Cryptocurrency Analysis

[IFX_Selena]

Trading plan for Dogecoin for July 14, 2021



Technical outlook:
Dogecoin seem to be preparing to produce a rally towards at least $0.44 levels, before the crypto could meet some resistance. Bottom line remains that prices must stay above $0.15 lows, to keep bullish structure intact. Also note that Dogecoin bulls have found interim support around the previous lows around $0.17 levels as marked on the daily chart.

Dogecoin is seen to be trading around $0.19 levels at this point in writing and is expected to turn bullish from here pushing higher towards $0.44 levels going forward. Immediate resistance is also seen towards $0.44 mark, while support comes in around $0.15 levels respectively. A break above $0.44 will confirm that bulls are back in control over the short term.

Dogecoin has been retracing its recent upswing between $0.15 and $0.28 levels respectively. The drop has been corrective until now and might have reached fibonacci 0.618 retracement around $0.19 levels (not shown on the chart here). If a bullish bounce appears here, we can see prices rallying past $0.44 levels in the near term.


Trading plan:
Remain long for now, stop @ 0.14, target @ 0.44

Good luck!




Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

UK continues to fight bitcoin and cryptocurrency advertising

Local reports say UK police have confiscated another £ 180 million ($ 250 million) worth of cryptocurrency as part of a money laundering investigation.

A few weeks ago, they already seized £ 114 million worth of cryptocurrency during an anti-money laundering operation.



It seems that UK authorities are taking the issue seriously and are not going to retreat until they completely take control of it. Perhaps, they may not even stop until they completely get rid of the whole crypto market. Of course, no such announcement has been made, but the Advertising Standards Authority (ASA) announced that they will fight misleading ads promoting cryptocurrency investments. Any advertising related to cryptocurrency will be controlled by the department.

The move stemmed from the dissatisfaction of ASA with the way cryptocurrency advertising campaigns are being conducted in the country. Hence, the organization said they will regulate advertisements more strictly, in order to not mislead citizens who are not very knowledgeable about the crypto industry. If the ads do not meet the standards set by the ASA, it will be removed.

This measure resembles the actions of Chinese authorities, who also prohibited the use of cryptocurrencies in their country.

In another note, a leading private sector bank in India asked clients not to use their money transfer scheme (LRS) for any cryptocurrency-related investment. ICICI said they already updated their outbound remittance application in accordance with the Foreign Exchange Management Act of 1999 (FEMA), which says that they should not use the money transfer scheme for any investments related to cryptocurrency.

So, when transferring money, clients now have to indicate that they will not use it for anything related to cryptocurrencies. This is not the first measure taken by ICICI, as it, along with other major Indian banks, stopped serving crypto clients after Reserve Bank of India issued an executive order that prohibited banks from providing services to cryptocurrency companies.



All this affected Bitcoin slightly, but the cryptocurrency did not really show major movements over the weekend. Now, a lot depends on $ 36,000 because going above it will result in a jump towards $ 41,100, $ 46,700 and $ 52,000. But if the price drops below $ 32,400, Bitcoin will plunge to $ 30,000, $ 25,700 and $ 21,650.





Jakub Novak
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading plan for Ethereum for July 14, 2021

Technical Outlook:
Ethereum seems to be preparing to stage a rally towards $2,850 levels in the next few weeks. Bottom line remains that prices must stay above $1,730 lows, to keep the above bullish structure intact. As seen here, the crypto is still holding above its March 2020 trend line support keeping the uptrend intact.

Ethereum is seen to be trading around $1,940/50 levels at this point in writing and is expected to resume its rally soon. Immediate resistance is seen towards $2,850 mark, while support comes in around $1,730 levels respectively. Bulls might e preparing to break through $2,850 resistance and confirm they are back in control and here to stay.

Ethereum is working on its recent upswing between $1,730 and $2,400 levels since last few trading sessions. The corrective drop might have reached its fibonacci 0.618 retracement around $1,900 levels and is expected to produce a bullish bounce here. If the above structure holds well, Ethereum might rally towards $2,850 at least in the near term.


Trading plan:
Remain long, stop @ 1,600, target @ 2,800


Good luck!





Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading plan for Bitcoin for July 14, 2021



Technical outlook:
Bitcoin has drifted lower towards $31,600 levels today but still remains constructive for bulls to come back strong and stage a rally towards $43,000 in the near term. Bottom line remains that prices should stay above $28,500 lows for bullish structure to hold. A break above $34,100 will confirm that a meaningful bottom is in place already and that bulls are back in control.

