Cryptocurrency Analysis

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XRP/USD finds resistance once again above $0.57.

XRP/USD is trading just below $0.57 right now having reached up to $0.5848 today. Price continues making higher highs and higher lows but today we see that bulls are unable once again to recapture $0.60.



Blue lines - support trend lines

Yellow rectangle - resistance area

XRP/USD has reached the $0.58-$0.60 resistance area for the 4th time over the last nine sessions. Four candles have long upper tails implying and confirming that resistance at $0.58-$0.60 is very important. A rejection here could bring price back to the first upward sloping blue trend line and the $0.47-$0.49 area. A break above $0.60 will open the way for a test of the most important resistance level of $0.70-$0.80.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin neared $60,000 after confirming that PayPal has officially started accepting BTC payments



The bitcoin price made a correction before the record options expiry last Friday. As Visa and PayPal dealt with bitcoin and cryptocurrency payments, the ongoing rally above $59,000 was fueled by upbeat news from these giants. In other words, the market is in the middle of a bull cycle, and any correction is a boon for traders and investors.

The total market cap is showing a similar test of support, as the $1.5 trillion levels are crucial to hold. As the total market cap of the cryptocurrency has recovered from this correction, there is likely to be more room for growth as regions where it is at an all-time high will be tested.

However, during this jump, several critical support levels were established. Currently, the significant storage space is $56,000. As long as this region maintains support, the market will have the potential for further growth. This sets new historical peaks and perhaps $70,000 by early summer.

This is a transitional moment where cryptocurrencies become a legitimate source of funding for making real transactions from millions of sellers, mostly from the asset class that you buy, hold, or sell.

Bitcoin will not be able to rely on the market capitalization of gold, which is $10 trillion. It will be much higher, which means that bitcoin will be worth hundreds of thousands of dollars. And if bitcoin hits new all-time highs, altcoins are likely to follow suit.




Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin is not losing its growth potential. What to do today?

How to make money on cryptocurrencies?
To start making money systematically on the cryptocurrency market, it is important not to rush anywhere. The market will not disappear tomorrow, so there will be opportunities for earning money every day. It is better to allocate enough time to learn how to trade on cryptocurrencies and only then trade. It is important to understand that only those who treat trading as a profession and not entertainment can consistently earn money in the market. Is it possible to quickly acquire a new profession? No. This requires enough time. Therefore, if you want to make money on cryptocurrencies, then give yourself time to learn. Time is needed for:

- training courses
- daily practice
- books on trading
- testing of trading strategies, etc.

The time spent on training will give you invaluable experience and will allow you to take a more objective look at the cryptocurrency market. If you do not rush, you will lay a good foundation for your growth as a trader. By gaining experience and knowledge, you will be able to trade as professional market participants. Let's look at the current market and try to understand what the big players are doing now.


Analysis of bitcoin futures volumes from the Chicago Futures Exchange (CME)
Bitcoin continues to keep from falling (see the image at the beginning of the article). Most likely, the potential for further growth remains, the fall of last week was stopped. The corridor movement continues in the market, bitcoin is held between the levels of 50300 - 60000. It seems that in this range, there is an accumulation of positions by large players before a new move. Consider the levels of maximum horizontal volumes from the Chicago Futures Exchange. These volumes show the activity of major players.

03/25/21 – The level of the maximum horizontal volume (ROS-Point Of Control) – 50815
03/26/21 – The level of the maximum horizontal volume (ROS-Point Of Control) – 53995

The ROS has moved up and the price continues to hold above the last ROS. This indicates the strength of buyers and in the short term we may see an upward movement. Therefore, from the point of view of volume analysis, today we can consider purchases.


Trend Analysis
Trend trading offers great prospects. But trends in the market occur infrequently. Traders try to enter the market often, and while the market is flat, such trades can be ineffective. Trade less often, but trade according to the trend. Analyze short-term, medium-term and long-term trends, and when they coincide, look for a point to enter the market. These forecasts use an exponential moving average to analyze the trend:

The long-term trend is EMA 1152 (blue) on the H1 timeframe, which is similar to EMA 48 on the D timeframe;

The medium-term trend is EMA 288 (red) on the H1 timeframe, which is similar to EMA 48 on the H4 timeframe;

The short-term trend is the EMA 48 (black) on the H1 timeframe.



All three trends are the same. The price is higher than all three EMAs, respectively, the trend is upward. In this situation, from the point of view of trend analysis, you can consider purchases.


