and Iran and Venezuela on the other in the near future, as they gradually take the American “piece of that pie”.
As for the behavior of the main cryptocurrency, the forecast that most experts had given last week also proved 100% correct. Recall that 55% of analysts supported the rise of the BTC/USD pair to the $9,400-9,700 zone. This is exactly what happened - starting from the $9,150 mark, it was striving up all seven days, which is most likely caused by the general weakening of the dollar. On Thursday, July 23, the pair peaked at $9.675, showing an increase of 5.7%, followed by a rebound, and it fell into the $9,500 zone.
It should be noted that bitcoin cannot overcome the resistance of $9,700 for 6 weeks in a row, although the Crypto Fear & Greed Index has grown to the mark of 53 (41 weeks ago). The total capitalization of the crypto market grew by $15 billion (to $ 286 billion). However, only half of this increase comes from BTC, the other 50 percent belongs to altcoins and stablecoins.
The only cryptocurrency with a daily trading volume of over a billion dollars was the stablecoin Tether (USDT), showing a daily turnover of $1.5 billion. The next stablecoin, USD Coin (USDC), shows only $32 million. For comparison, the real daily turnover of BTC, according to the provider Messari, is now about $430 million. Note that the market capitalization of Tether again exceeded $10 billion (for bitcoin, it is now equal to $175 billion).
Among the TOP-10 digital coins, Ethereum still demonstrates the maximum growth. It grew 210% heavier in 4 months and almost reached the pre-crisis highs of February 2020. The ETH/USD pair grew by about 20% just over the last seven days.


As for the forecast for the coming week, summarizing the opinions of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

- EUR/USD. So, the fourth and fifth economic stimulus packages, liquidity from the Fed and the COVID-19 vaccine can seriously support the US stock markets. However, according to experts of Moody's Analytics, if the decision to stimulate the American economy is stuck in Congress for a long time, the risks of a double recession will seriously increase. In addition, until the pandemic recedes, unemployment will continue to be in two-digit numbers. Those factors could push the Nasdaq and S&P500 further down, which would return investor interest in the dollar as a protective asset.
It is clear that 100% of the trend indicators on both H4 and D1 are colored green at the end of the trading session, on July 24. Among the oscillators, there are fewer of them - 75%, while the remaining 25% signal that the EUR/USD pair is overbought. 45% of experts expect at least a downward correction, another 35% vote for the transition to a sideways trend, and 20% for further growth of the pair. Support levels¬ are 1.1500 and 1.1380, resistance levels are 1.1740 and 1.1815.
As for the graphical analysis, it draws a rebound on H4 from the resistance at 1.1650 and a decline to the horizon at 1.1565. On D1, naturally, the oscillation span is greater: first, a fall to 1.1500, and then an increase to 1.1740.
Of the important macroeconomic events next week, they are expecting: July 27 - the publication of data on the US consumer market, July 29 - the Fed's decision on the lending rate and a press conference of its management (according to forecasts, the rate will remain unchanged at 0.25%), the data on the GDP of Germany and the United States will be released on July 30, and the week and month will end on July 31 with the publication of the data on the consumer market and GDP of the Eurozone, as well as on retail sales in Germany. Note that, according to forecasts, the fall in GDP (Q2) in the United States may reach -35%, which is 7 times more than the previous value (-5%);

- GBP/USD. “Both the euro and the pound” - this is what the forecast for the GBP/USD pair looks like this week. Just like in the case of EUR/USD, 45% of experts vote for a downward reversal of the pair, 35% for a sideways trend, and 20% for further growth of the pair. Indicators have a similar picture: 100% of trend indicators and 75% of oscillators look up, and the remaining 25% give signals that the pair is overbought.
It should be borne in mind here that on July 24, the pair almost reached the high of June 10, 1.2810, thus completing a seven-week V-shaped cycle. Therefore, the probability of a downward correction is now quite high. The target for the bears may be a return to the 1.2480-1.2670 zone, the nearest support is at 1.2715. If the pair, having broken through the resistance of 1.2810, nevertheless goes further upward, its targets will be the levels 1.3020, 1.3070 and 1.3200;

- USD/JPY. As mentioned above, this pair has not left the side corridor 106.00-108.10 for 15 weeks. However, on Friday, July 24, it broke through its lower border and dropped to 105.65. True, then it turned around and finished the last five days in the area of 106.00. So, what was it: a false breakthrough, a move to a new echelon or a serious trend sweep? We'll find out soon enough. In the meantime, the forecast for the Japanese yen looks like this: 60% of experts vote for the strengthening of the dollar and the return of the pair within the trading range of 106.00-108.10. The targets are 106.65, 107.50 and, of course, 108.10. The remaining 40% believe that investor interest in the yen, as a protective asset, will still outweigh interest in the dollar, and the pair will go further down. Supports are 105.65 and 105.00.
As for indicators, their readings are largely like those of their “colleagues” on the euro and the pound, of course, in a mirror reflection. Colored red: on H4 - 85% of oscillators and 90% of trend indicators, on D1 - 70% of oscillators and 95% of trend indicators, and 15% of oscillators on H4 and 30% on D1 signal that the pair is oversold;

– cryptocurrencies. Some experts talk a lot about bitcoin being linked to the stock market. In their opinion, the change in stock indexes pulls the change in bitcoin quotes. Though, probably, it is not like this It is just that both stocks and cryptocurrencies are, in the eyes of institutional investors, independent risk assets that are pushed up by fear for the fate of the dollar. At the same time, the crypto market, if compared with the traditional one, is quite small, and any moves by large speculators can cause serious excitement on it, and sometimes a real storm.
In the meantime, expert opinions are as follows. 45% of them believe that the BTC/USD pair will continue to move sideways and will not go beyond the $9,000-9,700 corridor. 45% do not rule out attempts by bitcoin to break into the $9,800-10,000 zone, and only 10% expect it to fall below $9,000. At the same time, 65% are confident that the main cryptocurrency will still be able to gain a foothold in the area of the landmark $10,000 mark within two to three months.


NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

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- Some experts believe that the chances of Ethereum to rise to $400 by the end of the year have increased to 1: 3. The impetus for an increase in the price tag could be the higher activity of traders on the Deribit and OKEx platforms, where the total daily trading volume for ETH exceeded $ 50 million. This cryptocurrency has become in demand in the options market. However, despite a lot of positive aspects, the growth of commissions for transactions in the ethereum network caused worries even for its creator Vitalik Buterin.
According to Santiment experts, the value of ethereum may rise against the background of intensified trading, but if bitcoin continues to grow, traders and investors are highly likely to switch to it.

- One of the veterans of the bitcoin industry, the Abra platform has added the feature to earn on deposits in cryptocurrency and stablecoins. According to the company's website, TrueUSD (TUSD), Tether (USDT) and USD Coin (USDC) are the most profitable - 9% per annum. The annual return of deposits in bitcoin and ethereum is 4.1% and 4.0% respectively. Speaking with The Block, Abra representatives stressed that the rates will be reviewed weekly. The decisions about their changes will depend on the demand from the institutional clients of the platform. The company also noted that the rates offered by them are “significantly better” than in the traditional market.

- The number of bitcoins associated with illegal activity has exceeded 890,000 (about $9.5 billion at the exchange rate at the time of writing). This is evidenced by data from Chainalysis Market Intel. The origin of these funds is as follows: 65% are darknet markets, 23% are stolen coins, 11% are scam project wallets and 1% are other illegal activities.

- The bitcoin rate passed the $11,000 mark for the first time since August 2019 on July 28. And this is just the beginning of an upward movement, said the founder of Heisenberg Capital and billionaire Max Kaiser on his Twitter account. In his opinion, the cryptocurrency will break the previous record value of $ 20,000 and then rise to $28,000. If this forecast comes true, the growth of the BTC price from the current values will be more than 150%. But such a scenario is unlikely, says Sergey Troshin, CEO of the Six-Nines data centre. “Bitcoin is attractive for investment. Yet updating the Kaiser highs around $28,000 is unlikely. As usual, the first hype turns out to be the most powerful, other hypes are already lower. Perhaps when bitcoin reaches the $17,000-$18,000 mark, many will start fixing profits, waiting for a correction,” Troshin suggested. And he added that bitcoin could show stable growth in the next year or two with possible small falls due to negative news. Fundamentally, the cryptocurrency market infrastructure is developing, it is gradually recognized as an asset class in the conservative financial environment. The number of cryptocurrency users also doubles every year, which has a positive impact on the price. But it is important to bear in mind that there is a high level of uncertainty in the markets now, and unforeseen circumstances may arise that affect investor behaviour.

- According to Glassnode specialists, miners began to hold on to most of the extracted bitcoins after after the price had overcome the psychological barrier of $10,000. The GNI index, which reflects the overall health of the bitcoin blockchain, rose to 70 points. This metric includes three components: investor sentiment, network health, and liquidity. The greatest contribution to the growth of the index was made by the improvement of the sentiment sub-index by 34 points due to the increase in BTC purchases.

- The digital market has been fighting for a system of cashless payments with support for cryptocurrencies for a long time. BLINC's new interbank settlement system supports cryptocurrency transactions and smart contracts. This analogue of SWIFT is significantly ahead of the existing settlement system both in terms of efficiency and cost of services, according to the BCB Group. In addition to cryptocurrencies, BLINC supports 24/7 cashless payments and instantly processes domestic and international transactions in fiat currencies - euros, British pounds and Swiss francs.

- A semi-annual report from Bloomberg predicts that the price of bitcoin could rise above $12,000 soon. The document notes that BTC on chain and off chain indicators, including the number of active addresses, indicate an increase in the value of the asset. "The maximum level of bitcoin in 2019 was $12,734. If the number of addresses does not change dramatically, it will strive for this level." Bloomberg believes that the continued growth of Bitcoin Trust from Grayscale and the reduced premiums compared to the bitcoin spot market should also be interpreted as a bullish signal for the market.