Bitcoin is seen to be trading around $31,800/900 levels at this point in writing and is expected to find support ahead of $30,500 lows registered earlier. The corrective drop from $36,000 levels is taking a bit complex structure to unfold, before the uptrend could resume. Immediate support is seen at $28,500, while resistance comes in around $42,600 levels respectively.

On the flip side, if prices break below $28,500 levels, bears would be poised to push further towards $16,000 levels in the next few weeks time. It would be interesting to see how prices react around $30,500 levels in the near term.


Trading plan:
Remain long for now stop @ 28,000, target @ 42,000.

Good luck!





Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

XRP/USD could make a new lower low over the coming days.

XRP/USD remains in a bearish trend for the last few months. Price continues making lower lows and lower highs. Current price action remains weak and price is vulnerable to another sell off and a new lower low towards $0.40.



Green rectangle- major resistance

Blue lines - Fibonacci retracement levels

XRPUSD is still trading below the key horizontal resistance area. Price has retraced 78.6% of the entire 2021 rally. It would be very interesting to see if and when price makes a new lower low, will the RSI follow or we will see a bullish divergence. So far price action has not given us any bullish reversal signal. Bears remain in full control of the trend. Breaking above $0.75 would be the first bullish signal after a long time. At current levels I prefer to be neutral and not bearish as I believe the downside potential in XRPUSD is limited.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Interest in bitcoin is falling. Bitcoin is preparing to plummet to $24,000



Bitcoin continues to be in a half-asleep state in recent days, but it still tends to fall. It has already been mentioned that the cryptocurrency formally continues to remain inside the side channel of $29,700 - $40,700, but it has not been near the upper limit of this channel for a very long time. A month ago, the quotes regularly returned to the range of $35,000 - $40,000, but now the trades are mainly in the range of $31,100 - $36,100. Thus, from our point of view, this is another factor that indicates a very likely continuation of the fall of the first cryptocurrency. It can be recalled that the factors that continue to indicate bitcoin's fall, and with it the entire cryptocurrency market, remain unchanged:

-The upward trend is complete. And in such cases, bitcoin goes into consolidation and correction for 1-2 years, during which it loses up to 80-90% of its value.

-The Chinese authorities have banned financial organizations from providing any services related to cryptocurrencies, and mining has also been banned. And given that China was in first place in the world in terms of the number of mining equipment, this negatively affected bitcoin's position.

-The US authorities are going to tighten the regulation of cryptocurrencies in the field of taxation in the near future. They believe that many investors evade taxes with the help of cryptocurrencies, so all exchanges and other crypto companies will be required to report all transactions worth more than $10,000 to the Tax Office.


-Elon Musk has changed his rhetoric regarding bitcoin. It is now a slow, energy-inefficient, and expensive cryptocurrency, which has a lot of more attractive alternatives.

-Investors clearly do not see any new reasons for buying the main cryptocurrency at this time.

All these reasons continue to put pressure on bitcoin. Today, it became known that its popularity is falling not only among traders and investors, but also among ordinary people. According to a study by Google, the number of search queries with the word "Bitcoin" has fallen to the values that were observed in mid-November last year. Then, the cryptocurrency was worth $16,000. This suggests that the next world hype has passed. Since bitcoin is getting cheaper, no one is interested in it. And since no one is interested in it, it means that it is getting cheaper. It is, indeed, a vicious circle. Thus, the decline of the quote of bitcoin is likely to resume in the near future, because there are simply no other options at this time. Institutional investors, according to some reports, keep bitcoin from falling below $30,000, but how long will they buy back all the coins on sale at this price? It should be understood that they will not be able to buy all the coins and rule the market without the participation of small traders and retail investors.



Technically, bitcoin has already fallen to the support level of $31,100 five times and is currently heading towards it for the sixth time. In the coming days, the cryptocurrency will again test the strength of the levels of $31,100 and $29,700. From our point of view, overcoming these levels, and a new drop in bitcoin, is only a matter of time. However, as long as these obstacles are not passed, "digital gold" retains the chances of growth to the level of $40,700. But this also requires the desire of investors to buy bitcoin.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin remains vulnerable to a move below $30,000.

Bitcoin volatility has dropped dramatically. Bitcoin price is trading above $30,000 and below $40,000 since May. Since late June price is stuck between $31,000 and 38,000. Price has formed a short-term bearish channel and as long as we do not see any sign of strength, I expect Bitcoin to eventually break support of $30,000 and push lower towards $25,000 mostly because of activation of sell stops.



