Cryptocurrency Analysis

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Ethereum outperforms Bitcoin



Although both Ethereum and Bitcoin fell from record highs, ETH is up 530% since December, which widens its gap against BTC by more than 400 percentage points. It also offsets the fact that Bitcoin's market cap is around $ 1.1 trillion, almost double the value of Ether at $ 550 billion.

The most significant difference between the two is that Ether sees more growth, thanks to other sectors in the crypto world, such as DeFi, NFT and metaverse.

"The current BTC trading window seems to associate the asset more with global currency trends, inflation hedges, etc," said Stephane Ouellette, CEO and co-founder of FRNT Financial. "While ETH has, at least from a current market perception standpoint, higher correlations with the growth of crypto sub-sectors," he added.

Ether is at the heart of the Ethereum network, the dominant blockchain used for thousands of decentralized applications, which has become more and more popular this year. It has gone through an update that was expected to help make it faster and more scalable.

As such, the token is heading to record highs again, resuming the rally that was canceled late last week amid wider risky asset turmoil. During that time, Ether bounced off $ 3,900 and rose by roughly 13%.

Dogecoin skyrocketed as well, climbing around 3.1%.



And on Tuesday, Ether rose 4.9% to $ 4,671 before cutting profits. Investors bought approximately $ 23 million worth of Ether last week, according to data compiled by CoinShares. This makes it ahead of Bitcoin this year, with the exception of four months. Right now, one Ether is equivalent to roughly 8% of Bitcoin.

Bitcoin, meanwhile, is down 1.9% to $ 57,221, below the record high of nearly $ 69,000 earlier this month.



Miller Tabak chief strategist Matt Maley said: "I don't want to get too excited about this move too quickly. However, ethereum has been outperforming bitcoin over the past month. Should it break out above its mid-November highs while bitcoin continues to sit below both its mid-November and its April highs, it will show that ether has become the new crypto of choice for most investors."






Andrey Shevchenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for December 1, 2021

Crypto Industry News:
Michael Saylor, CEO of MicroStrategy's corporate data analytics firm, announced via a Twitter post that the company had purchased an additional 7,002 Bitcoin worth approximately $ 414.4 million at an average price of $ 59,187 per coin. MicroStrategy sold 571,001 shares of the company between October 1 and November 29 for $ 732.16 per share, raising a total of $ 414.4 million.

The company currently has 121,044 Bitcoins worth up to $ 3.57 billion. They were acquired at an average price of $ 29,534 and include the capital appreciation of the previous coins.

In August 2020, MicroStrategy announced that it would adopt Bitcoin as its treasury reserve asset, citing digital currency as a "reliable means of custody" and an attractive investment with a greater long-term return potential than cash. In addition, the company stressed that stimulus packages printed by governments to combat COVID-19 are a catalyst for potential inflation and the subsequent depreciation of fiat currencies. Since then, MicroStrategy has almost consistently been buying Bitcoin every quarter.


Technical Market Outlook
After the ABCxABC complex corrective pattern might have been completed at the level of $53,331 the BTC/USD pair has bounced towards the wave B high seen at $59,403. The bulls are ready to resume the up trend again. The recent local high was made at the level of $59,195, but in order to confirm the up trend continuation bulls must break through the wave X high located at $60,013. The nearest technical support is seen at the level of $55,748 and $53,306. The larger time frame trend is still up.

Weekly Pivot Points:
WR3 - $65,476
WR2 - $62,564
WR1 - $59,328

Weekly Pivot - $56,242
WS1 - $53,008
WS2 - $49,857
WS3 - $46,541


Trading Outlook:
The ABCxABC complex corrective cycle might be terminated. According to the long-term charts 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. This scenario is valid as long as the level of $52,943 is clearly broken on the daily time frame chart (daily candle close below $52,000).








Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for December 1, 2021

Crypto Industry News:
According to a recent study, almost half of retail investors in Russia believe that cryptocurrencies like Bitcoin are hedging assets tied to a stable income.

The survey was conducted among 1,000 Russian retail investors to find out what types of alternative investments are the most sought after.

