Cryptocurrency Analysis

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Is Bitcoin's growth over or is this just another small pullback?



This weekend, Bitcoin has managed to update its all-time highs and reached $ 61,000 per coin. However, it started to decline on Monday, which is alarming. It was mentioned in the previous articles that the main digital asset can avoid the 2017-2018 scenario, when the price of the cryptocurrency fell by 90%, since large institutional investors arrived this year in the crypto market. This behavior is explained to be typical for small traders and investors, and most of the Bitcoin owners were just small traders at that time. Therefore, as soon as the markets felt that the price of the indicated cryptocurrency started to fall, a massive sell-off of cryptocurrency immediately followed, which caused a collapse. And since novice traders are chasing short-term profits, they have not kept bitcoin in their wallets for many years, in the hope that its price will rise to $ 100,000.

However, large investors and institutionalists can afford such a long-term investment, since they clearly do not have the last money. The thing is that not all bitcoin coins are concentrated in their hands. The share of inexperienced players or "hamsters" still remains quite high, so the question is, how will institutions behave when the mass sale of bitcoins by small owners, rather than a usual correction, begins? It is expected that they will either hold their course or they will follow the example of other smaller colleagues.

It should also be understood that Bitcoin's price has risen by more than 15 times last year. It is hardly necessary to explain to anyone exactly how the last year differs from other years. Central banks are pouring trillions of dollars into the economy, interest rates are ultra-low, GDP has collapsed dramatically, business activity has been in a negative zone for a long time, and investors have been panicking to find tools that can protect against inflation, as well as yield more than on government securities. All this led to the fact that Bitcoin began to invest exclusively as a crisis option. Therefore, the first hypothesis suggests that as the global economy recovers, the demand for bitcoin may decline, which will lead to a drop in its value. However, no one knows when this will happen. In the near future, the US economy will be flooded with another $ 2 trillion from the US government, and according to rating agencies during the pandemic, Americans have accumulated about $ 1.5 trillion in their accounts, which will also begin to be spent as the economic situation improves. Most likely, this will also lead to the arrival of money in the cryptocurrency market.



From the point of view of technical analysis, the important support area of $ 43,000-44,000 has been maintained, which enables the "cue ball" to continue rising. However, the price of Bitcoin declined by $ 3000 today, which makes us think about a new round of correction. It can be recalled that no matter how many factors speak in favor of further growth of BTC, no asset in the world can become more expensive indefinitely.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Heading for Sunday highs? Cryptocurrency market results on March 15, 2021

The downward correction of the cryptocurrency market has stopped today. The coins have moved to a cautious recovery, so far resembling more consolidation. Nevertheless, technical prerequisites are being created for bitcoin, and then altcoins, to regain their lost positions.

Bitcoin was able to hold above the 100 level on Fibo Expansion today. An attempt to break it (punctures with shadows) turned out to be false, and the pair moved to recovery. Now, the nearest target for bitcoin growth is the level of the previous historical highs - the resistance of 58340.66, marked with a dotted line. And in case of overcoming this level and fixing above it, the main cryptocurrency will be able to continue its growth to the level of 161.8 on Fibo Expansion.



Bitcoin Cash held in the range of 508.94 - 538.35 and is consolidating in the middle of it. The nearest target for the pair's recovery is the level of 551.56, marked with a red dotted line. And if the pair breaks through it and gains a foothold higher, the BCH/USD quotes will open the way to the resistance level of 611.50.



Ripple stopped falling in the range between the support of 0.4071 (red line) and the resistance of 0.4539, which was associated with the recovery of the bitcoin price. Now, XRP/USD can either continue to decline to the support of the corridor, or first descend to its resistance, and then turn down.



Ethereum held above the support area of 1697.27 - 1789.44 (marked with red dotted lines) and is recovering after the main cryptocurrency. Now, if bitcoin reaches a historical high, the price of ETH/USD may rise to Saturday's highs. The nearest target for the pair's growth is the level of 61.8 on Fibo Expansion.







Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

US regulator conducts an audit of the Binance crypto exchange: is there any reason to worry

In the last few days, many high-profile announcements in the field of cryptocurrencies have been associated with the Binance exchange. The company is really doing a tremendous job to expand the possibilities of cryptocurrencies and their areas of application. However, on March 12, a situation occurred that could seriously affect the company's reputation and the cryptocurrency market.

The US regulator (the Commodity Futures Trading Commission) has launched an audit of Binance. According to the authorities, the crypto exchange is suspected of allowing US residents to trade in financial instruments without a proper license. It should be noted immediately that this is just a check and suspicion, and not an irreversible truth of violation of the law.

The head of Binance, Changpeng Zhao, called such a notice an attempt to compromise the company's activities and sow panic among market participants. The CEO urged the public not to pay attention to the verification of the crypto exchange. Recall that on March 12, the company launched its own payment system Binance Pay, which allows absolutely any business entity to use cryptocurrencies as a means of payment.

Based on the dynamics of market development, public interest in it and investment processes, the launch of the system should be a great success. However, such statements about suspicions of trading without permits will at least cast a shadow on the company's reputation, and it will take some time before market participants completely remove doubts about any product that Binance creates and launches.

In the dry balance, we can say that there is nothing wrong with this news, but it happened at the most untimely moment. This investigation may significantly affect the future of the Binance Pay payment system and the further development of the cryptocurrency market. It is worth noting that the CEO of the company reacted instantly, and this is the right move in the current situation, which will reassure investors and other market participants. Now it remains only to closely monitor the results of the investigation, and only then we can draw certain conclusions.






Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for March 16, 2021

Crypto Industry News:

India is likely to pass a law that will make cryptocurrencies illegal in the country. In addition to the fact that trading and mining of cryptocurrencies would be illegal, the new law would also prohibit their possession. However, cryptocurrency investors will be able, without any legal consequences, to realize their profits within six months from the date of entry into force of the new law.

It is unclear whether the law provides for imprisonment for those who fail to comply with the provisions of the law.

While the details remain unknown, a law as passed would represent a huge blow to cryptocurrencies in any major economy. Although digital assets have been banned in China since September 2017, the Chinese can still legally own cryptocurrencies.

Unfortunately for the Indian cryptocurrency industry, commentators expect the bill will eventually pass the legislative process successfully as Prime Minister Narendra Modi's party has the required majority to vote it out.


Technical Market Outlook:

The BTC/USD pair has retraced 50% of the last wave up and is currently bouncing from the level of $54,012. The market is about to test the technical support located at the level of $52,466 - $52,039 as well. If this level is violated, then the corrective cycle might expand towards the next technical support seen at $49,422. The nearest intraday technical resistance is seen at the level of $55,091. Please notice the market keep making higher highs on the daily time frame despite the bearish divergence building since the level of $41,917.

Weekly Pivot Points:
WR3 - $77,718
WR2 - $70,065
WR1 - $65,682

Weekly Pivot - $57,463
WS1 - $53,537
WS2 - $45,060
WS3 - $41,147


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 $41,125 is clearly broken on the e daily time frame chart.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for March 16, 2021

Crypto Industry News:

It does not look like Elon Musk's romance with cryptocurrencies will end. An application has been filed with the US Securities and Exchange Commission announcing the adoption of new official titles for him and another Tesla director.

From Monday, Elon Musk will be officially called "Technoking of Tesla" and the company's chief financial officer, Zack Kirkhorn, will be officially called "Master of Coin". An 8-K form filed with the SEC states:

"As of March 15, 2021, the titles of Elon Musk and Zach Kirkhorn have changed to Technoking of Tesla and Master of Coin, respectively," we read.

The application also states that Musk and Kirkhorn will retain their current positions as CEO and Chief Financial Officer.

Without a hint of the accompanying tweet that Tesla's CEO is famous for, viewers can only speculate as to why Musk and Kirkhorn have adopted the new titles.

In early February, Bitcoin's spot price rose by $ 3,000 in minutes when news of Tesla's $ 1.5 billion acquisition of BTC surfaced, taking the coin price to a new all-time high.