- Capriole's digital assets manager Charles Edwards said institutional interest in bitcoin is obvious as the U.S. regulators “have given it the green light” this week. And "if U.S. banks invest only 1% of their assets in bitcoin as an investment, hedge or insurance... its price will more than double, rising above $20,000," Edwards tweeted, adding: "Only 1 member of the Nasdaq (Grayscale) already owns 2% of the total bitcoin revolving offer today. It is not hard to figure out where things are going."

- A Federal Court in the United States has recognized bitcoin as money. This was stated by Beryl Howell, the Chief Judge of the United States District Court for the District of Columbia. She noted that the concept of money “usually means a means of circulation, a method of payment or a means of saving. And bitcoin is those things.” The ruling allowed the court not to drop the charges against Coin Ninja CEO Larry Dean Harmon arrested in February, who is accused of laundering about $311 million through his Helix coin mixing service.

- Nigel Green, CEO and founder of financial advisory firm deVere Group, believes that bitcoin's bullish activity shows it can replace proven safe-haven assets like gold. “Bitcoin, which combines key characteristics for preserving value and maintaining scarcity, could knock gold out of its long-standing position. In the end, the world is becoming more technological,” said Green. In his opinion, the growing political tensions between the US and China is one of the reasons why investors can choose "decentralized, non-sovereign, secure digital currencies" as a defence against turbulence in traditional markets.


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Forex and Cryptocurrency Forecast for August 03 - 07, 2020


First, a review of last week’s events:

- EUR/USD. The U.S. economy is not just in recession. It's flying down at a breakneck speed. The decline in US GDP in the second quarter was the largest ever recorded - minus 32.9%. The reasons for this fall are well known - these are quarantine measures caused by the coronavirus pandemic. The authorities hope they can stop the spread of COVID-19 without turning the economy to zero. Some states have managed to tighten quarantines without restricting economic activity and to achieve a smoothing of the incidence curve.
However, there are hopes and there is a reality - the same minus 32.9%, which plunged investors into a real shock, causing a simultaneous fall in both the US dollar and stock indices. While these two indicators were going in antiphase in spring - the USD index (DXY) grew, when the Nasdaq and the S&P500 fell, and vice versa, now they all fell.
In contrast to the United States, things in Europe turned out to be not so bad, as evidenced by the macroeconomic indicators published last week. Germany's GDP fell by only 10.1% in absolute terms, and in the Eurozone - by 12.1%, the data on GDP and consumer spending of France, as well as retail sales in Germany look rather optimistic, which contributes to the strengthening of the European currency.
The EUR/USD pair is growing for the third month in a row, the strongest strengthening since 1998 and the sharpest upward jump in 10 years. In July alone, the euro strengthened against the dollar by 725 points (5.6%), which has not been observed since September 2010. As a result, the pair reached a local high of 1.1908 on Friday 31 July, followed by a pullback on the wave of the monthly profit fixing, and it ended the session at 1.1775;

- GBP/USD. Following the EUR/USD, the pair continues to strive up. Over the past week, the pound has slipped the dollar by 380 points, and has almost reached 1.3200, stopping at 1.3170. Then, just like in the case of the euro, the July profit was fixed, and the finish was at 1.3085;

— USD/JPY. The Japanese currency has been strengthening its positions for almost the entire week. A particularly noticeable move occurred on Thursday, July 30, following the release of dismal US GDP data. At this point, the pair almost came close to the 104 yen to the dollar mark. However, there was a sharp reversal of the trend on Friday, and it returned almost where it started the five-day period. The final chord was played at 105.90. And thus, the change in the quote for the week was only about 20 points;

– cryptocurrencies. What everyone has been waiting for since mid-May, when bitcoin was halved, finally happened. Bitcoin broke through the level of $10,000 in a powerful snatch and stopped, only reaching the height of $11,365, then moved into a sideways trend with gradually fading fluctuations, choosing as Pivot Point the horizon $11,000.
Experts cite the continuing fall of the dollar and the beginning of the fall in stock markets as the reason for the growth of the main cryptocurrency. The dollar has ceased to play the role of a defensive asset, which it was this spring, in the midst of the panic caused by the COVID-19 pandemic, and investors again turned to such traditional instruments as precious metals, and at the same time to the "digital gold" - bitcoin.
The BTC/USD pair ceased to correlate with stock indices and returned to the correlation with XAU/USD. This has once again shown that big institutional investors see BTC only as a "supplement" to core financial assets. It is difficult to argue with that, because even the total capitalization of the crypto market, which has reached $330 billion, is a drop in the ocean compared to traditional markets.
So, over the past week, the capitalization on the high-rise has grown by $44 billion, or about 15%. The Crypto Fear & Greed Index has jumped to 75 (53 a week ago), matching the coin being heavily overbought and pointing to a possible correction.
In its quest to upward, the main cryptocurrency has pulled the top altcoins, which show even greater growth than the "mother" asset: bitcoin (BTC/USD) 17%, ripple (XRP/USD) 19%, ethereum (ETH/USD) 21%, litecoin (LTC/USD) 30%. In the long term, experts assess Ethereum's chances above all else. With a 75% probability, this coin could rise in price to $400 by the end of the year.
The growth of the crypto market has certainly become the main news of the week, but there are other that may play a significant role in the future. So, a Federal Court in the United States has finally recognized bitcoin as money. This was stated by Chief Justice of the District Court of the District of Columbia Beryl Howell, considering the case of Coin Ninja CEO Larry Dean Harmon, accused of laundering $ 311 million. She noted that the concept of money “usually means a means of circulation, a method of payment or a means of saving. And bitcoin is those things.” Recall that the US has precedent law, and such a judge's decision can have far-reaching consequences.


As for the forecast for the coming week, summarizing the opinions of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

- EUR/USD. Fed officials acknowledged last week that the pace of recovery in the U.S. economy is directly dependent on the epidemiological situation. Naturally, the same goes for Europe. However, despite the fact that in order to make any decisions, European politicians each time need to reach a consensus, it is difficult, but they manage to do it. Quarantine measures taken by the leaders of individual EU countries, in total, turned out to be much more coordinated and effective than in the United States, which has a direct impact on the economic situation. It is evident that America feels noticeably worse than Europe, which is reflected in the EUR/USD pair rate.
75% of trend indicators on H4 and 100% on D1 are painted green, as well as 85% of oscillators on both timeframes. Also, 45% of experts are expecting the continuation of the euro growth, supported by graphical analysis on D1. The target is an important psychological level 1.2000, after breaking which in the medium term the road to 1.2500 will open.
Although, referring to September 2017, we see that after reaching the level of 1.2000, a deep two-month correction to 1.1550 followed, and only after its completion the pair reached the height of 1.2500.
Of course, there was no coronavirus pandemic three years ago and things may now go according to a different scenario. However, according to 55% of analysts, the dollar should not be written off. And as far as the immediate outlook is concerned, they believe the pair could drop to the 1.1650-1.1700 zone, which is confirmed by graphical analysis on H4 and 15% of oscillators that signal it is overbought.
As for the coming week, we should pay attention to the indicators of the ISM Business Activity Index in the US manufacturing and services sector (to be published on August 03 and 04, respectively), as well as to the labour market data (NFP), traditionally published on the first Friday of the month.
It should be noted that in the medium term, the overwhelming majority (80%) of experts expect the US to improve and the dollar to return to 1.1000-1.1300;

- GBP/USD. Unlike EUR/USD, the pair being overbought signals here are given by significantly more oscillators: 15% on H4 and 35% on D1. Graphical analysis on H4 looks south as well. But the trend indicators - 90% on H4 and 100% on D1 - are still pointing north.
Among experts, the majority of votes are given to bears - 60% on W1 and 80% on MN - indicating markets are uncertain about the strength of the British currency. Indeed, despite some lull, the problems associated with Brexit have not gone away.
Some clarity regarding the state and prospects of the UK economy can be given on Thursday, August 06, when the Bank of England will meet, its monetary policy report will be published and the decision on the interest rate will become known. Also, of interest to traders and investors is the subsequent speech of the head of the Bank of England Andrew Bailey.
In the meantime, the following levels can be marked for the GBP/USD pair: support -1.3000, 1.2900, 1.2770 and 1.2670, resistance - 1.3200 and the December 2019 high, 1.3515;

— USD/JPY. 60% of experts supported by graphical analysis on H4 believe that the pair will try to test the 104.00 level once again in the next few days. And it will not succeed and will return first to the area of 106.00 within a month, and then rise even higher - to the zone 106.60-108.00. According to the remaining 40% of analysts, there will be no attempt to re-break south, and the pair will immediately strive to the height of 108.00.
After the forward and reverse movement of the pair last week, there is complete confusion among the indicators on H4. But the D1 is still dominated by red, 80% of oscillators and the same number of trend indicators are painted in it;

– cryptocurrencies. According to Glassnode specialists, after the price overcame the psychological barrier of $10,000, miners began to hold on to most of the bitcoins they mined. This can create a certain deficit in the market and contribute to the growth of quotations.
According to billionaire Max Kaiser, founder of Heisenberg Capital, the main cryptocurrency should break the previous record of $20,000 and rise in price to $28,000. True, there are also those who disagree with this forecast. “Bitcoin is attractive for investment. Nevertheless, an update of highs in the region of $28,000, which Kaiser designated, is unlikely, - retorted the billionaire of the Data Center Six-Nines Sergey Troshin. - As usual, the first hype is the most powerful, the other hypes are already lower. Perhaps when bitcoin reaches the $17,000-$18,000 mark, many will start fixing profits, waiting for a correction,”
An even more modest forecast was given by analysts at Bloomberg. They believe that if the number of active user addresses does not change, the bitcoin's target will be the 2019 high, $12,734.
As for the average forecast of analysts, 60% of them expect a correction in the near future and a decline of the pair to the resistance of $10,000. The remaining 40% agree with the Bloomberg forecast. At the same time, the most cautious experts do not tire of reminding about the volatility of crypto trends. Thus, the launch of futures in December 2017. became the starting point of crypto winter, and after impressive growth in the first month and a half of 2020 bitcoin collapsed to $3,830, jeopardizing the existence of all of the digital currency market.
But there is also good news for those who fear a similar apocalypse. One of the veterans of the bitcoin industry, the Abra platform has added the feature to earn on deposits in cryptocurrency and stablecoins. According to the company's website, TrueUSD (TUSD), Tether (USDT) and USD Coin (USDC) are the most profitable - 9% per annum. The annual return of deposits in bitcoin and ethereum is 4.1% and 4.0% respectively. The rates offered by Abra are indeed higher than bank interest on deposits in dollars or euros, which is good news. But the question arises about the reliability of these deposits - in a conversation with The Block, Abra representatives said that rates will be revised weekly. And it will be very sad if they go down to zero or go into the negative zone altogether.


NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

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Stan NorFX

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170 1
CryptoNews


- Bloomberg experts confirmed the forecast for the value of bitcoin at $20,000 by the end of this year. Earlier, the head of the analytical department Mike McGlone said that the rally of the main cryptocurrency should start very soon. This is evidenced not only by the mood of market participants, but also by many technical factors, including the exit from the narrow spectrum between 9 and 10 thousand dollars.
“After a slump of 60 percent in 2014, the value of the coin increased several dozen times over the following three years. The decline in 2018 was about 75 percent. Bitcoin had previously approached $20,000 and even took the corresponding barrier, but quickly slipped. In the current reality, the coin has every chance to gain a foothold at peak values," Bloomberg experts say.
The value of the cryptocurrency may also be affected by macroeconomic factors, including the policy of low rates of the US Federal Reserve. Many large countries are trying to get out of the crisis as soon as possible, and therefore allow the drawdown of fiat. Against the background of such fluctuations, bitcoin has a chance to come out on top in investor preferences.

- Analysts of the Glassnode platform found that investors have been buying 50 thousand bitcoins almost every month starting from this March. This process is driven by the entry of new small investors into the industry. As a rule, the purchase amount is less than 1 BTC, but in some cases, investors prefer to make larger investments. The biggest investment in the last three months was the acquisition of 12 thousand bitcoins in one transaction.
The impetus for investments in the main coin was its drawdown at the beginning of the year. However, after overcoming the barrier of $11,000, the activity of new investors has decreased slightly, but still retains positive values compared to the results of the end of 2019.

- The growth rate of ethereum trading volumes in spot and futures markets is increasing faster than the same rate of bitcoin, reports The Block. The ratio of trading volumes between ETH and BTC on spot exchanges has grown from 16% to 50% since September 2019. Figures are based on cryptocurrency exchanges Binance, Coinbase, Bitfinex, Kraken and Bitstamp. In the futures market, this indicator increased from 8% to 29% over the same period. According to CoinGecko, daily trading volumes of transactions in ethereum exceed currently $15.1 billion, behind the same indicator of bitcoin by only 25%. BTC capitalization is 5.25 times higher than ETH.

- Ethereum, like any other altcoin, is highly dependent on bitcoin behaviour. The correlation between BTC and ETH has remained at a record high for nearly three years. However, ethereum's dependence on the dynamics of the largest cryptocurrency has sharply weakened in the past month, as analysts of the Platform Skew note. They provided data which showed that the short-term correlation between the price of these two coins had shrunk to the two-and-a-half-year minimum level. A similar trend was last seen in 2017 before the famous race of the BTC and the rest of the digital currencies. According to the researchers, such a weakening of the correlation can signal the imminent beginning of a new "bullish" phase, which will result in a record rise in the price of not only bitcoin, but also ethereum.

- Cameron Winklevoss, one of the twin brothers, Olympic rowing champions and co-founder of the Gemini cryptocurrency exchange, said that not having bitcoins today is a worse investment mistake than not investing in tech companies in the early 2000s. On January 1, 2000, Amazon shares were worth $76 - now the stock quotes are at $3,138. The growth exceeded 4000% over 20 years.
Winklevoss is not the first to compare bitcoin to current tech giants Apple, Google, Microsoft or Amazon, whose capitalization has increased rapidly with the development of the internet. Last autumn, Morgan Creek Capital Management CEO Mark Yusko named cryptocurrency as the next revolutionary technology. In his opinion, bitcoin represents a more attractive investment opportunity than Amazon, whose shares he encouraged to sell.

- Famous bitcoin enthusiast and TV presenter Max Kaiser expects a rapid rise in the price of the first cryptocurrency to $28,000. According to him, bitcoin will not have noticeable levels of resistance before this mark. The December 2017 high in the region of $20,000 will not become it either. "Then a short pullback, and an assault of $100,000 with renewed energy," Kaiser continued, though he did not name a time frame for it. But it was identified by the co-founder of Morgan Creek Digital Anthony Pompliano, who said that the quotes of the first cryptocurrency will reach $100,000 by December 2020. Another popular cryptanalyst, Plan B, indicated a longer term. Based on the Stock-to-Flow (S2F) model, he calculated that bitcoin would rise to the specified mark only by the end of the next year, 2021.

- 17-year-old Graham Clark, who was detained this week on charges of a Twitter attack, turned out to be the owner of $3,000,000 in bitcoin, according to the Tampa Bay Times. The teenager is accused of organizing attacks on Twitter to gain access to the accounts of celebrities, including Elon Musk, Barack Obama and Joe Biden, and organizing a fraudulent distribution of bitcoins on their behalf.
The prosecution insists all his cryptocurrency assets were obtained illegally. However, Clark's lawyer explained that the young man was already involved in a criminal investigation in 2019. And then law enforcement officers seized 15 thousand dollars in cash and 400 bitcoins from him. Clark was later returned cash and 300 BTC, which, according to the lawyer, confirms that the authorities have no questions about this money.

- A new study by Cornerstone Advisors suggests that 15% of American adults already own bitcoins or other altcoins, with half of them becoming crypto investors in the past six months. On average, new investors who have invested over $67 billion in the crypto market in total spent about $4,000 each. For comparison, a year ago these figures were 1.65 and 1.75 times higher - $111 billion and $7,000, respectively.
In terms of socio demographics, these are high-income people (about $130,000 a year) with college degrees. As noted in the survey, almost 100% of investors are men. As for age categories, 27% of millennials own various cryptocurrencies, 21% of Generation X, 7% of Generation Z and 3% of so-called baby boomers.

- According to Cryptowiki, CWT, a world leader in business travel and conferences, paid a ransom of 414 BTC (about $ 4.5 million) to hackers who encrypted the company's files and stole sensitive data from it. To access the servers and computers of the CWT, the attackers used the ransomware Ragnar Locker, which was used to infect more than 30,000 company computers.
Initially, the hackers asked for a ransom of $10 million, but after negotiations the amount was reduced to $4.5 million, which were transferred to the ransomware wallet in two transactions.
After receiving the ransom, ransomers even made public some recommendations to protect corporate networks from encryption viruses. They suggested changing users' passwords once a month, setting up the computer policy so that passwords are not stored in RAM, limiting the list of programs allowed to run, and installing intrusion detection system. It's not worth relying on standard antivirus software here. Also, an effective method of countering hackers, according to hackers themselves, is round-the-clock duty of skilled system administrators.


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Stan NorFX

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Forex and Cryptocurrency Forecast for August 10 - 14, 2020


First, a review of last week’s events:

- EUR/USD. The dollar has been falling for six straight weeks. The USD index (DXY) fell to the minimum values since May 2018. In total, it has lost about 10% in the last five months. And now, it seems that the fall has stopped: the EUR/USD pair is moving along the side corridor within 1.1700-1.1910 for the second week in a row. Attempts to break through its upper border on August 05-06 ended in failure, and the pair completed the five-day period at 1.1785 on Friday August 07.
The U.S. President, who attacked China's social networks, added to the strength of the dollar. The bears await a full-scale resumption of trade wars between Washington and Beijing like manna from heaven, and hope that Donald Trump will not limit himself to this one-time attack.
Congress, which has not yet been able to reach an agreement on new stimulus measures for the U.S. economy, helped the dollar to strengthen a little. As a result, the growth of stock indices stalled, and investors' views turned to the American currency again.
U.S. macroeconomic indicators released last week, also forced to talk about the fading of positive dynamics. The Private Sector Employment Report (ADP) looked rather weak, and activity indices based on credit card transactions and mobile traffic were at levels 10-30% lower than before the COVID-19 crisis.
The NFP indicator seems to have turned green, but, in fact, the figure of 1.763 million is not newly created, but old jobs, to which people who had previously been sent on forced long-term vacations returned. Recall that in May and June this figure was 2.7 million and 4.8 million, respectively. So the July result was the worst for the period.

