Cryptocurrency Analysis

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Ethereum Attractive For Buyers!

ETH/USD accumulates around 1,337 level maintaining a bullish bias despite some temporary drops. Last week I've told you that Ethereum is still expected to resume its major uptrend after the current accumulation.

Bitcoin has registered an amazing rally on Friday, BTC/USD's further growth could force ETH/USD to increase as well. ETH/USD stands right under some critical upside obstacles, breaking above these levels signals more gains ahead.

ETHEREUM TARGETING NEW HIGHS!



ETH/USD is traded within an upside channel. Its failure to approach and retest the red uptrend line, the channel's downside line, represents a bullish signal.

The price failed to retest the broken 150% Fibonacci line and now it tries to get back above the Pivot Point (1,332) level again. An upside breakout above the first warning line (WL1) of the descending pitchfork could really activate a new bullish momentum.

As I've said on Thursday's analysis, the bullish scenario could be invalidated only by a downside breakout through the channel's support and below the S1 (1,188).


ETH/USD BUYING SCENARIO!

Jumping, closing, and stabilizing above the first warning line (WL1), somewhere beyond 1,400 represents a buying signal. The short-term major upside target remains at the channel's upside line, around the R2 (1,600) level.



Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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Ichimoku cloud indicator analysis of ETH/USD

ETH/USD according to the Ichimoku cloud indicator remains in a bullish trend. We use the Ichimoku cloud indicator in order to identify key support levels that if broken could signal more weakness and a possible pull back to come, taking into account the bearish divergence we noted in our previous analysis.



In the 4 hour chart trend remains bullish. Not strong bullish but bullish. Price is above the Kumo (cloud). Support by the cloud is at $1,310-$1,263. Breaking below the Kumo will be a bearish sign that would imply more downside. The downside target will be seen in the Daily chart below. In the 4 hour chart the tenkan-sen (red line indicator) has crossed below the kijun-sen (yellow line indicator) and this is not a good sign. Bulls want to see the tenkan-sen cross above the kijun-sen again in order to get a bullish signal.



In the Daily chart price is trading below the tenkan-sen. This is an initial weakness sign. Where can this lead to? If in the 4 hour chart we see the cloud break, then in the Daily chart we will expect price to challenge the kijun-sen at $1,200. If $1,200 fails to hold then we should expect price to test the Kumo around $1,000. Until then there are lots of support levels that need to be broken. But we need to keep an eye on the bigger picture if support levels start breaking. On the other hand if price breaks above $1,390 we should not be surprised if we see a new all time high towards $1,500.



Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for 02 February 2021

Crypto Industry News:
The Ripple case in front of the Securities and Exchange Commission threatens with severe knock-on effects for the industry.

On January 29, Ripple Labs filed a response to the SEC prosecution. Ripple, as has been said many times, argued that XRP is not a security, i.e. an investment in Ripple, and therefore does not fall under the jurisdiction of the SEC. Furthermore, Ripple is prepared to drag the rest of the industry into fighting for its arguments.

"The SEC has clearly picked two winners and has ignored a growing and strong industry that is much bigger than Bitcoin and Ether. In addition to a discovery that we will be looking for directly in a lawsuit, we have applied for the Freedom of Information Act (FOIA) for more information on about how the SEC defined Ether as a non-security, says a Ripple representative.

The proposal is likely to entail an enormous amount of records from several years of Commission documents, given how long it took to make any statements.

In the case of Etereum, the time issue is crucial. The pre-sale of Ether occurred many years before the SEC released its DAO report. The DAO report was a 2017 SEC declaration stating that certain cryptocurrencies were securities.

The SEC case against Ripple has been coming for a long time, and Ripple has spent considerable resources trying to stop it. While XRP also predates the DAO report, the key argument is that Ripple still controls most of the XRP market in a way that the Ethereum Foundation, Vitalik Buterin and Joe Lubin, for example, do not.


Technical Market Outlook:
The ETH/USD pair has bounced from the level of $1,274 again and is currently trading around the level of $1,413. Please notice, the market might be making a triangle price pattern, that had been marked on chart using the golden trend lines. The upper boundary of the potential triangle pattern is seen at the level of $1,438 and the lower boundary - around the level of $1,274. Any clear breakout above or below any of the mentioned levels will result with an increased volatility and bigger market move. The intraday technical resistance is seen at the level of $1,438 and the intraday technical support at $1,376.

