Cryptocurrency Analysis

[IFX_Selena]

ETH stuck in a narrow range, XRP and LTC storms psychological marks: analysis and forecasts

After several major crashes in a row, the total market capitalization dropped to $1.5 trillion and showed how important a role bitcoin plays in the mood of coins. Due to the collapse of BTC, the institutionalization of crypto assets has slowed down, but the market is starting to recover its indicators. Over the past day, the growth of all crypto assets amounted to 7%, and the total capitalization came close to $1.7 trillion. At the same time, it is too early to talk about the beginning of the growth cycle due to the instability of the indicators of the leading cryptocurrencies.

ETH/USD quotes continue to show fluctuations. The cryptocurrency manages to reach a certain level, but without the support of the market, the ether drops again to $2,400, where the maximum help from buyers is concentrated. Thanks to these fluctuations, the dynamics of the asset price change quite often, and as of 13:00 UTC, ETH completely won back the growth to the $2,700 mark. However, given the daily trading volume, which is in the area of $80 billion, as well as the positive dynamics of the growth of quotes over the past few hours, we can say that Ethereum has sufficient chances to approach the $3,000 mark at the end of this week. A decisive role here is played by the upcoming update to version ETH 2.0, which is scheduled for early June and will significantly increase the interest of institutions in the asset. A similar scenario is indicated by the conclusions of Goldman Sachs CEO David Solomon, where he stated that the interest of large companies in ETH has recently continued to grow, despite the volatility of the market.



There was optimism in the change in the quotes of the XRP/USD pair. The cryptocurrency continues to grow, but it is difficult to overcome the $1 mark, where the support of buyers is leveled due to market pressure. Over the past two days, the crypto asset has tested the round indicator twice, but failed both times. As of 13:00 UTC, the coin has risen in price by 4% over the past day with average daily trading volumes. Judging by the horizontal charts, the Ripple token is expected to make another retest of the $1 mark, and quite likely, this is the final attempt of the cryptocurrency to justify the current market interest. In the next few days, ETH will begin to capture the audience even more actively from the token and will not leave it a chance to gain a foothold above the round position. In addition, in the event of another failure, the coin can aggravate the correction and tip over to $0.850, where it will test the strength of the market loyalty.



The quotes of the LTC/USD pair managed to make a real breakthrough from $120 to $187, where the cryptocurrency did not receive the necessary market support. As a result, the indicators of the coin dropped to $170, from where the asset began the next stage of growth. Over the past day, LTC has risen in price by 5% with mediocre daily trading volumes, however, the cryptocurrency showed persistence and growth prospects, leaving the pressure zone around $170. Soon, the altcoin may again try to approach the $200 mark and gain a foothold above it, but for this, the coin needs a positive impulse.



New details of the future update of Polkadot have emerged, thanks to which it became clear that the asset has little chances to compete with ETH at the current stage of development. The developers admitted that improving the system towards conducting parallel transactions does not guarantee stable operation of the blockchain and leveling the main problem of ether - sharply increasing transactions. With this news and the upcoming ETH update, there is no doubt that the decentralized DOT project is still far from real competition with the main altcoin. The asset is quoted at $20,226 and the daily trading volumes indicate dying market interest.



The news background around the cryptocurrency market began to change. The main reason for optimism was the statement by representatives of Goldman Sachs bank regarding the expansion of the cryptosystem. According to the company's experts, shares of the cryptocurrency exchange Coinbase are the best way to invest in crypto assets at the current stage. Thanks to this news, the main coins have activated and are trying to overcome psychological marks in order to gradually approach local highs.






Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

UK's largest bank will not deal with cryptocurrencies



Even though bitcoin has been declining in the last month and a half and is dragging down the entire cryptocurrency market, some investors continue to believe in it. Probably, they are even right, since, in the long run, it is quite possible that bitcoin will grow to that notorious $100,000 per coin. The problem is that almost all the "crazy" forecasts for bitcoin do not have any specific deadlines. Anyone can say that bitcoin will cost $100,000, but what is the point if no one names the terms and specific reasons? Everyone says that bitcoin is a new opportunity, it is convenient, decentralized, not subject to governments and central banks, and so on. However, there are plenty of cryptocurrencies in the world right now.

