Cryptocurrency Analysis

[IFX_Selena]

Ethereum Found Strong Resistance! Is The Leg Higher Over?

Ethereum plunged after reaching a strong resistance area. Actually, ETH/USD dropped as the price of Bitcoin dropped as well after registering an impressive rally. Still, the current drop could be only a temporary one.

ETH/USD has climbed a much as 2,435.01 in yesterday's session. Now the digital token is trading lower at 2,241.29 at the time of writing. The major crypto could only test and retest some support levels, downside obstacles, before jumping higher.

You should know that Bitcoin's potential growth should help Ethereum to appreciate again in the short term.


ETH/USD TEMPORARY DECLINE!


ETH/USD has found resistance above 2,389 static resistance, registering only a false breakout through this obstacle. It has also failed to stabilize above the ascending pitchfork's median line (ML) and beyond the weekly R1 (2,356.70).

Ethereum has rebounded right now and it tries to recover after its massive drop. Still, I believe that the downside movement is not complete yet. It could drop again if it fails to approach the immediate upside obstacles.

2,040,40 level and the weekly pivot point 2,036.40 are seen as strong support levels. Also, the ascending pitchfork's 50% Fibonacci line represents dynamic support.


OUTLOOK!
The sell-off could help us to cat a new upwards movement. Right now we have to stay away from this crypto after being rejected by the range's resistance. Only a deeper decline or a strong consolidation could bring is a new long opportunity.

You should know that a valid breakout through the 2,389.00 and coming back above the median line (ML) could validate a broader upwards movement in the medium to the long term.





Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for July 27, 2021

Crypto Industry News:
Although by the end of the year it was still over five months, it is already known now that 2021 will be a special year for crypto ATM units. In the period from January to July there were over 10,000 new ATMs. As a result, the total number of devices available in the world increased by as much as 70%.

Bitcoin ATM's are installed around the world, but the greatest interest in this solution can be observed in the United States. According to data collected by Coin ATM Radar, the units are currently available in 75 countries. It may seem that this type of device will be produced only by one or two companies, which has been able to gain the leading position over the years. However, crypto ATM units are currently produced for dozens of different companies, which sometimes can be confusing for users. According to Coin ATM Radar, devices located around the world were manufactured by 42 different companies.

Nevertheless, it can not be denied that one of them is definitely ahead of the competition: the most devices produced Genesis Coin, to which almost 41% of the market belongs. In second place there is General Bytes, which is below 25%. However, if it is about the largest operator, this title belongs to Bitcoin Depot. Not only Partnership with a popular network has been announced only recently, but the company did not waste time and managed to install over 700 new devices.


Technical Market Outlook:
The ETH/USD pair has made this month's high at the level of $2,435, but the bears were active at this level and pushed the price back under the short-term trend line resistance seen around the level of $2,370. The pair is now back inside the channel, but if the momentum will keep going up, then the next target for bulls is seen at the level of $2,453. The key short-term support is seen at the level of $2,201 and $2,106.

Weekly Pivot Points:
WR3 - $2,880
WR2 - $2,525
WR1 - $2,386

Weekly Pivot - $2,056
WS1 - $1,1912
WS2 - $1,571
WS3 - $1,423


Trading Recommendations:
Ethereum might have started the next wave up as the next long-term target for bulls is seen at the level of $3,000. Nevertheless, in order to resume the long-term up trend, bulls have to break through the last swing high seen at the level of $2,880. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key support for bulls.







Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for July 27, 2021

Crypto Industry News:
General Manager Man Group, Luke Ellis, said in an interview that cryptocurrencies are worthless, but give their owners amazing opportunities in the context of trading.

According to the interviev, Ellis does not believe the internal value of digital currencies. The entire cryptocurrency market looks like an infamous tulip euphoria from the 17th century:

"Much of the Crypto Market Action Involves Participants That Doubt Their Ultimate Utility, According to The Chief Executive of the World's largest Listed Hedge Fund Manager" - We Read.

Ellis said that the vast majority of investors involved in the cryptographic markets fully understand that the digital coins are worthless in terms of "ultimate" usefulness.

Both Ellis and its team admit that the cryptocurrencies give investors lucrative trading capabilities that result from "wild" fluctuations in digital asset prices.

MAN Group trades, among other things, cryptosals. Well known for the revolutionary research in the context of the quantitative models of MAN Group's price anomalies. Does not lose the opportunity to earn crypto on fluctuations.

