Cryptocurrency Analysis

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Technical Analysis of BTC/USD for June 28, 2021

Crypto Industry News:
The shutdown of around 90% of BTC mines in China contributed to a record low hashrate. Such levels (just over 101 TH / s) of bitcoin mining have not been seen for over a year.

Although the hashrate level affects the security of the entire blockchain network and the low value can be a concern, it should be remembered that Chinese miners will resume their activities in other countries in a few weeks. Thus, the situation should normalize.

The time-consuming and costly transfer of BTC mines from China to other countries is a consequence of the Chinese government's decision. Despite the fact that the mines have not yet completed the relocation of equipment, opinions are beginning to appear criticizing China's decision. After all, the country until recently had about 50% of the network's shares. At the same time, this is great news for people who were afraid that so much power is in the hands of one country. Now companies specializing in bitcoin mining are moving to Kazakhstan and the USA, among others.


Technical Market Outlook:
The BTC/USD pair has bounced from the level of $30,142 and no new lower low was made. Currently, the bulls are trying to hit the level of $35,434, which is the local high from 25th June. If this level is violated, then the next target for bulls is seen at the level of $36,610, which is the 61% Fibonacci retracement of the last wave down. The nearest technical support is seen at $33,602 and the technical resistance is located at $34,834.

Weekly Pivot Points:
WR3 - $42,645
WR2 - $39,211
WR1 - $35,772

Weekly Pivot - $32,390
WS1 - $29,147
WS2 - $25,680
WS3 - $22,298


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






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BTC/USD (Bitcoin) for June 28 - 29, 2021: Buy above $31,250



The price of Bitcoin BCT / USD has been bouncing above the psychological level of $ 30,000. In daily charts, we have noticed that it has left a double bottom, and has been consolidating above this zone since May 15.

Last week, investors faced a very strong panic when BTC traded below $ 30,000. In fact, it traded below this level for a few hours, but then rallied, giving investors some relief. However, the SMA of 21 that it acts as a dynamic resistance prevented the BTC break the level of $ 35,000.

In the chart, we notice that BTC is under downward pressure as the SMA of 21 exerts pressure. This means that the offer of BTC still prevails. If it continues for a longer time, a fall could occur to the level of 4/8 of murray located at $25,000 and up to $22,000 bottom of the main bearish channel.

On the other hand, Paraguayan legislators plan to present a bill for BTC to become a legal circular currency. This news gave a small boost to BTC last week. The approval will be known on July 14.

The objective of this initiative in Paraguay is to be the center of crypto mining with clean energy, and the capital for investments in cryptocurrencies. It is undoubtedly something encouraging for BTC, but for now, the fears still persist.

The fear and generalized panic on the part of investors has taken hold of the cryptocurrency market. This sentiment is growing every day, as some expect an attempt to raise BTC to liquidate their positions because traders begin to see a probable fall of BTC below $29,000.

Our recommendation is to buy BTC above $31,250, there is 5/8 of murray. This support is not as strong as 4/8 of murray. The medium-term outlook is bullish, so BTC should consolidate above the SMA of 21 about $ 35,000.


Support and Resistance Levels for June 28 – 29, 2021
Resistance (3) 36,458
Resistance (2) 35,000
Resistance (1) 33,789

Support (1) 31,119
Support (2) 29,661
Support (3) 28,450




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin: narrow and dangerous sideways!

The local situation on the Bitcoin chart on Friday looks dull. The daily candlestick is still bearish, it marks the formation of engulfing if it is impossible to break through the resistance level of 34,708.27. But it is incorrect to conclude an unclosed candlestick, besides, we remember very well the daily candle from June 22, which turned red threateningly during the day, but eventually closed with a bullish one with a long lower tail.

Nevertheless, consolidation in a narrow range looks like indecision on the one hand. On the other hand, the side, especially as narrow as 31,082.82 - 34,708.27, sooner or later breaks through. And here the question remains about where the exit from the side will be. And there is no answer to it yet. We must wait.

The opinions of reputable analysts differ, since, probably, everyone is looking for arguments in favor of what he believes in. But globally, they do not really contradict each other, rather they relate to different time perspectives.