- GBP/USD. Since March, during the entire period of the crisis, the GBP/USD pair has been showing a close correlation with EUR/USD, practically repeating all its fluctuations. The British pound approached its March high on Thursday, August 06, reaching the height of 1.3185. Some analysts believe that this happened following the meeting of the Bank of England. However, one can disagree with this. Rather, the blame is the general drawdown of the dollar, the DXY index of which dropped to a low these days.
The meeting of the British regulator, as expected, offered no surprises. The Bank of England decided to leave the key interest rate unchanged at 0.1%, and the target volume of the QE program at ?745 billion. At the same time, the Bank's management believes that the UK economy will recover from the effects of the pandemic until the end of 2021, and the pace of its recovery again will depend on the pandemic itself. In general, there is no certainty. At the same time, the regulator believes that there is no urgent need to adjust its monetary policy, and even more so, it is not worth discussing the introduction of negative interest rates. Such a move could create difficulties for banks, which are already suffering serious losses associated with the COVID-19 pandemic.
As a result, the British currency, just like the European one, moved sideways against the dollar, holding in a trading range 1.2980-1.3185. The final chord was set at 1.3055;

— USD/JPY. The Bank of Japan is a member of a consortium of several other central banks, including the UK, Europe and Canada, that have teamed up to explore the prospects and challenges of a digital currency launch. Now Japan is actively working to launch the digital yen, for which a special supervisory committee has even been created. Perhaps this event will attract the attention of investors, but so far the fiat yen has again dropped out of sight of large financial "sharks": over the past five days, the range of its fluctuations did not exceed 115 points, and the Japanese currency ended the trading session almost in the same place where it started a week ago - at around 105.90;

– cryptocurrencies. The opinion that cryptocurrencies can make everyone, even a child, a millionaire, was confirmed last week. However, this does not always happen in an honest way. So, a few days ago, the police detained 17-year-old Graham Clark, who is accused of organizing hacker attacks on celebrity Twitter accounts. Among others, his targets were Elon Musk, Barack Obama and Joe Biden, on whose behalf he organized bitcoin fraudulent actions. So, this teenager turned out to be the owner of 300 BTC, which at the current exchange rate is about $3.5 million!
As for adult residents of the United States, Cornerstone Advisors have recently published the results of a study according to which 15% of Americans already own bitcoins or other altcoins, and half of them have become crypto investors in the last six months. On average, new investors, who have invested more than $67 billion in the crypto market, spent about $4,000 each. Most of them are high-income people (about $130,000 a year) with college degrees. And interestingly, almost 100% of investors are men.
And now for the news that scared many members of the crypto community. After an impressive rise to a height of $12,080, on Sunday, August 02, the price of bitcoin unexpectedly, within just a few minutes, collapsed to $10,500, causing panic among investors. However, to their delight, there was no further decline, and the quotes quickly returned to the $11,000 mark. Rupert Douglas, head of institutional sales at Koine, said the move was driven by the liquidation of long positions at high prices. Thus, on this day, positions worth $147 million were liquidated on the BitMEX cryptocurrency exchange. All in all, during this "gray Sunday" cryptocurrency market capitalization lost about $30 billion, falling from $361 to 331 billion.
The level of $11,000 became a new powerful support for BTC/USD, pushing back from which, the pair was able to rise again to the zone of $11,500-11,850 by Friday 07 August. The total cryptocurrency market capitalization has also almost recovered, reaching $357 billion. The Crypto Fear & Greed Index is at 77, which is about the same as seven days ago.
The ETH/USD pair is back in the $400 zone. It should be noted that the growth rate of ethereum trading volumes in spot and futures markets is increasing faster than the same rate of bitcoin. If the trade volume ratio between ETH and BTC was only 16% in September 2019, so far this figure has risen to 50%. In the futures market, it climbed from 8% to 29% over the same period. Figures are based on cryptocurrency exchanges Binance, Coinbase, Bitfinex, Kraken and Bitstamp. According to CoinGecko, daily trading volumes of transactions in ethereum currently exceed $15.1 billion, behind the same indicator of bitcoin by only 25%. However, the capitalization of ETH is still significantly - 5.25 times - lower than that of BTC.


As for the forecast for the coming week, summarizing the opinions of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

- EUR/USD. The Fed's balance sheet has not been growing for several months, and the Treasury has accumulated more than $1.7 trillion in its vaults. As a result, we are seeing a slowdown in the recovery of the US economy, which is likely to still force the government and the Fed to take new measures to stimulate it. Otherwise, instead of a V-shaped rebound, a W-shaped recession will become reality, and Donald Trump will finally lose the already weak chances of re-election.
50% of the experts believe that the next stage of pumping the economy with liquidity and other measures of fiscal stimulus will not take long. Therefore, the dollar will continue its fall, and the EUR/USD pair will continue to grow. The nearest targets are 1.1840, 1.1900 and 1.2000.
20% of analysts expect the continuation of the lateral trend of the pair within 1.1700-1.1910, and the remaining 30% believe that within the next few weeks it will return to the area of 1.1450.
Apart from half of the experts, graphical analysis is looking to the north, as well as 80% of oscillators and 85% of trend indicators on D1. The remaining 20% of the oscillators give signals that the pair is overbought.
We are waiting for data on the US consumer market in the coming week, which will be released on Wednesday August 12 and Friday August 14. And if the consumer price index is forecast to stay flat, retail sales could show a decline in July from 7.5% to 1.7%. Also, on Friday, preliminary data on Eurozone GDP for the second quarter will be known;

- GBP/USD. Apart from the weak dollar, the Bank of England's refusal to cut interest rates and increase the asset purchase program plays for the pound. On Wednesday August 12, UK GDP data for QII will be released, which is forecast to have contracted by 20.2%. By comparison, the Eurozone economy fell by 12% over the same period and the US one by 9.5%. And investors assumed that such a difficult situation could force the regulator to take additional stimulus measures. However, the firm position of the Bank's management should allay their fears and help the British currency not only stay afloat, but also push it further up against the dollar.
This is exactly what 60% of experts believe at the moment, supported by 90% of oscillators and trend indicators on D1. Resistance levels are 1.3185, 1.3200 and 1.3285. 40% of analysts have taken the opposite position. Support levels are 1.2980, 1.2900, 1.2765 and 1.2670. As for the graphical analysis, it draws a continuation of the lateral movement of the pair in the range 1.2980-1.3185 on H4, followed by a decrease to 1.2900;

- USD / JPY. 50% of experts, supported by graphical analysis on H4, believe that in the coming days the pair will once again try to test the level of 106.40, and, if successful, rise another 100 points higher. Intermediate resistance is at 106.65. 20% of analysts are in favor of sideways movement, and the remaining 30% are waiting for the pair to fall first to support at 105.30, and then to 104.75. The ultimate target is the July 31 low at 104.18.
Now a few words about indicators. While their readings for EUR/USD and GBP/USD on H4 showed complete chaos and relative order on D1, the opposite is true for the Japanese yen. It is almost impossible to bring indicator signals on D1 to any denominator. But on H4 65% of oscillators and 80% of trend indicators are painted green. However, the number of oscillators signaling the pair is overbought is also quite large: 25%. And 10% of them have taken a neutral position, painted grey;

– cryptocurrencies. Bloomberg experts confirmed the forecast for the value of bitcoin at $20,000 by the end of this year. “After a slump of 60 percent in 2014, the value of the coin increased several dozen times over the following three years. The decline in 2018 was about 75 percent. Bitcoin had previously approached $20,000 and even took the corresponding barrier, but quickly slipped. In the current reality, the coin has every chance to gain a foothold at peak values," Bloomberg experts say.
The value of the cryptocurrency may also be affected by macroeconomic factors, including the policy of low rates of the US Federal Reserve. Many large countries are trying to get out of the crisis as soon as possible, and therefore allow the drawdown of fiat. Against the background of such fluctuations, bitcoin has a chance to come out on top in investor preferences.
Well-known analyst TV presenter Max Kaiser, who expects a rapid rise in BTC/USD to $28,000, also confirmed his forecast. According to him, bitcoin will not have noticeable levels of resistance before this mark. The December 2017 high in the region of $20,000 will not become it either. "Then a short pullback, and an assault of $100,000 with renewed energy," Kaiser continued his forecast, though he did not name a time frame for it.
But it was identified by the co-founder of Morgan Creek Digital Anthony Pompliano, who said that the quotes of the first cryptocurrency will reach $100,000 by December 2020. Another popular cryptanalyst, Plan B, indicated a longer term. Based on the Stock-to-Flow (S2F) model, he calculated that bitcoin would rise to the specified mark only by the end of the next year, 2021.
Experts of the Zubr cryptocurrency platform decided to somewhat cool the ardor of enthusiasts. They conducted a study of the volatility of BTC and came to the conclusion that, despite the increased volatility compared to traditional assets, the main cryptocurrency maintains "market equilibrium" most of the time. Analysts at Zubr found that after sharp changes in bitcoin price, in most cases, there is an almost symmetrical percentage move in reverse. This means that soon, after rising above $12,000, the price of bitcoin may return to the $10,000 mark.


NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

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Stan NorFX

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170 1
Forex and Cryptocurrency Forecast for August 17 - 21, 2020


First, a review of last week’s events:

- EUR/USD. Citing data from the Labor Department, optimists say that the U.S. economic recovery is gaining momentum. The pandemic-stricken labour market is beginning to recover and may have already overcome the worst stage of the crisis. Unemployment in July fell to 10.2% (against the April peak of 15%). 1.8 million people returned to work in July, a trend that continues for the third month in a row.
But, on the other hand, the revival of 9 million jobs in three months is only 43% of the 21 million lost in March-April. And 15.5 million Americans are still receiving unemployment benefits, which is more than twice higher than the maximum of the previous global financial crisis (6.6 million).
The market is waiting for the next stage of QE - pumping the economy with liquidity and other measures of fiscal stimulus, but Democrats and Republicans can not find common ground in Congress. President Trump does not want to inflate the next aid package for Americans too much, believing it will make them dependents sitting around the government's neck. But he is willing to make concessions to Democrats in exchange for cancelling postal voting in the upcoming US presidential election.
Negotiations go on, and in such an unobvious situation, the markets have taken a wait and see attitude. Although the S&P500 index continues to grow, it does not do it so vigorously. The yield on the 30-year US Treasury bonds seemed to have grown after a weak auction, but then fell along with a fall in risk sentiment in Europe associated with a worsening epidemiological situation and poor employment data. The disappointment of the latest macroeconomic data from China does not contribute to the growth of risk sentiment.
In general, uncertainty reigns across the board. As a result, both bulls and bears decided not to resort to active action, spending the last month of summer anywhere on the beach. The EUR/USD pair could not go beyond the 1.1700-1.1910 side corridor in three weeks, moreover, the fluctuation boundaries became even narrower, 1.1710-1.1865, the maximum volatility did not exceed 155 points, and the final chord of this quiet week sounded at 1.1840;

