Cryptocurrency Analysis

[IFX_Selena]

Another negative news for Bitcoin from China



The world's first cryptocurrency continued its decline yesterday. Thus, the quotes really pushed off from $41,000, which is the approximate border of the side channel, and fell to the level of $31,100, which, after a slight adjustment, is the lower border of the side channel. And it turns out that the quotes have already bounced three times from the new lower border of the sidewall. Thus, a strong support area for bitcoin is formed here. The fundamental background for bitcoin did not change at all during Monday. To be more precise, it only got worse. Earlier, we have already said that we consider the news from China and the United States to be the most important for bitcoin in the near future. Some countries of the world have started an outright war with bitcoin and, of course, the actions of the authorities of the United States and China should be most feared, since we are talking about two of the three countries in the world with the largest economies. In China, four regions have already completely banned mining and, most likely, this trend will continue in the near future. In addition, it became known yesterday that the Agricultural Bank of China, which is the third largest in the country, banned its clients from carrying out any transactions related to cryptocurrencies and other digital assets. The bank has warned about blocking the accounts of customers who are seen trading in digital assets. The most interesting thing is that this warning from the bank was removed from its website within a few minutes. However, Chinese analysts do not consider it a mistake and say that, most likely, the corresponding decision was made at the highest level of government and concerns all banks in China. Thus, most likely, all Chinese banks will have to announce the innovations at the same time. Or the National Bank of China will personally announce a new ban. Thus, in China, any transactions with cryptocurrencies will now be prohibited for companies, firms and exchanges and their clients. As for the private interest and demand for cryptocurrencies, everything is not yet clear. But in any case, China has taken a huge step forward to oust bitcoin and its "counterparts" from its territory. The next step is for America, where they also want to tighten the legislation, although only the part of it that concerns taxes and the regulation of bitcoin circulation. In any case, the trend now is that the countries of the world are tightening their legislation on bitcoin (except for El Salvador). Thus, from our point of view, the fundamental background for bitcoin remains extremely negative, and moreover, it worsens day by day.



In technical terms, bitcoin has fallen to the support level of $31,100 and now it can rise and start a new round of movement to the upper limit of the side channel – $41,000. Thus, a rebound from the level of $31,100 will trigger the beginning of a new round of growth inside the flat. The consolidation of the bitcoin 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 fall in price and may fall to $19,000 - $24,000 per coin.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

China once again tightens approach on bitcoin. Morgan Stanley invests in blockchain

Bitcoin continued its decline after last week's failed attempts to get beyond the $41,100 level. This time, the Chinese authorities have found a new way to deal with cryptocurrencies, which continues to put pressure on the market, which has not particularly recovered from the May drop.

Chinese authorities today ordered local banks and payment platform Ant Group Co.'s Alipay to no longer provide services related to cryptocurrency trading, once again tightening their approach to the industry.



Financial institutions such as Industrial and Commercial Bank of China Ltd., Agricultural Bank of China Ltd., and Alipay were summoned to meet with Central Bank authorities, the People's Bank of China said in a statement. The ban was imposed on services that provide access to speculation with cryptocurrencies. The People's Bank of China believes that such activities violate the financial order, as well as generates risks of criminal activity related to illegal international asset transfers and money laundering. In addition to banning the provision of products or services that facilitate such activities, institutions were also ordered to disable payment channels for crypto exchanges and OTC platforms.

The next step of the Chinese authorities, of course, dealt a blow to the cryptocurrency market, but it has long been asking for a correction, after an unsuccessful attempt to get beyond the level of $41,100. In recent weeks, cryptocurrencies have been under quite a lot of pressure from mining to trading, which is why bitcoin failed to recover seriously last week.

There is also information that in many Chinese cities, where there is active bitcoin mining, work is underway to eradicate this type of activity.



As for the technical picture of bitcoin, it has already come close to its major support of $30,900, on which a lot depends. Its breakdown will be a kind of signal for profit-taking, which will lead to a sharp increase in panic among investors and cause a new wave of decline in bitcoin in the areas of $25,800 and $21,600. Only there will it be possible to observe the active return of major players betting on the continued growth of bitcoin in the medium term. It will be possible to say that the situation has stabilized only after the bulls regain the level of $36,300, which will allow them to get close to $41,000 per bitcoin.