According to the study, as many as 46% of respondents perceived cryptocurrencies as a potential defensive resource allowing them to protect themselves against financial risk in times of economic crisis.

Russian retail investors preferred cryptocurrencies over real estate, while only 37% of respondents investing in alternative assets considered buying real estate to be an effective investment vehicle. While real estate has historically been the most important hedging asset in Russia, cryptocurrencies have now become the biggest investment trend in 2021, after overtaking other traditional assets including currencies and foreign exchange stocks.

According to a study by the Big Data Brand Analytics platform, Bitcoin was the most popular cryptocurrency in Russia in October, ahead of coins such as Tether and Litecoin in terms of social media mentions.

In recent years, cryptocurrencies have become more and more popular with Russian investors. According to a study conducted last year, 77% of Russian investors prefer Bitcoin to gold.


Technical Market Outlook
After the ABCxABC complex corrective pattern might have been completed at the level of $3,910, the ETH/USD pair has broken above the short-term trend line resistance seen around the level of $4,481. The recent local high was made at the level of $4,782, so the up trend continuation had been confirmed. The nearest technical support is seen at the level of $4,670 and $4,642. The larger time frame trend is still up and the next target for bulls is seen at the level of $4,876 (last ATH).

Weekly Pivot Points:
WR3 - $5,126
WR2 - $4,890
WR1 - $4,581

Weekly Pivot - $4,237
WS1 - $3,938
WS2 - $3,595
WS3 - $3,100


Trading Outlook:
The ABCxABC complex corrective cycle might be terminated, so the next long-term target for ETH is seen at the level of $5,000. Nevertheless, in order to continue the long-term up trend, the price can not close below the technical support at the level of $2,906. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls. The level of $3,677 is the key mid-term technical support for bulls.








Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Ripple reversal pattern violated

Ripple resumed its rebound and now it's trading at 1.0059 level. Still, after its rally, XRP/USD could come back to test and retest the immediate support levels before resuming its upside journey.

Technically, the price action signaled that the downside movement is over and that the buyers could take full control. I've told you in my previous analysis that XRP/USD developed a bullish pattern, a reversal pattern.

In the last 24 hours, the crypto is up by 2.20% but is in the red by 3.19% in the last 7 days. It remains to see if the price will have enough energy to stabilize above the 1.0 psychological level.


XRP/USD 1.0 PSYCHOLOGICAL LEVEL BREAKOUT!



XRP/USD registered only false breakouts below the 0.9000 psychological level signaling an oversold. It has developed a Falling Wedge pattern and now it has managed to escape from this chart formation.

As long as it stays above the 50% (0.9637) retracement level and above the 0.9765, Ripple could extend its upwards movement.


XRP/USD FORECAST!

A minor consolidation above 1.0 psychological level could signal an upside continuation and could bring new long opportunities. After failing to approach and reach the median line (ML), XRP/USD could be attracted by the upper median line (UML).





Ralph Shedler
Analytical expert of InstaForex
© 2007-2021

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Microstrategy acquires another 7,002 bitcoins worth $415 million, and Michael Saylor is confident that bitcoin capitalization will reach $100 trillion in the future




Microstrategy did not stay on the sidelines, but made another fabulous purchase of bitcoin. Microstrategy and its director Michael Saylor are among the most ardent supporters of bitcoin.

The company kept and bought bitcoins even when there were protracted bear markets, as well as selling bonds and getting into debt. At the moment, the company has acquired another 7002 bitcoins and the total purchase amount was approximately $415 million.

Now the company's portfolio contains 121044 bitcoins, which make the company one of the most powerful and influential in the crypto sector.

Saylor is certain that bitcoin is the future and he never sleeps, which contributed to his rollback from $54 to $57,000. According to Saylor, bitcoin is the only property that a person can fully and completely own.

This is the only technology that can grant ownership to every citizen on Earth. On average, the company bought bitcoin at a price of $59,185 per coin.

Yesterday, the company completed the purchase and plans to extend all its funds to the melt for at least ten years. The total amount of bitcoins was purchased at an average price of almost $29,500.

