Cryptocurrency Analysis

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The effect of Tesla and other large investors: what awaits Bitcoin and other cryptocurrencies in the spring

On February 8, an announcement took place, which, in many ways, will become decisive for the cryptocurrency market, especially bitcoin. After a rapid growth to $48,000, the main digital asset dipped slightly, stopping at around $45,700. However, experts believe that this is only a temporary phenomenon and the position of bitcoin will continue to strengthen.

Obviously, the main reason for the future growth of the main cryptocurrency was a message from the founder of Tesla about a large investment in a digital asset. A $1.5 billion investment from one of the world's foremost companies is a clear signal to other potential major investors. In this case, Tesla acts not only as a kind of pioneer but also as a guarantor of the security of both carrying out operations with cryptocurrency on an ongoing basis and investment injections.



It is also worth noting that, despite the clear increased demand for cryptocurrency after the announcement of Tesla, the situation is radically different from 2017, when, after a sharp rise, the volatility of a digital asset played a cruel joke with traders. First of all, the situation in 2021 differs in the composition of the participants: if in 2017 the increased demand for cryptocurrency was created by retail traders, now a huge company with a multi-billion dollar capitalization reports about large investment injections and future cooperation. This is a sign of reliability for other large investors who will maintain interest in Bitcoin, which will not lead to a significant drawdown or a complete collapse of up to $20,000.

With a favorable coincidence of circumstances and an adequate reaction from other large investors, bitcoin may continue to grow in price and by the spring, it may reach the $53,000 mark. This growth dynamic will also benefit other cryptocurrencies such as Ethereum. Even though today is already February 10, altcoin continues to rise in price against the backdrop of Bitcoin's success. The bottom line can be said that Tesla's statement of intent could radically change the balance of power and attitudes towards the cryptocurrency market. And if Musk's company is consistent, it will surely attract a steady stream of large investments from other giants in the world markets.




Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin moves to consolidation, wait for a breakout

The main cryptocurrency has slowed after a nearly two-day rally. The momentum received from Tesla's messages about buying bitcoins faded, the BTC/USD pair moved to consolidation.

Bitcoin is currently in the middle of a wide range between support at 41,980.24, drawn from previous all-time highs, and an approximate target of $50,000 per BTC (or 51,830.92 - the 161.8% Fibonacci Extension).

In the middle of the corridor, the consolidation range 44,787.66 - 47,483.28 is clearly visible. Its appearance is quite logical, and the further direction of the pair will depend on which of the area boundaries the price breaks through.



There is a high probability of an upward exit from consolidation and reaching the next price target. But it is difficult to predict how long the price will stay in sideways and after what time the growth will take place. And the likelihood of an alternative scenario for a local downward impulse should not be ruled out.




Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ripple to continue trading upwards

As expected, XRP/USD traded sideways. In particular, around 0.4532 - 0.4769. But after that, Ripple broke through the upper border, climbing towards 0.5110, which was the high last January 30 (red dotted line).

According to analyses, if the price jumps higher, XRP/USD could reach 0.5564. There, the cryptocurrency could either undergo a breakout or a rebound downwards.

But at the time of writing, Ripple is trading at a rather strong resistance level, in which if the quote fails to break above it, price can turn downwards. Of course, this scenario is very unlikely, but there is a chance that it could happen.






Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum - Are More Gains Ahead?

A valid breakout above the R1 and through the WL3 suggests buying again!

Ethereum reached a new all-time high of $1,839 today and I believe that its upward movement is far from being over. You know from my analysis that ETH/USD increases if Bitcoin's price continues to grow.

ETH/USD is very attractive for buyers even if it flirts with new record highs. More and more buyers want to step into the game and take part in the crypto market's growth. This is one of the reasons why Ethereum continues to increase.


ETH/USD FLIRTS WITH NEW HISTORICAL HIGHS!



ETH/USD has managed to escape from the up channel's body validating more gains. The upside breakout indicates that the price should resume its uptrend. It has come back to retest the Pivot Point (1,550) static support and the broken second warning line (WL2) before registering the current upside momentum.

It has climbed as much as 1,839 level where it has found a temporary resistance. Reaching the R1 (1,829) level could bring a minor retreat after the last rally. Still, the price could register only a temporary drop before jumping higher.

The R1 (1,829) and the third warning line (WL3) represent near-term resistance levels, upside obstacles. So, breaking above these levels could bring a new buying opportunity, even if ETH/USD is traded at historical highs.


ETHEREUM TRADING TIPS!

Buy a valid breakout (close, retest) above the R1 and most important through the third warning line (WL3). Such a breakout signals a further growth towards the R2 (2,042) or higher to the R3 (2,321) in the coming weeks.




Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for February 10,.2021 - Broken symmetrical triangle and potential downside movement towards $43.425

Further Development



Analyzing the current trading chart of BTC, I found that there is the breakout of the symmetrical triangle on the 4H time-frame, which is sign that there is potential for furhter downside.

Watch for selling opportunities with the downside targets at $43,245 and $40,635.

Stochastic oscillator showing overbought condition and the bearish divergence, which is another sign for further downside movement.


Key Levels:

Resistance: $48,000

Support levels: 43,245 and $40,635.




Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical analysis BTC/USD for February 10, 2021



Overview

Trading BTC/USD: Bitcoin
The bulls must break through $43,000 in order to resume the up trend.