- GBP/USD. The forecast, which was announced seven days ago, turned out to be almost accurate: the UK GDP in the II quarter decreased by 20.5%. (For comparison, the Eurozone economy fell by 12.1% over the same period). However, this did not affect the quotes of the pound. As already mentioned, the GBP/USD pair has recently stopped playing independently and obediently follows the EUR/USD in the wake. So, if it moved east within 1.2980-1.3185 two weeks ago, now its trading range has narrowed to 1.3000-1.3140, the pair finished at 1.3085;

— USD/JPY. Recall that last week, most experts, supported by graphical analysis on H4, expected that the pair would try to test the 106.40 level again, and if successful, it would not stop there and go further up. This is exactly what happened: the pair went up against the background of growth in the yield of 30-year US Treasury securities, and, breaking through the resistance of 106.40, reached the height of 107.00. However, the dollar's growth soon stopped, and the pair rolled back downward, completing the five-day period in the zone of the strong mid-term support/resistance level of 106.60;

– cryptocurrencies. Bitcoin cannot overcome the $12,000 bar for the second week in a row. Another attempt was made, as is often the case, on the night from Sunday to Monday and ended in failure. After that, which again happens quite often, there was a powerful rebound downward, as a result of which the BTC/USD pair practically reached the $ 11,000 level on Wednesday, August 12. We have already written that this horizon has become a powerful new support for bitcoin, which is as difficult for the main cryptocurrency to overcome as the resistance of $12,000.
Bitcoin's fall came amid rising US government bond yields at the same time as a fall of about 10 per cent in the value of gold. At the same time, the overall background for BTC remains fairly favorable. The total cryptocurrency market capitalization grew by $13 billion in seven days, close to $370 billion. The Grayscale fund alone raised $1 billion in 10 days, which is more than in the entire II quarter of 2020. MicroStrategy Incorporated, which is one of the pillars of business intelligence, has declared Bitcoin as its main reserve asset and bought 21,454 BTC for a total amount of $250 million. Commenting on this move, CEO Michael Saylor stated that “Bitcoin, in their view, is a reliable means of saving and an attractive investment asset with long-term growth potential beyond holding cash."
By the evening of Friday August 14, Bitcoin had regained its position and returned to where it had already been at the end of last week - to the $11,750 zone, showing zero gain. But ethereum, the prospects of which we have repeatedly paid attention to, has once again pleased its investors, showing a gain of 13% and gaining a foothold above the level of $400. By the way, the above-mentioned Grayscale fund also showed an active interest in this top altcoin, having filed an application with the SEC (US Securities and Exchange Commission) for registering an Ethereum trust.


As for the forecast for the coming week, summarizing the opinions of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

- EUR/USD. Only a clear breakdown of the 1.1700-1.1910 channel in one direction or another can give a clear idea of the dominant trend. In the meantime, amid dying activity, trend indicators continue to look north - those are 100% on H4 and 85% on D1. The picture is slightly different among oscillators. And although 75% of them on H4 and 70% on D1 are still green, the rest are already signaling that the pair is overbought, which is a rather strong signal for a trend reversal or a large-scale downward correction.
Graphical analysis on H4 draws a continuation of the sideways movement within 1.1700-1.1910. But according to the forecast on D1, the pair, having once again pushed off the support at 1.1700, may go up - first to the resistance at 1.1960, and then to the height of 1.2100.
30% of experts also expect further weakening of the dollar and growth of the pair. 25% of analysts agreed with the forecast for graphical analysis on H4. The remaining 45% are waiting for the pair to return first to the support at 1.1450, and then to decline to the 1.1240 zone. This will happen, however, not immediately, but within a few weeks. Moreover, in the medium term, this scenario is already supported by about 60% of analysts;

- GBP/USD. “Both the euro and the pound” - this is what the forecast for the GBP/USD pair looks like this week. Well, if not the same, it looks similar. As in the case of EUR/USD, 45% of experts vote for the pair to turn down in the coming weeks, and 60% in the medium term. 20% vote for the side trend, and 35% for further growth of the pair.
As for the trend indicators, 90% on H4 and 95% on D1 are painted green. Among the oscillators on H4, greens are only 60% and 40% have taken a neutral-grey position. On D1, 60% are also colored green, 35% are neutral grey and 5% have already changed their color to red.
Support levels are 1.3045, 1.2980, 1.2900, 1.2765 and 1.2670, resistance - 1.3125, 1.3185, 1.3200 and 1.3285;

- USD/JPY. On Monday, August 17, there will be data on Japan's GDP for the II quarter, which, according to forecasts, decreased by only 7.6%, which is one of the best indicators among developed countries and once again proves that not only the Japanese yen, but the entire country as a whole is an excellent refuge from economic and financial turmoil. But so far 100% of experts predict the strengthening of the dollar and the growth of the pair in the coming days first to 107.55, and then to 108.10. It should be noted that the 106.00-108.10 zone is the range in which the pair has been trading 75% of the time over the past 20 weeks. And apparently that's why experts believe that the pair will definitely linger for a while in this interval. However, 15% of oscillators on D1 are already giving signals that the pair is overbought, and this fact must be taken into account when opening positions.
It is also necessary to take into account that the forecast of analysts for the end of August-beginning of September changes sharply, and 55% of them are waiting for a trend reversal and a new fall in the pair. The targets are 105.30 and 104.20.

– cryptocurrencies. As you know, there are at least two ways out of any situation. This is the case of Bitcoin — one way up, the other down.
According to the well-known analyst and TV presenter Max Kaiser, the growth of the price of the main cryptocurrency is positively affected by the withdrawal of capital from Asia against the background of increasing geopolitical risks. And the worse the relationship between the United States and China will be, the stronger will be the desire of Chinese citizens to move their capital abroad. And it is easiest to do it with cryptocurrency.
There is another fundamental factor playing on the side of bitcoin - this is the $10 trillion poured into the global economy in the form of a quantitative easing (QE) program. Recall that in the second quarter, the decline in US GDP turned out to be the largest in the entire history of observations - minus 32.9%, which suggests that the period of ultra soft monetary policy is likely to continue at least until the end of 2020. And some of the funds received within the framework of QE will be on the crypto market. Which, according to a number of experts, makes the growth of the BTC/USD pair inevitable. For example, Wall Street veteran Raoul Pal believes bitcoin could hit $100,000 over the next two years. And here, an important leading indicator may be the termination of the correlation of bitcoin with such stock indices as the Nasdaq and the S&P500.
But there is an opposite scenario as well. To understand which one, just look at the BTC/USD chart from a year ago. In August 2019, bitcoin's price also broke the $11,000 mark and even got to $12,300. But after several attempts to break higher, the quotes first fell to $10,000, and then flew down altogether, reaching the bottom in March around $3,800. There may be no such disaster this time, but the pair's correction to the $10,000 horizon is real enough. Moreover, the Crypto Fear & Greed Index has been at the level of 77-78 points for three weeks, which, according to its developers, suggests that the market is raged by strong overbought sentiment and needs to be corrected.
Interestingly, when giving a weekly forecast, most experts (55%) are inclined to believe that the BTC/USD pair will still break through the $12,000 resistance and rise to the $12,500-13,000 zone. However, when switching to the monthly scenario, 60% of analysts expect bitcoin to fall to $9,500-10,000 and offer to open long positions there.


NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

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Stan NorFX

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CryptoNews


- The head of the investment company Morgan Creek Anthony Pompliano believes that bitcoin in a few years will overtake the capitalization of gold. According to him, the main cryptocurrency is increasingly in demand among large investors. It is no longer perceived as a supporting asset, making it one of the most versatile investment tools that even government regulators will start working with. When the world has the possibility of “white” investing in bitcoin, its popularity will begin to increase at a frantic rate.
“I think bitcoin will surpass gold in capitalization by 2029. Then most of the financial institutions will stop being afraid of cryptocurrency and start investing large amounts in it. Until that time, digital assets will continue to be less in demand than fiat. The dollar and other currencies this year have shown weakness in the face of geopolitical fluctuations and even pandemics. Bitcoin has not only resisted, but also increased its potential”, Pompliano said.

- Larry Cermak, an analyst at The Block cryptocurrency publication, believes that if the trend continues, Ethereum can become the most sought-after asset in the corporate environment. “The commission revenues of Monero, Bitcoin Cash and BSV miners remain negligible. I think that there will be two big players in this game soon, bitcoin and ethereum. ETH continues to break records, and BTC still looks very weak in terms of the use of its network among companies,” Cermak said. In his opinion, the difference in their indicators will become so obvious soon that the altcoin will be officially recognized as the leader.
Emin Gun Sirer, a renowned researcher specializing in computer networks and P2P systems, also noted the upward trend in activity on the ethereum network. According to him, a typical mistake of investors in bitcoin is that they believe in its popularity this year, even though the coin has actually become just a means of saving assets.

- Seven out of ten cryptocurrency investors will keep their bitcoins even if its price drops to zero. This is evidenced by the results of a survey conducted by a well-known analyst under the nickname PlanB. The survey involved 22,635 Twitter users. When asked “At what price will you get rid of bitcoin if it does not rise sharply in the next few years?” 5.8% of respondents named the price below $1000, about the same amount - the range of $1000- $3000. 16.2% of those surveyed would have sold the coins at around $6,000. The remaining 72% of the survey participants said that they would continue to hold bitcoin even if its price approached zero.
Almost as many fanatical “hodlers” (57.5%) turned out in a July survey by critic of the first cryptocurrency, president of brokerage Euro Pacific Capital Inc. Peter Schiff, attended by 28,000 people.