However, despite this purchase, the price of digital gold fell by 1% to $ 56,600. Saylor is confident that bitcoin can break through the capitalization of 100 trillion dollars.

According to Saylor, bitcoin is already hitting gold on all fronts and will soon reach its capitalization, and within ten years it may have a capitalization of more than $100 trillion.

Saylor is unequivocally confident that the current rules, regulations and tightening regarding the crypto sector do not bother him. They will not contribute to the fall of bitcoin in any way. This may affect stablecoins or some altcoins, but it will not affect bitcoin in any way.






Vitaly Kolesnikov
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

XRPUSD vulnerable to more downside if price breaks below $1.



Since November 12, the price of Bitcoin is oscillating within a downtrend channel formed below the 200 EMA. In 4-hour charts, there were several occasions to break and consolidate above the 200 moving average. But non of the attempts have been successful. Every time the price approaches this level, BTC falls and loses strength.

This rally seen in recent hours is its sixth attempt to consolidate above this level of the 200 EMA. A sharp break above the downtrend channel and a consolidation above the moving average will be the start of a new bullish wave. If the price of BTC trades above these levels it will give us the opportunity to buy with targets at 62,500 and could go up to 3/8 of a murray at 68,750.

Investor sentiment on Bitcoin is being very cautious and fearful, in view of the fact that the new variant of COVID-19 is still under study and the impact is expected not to be detrimental to the global economy. It is likely that below the psychological level of 60,000 Bitcoin can make a technical correction towards the support of 56,250.

On the other hand, if Bitcoin fails to consolidate above 58,913, it is likely that it will resume its main bearish movement and may fall below the SMA of 21 located and 55,911. The goal in the short term will be the psychological level of 50,000.

Our trading plan is to wait for a break through the 200 EMA at 58,911. At this level, it will be a good opportunity to buy with targets at 62,500 and up to the 3/8 of Murray located at 68,750.


Support and Resistance Levels for November 30, 2021
Resistance (3) 62,205
Resistance (2) 60,515
Resistance (1) 59,437

Support (1) 56,541
Support (2) 54,851
Support (3) 53,709


A trading tip for BTC November 30, 2021
Buy if breaks above 200 EMA at 58,913, with take profit at 62,500 (2/8) and 68,750 (3/8), stop loss below 58,150.





Dimitrios Zappas
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Institutional Investors Invested Record $9.5 Billion In Cryptocurrency


Bitcoin looks good after Monday's rally. And even Tuesday's morning fall has been redeemed, and the daily candlestick (albeit still unclosed) leaves a long lower shadow, balancing on the edge of the red and green zones.

Now we see that the main cryptocurrency has consolidated in the sideways 55,842.84 - 59,283.67, in which it has a small margin of resistance. After that, we will see either a reversal and continued consolidation, or a breakout with consolidation above the $60,000 mark. If this happens, Bitcoin will continue to grow.

Meanwhile, market reports show very optimistic information.


INSTITUTIONAL INVESTMENT IN CRYPTOCURRENCY AT THE HIGHS

The cryptocurrency market is trying to get back to a $3 trillion market cap. There is now evidence that institutional investors have invested nearly $306 million in cryptocurrency investment products over the past week. Annual inflows reached an all-time high of $9.5 billion.

Bitcoin investment products showed the largest institutional influx in 5 weeks, totaling $247 million. At the same time, global Bitcoin assets under management reached $48 billion. In addition, the total value of crypto assets under management in the world reached $72.8 billion last week.


NOT BITCOIN ALONE
In addition to BTC and ETH, other crypto products, including Polkadot and Solana, have become winners in the multi-asset category. Last week, DOT and SOL accounted for 8.6% ($11.5 million) and 5.9% ($14.6 million) of assets under management, respectively.

Multi-assets are the third largest investment product with a total of $4.6 billion in assets under management.

The data shows that the overall dominance of altcoins is growing rapidly. Although Bitcoin is still the largest crypto asset in the world, its dominance has gradually declined in the past few months. The reason for this was the sharp rise in the market dominance of BNB, Solana and Polkadot.