After Bitcoin's value - and Tesla's shares - fell sharply - the title of "world's richest man" was briefly lost to Elon Musk. However, neither Bitcoin nor Tesla spent much of their time stagnating as the revival of the coin's price quickly brought substantial profits to Musk and the company.


Technical Market Outlook:

The ETH/USD pair should continue the wave up towards the $2,000 level first and then towards the recent swing high seen at $2,035. The market keeps moving inside of the trading channel, but in order to do so, the technical support at the level of $1,725 should not be violated. Please keep an eye on the RSI indicator as it is pointing down already, so any breakout below the fifty level will accelerate the pull-back towards the channel lower boundary line.

Weekly Pivot Points:
WR3 - $2,266
WR2 - $2,113
WR1 - $1,975

Weekly Pivot - $1,820
WS1 - $1,716
WS2 - $1,552
WS3 - $1,423


Trading Recommendations:

The longer term up trend on the Ethereum continues despite the local counter-trend corrections. When the correction is terminated, the next long term target for ETH/USD is seen at the level of $2,100. The key long term technical support is seen at the level of $1,412, so only a weekly candle close below this level will invalidate the bullish scenario.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Tesla officially gives CEO Elon Musk title of Technoking of Tesla



Reportedly, Elon mush has been given a new title. He has dropped his chief executive job title and crowned himself 'Technoking of Tesla'. Zach Kirkhorn, the company's chief financial officer, has also received a new title "Master of Coin."

Curiously enough, in a filing with US stock market regulator, the Securities and Exchange Commission, Tesla said, "Effective as of March 15, 2021, the titles of Elon Musk and Zach Kirkhorn have changed to Technoking of Tesla and Master of Coin, respectively." The electric car maker did not explain the reasons for the mysterious new titles.

Last month, Tesla announced that it had purchased $1.5 billion worth of bitcoin. The company also stressed that it would soon adopt it as a means of payment for cars, pushing the price of the world's most popular cryptocurrency to new highs.

Later on Monday, Musk tweeted an animation depicting a gold trophy decorated with coins and accompanied by a pulsing electronic soundtrack.

"I'm selling this song about NFTs as an NFT," the tweet reads.

Non-fungible tokens, or NET, are a new type of digital asset that is authenticated using a blockchain that certifies its originality and ownership. Their popularity has exploded during the pandemic, as enthusiasts and investors try to spend huge amounts of money on products that only exist online. It was not clear though whether Musk actually intended to sell the video or the song.

Musk's recent promotion of Dogecoin on Twitter has also raised the price of this cryptocurrency. Bitcoin hit a new high of around $62,000 over the weekend but fell about 5% in the early afternoon on Monday.




Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Litigation and total isolation: What happens to the Ripple token

After a prolonged correction, the cryptocurrency market begins to recover its position and is preparing to conquer new heights. However, among the main crypto assets, , which, unlike bitcoin and ethereum, does not show such explosive activity. The situation around the Ripple coin is very twofold and deserves special attention and analysis of the reasons why the token does not grow by leaps and bounds.

First of all, its isolation in the market plays against the stable growth of the price of cryptocurrency. Even though the Japanese stock markets actively support the token, the company's reputation has been severely damaged due to several lawsuits. Recently, the trial of Ripple and YouTube over the fake distribution of tokens on the air ended. But a much more negative color of the coin is created by the battle with the SEC, which has passed into the stage of legal proceedings.

Investors are afraid of the relative isolation of the asset and its problems with regulators. This affects the economic potential and performance of the coin on crypto exchanges outside of Japan. Also, legal proceedings add to the cryptocurrency volatility, because any negative news from the courtroom will instantly bring down the XRP quotes.

At the same time, the cryptocurrency shows excellent results and stopped falling sharply in price even after the negative news. The reason for this is the increased interest from Japanese investors and, separately, the SBI Group, which is actively expanding the capabilities of the token. For example, the company allowed users to lend XRP and pay for a range of goods. Plus, this company launched an opportunity for its shareholders to receive dividends from the activities of the financial giant in XRP tokens.