Closing above the Pivot Point ($43,000) could assure that BTC/USD will move higher towards cooling new highs.

As we know (10/02/2021)
1 BTC ---> $ 46,000 approximately
1 ETH ---> $ 1,700 approximately
So, 1 ETH ---> 0.0369 BTC.
One Ethereum is only worth 0.0369 Bitcoin.

We expect to see a strong reaction off this level to push price up towards $45,000 before $47,000 resistance (horizontal swing high resistance).

Stochastic (34,5,3) is seeing major support above 30% and a bullish divergence vs price also signals that a reversal is impending.

According to the previous events the price is expected to remain between $45 k and $47 k levels.

Profit target reached perfectly once again, prepare for a bounce from the area of $45,000.

Buy-deals are recommended above $45,000 with the first target seen at $46,000. The movement is likely to resume to the point $46,500 and further to the point $47,000.

Moreover, in larger time frames the trend is still bullish as long as the level of $44 k is not breached.

A daily closure above $47 k allows the pair to make a quick bullish movement towards the next resistance level around $48,206.


Trading recommendations
The trend is still bullish as long as the price of $ 45 k is not broken. Thereupon, it would be wise to buy above the price of at $45,000 with the primary target at $ 47 k. Then, the BTC/USD pair will continue towards the second target at $48,206 (a new target is around $48,206).





Mourad El Keddani
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BTC/USD for February 10 - 12, 2021: $50,000 short term goal

According to Michael Novogratz, CEO of Galaxy Digital, Bitcoin may hit $100,000 by the end of 2021. The widespread adoption of BTC / USD initiated by companies will primarily support the increase in value.

Tesla Inc. has already taken the Bitcoin route, allowing customers to purchase their electric vehicles using BTC / USD. Novogratz acknowledges that "he will see that every company in America will do the same."

Meanwhile, Bitcoin today February 10 is trading at $45,830. If Bitcoin sustains above the 21 SMA above $43,000 this will allow buyers to join the market as they target higher highs towards $50,000, and in the long term as analysts say up to 100K.

We see a possible bullish pennant pattern, a break above $47,500 will open the way to 50K and 55K, as this is possible in the short term.

Our recommendation is to buy above $43,000 and when the bullish pennant breaks, with the first target up to the $50,000 zone.



Support And Resistance Levels For February 10 - 12, 2021

Resistance (1) $47,738
Resistance (2) $48,921
Resistance (3) $50,894

Support (1) $42,628
Support (2) $40,986
Support (3) $40,146





Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin reverses

Bitcoin reached an important Fibonacci extension target at $47,800 and is now pulling back. Price is at $44,730. Trend remains bullish despite today's weakness. As long as price is above $32,500 short-term trend is bullish.



Red lines - Fibonacci extension

BTCUSD has reached the 161.8% Fibonacci extension of the first upward move from $28,930 to $38,638. A pull back towards $40,000-$41,000 is justified and could provide fuel for the next upward move that could push price above $50,000. The Daily RSI is overbought but is not making new higher highs. This is a bearish divergence. This is not a reversal signal but just a warning for bulls to be cautious.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin collapsed after consolidation: what's next?

After today's consolidation in the 44787.66 - 47483.28 range, marked with red dotted lines, BTCUSD quotes have broken through its lower border. The 4-hour chart does not yet show a clear consolidation after the breakout, while the 1-hour chart shows a bearish candle below the level.

Nevertheless, it is too early to draw final conclusions that the growth has ended. But if we assume that the consolidation below 44787.66 will take place and the price will move down even further, the following scenarios are possible.

The first is reaching the 100 Fibo Expansion level and turning upwards from it. If it does not stop the price and the BTCUSD continues to fall, then they may stop at the previous high - the 41980.24 level and turn around from it.

The third scenario is a breakdown of the 41980.24 level, consolidation below it. If this horizontal is confirmed as resistance, then we can expect Bitcoin's price to sharply weaken.



However, this is a perspective based on the current information available. These are assumptions that might be insufficient enough for you to open a trade, but instead it provides guidance and understanding of what needs to be monitored. Tomorrow, when we are likely to have clarity as to which side of the local level of 44787.66 the price will settle in, the forecast may change.





Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ripple's upward trend is relevant

XRP/USD pair's attempt to rise after consolidating above the level of 0.5110 expectedly turned out to be unsuccessful. The reason lies on the local upward channel 0.3883 - 0.4469 - 0.4645 from February 7 (highlighted in a dashed line in the chart).

Apparently, the breakdown of the resistance of this trend was a false one, despite the fact that the preconditions to break through the level of 0.5110 were present.

It is noteworthy that on the four-hour chart, a bearish absorption candlestick pattern formed during the rapid fall to the last. However, XRP/USD managed to recover some of its losses in the end, and the bearish candle received a long lower shadow.



As for the hourly chart, one can observe that the breakdown of the lower border of the upward trend and the support level of 0.4769 resisted, whose breakdown (punctured by shadows) turned out to be false too. In this case, the price recovers in the channel, which is quite technical. However, these long shadows and false breakdowns are somewhat confusing, forcing us to stay aside.

Now, it is worth noting the borders of the ascending channel 0.3883 - 0.4469 - 0.4645 from February 7 and the side range of 0.4769 - 0.5110. We will continue to observe whether there will be an exit from then up soon, or both support levels will be broken.






Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021