And while the Chinese authorities are coming up with schemes to deal with cryptocurrencies, Securitize Inc., which is developing a blockchain platform for investors to buy and sell shares of closed private companies and other assets, together with Morgan Stanley, raised $48 million. The Series B round, which also includes Blockchain Capital, marks the first investment in the blockchain industry by Morgan Stanley Tactical Value Investing, the company said in a news release.

Morgan Stanley said it sees this as the future of finance. According to the Chief Executive Officer of Securitize, Carlos Domingo, the potential of the market is simply huge, and now is the time to engage in its development. The move is also a sign that Wall Street continues to embrace new blockchain technologies, including the use of digital tokens. Securitize plans to soon launch a platform that allows investors to buy and sell shares of private companies in a similar way to how the Robinhood app works for public companies.





Jakub Novak
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin Attention At Support!

BTC/USD dropped significantly after failing to stabilize above the 40,000 psychological level. It remains to see how it will react because is traded right above a major support zone.

A bullish reversal pattern could bring new long opportunities. On the other hand, registering a valid downside breakout from the current pattern could announce a larger correction in the upcoming period.


BTC/USD LEG DOWN!



Bitcoin is traded below the descending pitchfork's upper median line (uml). The pressure is high as long as it stays below this line. Coming back above this obstacle could signal a potential swing higher.

BTC/USD could resume its sideways movement. A false breakdown with great separation through 30,066, or a major bullish engulfing could signal an upside momentum.


OUTLOOK!

We could search for long opportunities around the 30,066 level. Making a valid breakdown below this level signals further declines.





Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Crypto assets to invest in when entering a new bullish market cycle



Today we have a non-standard review of the cryptocurrency market since many investors have the same question: which crypto assets to invest in with the prospect of entering a new bullish market cycle?

The question is worthy of discussion, and if we take into account the fact that many traders at the beginning of the year received excess profits, which were converted into stablecoins, then there are plenty of reserves for investing.

Let's start with the fact that bitcoin and ethereum are the so-called mainstream, large players are highly likely to select this asset class from the market. As small investors, we are interested in the first and second cryptocurrencies, but we understand that they are unlikely to make super-large percentages after the collapse, and with the current discounts, you can choose something more attractive in terms of speculation during the bullish cycle.

We are talking about altcoins with a much smaller capitalization. But there are so many of them, what to choose?

This is where large investors and funds come to the rescue, which serves as a guideline of healthy interest for us with a fundamental analysis of the possible growth of the asset's value in the future.

Such inverters are:
• Andreessen Horowitz
• A16Zcrypto
• Coinbase Ventures
• Pantera capital
• Venrock
• YCombinator
• Binance Labs
• Grayscale Investments

In simple terms, it is profitable to select the asset that the whales of the market accumulate in their portfolios.

As a visual example, consider the digital asset management investment fund Grayscale Investments, which allows accredited investors in the United States to purchase cryptocurrency investment products in a regulated environment through traditional market tools.

The total amount of funds in the funds launched by Grayscale Investments in Bitcoin, Ethereum, and other cryptocurrencies (altcoins) amounted to $34.4 billion.

The fund is actively studying altcoins as an additional asset, based on which it can offer new investment trusts to its clients in the future.

In simple terms, the fund has already announced a list of altcoins that may become candidates for adding to the portfolio.

The list of 31 instruments is selected carefully and thoughtfully, these assets with a high chance will grow up during the bull market, which will give you an advantage among small and little-known altcoins.







Gven Podolsky
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum Analysis for 21 June

ETH retested resistance at $2,200 overnight.
Ethereum drops lower over the past hours.
Next support around $1,900.



Ethereum price outlook is bearish as the market dropped lower over the past hours and moved away from the $2,200 resistance once more. Therefore, bears are still in control and we can expect ETH/USD to move lower over the next 24 hours. The overall market has been trading in the red over the past 24 hours. Bitcoin has lost 6.7 percent, while Ethereum 7.59 percent. The rest of the altcoin market has been following the bearish trend.