Japanese Candle Analysis
Japanese Candle Analysis helps to look into the future. A good understanding of candle configurations makes it possible to predict the market and avoid losing trades. Let's analyze yesterday's daily candle:



Yesterday's candle is black, it was closed at the bottom, the bears won. The body and shadows of the candle are completely inside the previous candle, which could be due to the weekend. Candle configuration -Tweezers - the last two candles have almost identical highs. The candle configuration is reversed, it is possible to move down. From the point of view of candle analysis, today we can consider sales.


Conclusions. Statistics.

Volume analysis – BUY
The long-term trend is BUY
The medium-term trend is BUY
The short- term trend is BUY
Japanese Candlestick Analysis is SELL

General Conclusion: 03/29/21 – you can buy and sell bitcoin in the short term, as different types of analysis give different forecasts, the market is flat.

Only statistics can show the effectiveness of any trading approach. According to these forecasts, transactions are made on a separate account and open statistics of these transactions are provided. Transactions are made on four instruments - Bitcoin, Ethereum, Litecoin, BCH USD - which are analyzed in a similar way. The result for the two months of 2021 is +10.42%.


Regulation:



At the moment, one transaction is open:

03/25/21 Litecoin SELL: 174.44 SL: 201; Risk per transaction: 1% of the deposit. With a deposit of$ 10,000, the lot is 0.04.

I do not open new deals today, there is uncertainty in the market. The transaction on BCH USD, closed at breakeven.

The risk per transaction is not more than 1%, this approach is conservative. The stop loss for this system is set behind the minimum or maximum of the signal day, depending on the direction of the transaction. The profit is given the opportunity to grow without restrictions, since I do not set a take profit. I accompany the trade by moving the stop loss beyond the extremes of the new days.

Since trading is conducted on daily charts, this recommendation is relevant throughout the day.

Trade on the trend, and you will have great profit!





Maxim Petrov
Analytical expert
InstaForex Group © 2007-2021

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Trading Signal for BITCOIN, BTC/USD for March 29 - 30, 2021: Buy above 56,250



The BITCOIN, this Monday morning is trading above the key level of 56,250, showing strong bullish signal, now it is located above the SMA of 21 and above the EMA of 200, after having broken the downtrend channel.

Last week we saw how the BTC, fell to the minimum of the 50,000 psychological level, found strong support, from that point it is rebounding, pointing to the target of 62,500.

Because the bias remains bullish for BTC, we expect that there will be a consolidation above the 56,250 level, there is +1/8 of murray, support level for now, and the bottom of the bearish channel that should hold for a new boost to 62,500.

Given that we expect a consolidation at 56,250, we recommend buying at those levels with targets at 59,000 and 62,500 in the short term. The eagle indicator is showing bullish signal.


Support And Resistance Levels For March 29 - 30, 2021

Resistance (1) $58,226
Resistance (2) $59,448
Resistance (3) $62,595

Support (1) $56,921
Support (2) $55,516
Support (3) $54,603




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

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Technical analysis of Ripple for March 30, 2021



Ripple has broken out of the triangle consolidation towards the upside as expected. We still need a break above resistance at 0.6000 to confirm the triangle completion and the continuation higher to key-resistance at 0.7644 and a break above here will open up the upside for a continuation towards resistance at 1.5000.

Support is now seen at 0.5336 which should be able to protect the downside.


Trading recommendation:
Buy Ripple here and place you stop at 0.5330.





Torben Melsted
Analytical expert
InstaForex Group © 2007-2021

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The pressure on Bitcoin is postponed



Bitcoin has started a new round of upward movement, again failing to overcome the important level of $52,300, where the Kijun-sen line of the Ichimoku indicator passes. So for the time being, the correction scenario is postponed again. But from our point of view, a serious correction for bitcoin has been brewing for a long time. The two most important factors have already been mentioned before: the time factor and the factor of weakening the bullish trend. It is these two factors that can provoke the beginning of a strong correction, at least in the support area of $43,000-44,000 per coin. However, without technical signals and confirmations of these expectations, you should not sell bitcoin in any case. It has been mentioned before that even any currency (a much more stable instrument) can move in any direction for a very long time in the absence of visible reasons. A striking example of this is the British pound sterling in the last year. What can we say about cryptocurrencies, which are currently the most volatile investment tools. Thus, bitcoin may well reach the $100,000 per coin mark in the coming months. To do this, it is necessary to increase the demand for it even more. The growth in demand can be ensured by the influx of new institutional investors, due to the "hamsters" who rush to invest the money received from the American authorities. This is an absolutely real scenario. The whole essence of the movement of the bitcoin exchange rate, in fact, is based on whether the market believes in a further rise in the price of the "digital gold" at this time or not. It is believed that bitcoin is long overdue to go down. However, it is important to remember that a clear downward trend and signals must be formed for this to happen.