Cryptosalites do not look for Luke Ellis like a full investment product that provides any value to investors. It is interested in Blockchain as a technology that can increase the performance of payment systems. However, this does not affect the value of BLOCKCHAIN: For the Director General MAN Group, they are exclusively as trading instruments.


Technical Market Outlook:
The BTC/USD pair has broken out of the trading range and made a local high at the level of $40,514. Nevertheless, the bears were active at this level, made a Bearish Engulfing candlestick pattern and pushed the price back under the technical resistance seen at $39,413. All the Fibonacci retracement levels had been violated as well and if the momentum will keep going up, then the next target for bulls is seen at the level of $41,749. The key short-term support is seen at the level of $36,552.

Weekly Pivot Points:
WR3 - $42,519
WR2 - $38,542
WR1 - $36,989

Weekly Pivot - $33,120
WS1 - $31,521
WS2 - $27,666
WS3 - $26,112


Trading Recommendations:
The bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Amazon has no plans to accept bitcoin as payment: bitcoin has collapsed



Yesterday, the first cryptocurrency in the world rose to $40,478. We predicted earlier the growth of bitcoin to the level of $40,700, which, from our point of view, is the upper limit of the side channel. Unfortunately, this level was not worked out, but the price still turned down around it. Thus, it can be said that the bulls' ambitions are satisfied, and the cryptocurrency can now start a new round of downward movement in the same side channel of $29,700 - $40,700. This morning, bitcoin quotes have already rolled back from local highs by $3,800. Thus, the last few days have turned out to be very hot and fun. Like most experts, we believe that bitcoin has completed the bullish trend and has begun a long-term consolidation, which will take at least a year or two. It was all the more surprising to see the growth of "digital gold" by almost $11,000 in just a few days. However, as is often the case, bitcoin grew because of rumors, the statements of Elon Musk, and blind faith in a new trend of market participants. However, it is also impossible not to note the technical reasons for growth. Bitcoin just perfectly worked out the level of $29,700 and bounced off it. This signal turned out to be strong, so bitcoin rose to the level of $40,700. But it should also be noted how easily and simply interested people raised the bitcoin exchange rate.

Yesterday, we said that according to unofficial, insider information, Amazon plans to integrate bitcoin and several other cryptocurrencies into its activities. Simply put, they may enable customers to pay using bitcoins. But today, this information turned out to be just a rumor. A Bloomberg journalist contacted representatives of Amazon, who denied this information. According to Amazon, the company plans to develop cryptocurrencies, but we are not talking about launching its own token or adding the ability to pay for goods with bitcoin in the near future. A little later, it became known that the author of this news openly admitted its fake nature, writing a corresponding message on Twitter. Thus, the market easily and simply added more than $5,000 on absolutely fake news, and it easily and simply lost the same amount the next day. But someone has made a very good profit on this. We once again draw the attention of traders to the fact that bitcoin is a very hearing-dependent instrument and very volatile. Therefore, any message should be treated very carefully. There are always a lot of people who are interested in the growth of bitcoin and will spread any false information to provoke the markets to make new purchases.



Technically, bitcoin has grown almost to the target level of $40,700, but it has already turned down and started falling. Thus, we believe that bitcoin can now fall back to the level of $29,700 and try to overcome it again. Therefore, we believe that sales are more relevant now.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin: $43,000 To Be Next Target?

Bitcoin appreciated as much as 39,850 today registering an approx 12% growth. Now it stands at 39,300. The bias is bullish, BTC/USD could jump higher even if it has reached a new upside obstacle.

As you already know from my previous analyses, BTC/USD was somehow expected to increase again after reaching a support zone, a demand area. The current rally helped the altcoins to increase as well.

We cannot exclude a temporary decline in the short term before resuming its upwards movement. Actually, a minor decline could help us to catch a new upside momentum, leg higher.


BTC/USD STRONG RALLY!


Bitcoin found temporary resistance right above the R2 (39,544,69). Now it seems determined to challenge this static resistance again. The next major upside target is seen at 43,000 psychological level which represents the range's resistance.

Also, the third warning line (wl3) of a major descending pitchfork stands as dynamic resistance, target. The aggressive breakout through 36,623.79 former high signaled further continuation.