Ethereum is already encroaching on the place of bitcoin, it is also traded on the commodity exchange, there are also a huge number of derivatives for it, and many experts consider ether to be more attractive as a means of circulation and payment. Recall that in general, cryptocurrencies were created to replace or become an alternative to fiat money, and bitcoin in our time is just an investment tool, which also does not cost anything in itself. That is, the absolute majority of participants in the cryptocurrency market use bitcoin not because it is a convenient means of payment, and very few people use it as a means of payment, but because with its volatility, the price changes very quickly.

The expression regarding the decentralization of the cryptocurrency is also quite controversial, since most of the miners (so far) are located in China and, as we can see, power outages in just one region can lead to a collapse of the hash rate and the price of the cryptocurrency. Well, it is probably not worth talking about disobedience by central banks and governments now, since China can ban mining and bitcoin turnover through financial organizations, and the United States can tighten taxation of cryptocurrency transactions. Thus, it cannot be said that bitcoin does not depend on the Central Bank or governments.

I am glad that not everyone in this world is ready to rush headlong into any new technology, just to earn a couple of million on it. The largest British bank, HSBC, does not plan to launch any special departments for cryptocurrencies or offer its clients investment instruments based on cryptocurrencies. This was stated by the bank's CEO Noel Quinn. According to him, bitcoin is too volatile and is not an asset. "So," Quinn says – " if our customers want to trade it, they will, of course, but we are not promoting cryptocurrencies or imposing them on our customers in any way." Earlier, several of the world's largest banks announced the creation of financial instruments and other various services and investment instruments based on cryptocurrencies. Payment systems like Visa or PayPal have also joined this trend. Everyone wants to keep up with the times.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN for May 25 - 26, 2021: Buy above 35,200



In 1-hour chart, BTC / USD has found resistance at the 200 EMA located at 39,590. On the chart, we notice that a head-and-shoulder pattern is in the cards. We expect the formation of the second shoulder to take place in the zone of 35,200 approximately.

The Bitcoin, in recent weeks has received a strong punch from China. Investors are stoking fears every time when China attempts to stop uncontrolled speculation in the cryptocurrency markets.

At its core, China has a strategic desire to protect and promote Beijing's drive to develop its own digital currency Renminbi. According to these experts, Guo Shuqing, secretary of the People's Bank of China (PBoC) and chairman of the China Banking and Insurance Regulatory Commission (CBIRC), chaired a meeting on Monday on the ban on financial institutions and payment companies provide services related to cryptocurrency transactions, by direct order of the State Council, China's main administrative body.

According to experts, if the pressure from China persists in the medium term, Bitcoin could fall to levels of 20,000 and consolidate below this level. No doubt, the fears of investors and widespread panic could be stronger than the pressure of China.

In view of the fact that BTC has made it clear that it has a firm bottom in the 30,000 zone, the price is likely continue consolidation and could strengthen until it reaches the psychological level of $ 50,000.

Based on the 1-hour chart, we recommend buying BTC if it bounces above 35,200 or if it breaks the 200 EMA above 39,500 with targets at 43,750 3/8 zone of murray.


Support and Resistance Levels for May 25 – 26, 2021

Resistance (3) 47,581
Resistance (2) 43,676
Resistance (1) 41,292

Support (1) 36,689
Support (2) 35,063
Support (3) 31,219





Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin: Good news

The cryptocurrency market closed yesterday in the green zone. Bitcoin recovered Sunday's losses but hit the local mirror resistance level of 38,610.88, marked with a red dotted line.

Meanwhile, the network is discussing the news that Elon Musk met with bitcoin miners in North America. On his Twitter account, Musk wrote that he was pleased with the meeting and called it promising. The meeting was chaired by the head of Microstrategy Michael Saylor. As a result, they created the Bitcoin Mining Council to ensure the sustainability of the first cryptocurrency.

Miners at the meeting with Musk noted that they are ready to provide information on the use of renewable energy sources. Thus, this event became the basis for the development of "green" crypto mining. It is worth noting that this news spurred bitcoin's growth yesterday.

But the technique is strong and the mirror resistance level of 38,610.88 has not been broken yet.