For example, JPMorgan notes that now large investors are not interested in Bitcoin. The main cryptocurrency, in their opinion, will be traded in the range of $23,000 - $35,000 per coin. In addition, the end of the Grayscale lock and the sale of Bitcoins can push its price down.

Meanwhile, Galaxy Digital Trading spokesman Jason Urban, says that the main cryptocurrency can renew its all-time high, you just need to wait for the flow of negative news to subside a little.

CryptoKitties, are slowly accumulating bitcoins, and the Canadian Purpose Bitcoin ETF noted capital gains during the "China crash" of the cryptocurrency.

China this time turned out to be more serious than ever in its cryptocurrency repression. Crypto exchanges are leaving the country, some are being repurposed, the market is watching the great migration of miners.

Now you need a driver. Strong, positive, or simply resonant, to push the price of BTC/USD above the local, but now so important level of 34,708.27.

So, in my opinion, the question about the price of Bitcoin now sounds like this: "How low will Bitcoin fall before it continues to rise?" And as long as it has not dropped below 28,392.99, there is no serious cause for concern.

And local scenarios for the main cryptocurrency have not changed yet, the whole focus is on the level of 34,708.27. And if today's candlestick does form a bearish engulfing, it is possible that even another testing of the level of 31,082.82 (lower red dotted line) for strength is possible.







Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

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Citigroup Inc. takes a step into the world of cryptocurrencies. Palestinian Monetary Authority considers launching own digital currency

Another giant from Wall Street, Citigroup Inc., decided to make a division that will help the richest clients to purchase cryptocurrency. The new direction will be headed by Alex Kriete and Greg Girasole.

"They will be responsible for the development of our future digital and cryptocurrency products," said Iain Armitage, Citigroup's global head of capital markets. Citigroup is forced to take such measures, as investors' demand for digital assets continues to grow, despite sharp fluctuations in the price of Bitcoin and other altcoins. Let me remind you that recently Goldman Sachs Group Inc. and Morgan Stanley engaged in targeted investment in companies related to blockchain, and also announced the provision of access to the cryptocurrency market for wealthy clients.



According to Citigroup's plan, the new group will help clients invest in cryptocurrencies, stablecoins, altcoins, as well as in digital currencies of the Central Bank or CBDC.

The newly formed division appeared just a few weeks after the executives of the six largest US banks appeared before Congress, denying accusations about their ties to cryptocurrencies. Back then, Citigroup CEO Jane Fraser said that her bank was only taking preliminary steps in this area. Apparently, the result was not long in coming.

This news did not significantly affect the cryptocurrency exchange rate, since it is far from clear who will actually use these services at present, when the rate of the first world cryptocurrency is preparing to test the bottom in the region of 20,000.

As for the technical picture of Bitcoin, the next test of the $30,100 level was very difficult and stressful for cryptocurrency buyers. However, the bulls managed to keep this level under control and quickly returned the trading instrument higher. Now Bitcoin is aiming at the resistance of $36,300, which is vital for it to get above it. Only in this case, the bulls will exhale a little, and the tension in the market will subside. If it does not work out soon, then the next return and support test of $30,100 will be a sad finale for those who gained positions in the $30,100 – $41,100 corridor. A break of $30,100 will quickly push BTC lower – to the lows of $25,800 and $21,700, which will lead to the departure from the market of another number of large investors who still somehow believe in the growth of cryptocurrencies. A return to the level of $21,700 will actually cover all the rapid growth of the trading instrument, which we observed in the first half of the year.



Today it also became known that the Palestinian Monetary Authority is studying the possible launching of its own digital currency. This is a step that can allow at least a symbolic blow to monetary independence from Israel. In accordance with the agreements of the 1990s with Israel, the Palestinians agreed not to create their own currency. Their economy mainly uses the Israeli shekel, as well as the Jordanian dinar and the US dollar.

Palestinian banks are currently awash in shekels due to an Israeli law prohibiting large cash transactions. This is how the fight against money laundering is conducted. Israel also limits the amount of shekels that Palestinian banks can transfer back to Israel every month. This may be one of the reasons why the digital currency will be attractive to the Palestinian monetary system.