Weekly Pivot Points:
WR3 - $1,679
WR2 - $1,589
WR1 - $1,419

Weekly Pivot - $1,318
WS1 - $1,150
WS2 - $1,040
WS3 - $882


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $1,500, so any correction or local pull-back should be used to open the buy orders. Please notice, the up trend starting to go vertical, so the volatility will be higher than average. The bullish scenario is valid as long as the level of $830 is broken.





Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of BTC/USD for 02 February 2021

Crypto Industry News:
It looks like bitcoin is getting closer to universal adoption. Now that even Elon Musk has exposed the cryptocurrency in his Twitter biography section, the price of BTC has risen 19%, reaching $ 37,000 in the day.

According to Marshall Hayner, CEO of cryptocurrency payment solutions provider Metal Pay, Bitcoin is currently in the "fourth wave" of adoption. Hayner stressed that in the last few months the asset had hit an all-time high, and with it emerged institutions that added cryptocurrency to their balance sheets.

According to Hayner, the popularity of Bitcoin, and the fact that it is the "oldest, most liquid" cryptocurrency, prompts corporations to view the asset as a hedge against dollar and Euro inflation:

"This is what I call the" fourth wave "of cryptocurrency adoption. The first three waves are enthusiasm, speculation, usefulness and finally acceptance. "

Since last year, many entities have started accepting Bitcoin. The list includes Galaxy Digital, PayPal, Marathon Patent Group, Ruffer, Square, among others. The largest owner of the digital asset in this regard has become Microstrategy with 70,784 BTC in its portfolio.

Marshall Hayner found that, as with large corporate investors, domestic banks reporting to the US Office of the Comptroller of the Currency (OCC) have reached a level of "mass acceptance" and "understanding" of Bitcoin.


Technical Market Outlook:
The BTC/USD pair keeps trading in a narrow zone located between the levels of $32,921 - $34,839. The bounce from the level of $32,175 might be considered as a trend line test from the upside, so now the road towards upper price levels is open. If the level of $34,839 is clearly violated, then bull might rally straight back to the recent local high located at $38,683 and even break higher. However, the momentum on the RSI indicator is still close to the neutral level, so no real strength is coming to markets yet.

Weekly Pivot Points:
WR3 - $46,671
WR2 - $42,502
WR1 - $37,109

Weekly Pivot - $33,428
WS1 - $27,789
WS2 - $23,603
WS3 - $18,571


Trading Recommendations:
Despite the recent corrective cycle the bulls are still in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $50,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $20,000 is clearly broken.





Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin Eyeing Crucial Break!

The price of Bitcoin is back above the 35,200 psychological level trying to close in the buyer's territory again. BTC/USD has increased as much as 35,649 level, resuming the former H4 bullish candle.

Bitcoin's price moves sideways in the short term after ending its temporary corrective phase. Technically, the crypto is expected to resume its major uptrend after its failure to close below 30,000.


BTC/USD EDGES HIGHER!


BTC/USD has retested the Pivot Point (33,659) and now is back above the dotted downtrend line. The price is pressuring the median line (ML), closing and stabilizing above it should indicate a further growth ahead.

Escaping from the down channel signal another upside momentum in the upcoming period. Only a false breakout with great separation above the median line (ML) and through the downtrend line could invalidate the bullish scenario.


BTC/USD TRADING TIPS!

Buying from above 36,000 represents a good opportunity. Closing and stabilizing above the median line (ML) signals that BTC/USD will be expected to approach and reach the 41,986 all-time high.



Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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Elon Musk adds #Bitcoin to his Twitter bio



Over the past few weeks, excluding a brief price spike on Friday, bitcoin has been showing signs of weakness. However, the situation has drastically changed when Elon Musk, an electric car and private spaceflight entrepreneur and the world's richest man, has added "#Bitcoin" to his Twitter bio. Bitcoin (BTC) has skyrocketed from $ 30,000 to $ 36,000.

"The longer we stay at the current level, the stronger the base to bounce back up," Matt Blom, head of sales and trading for the exchange firm EQUOS, wrote early Monday. At the end of January, the price of bitcoin soared by 14% compared to last year.

Experts are trying to figure out what will happen next. Tanzil Akhtar at CoinDesk reported on Saturday that news of a proposed ban on cryptocurrency in India had made some bitcoin investors nervous. Additionally, Chinese traders were already speculating on which cryptocurrencies might be the next to get a major price pump, CoinDesk's Muyao Shen reported.

A growing number of cryptocurrency analysts have recently seen a sharp contraction in a closely tracked ratio in the bitcoin market known as the "Grayscale premium."