TRADING CONCLUSION!
Breaking above the downtrend line and jumping through the second warning line (wl2) signaled strong buyers and a significant rally. The bias is bullish, so Bitcoin could resume its growth anytime.

Jumping and closing above the R2 (39,544) is seen as a bullish signal with a potential target at 43,000.





Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin: Bullish scenario was helped, forecast worked out

Today we received an answer to the question "Sideways or Triangle?" on the Bitcoin chart. And yet, yes, it was a sideways trend: the price of the main cryptocurrency soared, reaching the upper border of the corridor 31,082.82 - 38,610.88, marked with red dotted lines.

Now is the time to remember the early prediction about the BTC/USD safe trading strategy. The question of whether the growth will continue is now open due to the still false breakdown of the resistance at 38,610.88. But the daily candle is not closed yet so it is still too early to make a conclusion, we keep in mind a possible rise to the strong mirror level of 41,980.24.

The bullish momentum that started a few days ago has probably been helped. And if this was all the "fuel", then a sideways rollback at 31,082.82 - 38,610.88 is very likely.

The price of the main cryptocurrency skyrocketed amid rumors that the e-commerce giant Amazon could embed cryptocurrency payments and create its own cryptographic token. However, official sources have not yet confirmed this information.

The report was produced by the London business newspaper City A.M. and has been featured in numerous publications since then. The publication published an interview with an Amazon insider who said that the company plans to accept payments in bitcoins "by the end of the year" and plans to release its own token in 2022. In addition, the insider said that the idea of integrating the cryptocurrency "comes from Jeff Bezos himself," despite the fact that he stepped down as CEO of Amazon on July 5, 2021.

The news sparked a stir on Twitter as users linked the rumors to bitcoin's $40,000 rally on Sunday night. However, experts like Alex Kruger remain skeptical, commenting that an Amazon insider is unlikely to give an interview to a publication like City A.M.

Regardless of what triggered the rally, it triggered a massive liquidation of $1.07 billion in short positions in 24 hours. Information about this was provided by the analytical platform Bybt.

What is the reason for this? Probably with the recent fall of the main cryptocurrency, during which many were preparing for a bearish scenario and opening short positions. This means that the bullish momentum was reinforced by the elimination of the shorts.

Well, technically, the situation looks very nice. And the answer to the question of whether the growth will continue or the price will bounce down already from the resistance of 38,610.88 (upper red dotted line), we will probably get in the coming days.






Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin approaches major resistance around $41,000.

A few days back we warned traders that Bitcoin was testing an important horizontal support at $29,000 and in the past we saw price bounce strongly off this level. The same happened this time and we also noted the short-term bullish signal once Bitcoin price broke above the short-term downward sloping trend line resistance.



Green line - broken short-term resistance

Red lines - resistance trend lines

Bitcoin has already reached the next important resistance trend line at $39,700. Price has made a triple bottom at $29,000 and is showing reversal signs. Next resistance is at $41,000-$42,000. A rejection around $40,000 will be a bearish sign and will increase chances of breaking below the triple bottom and reaching $25,000-$20,000. Bulls need to see price start making higher highs and higher lows and not break below $29,000 again, in order to hope to see new all time highs over the next year.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Gold or Bitcoin: Which asset can be a safe haven and protect against inflation in 2021?



Gold or Bitcoin, what to choose in 2021? Now, this is a pressing and urgent issue, and the choice is between gold and digital gold. So which asset is the best and most effective remedy for inflation and potential market collapses? For decades, various institutional investors have chosen gold exclusively as a remedy for inflation and potential market collapses.

Gold as such has no credit risks but has only an exclusively intrinsic value due to limited supply, so for many years various investors have chosen gold as an effective tool in the event of a market collapse or staggering inflation and almost always made the right decision.

Bitcoin is a good remedy for short to medium-time inflation, while gold is an ideal long-term defensive asset. It is not as volatile as bitcoin, which may be worth $29,000 in January, and then show its highs and break the milestone of $65,000 in the spring, and return to the level of $29,000 in July, losing 53 percent of its value.

Now, many institutions are hesitant in choosing between gold and bitcoins, since each asset has its own pros and cons. Bitcoin wins in the moment of "reflexive trading" or anticipation of impending inflation. Bitcoin is completely decentralized and does not depend on banks and governments of any country, which is why many investors choose bitcoin solely because of its decentralization and growth prospects in 2021.