This once again confirms that the downturns in the crypto market are only temporary, at least now, when the surges are caused by attempts to escape from risk amid high-profile news. The bull market continues.








Ekaterina Kiseleva
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Energy Crisis and Mining Problems May Hinder Further Bitcoin Recovery: Possible Options of BTC Price Movement


Bitcoin kicks off its new trading week briskly, recovering above an important support area. Technical indicators are overgrowing with bullish signals, and on-chain activity continues to grow, but despite all the local positives, there is a possibility that the current correction will worsen. This is due to the problems that have arisen in the energy industry and the first decrease in the bitcoin hash rate since June 2021. I suppose that this news will be an appetizer served before the main course, which will have a significant negative impact on the growth of bitcoin quotes.

One of the most obvious reasons for the possible aggravation of the correction is its duration and insignificance compared to other similar periods for 2020-2021. However, the probability of aggravation of the correction is supported solely by technical reasons.

There's more disturbing news from the fields of the mining industry, where the difficulty of mining bitcoin has decreased by 1.43%. The probable reason for this is the blocking of mining pool domains in China, as well as a significant shortage of electricity in Kazakhstan. In addition, representatives of the mining industry from Texas and Kyrgyzstan are notifying about the impending energy crisis.



By themselves, minor power outages look like local problems, but the global recognition of energy generation problems raises significant concerns about the future of mining in general. This will be especially acute for Bitcoin, which has already stepped on the path of recovering quotes before a full-fledged bull rally.

If the problem is not resolved or disguised in the near future, then we should expect problems with the main Bitcoin network, the growth of fees, and low transaction speed, which will negatively affect the updating of historical highs.

In the long term, the effect can be commensurate with the situation in June 2021, when BTC was heavily criticized for being unsustainable. In the short term, problems with mining may not have a defining effect and the bull market will start without too many problems. However, its consequences and general excitement can significantly aggravate the crisis issue of energy consumption.

Meanwhile, bitcoin has dropped slightly after the impulse growth but continues to hold the $57k mark, which is a bullish signal. The coin has confidently overcome the resistance zone around $56.4k and is trying to gain a foothold above it. So far, this idea has not been implemented, since the 0.382 Fibo level perfectly plays the role of a resistance zone, which does not let the price go higher.

However, a more global picture indicates an imminent breakdown of this milestone. Judging by the technical indicators, the bullish audience has activated and begun a massive buyback of the bears supply. This is reflected in the growth of the main metrics: the MACD is bullish for the first time in several weeks and begins to move towards zero, while the stochastic and relative strength index settled in a bullish zone, which indicates an increase in the number of purchases and a gradual price movement towards the $60k level.



Taking this into account, I expect that bitcoin will continue its upward movement and will be able to make an impulsive breakdown of the 0.382 Fibo level. Subsequently, this mark will become a support level for the coin while moving to the next line, in the $60k area, which will become an important psychological area, breaking through and consolidating above which will take some time.





Artem Petrenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin expected to continue bounce higher towards $60,000.

In our previous post Bitcoin was showing reversal signals. Our next target is around $63,000. Bitcoin is starting to form higher lows. A break above recent high at $58,825 will most probably push price closer to our target.



Green lines - Fibonacci retracements

Bitcoin is now just below $58,000 and I expect to see price closer towards $63,000 by the end of the week. I believe the move from its all time highs to $53,000 is over and it is time for price to bounce. The strength and length of this upward move will make it more clear if we should expect another leg lower below $53,000 or we should be preparing for new all time highs and a hot December.






Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BTC analysis for November 30,.2021 - Potential for further rally

Technical Analysis:



BTC has been trading sideways today but with strong reaction of the previous day low at $56,000.


Trading recommendation:
Due to the oversold condition in the background and strong upside cycle in the background, I see potential for the upside movement.

Watch for buying opportunities on the pullbacks with the upside objective at $59,950 and $62,450.

Support is set at the price of $53,500






Petar Jacimovic
Analytical expert of InstaForex
© 2007-2021