Blue lines - bearish channel

The upper channel boundary resistance is at $34,600. Support is at $31,180. Price is making lower lows and lower highs after the high of $36,500 on June 29th. Breaking above $36,500 is crucial for bulls as this will push price higher towards $41,000. Until then price is vulnerable to breaking lower support levels.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin: Institutions are not scared, they are gaining positions

While bitcoin is trading at very low volatility, news reports confirm that major players are using this time to accumulate positions. In earlier reviews, it was noted that the sideways range indicates that there is a large collection of volume, someone from "major players" is pushing bitcoin from one border of the corridor 31,082.82 - 41,980.24 to the other.

The news suggests that hedge funds are considering the decline of the crypto market as an investment opportunity and do not seem to be afraid at all. Despite the fact that bitcoin has lost more than half of its value in US dollars, players with big money, such as hedge funds, still hold positions in the digital currency.

Institutional investors are now increasing their presence in the field of cryptocurrency and blockchain. Back in June, a survey of 100 financial directors of hedge funds around the world showed that they expect an increase in the volume of digital coins in their portfolios.

Speaking to Cointelegraph China earlier in July, Cornell University professor and creator of Avalanche Emin Gun Sirer said the current downturn in the market has hardly dampened enthusiasm among institutional investors. According to Sirer, the legitimacy of cryptocurrency as an asset class is "beyond doubt."

He noted that even pension funds are starting to slowly transition to virtual coins.

Joe DiPasquale, CEO of crypto hedge fund BitBull Capital, also echoed Sirer's comments, saying in an interview with Cointelegraph, "Institutional investors remain motivated and continue to build positions at key support levels. Naturally, the hype in the market has subsided, but these downturns have historically been favorable times for a long-term entry. "

A representative of Nickel Digital Asset Management, a hedge fund with a turnover of $200 million, also spoke about the new strategies of institutional players against the background of the current trading of cryptocurrencies with a limited range. He said that the fund observes the active and constant participation of the entire institutional community, including pension and hedge funds:

"Recent volatility has proven to be an opportunity for certain trading strategies (eg, market neutral arbitrage), while at the same time discouraging others (beta risks for underlying cryptoassets). In fact, this created an immediate demand for low volatility protection funds. Investment objective, size and risk tolerance are critical factors in evaluating any investment opportunity, especially in cryptography. "

Indeed, Nickel Digital has recently rebalanced its cash position as a result of the current market downturn. The company called it an exercise in"financial discipline."

Thus, there is no reason to cancel the forecast of a possible rebound of bitcoin up from the sideways support 31,082.82 - 41,980.24. Or from the low of 28,392.99. Only the price is moving towards these targets very slowly, but this does not change the situation. For those looking for an entry point, it is important now to be patient. The result is good profit potential with low risk.







Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ripple Down Channel Breakout Indicates Reversal!

Ripple has been trading sideways in the short term but it could soon turn to the upside after escaping from a major down channel. Bitcoin's decline has brought sellers to other cryptocurrencies, the altcoins are going down.

XRP/USD breakout above the downtrend line was validated, now we need a bullish spark to be able to identify long opportunities. The pressure is high in the short term as the crypto stands under the weekly pivot point.


XRP/USD SIDEWAYS MOVEMENT!



XRP/USD has retested the 0.6411 pivot point and now it goes down. The next downside target is around the S1 (0.5865).

On the other hand, failing to approach and reach the S1 followed by a potential bullish fly above the pivot point could signal that the downside is limited and that the bulls could take the lead.


FORECAST!
Jumping above 0.6574 high could be seen as a bullish signal. Failing to approach and reach the S1 could announce a bullish movement. XRP/USD has moved away from the broken downtrend line signaling that the buyers are still present.





Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN for July 13 - 14, 2021: Key level $31,250



The price of BTC continues to consolidate for a few week in a row. Now on the 4-hour chart, it is located below the resistance level of the 200 EMA and the 21 SMA, showing a bearish bias.

BTC price range suggests that in the 31,250 zone there could be a technical rebound. There is also the 5/8 of murray. This level is the key that could give us an opportunity to buy with targets at the 200 EMA around 35,000.

On the contrary, if the downward pressure intensifies, and BTC price falls below the psychological level of 30,000, a bearish move to the 25,000 level of strong support zone of 4/8 of murray is expected.

Bearish sentiment could continue to prevail for longer, as long as BTC / USD falls below the 200 EMA. The outlook will remain to the downside to the level of $25,000 per token.

Our recommendation is to sell BTC each time it approaches the 35,000 resistance zone, or the 200 EMA in 4-hour charts, with targets at 5/8 (31250) or if it breaks this zone sharply up to 2,500 (4/8).


Support and Resistance Levels for July 13 - 14, 2021
Resistance (3) 34,877
Resistance (2) 34,039
Resistance (1) 33,276

Support (1) 31,863
Support (2) 29,976
Support (3) 28,710




Dimitrios Zappas
Analytical expert
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