- Legendary investor Warren Buffett will eventually see bitcoin in the investment portfolio of his holding company Berkshire Hathaway. Morgan Creek Digital venture capital firm co-founder Jason Williams is convinced of this. Moreover, in his opinion, Berkshire Hathaway can buy BTC even without the knowledge of its founder. 'These are young managers and analysts who are pushing gold trading and BTC trading. He won't even know when it happens," Williams explained. The reason for this forecast was the report of the management company of the "Oracle of Omaha" to the US Securities and Exchange Commission (SEC). According to this document, Berkshire Hathaway has reduced its positions in shares of the largest US banks - JPMorgan Chase & Co, Wells Fargo & Co, Goldman Sachs, Bank of New York Mellon, PNC Financial Services Group and US Bancorp, and has acquired almost 21 million shares of the gold mining company Barrick Gold for $562 million Now it's up to bitcoin.

- The SpaceChain project has announced the successful implementation of a multi-signature bitcoin transaction from space. The researchers sent 0.01 BTC to two addresses, for which they used specialized equipment located on the international space station. Recall that a multi-signature transaction, unlike a conventional transaction, requires multiple signatures for authorization, which has additional security benefits. “The implementation of the multi-signature transaction in space reflects our continued efforts to create an open network of satellites on the blockchain with enhanced security and unchangeability characteristics », 'reported SpaceChain co-founder and CTO Jeff Garzik.
The project is supported by the European Space Agency and intends to create products for digital banks and fintech companies in the future.

- Bitcoin price will reach $100,000 next summer, to be exact, on August 16, 2021. This is evidenced by the popular Stock-to-Flow (S2F) model used in the gold market. The forecast was published by an analyst under the moniker Bit Harrington. He added that the value seems too high to him for such a period but noted that Bitcoin has always gone against bearish sentiment.
Analyst and entrepreneur Mark Van Der Chase explained why this forecast could well come true. “A lot of people think it's impossible,” he wrote, “but I've seen 1,000% growth in less than a year at least twice in BTC history (in 2013 and 2017). S2F holds up pretty well after the halving. If the fear of lost profits resumes, anything is possible. "
On the same day, analyst Plan B, who was the first to apply S2F to Bitcoin, presented a chart confirming that recent BTC price movements are consistent with this pattern. According to his forecast, bitcoin could reach the level of $14,000 in the next week or two, for the first time since 2017.

- Bitcoin has overtaken the popularity of shares of leading companies in the United States, second only to Tesla. Boeing took the third place in views. This is evidenced by data from the analytical portal Blockchaincenter. Since the start of the year, Tesla shares have risen more than 283%, while bitcoin has added 60%. Apple, which rose 53%, failed to take the lead in any state. TradingView notes that the interest of traders and investors in this company is very low at the moment.

- Bloomberg reports on improving the fundamentals of the cryptocurrency market. The Blomberg Galaxy composite crypto index rose to its highest level since June 2019. This is a positive signal, according to analysts of the agency. Bloomberg experts linked the rise in the value of BTC and other cryptocurrencies with the improvement in the situation in the American stock market. The S&P500 is heading to new highs as investor interest in risky assets is growing again.

- The head of Galaxy Digital holding Mike Novogratz has once again stated that the value of bitcoin should increase to at least 20 thousand dollars by the end of this year. In an interview with CNBC, the entrepreneur spoke about his opinion on the future of the cryptocurrency industry against the backdrop of the halving experienced by the main coin and the economic situation in the world.
“Bitcoin is becoming a more sought-after retail tool. The interest of big investors in it is not fading either. This is stated by the increasing correlation of the main coin and precious metals. Bitcoin was heavily reliant on US stock markets in March, but now the connection between industries is gradually declining. The dollar exchange rate is almost irrelevant as well. The main reason for the surge in interest in cryptocurrency is the emission of large amounts of cash. In fact, fiat is just depreciating at a very fast rate. Because of this, the Bitcoin rally should start as soon as possible. I do not exclude that the historical maximum will once again be taken before the end of the year," Novogratz noted.


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Stan NorFX

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Forex and Cryptocurrency Forecast for August 24 - 28, 2020


First, a review of last week’s events:

- EUR/USD. We noted in the previous forecast that only a clear breakdown of the channel 1.1700-1.1910 in one direction or another can give a clear idea of the dominant trend in conditions of subsiding activity. It is in this range that the pair has been moving for four weeks. But the breakdown never happened: after all it is August, holidays, and no extra events capable of stirring up markets, have not yet happened. The situation shows that investors are ready to buy back even very small drawdowns and close positions with very moderate profits. As a result, the breakthrough to 1.1965 did not bring success to the bulls, and the pair returned to the sidelines1.1700-1.1910, having finished the week not far from its central line, in the 1.1795 zone;

- GBP/USD. The British currency has also moved into a side trend, where it has stayed for the third week in a row. The main difference in the last five-day period was some dominance of bullish sentiment, caused rather by a general weakening of the dollar rather than a strengthening of the pound. And if the 1.3075 horizon could be viewed as Pivot Point in the first half of August, it has now turned into a level of support. Pushing off from it, the bulls raised the GBP/USD pair twice to aеру height of 1.3265, and twice it returned to the indicated support, near which, at the level of 1.3090, it put the final point;

— USD/JPY. The 106.00-108.10 zone is the range in which the pair has been trading 75% of the time over the past 20 weeks. And all the experts were sure that it would stay within these limits last week, moreover, that it would rise to its upper limit. However, the expected strengthening of the dollar did not happen, and those oscillators that warned against opening long positions, giving signals of overbought, turned out to be right. As a result, the pair, having broken through support 106.00, groped the local bottom of 100 points lower. Then, after the rebound, it could not overcome the level of 106.00, which has now become resistance, and completed the trading session at 105.80;

– cryptocurrencies. Bitcoin has gone from $4,000 to $12,000 over the past five months. Many experts believe that the main reason is the huge dollar mass that the US Federal Reserve has thrown into the market to overcome the crisis caused by the COVID-19 pandemic. By diversifying their portfolios, investors invested some of this money in real gold and digital gold, which have shown steady growth in recent months. Another part went where it was intended, to the stock market. But if bitcoin showed an increase of 200%, the gold rose in price by a little more than 30%, and the S&P500 index barely crossed the 50% mark.
In the United States, according to the financial analytical portal TradingView, the main cryptocurrency has surpassed the shares of leading American companies in popularity, losing only to Tesla Elon Musk. Boeing took the third place in views.
The data from another survey conducted by a well-known analyst under the nickname Plan B is Interesting as well, it was attended by 22.6 thousand Twitter users. When asked “At what price will you get rid of bitcoin if it does not rise sharply in the next few years?” 5.8% of respondents named the price below $1000, about the same amount - the range of $1000- $3000. 16.2% of those surveyed would have sold the coins at around $6,000. The remaining 72% of the survey participants said that they would continue to hold bitcoin even if its price approached zero.
In the meantime, the quotes of the leading cryptocurrency are very far from the "zero" level. Bitcoin is swinging on the scales against the dollar - when the USD (DXY) index goes down, BTC goes up, and vice versa. As most of our experts assumed, when at the beginning of last week, the DXY dropped from 93.1 to 92.16, the BTC/USD pair jumped upward, broke through the resistance of $12,000 and reached the height of $12.470. The dollar then returned to levels above 93, and bitcoin dipped to a new, fairly strong, support level, $11,600.
The total capitalization of the crypto market changed slightly over the week, falling from ¬$370 billion to $366 billion. The Bitcoin Fear & Greed Index is in the last quarter of the scale for the fourth week and has even grown slightly — from 78 to 81 points. This suggests that the decline in the pair from $ 12,470 to $ 11,600 did not satisfy the market and it remains overbought.
And a few words about altcoins. Lately, a lot of attention - and rightly so - has been paid to ethereum. The Block analyst Larry Cermak believes that while the trend continues, ethereum could become the most sought-after asset in the corporate environment. “The commission revenues of Monero, Bitcoin Cash and BSV miners remain negligible. I think that there will be two big players in this game soon, bitcoin and ethereum. In his opinion, the difference in their indicators will become so obvious soon that the altcoin will be officially recognized as the leader.
However, at the moment it was not ETH which was the most profitable acquisition on the market, but yearn. finance (YFI). It was this coin that showed twenty-fold growth in a month and outstripped even bitcoin in value, reaching the height of $15,400. By the way, the YFI developers decided to follow the path of the leading cryptocurrency, limiting its circulation to only 30,000 coins, which led to such a jump in value. It is not at all a fact that the YFI price will hold at this level or go further up. It is possible that we will soon witness its equally rapid downfall. The aforementioned fact only suggests that, in addition to coins from the TOP-10, instruments have appeared, appear and will still appear on the crypto market that can bring hundreds and thousands of percent of profit due to short-term speculation.


As for the forecast for the coming week, summarizing the opinions of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

- EUR/USD. The number of initial claims for unemployment benefits again exceeded 1 million in the United States last week. The statistics on manufacturing activity in New York and Philadelphia were also quite sad. Against this backdrop, the bulls made an attempt to renew multi-month highs and raise the pair above 1.2000. The attempt ended in failure, the pair returned to the limits of the channel 1.1700-1.1910, and the main benchmark for the market still remains the prospects of another, autumn round of the pandemic COVID-19.
At first glance, the better epidemiological situation in Europe should convince investors that the eurozone economy will recover faster than the US economy. But the situation is getting worse every day. In Germany, the rate of infected with COVID-19 exceeded the highs in May, in France, the number of cases increased by 50% in a week, jumping over 1,500, in Spain, about 4,800 cases of infections are recorded daily, which, in terms of 1 million people, is only 25% less than in the USA. So, it is quite possible that quarantine measures in the EU will be tightened again, causing another blow to the economy, and the ECB will be forced to expand its quantitative easing (QE) program. This, in turn, will push the EUR/USD pair down.
On the other hand, the dollar, apart from doubts about the pace of recovery of the US economy, continues to be pressured by the growth of money supply from the Fed, the growth of national debt, the decline in government bond yields, tug-of-war in the confrontation with China, and uncertainty about the upcoming presidential election. As a result, the USD (DXY) index, which shows the ratio of the dollar to 6 major currencies, fell from the highs of mid-March (104 points) to the lows of May 2018 around 92-93 points.
Today, the preferences of most analysts are still on the side of the dollar. 60% of them believe that the EUR/USD pair is able to break the support of 1.1700 and fall at least another 100 points lower. According to the remaining 40%, the pair will still remain within the trading range of 1.1700-1.1910, with which the graphical analysis on D1 agrees.
The indicators on H4, working out the trend of the second half of the last week, are naturally colored red. But on D1 there is a complete color confusion, which confirms the forecast of sideways movement.
And now positive information for those who, in the medium term, are betting on the victory of the euro over the dollar. If you look at the options market, it does not exclude the growth of the EUR/USD pair to the levels of 1.2200-1.2500. However, it is necessary to keep in mind that COVID-19 will surely put everything in its place this autumn. And one of the decisive factors here may be the emergence of a vaccine against this scourge and the speed and scale of vaccination in different countries.