Another encouraging development was Ray Dalio's confession that he owns bitcoin. The head of a large hedge fund, and billionaire investor, emphasized that the cryptocurrency market potentially has great prospects, but the financial system is afraid that a new type of asset will challenge it. Therefore, governments will keep this industry under strict control.

Nevertheless, for investors, bitcoin is attractive in contrast to the inflation of fiat money. It highlighted what many influencers before it had been talking about: the printing of money by central banks depreciates it, making a limited-supply cryptocurrency especially attractive.

For hedge fund managers, investing in cryptocurrency is now far more profitable than buying government bonds. Against this background, securities that are somehow related to blockchain technologies and digital currencies are in demand.

Dalio's confession suggests that he and his hedge fund may not be the only ones investing in bitcoin. Other foundations can also do this without advertising their interest. And for the market, this fact would be positive, shaping the mood.

But this is potentially good news. Locally, it is worth monitoring whether BTC/USD is now able to break through the level of 38,610.88, marked with a red dotted line and working as a resistance. If so, the next target for growth will remain the horizontal line 41,980.24. If the breakout fails, then, focusing on the "stockade" of the daily candles, you can expect a decline to the lows of yesterday's trading session or the lower shadow formed on Sunday.






Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

XRP/USD could see $1.50 again if price breaks above $1.06.

XRP/USD has bounced from $0.64 to $1.05 and is now pulling back. Price has so far retraced 38% of the upward move from $0.64. Price has back tested the major support and previous major resistance and break out area. Bouncing off this area is an optimistic sign for what could come next for XRP/USD.



Red lines - Fibonacci extensions

Blue lines -Fibonacci retracements

XRP/USD as we said above has retraced 38% of the recent upward move. Price could continue its slide lower towards the 61.8% Fibonacci retracement. Resistance is at $1.05 and as long as price is below it, price is vulnerable to a move lower. If bulls manage to break the resistance of $1.05, then our first target would be at $1.28 and next at $1.50. Price could be very close to an important trend reversal and the formation of a major low. The decline from $1.97 could already be over. However this is not verified yet and so traders need to be cautious.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for May 25,.2021 - Breakout of the rising channel and potentia for test of $32.000

Technical analysis:



BTC has been trading downside and there is the breakout of the rising channel in the background.


Trading recommendation:
Watch for selling opportunities on the rallies due to the breakout of the rising channel. Downside targets are set at the price of $34.900 and $31.500.

Stochastic reached extreme reading, so the light upside correction is possible before the downside continuation.

Key resistance is set at the price of $40.000





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin bounces back after a massive plunge last weekend

Bitcoin rose a bit on Monday, offsetting some of the losses the market had last weekend. The main reason was Goldman Sachs, because it finally acknowledged Bitcoin as an asset class. Earlier, the bank said BTC has little chance to survive in the market, but now its position is in favor of the cryptocurrency.



The announcement surprised many investors because last week, not a single member of Goldman Sachs spoke in defense of Bitcoin.

In addition, Bridgewater founder Ray Dalio, who previously said he is concerned about the future of Bitcoin, suddenly said yesterday that he would rather own the cryptocurrency than government bonds. He pointed out that if the crypto market continues to gain attention, investors will choose to invest in them rather than in government bonds, which will result in governments losing control over their ability to collect money. Undoubtedly, that is the reason why leading countries are trying to develop digital currencies. They want to prevent such a scenario.

Hence, the Federal Reserve recently stepped up its efforts to research digital currencies. Fed member Lael Brainard said there are three main reasons why the central bank started to focus on them: the growing role of digital money, plans to use digital currency for cross-border payments and the possible benefits of financial inclusion.

Surprisingly, Brainard also mentioned Stablecoins. According to her, they pose serious threats because they are not regulated by anyone.

And last week, Fed Chairman Jerome Powell said the central bank will release a research report on digital currencies this summer. They will also seek to engage a wide range of stakeholders to implement the project.

Powell also said that cryptocurrencies are not good means of payments because they are highly volatile. As such, Stablecoins are likely to receive more attention from regulators in the near future.

Going back to Dalio, he said that investing in bonds is now a terrible idea because Treasury yields no longer exceed inflation. Instead, he is now looking at Bitcoins, although in previous statements he claimed that it would make him lose about 80% of the invested money.