On the 4-hour chart, we can see the Ethereum price moving lower over the last hours after another retest of the $2,200 mark, indicating that bears are still in control.

Ethereum price analysis is bearish for the rest of the day as we can expect the market to continue lower over the next 24 hours after some retracement higher over the next hours. This should lead Ethereum towards the next support at $1,900.





Jan Novotny
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading plan for Bitcoin for June 21, 2021



Technical outlook:
Bitcoin reversed lower after printing $41,000 highs last week. The crypto has dropped through $32,000 lows today, falling in line with our projections. Aggressive traders who went short around $39,000-40,000 levels last week, might book profits now and prepare to initiate fresh long positions. If Bitcoin prints below $30,000 levels, it might drop through $26,500 levels going forward.

Bitcoin is seen to be trading around $33,200 levels at this point in writing and might be preparing to form a bottom soon. Immediate support is seen at $30,000, while resistance comes around $41,300 levels respectively. Only a break above $41,400 will confirm that a meaningful bottom is in place and that bulls might be inclined to push further.

Bitcoin might have completed a bullish triangle consolidation at $32,000 today. If the above holds well, bulls might be inclined to take control from here and extend rally above $44,000 to confirm a reversal in trend. Alternately, if a bearish break out is underway, the crypto might drop through $26,500 mark in the near term.


Trading plan:

Aggressive: Book profits on short positions.Preparing to go long, stop @ 28,000, target is open.

Conservative remain flat for now.

Good luck!




Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Amber gains over 60% net profit



Amber Group, which was established in 2018, reported that it was able to raise more than $ 100 million in a Series B funding round led by China Renaissance. Other participants include DCM Ventures, Tiger Global, Gobi Partners, Coinbase Global and Pantera Capital.

This followed last month's financing of Sequoia Capital and Tiger Global to Babel Finance, which amassed $ 40 million.

Meanwhile, Matrixport, which was founded by Bitmain founder Jihan Wu, is also looking for new investments.

Amber trades Bitcoin and Ether cryptocurrencies through the use of not only client investments, but also personal capital. The company manages about $ 1.5 billion, but this year it expects revenue to show a 10-fold increase and reach $ 500 million.

Its founders are Michael Wu, Tiantian Kullander, Wayne Ho, Tony He and Luke Lee. All of them were just 20 years old back then, but were able to launch a project to organize algorithmic trading in Chinese stocks and index futures. After that, they decided to completely switch to cryptocurrency.

Current Amber CEO Michael Wu said trading and financial services must become the most technologically advanced and automated, so the strategy Amber uses is always quantitative.

CFO Tiantian Kullander supported this and said: "Amber has been profitable even from the first day of its existence. Now, its net profit is over 60%." He disclosed that the main reason is Amber's market-neutral strategy of trading on volatility, rather than on the growth or decline in the value of Bitcoin.

Just recently, Bitcoin lost more than 40% in value, dropping from an all-time high of $ 64,870 in April, after Chinese officials launched bans on crypto trading and mining.



Back in 2019, Amber was able to obtain more than $ 28 million, and was able to raise about $ 100 million from Dragonfly Capital and Coinbase.





Andrey Shevchenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum continues the decline, looking for a move lower towards $1,700 at least.

In previous posts we mentioned the triangle pattern Ethereum was trading in. Price broke out and below the triangle pattern providing us with a bearish signal. Price bounced towards the lower triangle boundary for a back test and the rejection has lead to new lower lows.



Black lines - triangle pattern

Ethereum got rejected at the back test of the broken triangle pattern and is making lower lows and lower highs. Our expectation is to see price break below $2,000 soon and eventually test the May lows. There are increased chances of breaking below the May lows, specially because the bounce after the decline was very shallow. This is a sign of weakness. Resistance is found at $2,350. Trend remains bearish as long as price is below $2,700.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Goldman Sachs: Bitcoin is a lousy investment