This premium represents the difference in bitcoin market prices and the price implied by the Grayscale Bitcoin Trust (GBTC), one of the most popular tools for investing in cryptocurrency via the stock market.

Grayscale Investments, which sponsors GBTC, is a division of the Digital Currency Group, which also owns CoinDesk.

What's catching attention now is that last week the Grayscale premium fell to as low as 3.5%, from upwards of 40% late last year, according to Ycharts.

Many experts suppose the Grayscale premium is dropping due to the lack of alternatives, especially when the US Securities and Exchange Commission has yet to approve a bitcoin-focused exchange-traded fund. When the premium rises, it is seen as a sign of how eager retail exchange traders are to bet on bitcoin.

So the recent decline might be explained by signs that greater competition is on the way: BlockFi, a major hub for crypto lending, has filed to start a new bitcoin trust, CoinDesk's Danny Nelson pointed out. According to The Block, Osprey Bitcoin Trust will be placed on OTC markets in the coming days. In Canada, investment firm Ninepoint Partners has completed an initial public offering of a cryptocurrency fund worth C$230 million (US$180 million).

However, there may be another factor for the decline in demand for Bitcoin. Some institutional investors who were betting on an upward movement may have got too nervous. So, they rushed to close their long deals.

"The dissipation of this premium is further evidence of the internal stresses of the markets on bitcoin," Greg Cipolaro, global head of research for NYDIG, a digital-asset investment firm, said.

He noted that the gap has also narrowed between bitcoin spot prices, and futures contracts traded on the CME in Chicago. Perhaps this is another indicator that traders are taking less market risk in the face of heightened volatility.

The rally triggered by Tesla CEO Elon Musk adding "#bitcoin" to his Twitter profile has quickly subdued. However, Su Zhu, CEO of the cryptocurrency investment firm Three Arrows Capital, says that "long term, it's very bullish."

"Elon news is a watershed moment for crypto as the wealthiest man in the world and operator of the world's most successful companies is now a BTC bull and believer," Zhu highlighted.



Andrey Shevchenko
Analytical expert
InstaForex Group © 2007-2021

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BTC analysis for February 02,.2021 - Potential for the completion of the upside correction and dowwnside movement towards $30.000

Further Development



Analyzing the current trading chart of BTC, I found that buyers got exhausted and that there is potential for the downside movement towards $29,000.

My advice is to watch for selling opportunities on the rallies with the downside target at the price of $29,000.

Additionally, there is the overbought condition on the Stochastic oscillator, which is sign that there is potential for the downside rotation.



Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

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Trading Signal for BTC for February 02 - 03, 2021: Potential bullish momentum to $ 37,500.



The Bitcoin bulls are relentless in the fight for highs above $ 43,000, while the medium-term target of 50,000 continues to show signs.

This morning of the American session the Cryptocurrency BTC is bullish, because it is trading above the 200 EMA and above the 21 SMA.

The last 4-hour candle confirms the break of this level, because yesterday we saw strong downward pressure below $ 37,350, now it is trading above this level, and it is likely that in the next few hours there will be an upward momentum to the zone of the 8/8 of murray around $ 37,500.

As market sentiment for BTC remains bullish, it is likely that now while trading above the 200 EMA, there will be further rallies to the $ 43,000 levels in the medium term as the bulls are targeting $ 50,000 long. term.

Our recommendation is to buy at the current levels, only if the price of BTC remains above the 200 EMA, that is, above $ 34,375, this zone has now become a good support and there could be a new bullish wave with targets at $36,550 and $37,500.


Support And Resistance Levels For February 02 - 03, 2021

Resistance (1) $35,877
Resistance (2) $37,109
Resistance (3) $37,721

Support (1) $33,507
Support (2) $32,368
Support (3) $31,136



Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

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Technical analysis of ETH/USD for February 02, 2021



Trading ETH/USD (Ethereum)

Technical market outlook
Ethereum rallied from the area of $ 1,343 to close at $ 1,419. Ethereum ended this morning at $ 1,431.

Ethereum is trading around the spot of $ 1,419 a day ago. Today, the price of $ 1,419 represents a daily support in the H1 time frame.

Finding support at the first major support price at $ 1,343 , Ethereum struck a late morning high $ 1,431.

If the pair closes above the daily support of $ 1,343, Ethereum may resume it movement to $ 1,478 to test double top at the same time frame.

A bullish start to the day saw Ethereum rally from an early morning bottom $ 1,375 to a top $ 1,433.