- GBP/USD. “As the euro, so the pound” — this is how the forecast for the GBP/USD pair sounds for the third week in a row. As with EUR/USD, 60% of experts vote for the turn of the pair down. They are supported by 75% of oscillators, 80% of indicators and graphical analysis on H4. The closest strong support is at 1.3000. In case of its breakout, the bears will try to move the pair to echelon 1.2665-1.2765.
But on D1 there is still a slight advantage for the “green” ones among the indicators. In addition, signals about the pair being oversold are also signaled by 25% oscillators on H4. According to 40% of analysts, two side channels can be drawn for the pair. The first, narrow one - 1.3075-1.3185, and the second, wider in case of increased volatility - 1.3000-1.3265. The goal of bulls to update the 2019 high of 1.3515 is hardly achievable in the coming days;

— USD/JPY. 50% of experts believe that the pair will again try to test the strength of the support in the 105.00 zone and reach the low of July 31, 104.18. This scenario is supported by 60% of oscillators and 100% of trend indicators on D1. The rest of the indicators on both timeframes are colored neutral gray. 15% of analysts have also taken a neutral position. As for the remaining 35% of experts, they predict the pair will return to the trading range 106.00-108.10;

– cryptocurrencies. The news feed, as usual, is full of optimistic crypto-guru statements.
Anthony Pompliano, CEO of Morgan Creek Investment Company: “I think bitcoin will surpass gold in capitalization by 2029. Then most of the financial institutions will stop being afraid of cryptocurrency and start investing large amounts in it. The dollar and other currencies this year have shown weakness in the face of geopolitical fluctuations and even pandemics. Bitcoin has not only resisted, but also increased its potential”, Pompliano said.
Jason Williams, co-founder of venture capital firm Morgan Creek Digital, is confident that legendary investor and adversary of cryptocurrencies Warren Buffett will eventually see bitcoin in the investment portfolio of his holding company Berkshire Hathaway. And it can happen even without his knowledge. 'These are young managers and analysts who are pushing gold trading and BTC trading. He won't even know when it happens," Williams explained.
Bitcoin price will reach $100,000 next summer, to be exact, on August 16, 2021. This forecast was published by an analyst under the pseudonym Bit Harrington, based on the popular Stock-to-Flow (S2F) model used in the gold market. He added that the value seems too high to him for such a period but noted that bitcoin has always gone against bearish sentiment.
Analyst and entrepreneur Mark Van Der Chase explained why this forecast could well come true. “A lot of people think it's impossible,” he wrote, “but I've seen 1,000% growth in less than a year at least twice in BTC history (in 2013 and 2017). S2F holds up pretty well after the halving. If the fear of lost profits resumes, anything is possible. "
- The head of Galaxy Digital holding Mike Novogratz has once again stated that the value of bitcoin should increase to at least 20 thousand dollars by the end of this year. And the analyst Plan B, who was the first to apply S2F to bitcoin, presented a chart according to which this cryptocurrency may, for the first time since 2017, reach the level of $ 14,000 in the next week or two.
It is interesting that, despite such optimistic statements, most experts look at the prospects for BTC quite calmly. They do not exclude that bitcoin, as an alternative to fiat currencies, will receive a new growth impetus during the second wave of the pandemic. If, of course, it happens this fall. But so far 70% of analysts expect that in the first half of autumn the BTC/USD pair will move along the Pivot Point of $11,000 with one-time emissions up to $9,500 to the south and to $13,000 to the north. And only 30% of experts believe that in the coming weeks the pair will be able to steadily gain a foothold above $12,000.


NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

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Stan NorFX

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CryptoNews


- A new report by the cryptocurrency fund Grayscale Investments states that the current structure of the BTC market is similar to that of early 2016 before the historic bullish growth began. Fund analysts predict that demand for bitcoin will rise significantly as inflation accelerates. At the same time, their report provides readings of several network indicators indicating the growing interest in this cryptocurrency. This is confirmed by the number of active addresses, which is at the highest level after the record highs of 2017. Also, against the background of historical lows in the number of bitcoins stored in the "reserves" of cryptocurrency exchanges, the number of long-term investors has increased. This suggests that the demand for bitcoin is not just growing, but at some point, may even seriously exceed the supply.

- A hacker stole the personal data of users of the CryptoTrader.Tax service, which is intended for tax accounting when making transactions with digital currencies. This was reported by the CoinDesk news agency. At least 1,082 clients became victims of the attacker. The hacker gained access to the resource base through the account of a support employee. This allowed him to steal clients' user data, including names, email addresses, part of cryptocurrency transaction revenue details and profile information in payment systems. CryptoTrader.tax confirmed the leak. However, according to co-founder David Kemmerer, user accounts have not been compromised.
After stealing the data, the hacker posted ads on the darknet forums for the sale of the stolen client base.

- Recall that the popularity of BTC in Hong Kong increased amid protests last year. And now, after the arrest on August 10 of the well-known critic of the Chinese government billionaire Jimmy Lai, his popular Hong Kong newspaper Apple Daily decided to vex the Chinese authorities by placing a bitcoin ad on the front page. Apple Daily, which is read by more than half a million people every day, has criticized traditional banks by proposing the mainstream cryptocurrency as an alternative. “Bitcoin will never leave you. Banks, it is not you who are leaving me today, it is me who is leaving you,” reads the text on the front page of the publication. And then the key advantages of cryptocurrency over traditional financial instruments are cited:
“Bitcoin is digital money. It is not issued or controlled by banks or corporations. No one can stop you from carrying out a transaction on the network, and it can't be turned off. Bitcoin is available to everyone regardless of nationality, gender, or belief. Bitcoin started with a genesis block during the 2009 financial crisis. Now is its time,” Apple Daily writes.

- The cybercriminals who created the ransomware Ryuk withdrew about $1 million of the ransom funds through the Binance bitcoin exchange. This is reported by Forbes with reference to cybersecurity specialists who wished to remain anonymous. In response to a request from the publication, security experts at Binance said that "fighting money laundering, ransomware and other malicious activities is their daily work." And they added that their arsenal has a lot of tools to detect suspicious activity. In total, according to the FBI, the victims of the ransomware transferred $61 million to the creators of Ryuk.

- The author of the legendary book “Rich Dad Poor Dad” entrepreneur and investor Robert Kiyosaki declared the inevitability of a new global banking crisis. Moreover, the coming shock will be more widespread than in previous financial crises. Investors need to accelerate the transition to "safe havens," Kiyosaki wrote on Twitter. He also stressed that the proof of the approaching crisis was the fact that such big financiers as Warren Buffett are already selling their assets related to the banking sector. “Probably, these people feel that the crisis is impending and will affect, first of all, the traditional financial system,” - said Kiyosaki. In his opinion, it is necessary now to transfer your capital into more reliable instruments, such as bitcoin, gold and silver.

- Trade in cryptocurrencies through mobile apps has grown by 81% compared to last August. According to the latest report from analyst firm Apptopia, cryptocurrency trading via mobile apps is becoming more and more popular: each new month surpasses the previous one in terms of the number of active users and new registrations. According to some experts, this is due to the COVID-19 coronavirus pandemic, as well as the rise in the cost of crypto assets.
Among the most popular mobile cryptocurrency trading apps are Coinbase, Blockchain Wallet, and Binance. According to Apptopia, Coinbase and Crypto.com mobile apps recorded a record number of active users per day on August 20 - 969,000 and 576,000, respectively. “July is the highest performing month for mobile cryptocurrency apps in the history of the market, but August has the potential to surpass it,” says the analyst firm's blog.

- Uber's former security chief, Joseph Sullivan, is accused of paying hackers $100,000 in BTC for concealing information about the theft of personal data. In 2016, hackers hacked into the database of Uber, an international company providing taxi search services, according to the U.S. Department of Justice. Attackers gained access to the data of 57 million users, as well as to the driver's license numbers of about 600,000 drivers.
Despite the anonymity of the hackers, Sullivan entered into a non-disclosure agreement with them, under which they were required to keep the hacking of the company's database secret and not to store the received data. Even after Uber employees identified the hackers, it is believed that Sullivan demanded that the attackers re-sign the agreement, providing their real names this time.
Law enforcement agencies became aware of the event only in November 2017, when the management of the company changed. The hackers have already been arrested. As for Sullivan, if found guilty, he could face up to five years in prison for obstructing the enforcement of the law and up to three years in prison for harbouring a crime.


