Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for March 24, 2021

Crypto Industry News:
There are reports in India that the local government is considering blocking the IP addresses of cryptocurrency exchanges. Despite reports of bans, many in the Indian cryptocurrency community believe that authorities will not impose a total ban on cryptocurrencies.

As reported by Business Standard, "India is considering blocking the Internet Protocol (IP) addresses of companies / exchanges where cryptocurrency trading takes place." BE Information is based on an anonymous "knowledge source". This measure, if implemented, will confirm the government's efforts to ban cryptocurrencies.

India's Finance Minister Nirmala Sitharaman recently said a cabinet memo on cryptocurrency laws is being finalized.

The Indian government has previously attempted to block the IP addresses of adult websites and hundreds of Chinese apps, according to the publication. At the same time, it was also noticed that people could still gain access to sites through virtual private networks (VPNs).

Earlier this month, India's Finance Minister said there would "be a very calibrated stance" on cryptocurrencies. He then insisted that the government "does not exclude all options". These statements gave the Indian crypto community hope that India would regulate the crypto industry rather than impose a total ban.


Technical Market Outlook:
The ETH/USD pair has been consolidating in a narrow range between the levels of $1,648 - $1,718 after the drop below the key short-term technical support located at the level of $1,721. The next target for bears is the 50% Fibonacci retracement level located at $1,618. The momentum is weak and negative, so the bears had hit the intraday technical support at the level of $1,648 already and keep pushing lower. Please notice, the violation of 50% Fibonacci retracement opens the road towards 61% retracement located at $1,541. Only a strong breakout back above $1,729 would terminate the sell-off and put the bulls back into control again.

Weekly Pivot Points:
WR3 - $2,051
WR2 - $1,965
WR1 - $1,890

Weekly Pivot - $1,807
WS1 - $1,707
WS2 - $1,636
WS3 - $1,545


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]

Technical Analysis of BTC/USD for March 24, 2021

Crypto Industry News:
The Turkish lira yesterday fell by more than 10% after the country's president Recep Tayyip Erdogan unexpectedly fired Naci Agbal, president of the country's central bank. After hitting a new low of 8,280 per dollar, the lira closed at 7.75 per dollar.

On the other hand, the day before the fall of the lira, Bitcoin became the most searched word in Turkey. As Google statistics show, the number of BTC searches increased by over 500%. This comes as concerns about inflation have risen after the Agbal overthrow.

Previously, Agbal, who advocated higher interest rates to tame inflation, helped make the lira "one of the most successful emerging-market currencies this year." According to the report, satisfied foreign managers responded to his policy by transferring funds to the Turkish economy.

However, some money managers have expressed concerns that the new governor Sahap Kavcioglu will pursue the populist policies that President Erdogan favors. However, in his preliminary comments following the appointment of Kavcioglu, who has been the fourth head of the central bank in less than two years, he tried to calm the markets by pledging to maintain the same goals as his predecessor.

Nevertheless, the new governor also undertook to "support economic stability by lowering borrowing costs and stimulating growth".

The report also states that Agbal's dismissal may have contributed to the decline of the Turkey's Borsa Istanbul 100 stock index by 9.8%. According to the document, this decline is the result of "the most violent sale since June 2013 (...)". Meanwhile, the Nasdaq-listed iShares MSCI Turkey fund fell by over 19% in turnover in the US.


Technical Market Outlook:
The BTC/USD pair had almost hit the 61% Fibonacci retracement located at the level of $52,213. The technical support at the level of $53,290 had been broken and the bulls bounced towards the level of $55,810 to test it again from below. Bulls might still try to rally above the short-term trend line resistance seen around the level of $58,223, so any breakout above this line will be considered as bullish with a target at $60,000 and above. The momentum is now weak and negative, which supports the short-term bearish outlook. The longer term trend is still up and intact.

Weekly Pivot Points:
WR3 - $68,853
WR2 - $64,700
WR1 - $61,327

Weekly Pivot - $57,323
WS1 - $54,318
WS2 - $49,983
WS3 - $46,876


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]

LTC/USD close to key medium-term support

LTC/USD is trading just above critical support at $175. Price has been making higher highs and higher lows since March 2020 and so far it has managed to stay above a key upward sloping trend line that was tested four times already.