The Palestinian Monetary Authority said that two studies of cryptocurrencies are currently being conducted, and a decision has not yet been made. "There is a hope that as a result, the digital currency will be used in payment systems in our country and, hopefully, in other countries," the head of the department said in an interview today.




Jakub Novak
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin's decline will only last until this summer



Jason Urban, Co-Head of Galaxy Digital Trading at Galaxy Digital, believes that Bitcoin's price decline for several months, which began in April (when the world's largest cryptocurrency began to decline from record highs), will only be until the summer.

Galaxy Digital is a diversified financial company specializing in cryptocurrencies, with four areas of activity:

-Asset management
-Trade
-Main investments
-Investment banking

The firm, founded by Michael Novogratz, recently partnered with Goldman Sachs to trade bitcoin futures.

Urban said that institutional investors will appear in this area again by the fall and will raise the price to break new historical highs, reaching at least $ 70,000 by the end of the year.

"I assume that we can safely see the price of bitcoins above $ 70,000. And most likely, the flat formed by psychological factors, such as uncertainty, doubts, fears, will last during the summer," Urban stated.



So what has been holding back so far?

Urban emphasized that institutional investors need to get more clarity in the rules.

He added that law-abiding players in the crypto space want to work with regulators to take over the power to solve problems, thereby allowing technology to evolve and develop.

Urban's comments were made due to the fact that Bitcoin has just faced a new onslaught of criticism, this time from the Bank for International Settlements (BIS), which recently reported that cryptocurrencies are a speculative asset, not money, and in most cases, it is used as money laundering, ransomware attacks and other financial crimes.

Before that, the People's Bank of China declared over-the-counter bitcoin trading in China illegal and banned several large miners from mining, reducing the cryptocurrency mining capacity in the country by 90%.

Urban said that regulation can be useful, but attempts to ban Bitcoin are simply useless.

According to him, progress cannot be outlawed. It can be regulated, but not declared illegal.





Irina Yanina
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for June 25, 2021

Crypto Industry News:
Each adult Salvadoran citizen will receive BTC worth $ 30 from the government. President Bukele's announcement was received with enthusiasm by bitcoiners. The Salvadoran government will have to purchase the BTC it intends to distribute, adding more than $ 100 million to the market in purchasing pressure.

Some estimate that El Salvador has an adult population of 6.5 million. Yahoo Finance's Zack Guzman used this figure to make a quick estimate that El Salvador will be giving away some $ 195 million worth of bitcoin to its citizens.

Exact numbers are difficult to estimate. Statista data shows that in 2019, the number of Salvadoran citizens aged 15 and over was 4.72 million.

However, the euphoria related to the above reports may be somewhat premature. Local medium Prensa Latina insisted that El Salvadoran citizens will only receive free bitcoins after downloading a cryptocurrency wallet app released by the government.


Technical Market Outlook:
The BTC/USD pair has made the local high at the level of $35,453 , but it was capped the 50% Fibonacci retracement level seen at $35,188. The nearest technical support is located at $32,156 and the Bitcoin price is trading between those two levels now. The momentum is neutral and the market conditions are not overbought yet, so odds for another wave up are high.

Weekly Pivot Points:
WR3 - $47,340
WR2 - $44,234
WR1 - $39,697

Weekly Pivot - $36,451
WS1 - $31,670
WS2 - $28,714
WS3 - $24,054


Trading Recommendations:
Even despite the recent correction 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]

Technical Analysis of ETH/USD for June 25, 2021

Crypto Industry News:
About 69,000 Bitcoins have disappeared from the South African investment platform along with the two brothers who owned it.

While the facts have yet to be proven in court, if it turns out to be an exit scam rather than a hacker hack, it would be the biggest scam of its kind in history, according to Bloomberg. Either way, there were warning signs for investors - users reportedly promised returns of up to 10% per day.

AfriCrypt was founded in 2019. The company had accumulated Bitcoin worth around $ 3.6 billion when it sent a message to investors on April 13 that the platform had been hacked.