According to a survey of top managers conducted by Bank of America, the majority believes that bitcoin will continue its decline and still has all the signs of a "bubble", despite the fall of its rate by $30,000. The series of unflattering statements for bitcoin was intercepted by another large bank with a world name, Goldman Sachs. A new report presented by the bank's experts shows that bitcoin does not have long-term value and is not an asset class. Although a month ago, the head of the digital assets department, Matthew McDermott, said that bitcoin is an investment tool. However, this is not the first time that large companies change their perception of bitcoin, which only once again proves the instability of this ecosystem. There is simply no consensus on bitcoin, since bitcoin itself is not regulated by anyone. There is no head office where you can ask relevant questions. So, everyone counts in their own way. Bitcoin is growing, and many experts talk about the attractiveness of this asset as an investment. Bitcoin is falling, and many experts say it has neither the function of money nor its value. "We have refrained from repeating the positive and negative hype that surrounds this ecosystem because we do not want clients to be seesawed, even swayed by a cacophony of assertions, many of them unsubstantiated," Goldman Sachs says in the report. The report also says that bitcoin consumes too much electricity, which pollutes the environment. In addition, the bank's experts believe that breakthroughs in other technologies can make the blockchain technology obsolete. For example, we talk about the emergence of quantum computers. Also, there is a possible tightening of the regulation of bitcoin circulation. "After analyzing various valuation methodologies and applying our multi-factor strategic asset allocation model, we have concluded that cryptocurrencies are not a viable investment for our clients' diversified portfolios." the report says. Needless to say, this information can only further reduce the demand for cryptocurrency, if large banks do not recommend their clients to deal with bitcoin. Thus, from our point of view, the fundamental background only continues to deteriorate day by day. Naturally, along with it, the prospects for the first cryptocurrency in the world continue to deteriorate. We believe that the target of $30,500 looks quite real for this week. We recommend that market participants continue to closely monitor any news from the cryptocurrency sphere. Perhaps in the near future, Elon Musk or representatives of Tesla, who are very fond of commenting on bitcoin, will come to the forefront with a new statement. It should also be noted that at this time, only MicroStrategy continues to actively buy cryptocurrency. Let's see where this investment strategy will lead the company.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

China continues to expel miners from its territory



The fundamental background for bitcoin remains very weak and even frankly negative. The most important topics that are currently of interest to all participants of the cryptocurrency market are the topics of tightening the circulation and regulation of the cryptocurrency segment in China and the United States. Recall that the Chinese authorities have already banned their financial companies from providing any services related to bitcoin. After that, they made it clear that they oppose mining on their territory, and bitcoin and its "counterparts" pose a serious threat to the country's financial system. In principle, it was all obvious and known a couple of years ago. No government of any country can welcome the presence and circulation on its territory of money or its equivalent, which is not under its control. Thus, in principle, the tightening of the circulation of bitcoin was expected for a long time. At the same time, three or four regions in China have already banned mining. The last was the province of Sichuan, which became known this weekend. On June 18, the Sichuan branch of the National Development and Reform Commission (NDRC) and the Sichuan Energy Bureau, issued a decree that all miners in the district must cease their activities until June 20. After this happened, the bitcoin network hash rate dropped to 110 EH/s. The second no less significant and dangerous topic for bitcoin now is the actions of the American authorities. It's no secret that the States are now desperately looking for new ways to replenish the budget, and one of these options is to raise taxes on everything that can be increased. In particular, taxes will be increased for large companies, corporations, millionaires, and billionaires, and a single corporate tax rate will be introduced worldwide, which will no longer allow multi-corporations to evade payment in "tax havens". But the increase in taxes, or rather their introduction, may also affect the cryptocurrency sphere. Both Janet Yellen and Joe Biden believe that many rich Americans use bitcoin to hide their real income and avoid paying taxes. Therefore, they propose to oblige all cryptocurrency exchanges and other companies that provide the opportunity to conduct transactions with bitcoin to provide information about all transactions to the US Tax Administration. Thus, most of the transactions will now be available to the tax authorities, which, of course, will reduce the attractiveness of "digital gold" in the eyes of investors. All this news continues to put pressure on the bitcoin exchange rate, so we believe that the fall will continue.



In technical terms, on the 4-hour timeframe, bitcoin quotes pushed off from the level of $40,746 and consolidated below the trend line. A little later, the quotes also overcame the Senkou Span B and Kijun-sen lines. Thus, the probability of a further decline in quotes with targets of $30,500 and $29,873 is growing.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021