Red line - medium-term support

LTC/USD last time it touched the trend line was back in February when price pulled back all the way to $152.85. Since then price bounced strongly towards $229.62 but did not manage to make new highs. Price is now trading at $190 and it is important for the medium-term trend in order to remain bullish, price must hold above the trend line support. Breaking below the trend line will open the way for a move towards $130-$120. Traders could also take advantage of this pull back as price is now very close to a trend reversal level. Each time price tested this trend line, we saw a new upward move following the test. Traders should also take advantage of the fact that the bullish stop is very close as the chances for an upside move are high.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Tesla starts accepting bitcoin as a payment method: BTC has grown by 5%



On Wednesday, the "Techno-king" of Tesla made a post on Twitter that the electric car maker has added Bitcoin as a payment method. According to Elon Musk, the selection is available to customers in the US, but will be available in other countries later this year.

Musk made the post shortly after Twitter users noticed updated bitcoin support for all Tesla car models in U.S. online stores. "Elon," "Tesla," and "#Bitcoin " quickly became popular hashtags on social media.

The price of bitcoin rose by 5%, to $56,175. It has grown by 90% since the beginning of the year and by more than 800% in the last 12 months.

Data about bitcoin payments on the Tesla website was sent to the web wallet address at BTC.com. Last month, the automaker said it had invested $1.5 billion in the digital asset and said it would soon begin accepting it as a payment method for cars. Tesla shares rose about 2% in pre-sale trading on Wednesday.

According to the support page, you will pay with Bitcoin from your wallet, either by scanning the QR code, or by copying and pasting the Bitcoin address and the exact amount of Bitcoin into your wallet. Tesla really wants you to send the exact amount of Bitcoin in a single payment, otherwise your order may be canceled. It will be confirmed by email within six hours, so don't try to resend it even if the page doesn't update. Tesla accepts only Bitcoins and no other cryptocurrencies.

Last month, Tesla entered the bitcoin industry, buying $1.5 billion to diversify and maximize its investments. This decision was met with some surprise, given the volatility of bitcoin prices and the fact that this amount accounted for a significant portion of Tesla's cash. The company also warned investors of potential "malicious attacks" and "technological obsolescence" that do not exist with paper currencies.

If you decide to buy a Tesla for Bitcoin, keep in mind that mining a single bitcoin requires a staggering amount of electricity, which can largely offset the environmental benefits of an electric car.




Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading plan for Bitcoin for March 24, 2021



Technical outlook:

Bitcoin might be beginning to continue its uptrend after dropping through sub $52,900 lows yesterday. As discussed earlier, if the drop might have extended below $52,000 or $50,000 mark, possibilities of a further decline towards $43,000 might be considered. With the recent price action being well supported at $52,900 levels, it is quite possible that bulls might be back in control.

Bitcoin is seen to be trading higher towards $56,500 mark at this point in writing and if prices manage to stay above yesterday's lows ($52,900), the crypto might be setting up for yet another rally above $61,780 mark, going forward. Immediate support is seen at $52,900, followed by $43,000; while resistance is around $61,780 levels respectively.

The overall uptrend remains intact for now and bulls remain poised to push beyond $61,780 highs in the next few trading sessions. Only a break below $43,000 support will delay matters for yet another high. Also note that Bitcoin is carving a Morning Star bullish candlestick pattern on the daily chart. We are changing out short term stance to bullish from here.


Trading plan:
Remain long, stop @ $43,000, target @ $62,000 at least

Good luck!




Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

New surge in activity in the cryptocurrency market awaits us

The crypto industry is experiencing the best time in its history, prices are literally growing, and most importantly, there is an adaptation among institutional market participants. Having built the work on the analysis of general crypto interest among qualified market participants, I noticed a very interesting activity back in the fall of 2020.

It's no secret that in the fall of 2020, many institutional investors, funds, banks, insurance companies, etc. actively bought up the cryptocurrency, but it turns out that interest in innovative assets was even larger.

Shares of mining companies listed on traditional exchanges for qualified market participants began to rise sharply in price, that is, traders approached this area of activity from the opposite side, but at the same time showed a stunning interest in the crypto industry.

Scale in numbers

An example of this activity was the shares of the largest mining companies - Hut 8, Hive Blockchain, Marathon Digital Holdings, Riot Blockchain - whose growth is off the charts.

Hut 8 +1600%

Hive Blockchain +1600%

Marathon Digital Holdings +2200%

Riot Blockchain +2700%

The analysis was carried out from October 2020 to February 2021, this is the maximum growth. March was affected by a correction.

I am amazed at the small market participants who still deny the reality associated with the crypto market. It is worth conveying a simple idea: cryptocurrency is an excellent tool for speculation, time will tell the long-term perspective, although there is already significant progress in this direction. There is no need to omit the opportunity to make money, the crypto market is now literally giving out easy money.