The company said it would halt operations while launching a process of "attempting to recover stolen funds and disclosed information".

South African law firm Hanekom Attorneys, which handled the case on behalf of affected users, said suspicions were raised by a message warning that "customers may follow the legal path, but please be aware that this will only delay the recovery process."

"We were immediately suspicious as the announcement pleaded with investors not to take legal action," states Hanekom Attorneys.

The law firm also claimed that "Africrypt employees lost access to back-end platforms seven days before the alleged hack."


Technical Market Outlook:
The ETH/USD recent price action looks like a V-shape reversal price pattern, nevertheless the bulls were capped at the level of $2,017 and the Pin Bars are being made just below the 38% Fibonacci retracement at $2,064. The last wave up was terminated at the trend line resistance around the level of $2,020. The nearest technical resistance is seen at the level of $2,102 and this level must be violated in order to continue the bounce, otherwise the odds for the corrective cycle to resume are high.

Weekly Pivot Points:
WR3 - $3,146
WR2 - $2,878
WR1 - $2,557

Weekly Pivot - $2,297
WS1 - $1,962
WS2 - $1,702
WS3 - $1,348


Trading Recommendations:
Ethereum has lost more than 50% of the recent gains from the lows of March 2020 and now is currently in the counter-trend corrective cycle. The next long-term target for bears is seen at the level of $1,728 (61% Fibonacci retracement of the last wave up) and $1,420 ( January 2018 swing high). The up trend is resumed when the level of min. $3,000 is clearly violated.







Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

JPMorgan: Bitcoin will fall in price to $25,000!



Bitcoin bounced off the levels of $29,700 and $31,100, therefore, from a technical point of view, a new round of upward movement has now begun with the target of the level of $40,700. But in the last month, the view that the new fall of bitcoin is just a matter of time has not left. The thing is that the fundamental background for the first cryptocurrency in the world remains extremely weak. And this is noted by many experts and analysts. For example, analysts of the investment bank JPMorgan said that they expect a new drop in quotes to the level of $25,000 per coin. They note that the general background for bitcoin remains "bearish", and as the reason for a possible new fall, they call the possible sale of shares of the Grayscale Bitcoin Trust after 6 months of blocking expires. "Despite this week's correction we are reluctant to abandon our negative outlook for Bitcoin and crypto markets more generally... Despite some improvement, our signals remain overall bearish." the bank said in a statement. According to JPMorgan estimates, the real value of bitcoin today is $23-25 thousand. Louis Navellier, managing director of Navellier & Associates, also voiced his negative forecast. He said that he found several technical patterns on the bitcoin exchange rate chart that indicate that bitcoin will fall below $10,000. He also noted that most people who invest in bitcoin are guided by only one reason: bitcoin is just constantly growing. However, as practice shows, it is not constantly growing, and after periods of strong growth it goes into a stage of a strong fall, during which it can lose up to 80-90% of its value. Actually, in this case, bitcoin has already lost more than 50% of its value in just one and a half to two months. Thus, given that the consolidation period may take a couple of years, the forecast of a drop to $10,000 per coin can be considered quite reasonable and real. "If they bought it just because it was going up, they are also likely to sell it because it is going down. I think a break below $30,000 will lead to major downside, as the vast majority of trading in 2021 was done above that level," said Louis Navellier. According to the manager, "When it crashes this time around, it will be more brutal due to the large number of individual investors involved."



In technical terms, in the 4-hour timeframe, bitcoin quotes fell to the support levels of $31,100 and $29,700 and bounced off them. This rebound can trigger a round of upward movement within the side channel of $31,100 - $41,000. Thus, at this time, you can count on the growth of bitcoin quotes up to the level of $41,000. However, BTC may also return to the support levels and try to overcome them again.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin is kept afloat above $29,700