Now, the Ripple token is in a very precarious position, Its quotes are far from the historical maximum. The coin has not shown stable growth for more than a week, constantly sliding down to $0.442. Despite this, the situation may change after certain events occur: progress in the legal dispute with the SEC, the company's official statement to investors about the current situation. The most important thing for XRP now is to maintain its current position, which the coin does well, and to be ready for further growth after positive changes in the company's image.






Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical analysis of Litecoin/USD for March 16, 2021



Litecoin seems to be building a series of bottom-formation confirm more upside pressure towards the expected upside target at 324. Short-term a break above 215 and more importantly a break above resistance at 227 will trigger a Cup With Handle bottom for a rally towards 300 and 324.

Support is now seen at 198 and again at 191.


Trading recommendation:

Buy a break above minor resistance at 215 and place your stop at 190.




Torben Melsted
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin plunged by 15% in three days, making cryptomarket panic



The main digital asset is declining for three consecutive days. And if it only lost $ 1,100 in value last Sunday, then the following day it is already $ 3,300. Today, it fell by another $ 3,000, and the day is just starting. It seems that a new correction period has begun in the cryptocurrency market. On the other hand, most analysts and crypto experts immediately talk about strong bearish signals and Bitcoin's likely collapse to $ 40,000. In our opinion, such a scenario is quite realistic. One of the reasons for this is the possible complete ban of BTC in India. However, what's more important for its current prospects is what major institutional investors think about the current price. It is already known that large investors can afford to keep Bitcoin in their portfolios for many years, thus keeping its value from declining. However, will new institutions join the current upward trend? It is also no secret that Bitcoin's popularity is gaining impulse among large investors, but how many of them are going to buy "cue ball" in the near future?

It's simple. We can just clearly say that there is a new round of correction. If the dropped bitcoins are immediately bought by institutions during this correction period, then the leading cryptocurrency will be kept from sharply falling. However, there are few people waiting for it below $ 40,000 per coin and nothing is impossible. It should be noted that when BTC is trading above $ 50,000, which was very great a year ago, few people expect its value to lose 80%, as it did in 2017-2018. It can be recalled that there is an argument that "Bitcoin will grow anyway" but this should not be considered, as anything could happen.

Anyhow, Bitcoin traders lost a total of $ 2 billion yesterday, as the specified cryptocurrency fell below $ 55,000. In this case, their positions were closed forcibly – 95% of closed positions are long positions, which means that losing traders are not ready for the opposite scenario and are unwilling to make drawdowns. Note that shortsightedness and blind faith in Bitcoin's growth can result in serious losses.



From the point of view of technical analysis, the quotes of "cue ball" continue to move towards the first significant support – the Kijun-sen line. A clear rebound from this line can already provoke a new upward movement, but it seems that the cryptocurrency will decline to the area of $ 43,000-$ 44,000 per coin again, where a strong support area lies. In this case, much will depend on the Kijun-sen line in the next few days.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Another correction could bring Bitcoin down to $ 42,000



Another correction is forming in Bitcoin. However, if this really happens, price could drop to much lower than wanted.

To put it more precisely, a pullback from $ 60,000 could result in the main cryptocurrency dropping somewhere between $ 45,000 and $ 42,000.

Major liquidations have already occurred in the past days, when highly leveraged positions became popular on many major exchanges. In fact, long positions worth more than $ 800 million were liquidated within 15 minutes.

What does this tell us? The most liquid offer, made on a daily basis, consists of "young coins'', which were last moved in the last few months. This is important because it allows traders to evaluate information about investor behavior, which helps determine if coins that have been idle for a long time are now moving.

That said, long-term BTC holders have a better understanding of this market, while short-term holders, especially those who have moved coins just recently, are market participants speculating on shorter gains.

Nevertheless, demand from short-term investors remains high, while long-term clients are issuing coins gradually and at a slower pace. However, LTH also has a much larger supply, which is optimistic for both supply and demand. But it could also become overhead resistances as prices either continue their rise, or undergo a sharp correction.




Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021