Let's go back to institutional investors who happily collect trading volumes of weak hands on corrections. According to Coinbase data, 14,666 BTC were withdrawn in multiple transactions today. This happened shortly after the price of Bitcoin dropped to a two-week low of about $53,000. The mechanism of large players will remain unchanged, they collect volume and withdraw, and, really, why allow small participants to own such a valuable asset, just like in ordinary life.

Bank of America provided a very interesting analysis of the impact of dollar injections into Bitcoin, of which, accordingly, only $93 million is enough to raise the price of BTC by 1%. Bitcoin is very sensitive to an increase in dollar demand: a net inflow of $93 million will increase the price of the first cryptocurrency by 1%, while it will take $2 billion to achieve the same effect in the gold market.


Bitcoin Longs vs Shorts:

Longs (95.94%): $1,626,360,258

Shorts (4.06%): $68,798,940

Following from the indicators on trading operations relative to the leading cryptocurrency exchanges, it can be seen that long positions again prevail in Bitcoin, they occupy the lion's share of the market.



What is happening in the market at the moment?

It is worth starting with the loud news from the well-known Elon Musk, who said on Twitter that you can now buy a Tesla car for Bitcoins! He added that Tesla uses only internal open source software and directly manages Bitcoin nodes. The received Bitcoins will be stored as Bitcoins, and not converted to fiat currency. The option to pay in BTC will be available outside the US later this year.

We have yet another confirmation of the direct stimulation of society to new types of assets and their use in everyday life.

The news from Elon Musk has become a driver, and, perhaps, it will get us back to the upward cycle after the correction.

It is worth recalling that Elon Musk owns more than $5 billion in Bitcoin through Tesla, SpaceX, and personally.

Analyzing the trading chart of the first cryptocurrency (BTC), you can see that the local maximum is in the area of the coordinate $61,788, relative to which a correction of 14% occurred. The distance to the maximum is small, market participants will be able to overcome it without undue effort very soon.

Our main goal, as before, is the psychological level of $100,000 per 1 BTC, where, with the current information background, we can see this value even before the fall, and possibly even earlier.

It is worth considering that the crypto market is a very volatile place, you should always be on the lookout and do not forget to skim the cream off your big profits.



General background of the crypto market

Analyzing the total market capitalization of the crypto industry, we see that during our last article, the volume of the cryptocurrency market peaked at $1.812 trillion, this is again the absolute maximum of the entire industry.

The $2 trillion of market capitalization, which I wrote about at the beginning of the year, is not an analyst's fantasy, theory, or anything else, this is just a technical moment that will come to the market very soon.

Total Market at the moment is: $1.760 trillion.

Bitcoin retains its dominant position in the market at 60.0% of the Total Market, where in terms of numbers it is $1,051,150,259,114.



The index of emotions (aka fear and greed) of the crypto market is at the level of 65 points, this is not the FOMO* (Lost Profit Syndrome*) area, where an insane amount of capital and new participants are pouring into the market. In fact, the movement at the peak of the market, with a slight correction, is already taken for granted. It is worth considering, as soon as we update the maximum for Bitcoin, the index will immediately jump to the levels of 80-95 points.



Indicator analysis

Analyzing different sectors of time frames (TF), it can be seen that the indicators of technical instruments in a four-hour period signal a buy due to the rising year of the current day. The daily time frame is still focused on the correction from the peak of the market, signaling a sell. The weekly period, as before, is focused on an upward trend, signaling a buy.







Gven Podolsky
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for March 24,.2021 - Buyers in control and potetnial for test of $58.300

Further Development



Analyzing the current trading chart of BTC, I found that buyers are in control on the BTC and that there is potential for the $58.300 before any further selling.

My advice is to watch for buying opportunities on the dips intraday and target at $58.300

Additionally, there is the extreme reading on the Oscillator, which is sign that there is strong imbalance and potential for rotation in next period.





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Tesla accepts bitcoin as payment causing cryptocurrency to rise again



On Tuesday and Wednesday, bitcoin failed to develop a corrective movement. The cryptocurrency was not able to test and break through the critical Kijun-sen line. Thus, the important support area formed by the Kijun-sen line kept BTC from heavy losses. In addition to this support zone, Elon Musk acts as a lifesaver for the digital currency.