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Stan NorFX

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Forex and Cryptocurrency Forecast for August 31 - September 04, 2020


First, a review of last week’s events:

– EUR/USD. 60% of analysts once again tried to give priority to the dollar last week, hoping that the EUR/USD pair will still break the support of 1.1700. In the opinion of the remaining 40%, it should have stayed within the side channel 1.1700-1.1910, which actually happened. Moreover, its finish took place near the upper border of this corridor.
The growth of the pair and the weakening of the dollar were blamed on the statement by the head of the US Federal Reserve Jerome Powell at a symposium in Jackson Hole which some analysts even called historical. The Fed decided to take the most serious step in monetary policy starting in 2012, announcing its plans to aim for an “average inflation rate of 2%.” This means that the regulator will not tighten its monetary policy even if the inflation rate exceeds these very two percent.
These changes suggest a softer monetary policy in the coming months and even years. And even more so, investors should not expect an increase in the interest rate on the dollar. As Jerome Powell noted, the country's economy, which is recovering from the recession, needs low rates.
As a result, the dollar went down, giving a signal to a sell-off of the US debt. There was a dumping of not only long-term, but also short-term government bonds. Together, this forms a kind of vicious circle, since the loss of interest in these securities can, in turn, put pressure on the dollar, which may lead to its further weakening against competing currencies.
The market's awareness of this situation led to the fact that on Thursday-Friday the EUR/USD pair rose to the upper boundary of the corridor 1.1700-1.1910, ending the week session at 1.1900;

– GBP/USD. The pound continues to climb to the 2019 high of 1.3515, and it got very close to this target last week, making a 280-point break and reaching 1.3350. The British currency is supported not only by the constantly weakening dollar, but also by the weakening British Prime Minister.
According to The Times newspaper, Boris Johnson is struggling with the consequences of the illness caused by COVID-19, and for this reason can resign at the end of the Brexit transition period, that is, by end of the year. Since Johnson will be interested in ending his prime minister career on a high positive note, the UK's parting with the EU could go smoothly, without losing its access to the European single market and customs union. And this, naturally, will further strengthen the pound;

– USD/JPY. The pair has been trading in the range of 105.10-107.00 for the last four weeks. However, its volatility has increased significantly in recent days. And the main reason for this is not the speech of the head of the Fed, Jerome Powell, but the news that Japanese Prime Minister Shinzo Abe intends to step down for health reasons.
That message allowed the yen to strengthen by 175 points. Why? The question is quite complex. As some analysts explain, Abe served as Prime Minister for the longest time since the end of World War II, and together with the head of the Bank of Japan, Haruhiko Kuroda, did everything to prevent the strengthening of the national currency by any means, including negative interest rates. Such a policy has been called “Abenomics”, although many believe it is more correct to refer to it as “Kurodanomics”.
Shinzo Abe is leaving now, and the era of "abenomics" may pass with him, which will entail a loosening of tight fiscal policies and a strengthening of the national currency.
In the meantime, as mentioned above, nothing super serious has happened, the yen has kept within the August corridor and completed the five-day period at 105.35;

– cryptocurrencies. Even though bitcoin, like about a year ago, was unable to gain a foothold above $ 12,000, the situation remains generally favourable for it. First, it is the soft monetary policy of the main regulators, the end of which is not yet expected. Secondly, we have seen a continuous growth in the number of companies and services that have started to accept cryptocurrencies as means of payment. The attitude towards digital assets and a number of central banks has become more loyal. Here, according to analysts, the COVID-19 pandemic played a large role, due to which a significant part of our life went online. It seems that even the FATF (Financial Action Task Force) has come to terms with the existence of the crypto industry.
Cryptocurrency trading through mobile apps is up 81% compared to August last year. According to the latest report from the analytical company Apptopia, this type of transactions each new month surpasses the previous one in terms of the number of active users and new registrations. The mobile apps Coinbase and Crypto.com recorded a record number of daily active users, 969,000 and 576,000, respectively, on August 20.
The number of large long-term investors continues to grow as well. So, according to Glassnode, there are currently 2,190 wallets with 1,000 or more BTC coins. All in all, these wallets store almost 8 million bitcoins for a total of more than $90 billion. And this is a very strong incentive for the future growth of BTC/USD.
In the meantime, bitcoin found a new Pivot Point last week - $11,500, along which it has been moving all this time. The BTC/USD pair was above this line for the first part of the seven-day period, then it went down to the support of $11,100. But soon it returned $400 higher. This happened largely thanks to the statement of the head of the Federal Reserve J. Powell at a symposium in Jackson Hole, which led to some weakening of the dollar and the growth of alternative assets, including gold and bitcoin.
The total cryptocurrency market capitalization decreased in seven days, but not by much - from $ 366 billion to $ 360 billion. The Crypto Fear & Greed Index came out of the last quarter, dropping from 81 points to 74. According to the developers of the indicator, this suggests that BTC being overbought is gradually fading away, so it can now be dangerous to open short positions.


As for the forecast for the coming week, summarizing the opinions of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

– EUR/USD. Speaking at Jackson Hole, Jerome Powell, in fact, clipped the dollar's wings. The head of the Fed has made it clear that the interest rate will remain at a record low even in case of increasing inflationary pressures. This is clearly a bearish signal for the US currency, which amplifies the likelihood of the euro and other major currencies rising against the dollar.
On the other hand, the Fed has no plans to lower the rate below zero, which is a moderate-positive factor for the USD rate. In addition, it should be borne in mind that other central banks can follow the path of the Fed, not reducing, but continuing and expanding the quantitative easing (QE) policy. So, for example, the ECB may take a position similar to the Fed. Already now, the head of the Bank of France, Francois Villeroy de Galhau, has spoken about a similar inflation target. Central banks of other countries of the Eurozone, in which the number of coronavirus cases is on the rise, can also join his voice. So the coming dollar drawdown is not as clear as it seems at first glance.
So far, if you look at the indicators, the situation is not in its favour. 85% of oscillators on H4 and D1 are painted green, 15% are in the overbought zone. Among the trend indicators, there are even more supporters of the EUR/USD pair growth: 100% on H4 and 95% on D1.
But the picture is radically different among experts. 60% of them believe that the pair will remain in the 1.1700-1.1910 price range. And since it finished the last week at its upper border, this means a trend reversal and a return of the pair to the level of 1.1700. The remaining 40% of analysts vote for the breakdown of the upper boundary of the channel, further weakening of the dollar and the rise of the pair first to the height of 1.1950, and then to the iconic level of 1.2000.
It also makes sense to pay attention to the graphical analysis readings. On the D1, its forecast for September is as follows: first a drop to 1.1700, then a jerk up to 1.2035, followed by side movement in the channel 1.1900-1.2035.
And a few words on the macroeconomic developments of the coming week. On Tuesday September 01, we will see data on the consumer market of the Eurozone, the US ISM business activity indices will be published on September 01 and 03, and on Friday September 04, we will traditionally learn about the state of the US labor market, including the number of new jobs created outside the agricultural sector (NFP);

– GBP/USD. It is clear that 100% of the trend indicators at the end of the past week are looking north. But as for the oscillators on H4 and D1, 25% are already giving signals that the pound is overbought. 55% of experts also support bearish sentiment. Moreover, when moving from weekly to monthly forecast, their number increases to 80%. Support zones are 1.3275, 1.3155 and 1.3050.
The GBP/USD pair closed the last trading session at 1.3350 - this is a fairly strong resistance level, which it had stormed unsuccessfully both in July 2018 and March 2019, so there are a lot of chances for a rebound from it and a downward correction. On the other hand, the desire of the bulls to renew the 2019 high at 1.3515 is also a strong stimulus that supports the losing dollar.
As in the case of EUR/USD, graphical analysis on D1 is of interest. According to its readings, the pair may reach a height of 1.3515 in the coming days, after which a rebound will follow, and it will first return to support 1.3275, and then drop to the level of 1.3050.
Certain adjustments to the dynamics of the pair can be made on Wednesday September 02 hearing of the Inflation Report prepared by the Bank of England and the speech of its head Andrew Bailey on Thursday September 03;

– USD/JPY. The forecast for this pair is similar to that given above for the euro and pound. Most of the indicators point to a further weakening of the dollar, most experts, on the contrary, to its strengthening.
100% of trend indicators and 75% of oscillators are painted red. The remaining 25% of oscillators on both timeframes, H4 and D1, signal that the pair is oversold.
65% of analysts believe that the USD/JPY pair will not leave the 105.10-107.00 corridor limits, and only 35% consider the possibility of reducing it to the July 31 low of 104.18;

– cryptocurrencies. The crypto market capitalization is only $360bn now, which is about 25 -30% of the capitalization of Microsoft, Apple or Amazon. But cryptocurrencies are not one corporation, but a whole financial and technological industry that unites thousands of companies around the world. And this gives reason to say that the digital asset market is greatly underestimated.
A new report by the cryptocurrency fund Grayscale Investments states that the current structure of the BTC market is similar to that of early 2016 before the historic bullish growth began. Fund analysts predict that demand for bitcoin will rise significantly as inflation accelerates.
The growth of bitcoin due to the inevitability of a new global banking crisis was also announced by the author of the legendary book "Rich Dad Poor Dad", entrepreneur and investor Robert Kiyosaki. Moreover, the coming shock in his opinion will be more widespread than in previous financial crises. Investors need to accelerate the transition to "safe havens," Kiyosaki wrote on Twitter. He also stressed that the proof of the approaching crisis was the fact that such big financiers as Warren Buffett are already selling their assets related to the banking sector. “Probably, these people feel that the crisis is impending and will affect, first of all, the traditional financial system,” - said Kiyosaki. In his opinion, it is necessary now to transfer your capital into more reliable instruments, such as bitcoin, gold and silver.
Analysts currently call the coronavirus pandemic one of the main growth drivers for the BTC/USD pair. It is thanks to it that many investors turned their views to the main cryptocurrency and other digital coins. And then Jerome Powell said that the Fed is not going to tighten monetary policy, which in the long term can also lead to the growth of bitcoin.
Some experts in technical analysis also see the prospects for a breakdown of the $12,000 level and a rise of the pair to $40-45 thousand on the W1 and MN time frames. However, in the near future, 65% of analysts expect the BTC/USD pair to move along the $11,000 Pivot Point with one-off emissions up to $9,500 south and up to $12,800 north. Moreover, only 20% of experts believe that bitcoin will be able to at least touch the $14,000 mark in September.


NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

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