Jakub Novak
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin Cash Redeems Lost Ground

Bitcoin Cash rebounded trying to recover after the most recent decline. It has dropped as much as 467.80 on Sunday where it has found strong demand. Now it is trading at 742.04 challenging the near-term resistance levels.


BCH/USD BREAKOUT ATTEMPT!


Bitcoin Cash is pressuring the weekly pivot of 729.27 and the downside 50% Fibonacci line. Closing and stabilizing above these levels could indicate more gains towards the median line (ML).

BCH/USD has found support right on the lower median line (LML). Failing to take out the lower median line may signal that the median line (ML) could attract the price. The price's failure to approach and reach the S1 may signal a potential bullish fly to the R1 (993.20).


BITCOIN CASH FORECAST!

Failing to stabilize above the weekly pivot 729.27 may announce a new decline towards the 608.82 level.

On the other hand, jumping and closing above 793.98 immediate high may activate a further growth towards the mentioned upside targets.




Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Is China making Bitcoin sink?



Bitcoin showed a rather impressive growth yesterday, but in general, it is now in a downward direction. Nevertheless, by and large, the fall of the cryptocurrency with the entire cryptocurrency market, has already happened. Now, we need to think about the further prospects of the first cryptocurrency in the world, and not mourn its fall by $36,000. I would like to note right away that despite the rather attractive current levels of bitcoin, investors do not rush to the market with their money to invest in digital gold. Yesterday, thanks to Elon Musk, the cryptocurrency market revived a little, but in general most investors and traders are now inclined to sell bitcoin rather than buy it. Considering what measures the authorities of China and the United States are planning to take, it is very difficult at this time to count on the growth of bitcoin at $100,000 per coin. In China, the topic of a possible ban on mining is becoming very popular. The media are spreading information criticizing bitcoin with might and main, approving the proposal of the authorities to completely ban mining and seriously complicate the circulation of cryptocurrencies in the country. According to an article by China's Xinhua News Agency, illegal and speculative bitcoin transactions, and illegal token issuance can entail large losses for investors and affect the financial stability of the state. The authors of the article note that the hype and chaos around the cryptocurrency should be stopped. They believe that Bitcoin will never become a currency, and investors and financial institutions are not recommended to deal with this asset. The article also contains information regarding mining farms and other projects that "mislead the authorities." The news agency warns of the responsibility of all organizations involved in mining. According to some reports, several mining pools have already ceased their activities in China. Some analysts believe that this time is critical for Bitcoin. Many note that in the near future, there may be an overflow of the bitcoin hash rate from China to its borders. Simply put, mining farms will be transferred to territories with a more loyal attitude towards them. Also, some analysts believe that the war on mining in China will make bitcoin greener and safer for nature.



Technically, bitcoin on a 4-hour timeframe is currently trying with all its might to move away from its local minimums. But even in spite of a strong pullback from the level of $29,873, it still cannot be said that the downward movement is over. As you can see, the price has not yet even managed to overcome the Ichimoku cloud; in the last hour, the cryptocurrency does show a desire to start a new round of falling quotes.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Crypto market to repeat its market crash in 2018

It seems that the fears of investors are starting to materialize. Over the weekend, Bitcoin continued to trade downwards, more specifically below $ 41,000. And every time that BTC tries to break above the level, bearish traders deliberately become more active in the market, thereby restricting the price below the 200 MA.

Some might say that it is foolish to compare the current scenario with what happened back in 2017-18, when Bitcoin collapsed after reaching $ 65,000.



But as we have seen in the previous weeks, it is apparent that just like in 2018, Altcoins soared after Bitcoin hit massive gains. Therefore, it is not a surprise that investors are concerned that the crypto market will crash, or at least trade sideways for many months.

Now, Bitcoin is in a bear market, and there is a high chance that its value will drop to $ 22,000. There are also no prerequisites for future growth. Obviously, only a new "adoption cycle" will bring cryptocurrencies back to a bull market.



Considering this, a lot depends on $ 38,750 today because a break above the level will set off a jump towards $ 45,700. Otherwise, Bitcoin will continue its downward trend, in which the value will reach $31,000, and then plunge to $ 25,750 and $ 21,600.





Jakub Novak
Analytical expert
InstaForex Group © 2007-2021