As it became known yesterday, Tesla and its CEO Elon Musk continued to have a strong impact on the cryptocurrency market. Earlier, Elon Musk repeatedly commented on bitcoin, and Tesla invested heavily in it. This time, the company has announced that its customers can now buy electric cars with bitcoin. This option is already available to US citizens and will become available outside the United States later this year. Thus, this is another piece of news which seeks to promote bitcoin among private market participants as well as large institutional investors. After all, this is exactly what Tesla is. Moreover, according to rumors, Elon Musk owns $5 billion worth of BTC. Naturally, the market's reaction to the news from one of the top US newsmakers is always strong. Thus, this announcement also led to a 5% bump in the price of bitcoin. Meanwhile, we are once again forced to state a rather paradoxical and sad fact. In order for bitcoin to gain in value by 5-10%, no important market or fundamental factors are needed. A tweet from Elon Musk or news from Tesla is enough. Thus, bitcoin can rise in price forever. All we need for "infinite growth" is Elon Musk to comment on the digital currency once a week and Tesla to expand its interaction with the crypto sphere and purchase bitcoin from time to time. Apart from that, there is Space X. I wonder how traders and investors will react to the news that the company that launches spacecraft and is planning round-trips to Mars is investing in bitcoin.

By the way, the statement of the head of Tesla is equally important for the future dynamics of bitcoin. Musk said that bitcoin paid to Tesla would not be converted into traditional currency. This means that the company is not afraid of the cryptocurrency's ups and downs, and it would adhere to the 'digital gold' stabilization policy in order to use it not only as a means of investment but also as a medium of exchange and a store of value.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Local success or pattern: why BTC returned to growth and what will happen next

Over the past day, the situation in the cryptocurrency market unexpectedly changed. Fixed assets showed slight growth and approached historical indicators. However, it is not worth counting on prolonged growth and opening long margin positions of the BTC/USD and ETH/USD pairs. The current increase in the quotes of individual cryptocurrencies is the result of a combination of circumstances and high market volatility.

Also, the rise in prices for major cryptocurrencies was the result of the market dependence on bitcoin performance. After a sharp decline, to $53,000, the BTC/USD pair rose by $3,500. The positive wave was picked up by retailers, who allowed the asset to stay above the psychological threshold of $55,000. The main reason for the sharp rise in the value of bitcoin was the positive news background, supported by the actual actions of large companies.

First of all, it became known that the South Korean communications giant Naver began negotiations to buy a stake in one of the largest cryptocurrency exchanges - Bithumb. The second important news was the statement from representatives of Tesla Motors saying that their customers can now purchase cars using Bitcoin. A similar feature will soon appear in other parts of the world.

Against the background of this news, the quotes of the BTC/USD pair increased by 5.5% and consolidated at the level of $56,500. The sudden announcement from Tesla attracted another wave of attention to bitcoin, which could subsequently save the digital asset from a price correction that was chasing the currency after another record ($ 61,000 in mid-March). However, it is too early to rejoice, because the positive dynamics of growth in the price of the BTC/USD pair are created by retailers who are unable to provide the currency with the necessary margin of safety for stable growth.

Also, one should not expect an increase in quotes for the main altcoins, the current growth of which is directly related to the local success of the BTC/USD pair. The situation with the Tesla announcement only highlighted the volatility of Bitcoin and the uncertainty of the market. The price spike occurred in just a few hours, which was a negative signal for institutional investors. This jump proved that the quotes of the BTC/USD pair are unstable and the currency is not ready for full growth. Given the dependence of other digital assets on BTC indicators, it becomes clear that market indicators will return to negative dynamics soon, and large investors will ignore the unexpected surge in the value of the BTC/USD pair.



As we can see on the chart, the BTC/USD pair has already started to fall below $55,000. There is no doubt that today, March 24, bitcoin quotes will try to overcome the psychological threshold, however, without the support of large market players, the asset will not gain a foothold on safe indicators.




Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN for March 24 - 25, 2021: Sell Below 58,500



The BITCOIN on the 4-hour chart has broken the 21 SMA level again, and is trading below the 4-hour bearish channel. The eagle indicator is showing a bullish signal.

Given that strong resistance for BTC is located in the 58,500 area, we expect that at that level it will exert downward pressure, and take it again to the 53,220 area.

There we can see that it has left a double bottom. A break of this level the goal will be 50,000.

On the contrary, a break above 59,000, a bullish momentum is expected to Murray's +2/8 area of 62,250, as in the next target. The eagle indicator can support this bullish momentum.

Our recommendation is to sell below the 21 SMA on the 4-hour chart, located at 56,250. Above this level we must avoid buying.


Support And Resistance Levels For March 24 - 25, 2021

Resistance (1) $57,323
Resistance (2) $58,226
Resistance (3) $61,331

Support (1) $55,959
Support (2) $53,981
Support (3) $51,481




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021