Ethereum will be continued to trade upwards from the level of $ 1,419. The pair will be probably rice from the level of $ 1,419 to the top around $ 1,433.

Note : this price of $ 1,419 coincides with first minor support, - 78% of Fibonacci retracement levels).

From this point, we expect the Ethereum to continue moving in the bullish trend from the support level of $ 1,419 towards the target level of $ 1,433.

If the pair succeeds in passing through the level of $ 1,433, the market will indicate the bullish opportunity above the level of $ 1,433 in order to reach the second target at $ 1,500.

Our targets : $ 1,500 and $ 1,530 in the coming hours.

Technical support is expected around : $ 1,419, $ 1,375, $ 1,343 and $ 1,311.

Technical resistance is expected around : $ 1,1478, $ 1,500 and $ 1,530.

Indicatores
RSI (34) sees major ascending supprt line acting as resistance to push price up from the rgion of $ 1,343 and $ 1,311.

Signals
Buy at the price of $ 1,1419 with the objectives of $ 1,478, $ 1,1500 and then $ 1,530.

Stop loss should be placed below the major support of $ 1,311.

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Crypto industry news (Ethereum News - (Source : cryptonews - coindesk))

1) ETH Prices Barely Budge Despite Ethereum Foundation's Reddit Deal.

2) Ethereum Needs To Clean Its Value Proposition - Coinbase.

While most institutional clients bought bitcoin in 2020, said Coinbase, "a growing number" of them also took a position in ETH. The case for owning Ethereum the exchanges' clients give most often is a combination of:

** Its evolving potential as a store of value, and its status as a digital commodity that is required to power transactions on its network.

3) Grayscale Ethereum Trust Reopens, Bitcoin Fund 'Over 99% Invested'.

Regulated financial institution for digital assets Nexo has launched its in-app Nexo Exchange. According to the press release, the new exchange allows no-limits conversion between more than 75 crypto and fiat currency pairs directly within the Nexo mobile application. It comes with the 'Smart Routing' system, an in-house innovation, which simultaneously connects to multiple exchanges and splits orders depending on price per volume to provide a fixed quote at order submission to prevent price fluctuations.

Digiassets Exchange (SDAX), an institutional-grade digital asset trading platform, said it has received an Approval-in-Principle from the Monetary Authority of Singapore to operate a digital asset exchange. The company said it "will serve a global market offering digitised debt, equity and hybrid instruments with high-quality real estate as the underlying asset class."

Kraken has announced today that it will run its own Chainlink (LINK) node in order to make Kraken's spot prices available to decentralized finance (DeFi) applications and developers on Ethereum (ETH) and other major blockchains.




Mourad El Keddani
Analytical expert
InstaForex Group © 2007-2021

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Medium-term outlook for bitcoin: rise or fall?

Bitcoin reached its record high near the level of $42,000. During two weeks, from December 28 to January 8, bitcoin soared by more than 100%. At the moment, crypto traders are interested only in one question – whether bitcoin can reach new highs.

To answer the question, we should find out the key reasons for such a jump. Thus, the coronavirus pandemic and the virus-induced crisis forced central banks to lower the key rates to almost zero and launch the massive money printing. The quantitative easing program is likely to last long and markets are poured with cheap liquidity. Against this background, the US dollar has already slumped. Moreover, the possibility of the adoption of a new stimulus package by US President Joe Biden will create additional pressure on the greenback.

Big players stopped investing in the US dollar. The traditional financial system lost trust of investors and they began searching for the alternative instruments. Some of them chose cryptocurrencies, bitcoin in particular, as the safe-haven asset that may replace the greenback. We cannot say that all market players made the same decision. However, even funds of the US large universities began investing in cryptocurrencies. Moreover, Elon Musk said that he was a "supporter" of bitcoin.

Thus, bitcoin has ground for a further rise. However, it is unknown when the jump may happen. The second all-time high was hit only three years after bitcoin reached its first record high. However, analysts suppose that this time we will not have to wait for so long.

Scott Minerd, who holds the post of IT director at Guggenheim Partners, recently stated that the number of institutional investors who were investing in bitcoin is not enough even to keep the main cryptocurrency above $30,000 per coin. Although, before that, he claimed that bitcoin had the potential to grow to hundreds of thousands of dollars.

Experts at JPMorgan pinpointed that the price would hardly consolidate above $40,000 in the near future. They foresee a significant downward correction.

At the same time, on the daily BTC/USD chart, we can see a triangle. Its formation proves the fact that bitcoin may move in either direction.



Ekaterina Kiseleva
Analytical expert
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