Gold and bitcoin are very similar, as they are identical protectors against inflation in the market. The number one digital currency, like gold, is in limited supply.

At the moment, there are only 21 million bitcoins in circulation. Since the lion's share of bitcoins is trading against the dollar in a pair, if the dollar falls in value, and there is no corresponding concomitant fall in bitcoin prices, then the number one cryptocurrency will rise in value. However, many institutions are still faced with the choice of the ideal remedy for inflation.





Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin analysis for July 26. Bitcoin rose sharply in recent days but growth potential is limited



The wave counting of the 4-hour chart of the bitcoin cryptocurrency is not quite standard, but at the same time, it is quite understandable. The instrument is moved exclusively by three-wave corrective structures of different sizes. All these structures are clearly visible in the picture. Based on this and the fact that the instrument failed to break through the 100.0% Fibonacci mark, I assume that the construction of a new three-wave pattern has now begun, this time an upward one. If this is indeed the case, then the supposed wave a may already be completed or is nearing its completion. If this assumption is correct, then the formation of a downward corrective wave b may soon begin with targets located near $34,229, which corresponds to 50.0% Fibonacci. After that, the instrument can make another attempt to rise to the 38.2% Fibonacci level, where most of the previous upward waves ended.

The news background for bitcoin, as I have said many times, remains quite negative. But at the same time, the markets still found reason for optimism, since the cryptocurrency has risen by several thousand dollars over the past few days. The greatest support for bitcoin was, as is often the case, Elon Musk, CEO of Tesla and Space X. Musk said at a conference on digital assets that not only Tesla and himself own bitcoin, but also his company SpaceX. In addition, Musk again said Tesla could return to bitcoin car sales. These messages from one of the richest people on the planet have sparked an increase in demand for bitcoin. In addition, today it became known that Amazon CEO Jeff Bezos is also considering the possibility of using the most popular cryptocurrencies when paying for goods and services.

However, this news was not confirmed personally by Bezos, but it was reported by several sources at once. And besides that, the integration of digital assets into Amazon's business could be expected by the markets. Nevertheless, it is one of the largest and most expensive companies in the world, and such companies try to keep up with the times and not lose sight of new technologies. So, most likely, this information is true. And bitcoin, which was not trading too actively on Sunday, rose by $5,700 tonight. Obviously, some event led to such an increase. And there were no other events except the news from Amazon. Thus, bitcoin has started building a new triple upward wave, but it may meet with strong resistance near the level of $41,500, where the important 38.2% Fibonacci level passes. Until a successful attempt to break through this level, there is nothing to count on a stronger growth of the main cryptocurrency.

Based on the analysis, I believe that the next three downward wave structure has completed its construction near the 100.0% Fibonacci level. Thus, the construction of the new three upward waves has now begun. The first wave may already be completed, so around the 38.2% level, I recommend catching a downward reversal and selling bitcoin with targets around $34,229. After the completion of the construction of wave b, another upward surge will follow within wave c.




Chin Zhao
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN for July 26 - 27, 2021: buy above $37,500



The Bitcoin has had strong momentum towards the 4/8 murray resistance zone. This level is the key as it represents the pivot point for a change in trend in the medium term.

The two decisive candles after BTC consolidated above 34,375 came in light of the news that Amazon is ready to start accepting Bitcoin payments before the end of the year. Amazon will look to integrate other cryptocurrencies. Ethereum (ETH), Cardano (ADA), and Bitcoin Cash (BCH) will be next in line before bringing eight of the most popular cryptocurrencies.

Undoubtedly this information has cheer up sentiment among crypto traders and some of them believe that in the coming days BTC could be trading above the psychological level of $ 40,000.

Bitcoin has surged 28% since its level of last week when it hit the support zone of 29$,687. Besides, the price has gained 12% in the last 24 hours. A further increase is likely in the coming days.

In the short term, BTC /USD could enter a consolidation phase, between the 4/8 murray zone at 37,500 and 6/8 at 40,625.

Our recommendation is to buy above 37,500 and sell below 40,650. The eagle indicator is in the overbought zone, so we should expect a correction for a new bullish wave.


Support and Resistance Levels for July 26 - 27, 2021
Resistance (3) 41,882
Resistance (2) 40,735
Resistance (1) 38,302

Support (1) 36,433
Support (2) 34,819
Support (3) 33,320



Dimitrios Zappas
Analytical expert
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