On Thursday, the first cryptocurrency in the world made its third attempt to overcome the level of $31,100, and at the same time the level of $29,700. And again, it was unsuccessful. On the one hand, this is good for bitcoin, since the more unsuccessful attempts to continue moving down, the more likely it is that the cryptocurrency will go up. On the other hand, the fundamental background for bitcoin remains negative, and this is noted by analysts and experts around the world. Many now expect a further drop in the quotes of bitcoin and a lot of fundamental and technical factors really speak in favor of this. Thus, yesterday's price rebound from the levels of $29,700 and $31,100 may just be another rebound before BTC breaks through these levels and rushes further down. Recall that at this time, there is a very difficult situation for bitcoin in China, where the country's authorities are expelling miners in the literal sense of the word. In addition, all financial organizations of the country are prohibited from providing any services related to cryptocurrencies. Thus, there is nothing surprising in the fact that bitcoin can not show a new upward trend. Also, participants of the cryptocurrency market are waiting for news from the United States, where the country's authorities can similarly greatly tighten the circulation of all cryptocurrencies by connecting the Tax Administration. In addition, there is no recent support from Elon Musk, who played a very significant role in the growth of bitcoin to $65,000 in April. The only thing that bitcoin currently has is forecasts from various billionaires and bitcoin enthusiasts, who continue to believe that in 2021 the cryptocurrency exchange rate will update its absolute highs. We have already explained repeatedly in the previous articles how to treat such forecasts, and we consider them untenable. At the same time, it is beneficial for most crypto-billionaires to maintain a high demand for bitcoin, since it increases in price only in this case. Thus, crypto-billionaires and other bitcoin supporters are now acting in the best traditions of financial pyramids, where in order for the top participants to get rich, a constant influx of new depositors is needed. The same is true with bitcoin. In order for it to grow in price, a constant influx of new investors or investments is needed. And how can this be done if the only factor on which the price of bitcoin is based is the faith of market participants in it? Therefore, it is necessary to increase faith. And to do this, it is artificial to support the opinion that bitcoin will rise in price to [any value] in any case. This is exactly what many large bitcoin owners are doing now. MicroStrategy also continues to buy coins, but so far all these actions do not lead to a noticeable increase. We continue to expect a long consolidation of bitcoin, which will take 1-2 years.



In technical terms, bitcoin fell to the support level of $31,100 and to the previous local minimum of $29,700 and bounced off them. Formally, the price has already turned up and can continue a new round of movement to the upper border of the side channel – $40,700. However, it seems that bitcoin is aiming to overcome the level of $31,100. And the consolidation of quotes under the level of $31,100 may signal the readiness of the cryptocurrency for a new fall. Recall that many crypto experts speak in favor of the fact that the main cryptocurrency will continue to become cheaper and may fall to $19,000 - $24,000 per coin, and some even predict the figure of $10,000.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for XRP/USD (Ripple), for June 25 - 28, 2021: Buy above $0.6230



XRP / USD, Ripple, having found strong support at the psychological level of $ 0.50, is now trading above the 21 SMA on 4-hour charts around 0.6575. With this bounce of more than 27% profit for a few days, XRP finds some stability.

Crypto investors seem to have calmed down. We believe that the digital currency market could be in a consolidation phase for a new bullish momentum in the medium term.

This market is very volatile. Just as returns are very attractive also in the face of falling prices, you can lose more than 50% in a few days. This is exactly what happened in the month of May and in these last weeks.

The declines that we have seen in recent days are due in part to events that arouse fears and panic among investors and market participants. However, unless long-term fundamentals change, the smart investor should use corrections to buy.

The moving average of 21 (0.6230) will give bullish prospects to Ripple. While it is located above this level, we believe that there will be a good opportunity to buy with targets at 0.7812 there is the 4/8 of murray.

On the other hand, a correction to the 61.8% Fibonacci area will be also a good opportunity to buy, there also converges the 3/8 of murray, which acts as double support.

Our recommendation is to buy above the 21 SMA or if it makes a technical bounce at 3/8 Murray with short-term targets at 0.7812. The eagle indicator is showing a bullish signal.


Support and Resistance Levels for June 25 - 28, 2021
Resistance (3) 0.7823
Resistance (2) 0.7360
Resistance (1) 0.7073

Support (1) 0.6323
Support (2) 0.5860
Support (3) 0.5573




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021