Meanwhile, the Fed is creating favorable conditions for Bitcoin to continue strengthening. Recall that it is the central banks that are considered the most likely opponent of all cryptocurrencies, since no government wants to have an uncontrolled currency. Central banks and governments can either ban the use of bitcoin (as it is now in India), can impose high taxes on it, or can introduce their own digital currencies to create competition for cryptocurrencies. So far, the Fed is not going to do either one or the other. The head of the Federal Reserve, Jerome Powell, said the other day that America will not rush to create a "digital dollar." According to Powell, the creation of a digital dollar will have serious consequences for the whole world and in this matter you need to be very careful. Approximately the same opinion is shared by the authorities of the European Union, as well as the ECB. This means that in the next few years, Bitcoin and its counterparts are unlikely to have a state competitor. This is undoubtedly good for the prospects of the world's number one cryptocurrency.



In technical terms, Bitcoin was on the verge of breaking the $52,300 level for several days. But in the end, the bulls still held the initiative in their hands and a new round of upward movement began. Now, the nearest target for growth will be the previous local maximum – $61,600. However, we still draw the attention of traders to the fact that the fuse of buyers is clearly drying up. They need either a new influx of investors, or a sharp drop in the supply of bitcoin in the market. Otherwise, a powerful downward correction will begin.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of BTC/USD for March 31, 2021

Crypto Industry News:
PayPal announced the ability to allow US customers to pay with cryptocurrencies (including bitcoin and ethereum) across its global retail network. The BTC / USD exchange rate rose to $ 59,000. Will he attack the price record today?

According to a report released this morning by Reuters, the move could help bolster the daily use and adoption of cryptocurrencies such as bitcoin and ethereum among millions of online retailers worldwide. Additionally, PayPal's move could positively increase exposure and broader evidence of the validity of cryptocurrency use in a relatively niche sector.

According to yesterday's reports, customers with cryptocurrencies such as BTC, ETH, LTC, BCH in their PayPal digital wallets will now be able to convert their resources into FIAT currencies in shopping carts to make purchases.

This means customers would pay in cryptocurrencies, however PayPal will immediately convert digital assets into fiat currency and pay the sellers. For the merchant, this would mimic the current payment method, while for a PayPal user it would be a newer experience of spending cryptocurrency to purchase goods or services.

The service goes live one year after PayPal announced that it is launching its cryptocurrency-based business, which will be available to all 29 million sellers in the coming months.


Technical Market Outlook:
The BTC/USD pair has broke through the trend line resistance and made a top at the level of $59,612 (at the time of writing the article). The next target is seen at the level of $60,100. From there the road towards the ATH located at the level of $61,683 is very short. Strong and positive momentum supports the short-term bullish outlook for BTC.

Weekly Pivot Points:
WR3 - $66,270
WR2 - $62,632
WR1 - $58,882

Weekly Pivot - $54,425
WS1 - $50,791
WS2 - $46,464
WS3 - $42,622


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

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Forex Analysis & Reviews: Ethereum Flirts With Resistance!

Ethereum drops at the time of writing trading at near 1,781 level. The price has reached an important dynamic resistance signaling that the swing higher may be over. Still, the decline could be only a temporary one.

ETH/USD could decline a little in the short-term trying to attract more buyers and more energy before taking out the immediate resistance. Ethereum drops as the price of Bitcoin falls as well in the short term.


ETH/USD BREAKOUT ATTEMPT!


ETH/USD reached the downtrend line and now is pressuring, retesting, the broken upper median line (UML) of the descending pitchfork. A temporary decline could be natural after the price's failure to stabilize above the R1 (1,823).

It could decline a little along the upper median line (UML) before starting to increase again. The outlook is bullish as the price is traded way above the uptrend line. A valid breakout above the downtrend line signal more gains ahead and activates a bullish opportunity.


ETHEREUM OUTLOOK!

Jumping and closing above 1,863 immediate high and through the downtrend line brings a long opportunity.

ETH/USD's failure to reach the descending pitchfork's median line (ML) has signaled that the price may approach and reach 1,943 higher high in the coming period.




Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin forecast for March 31, 2021 – BUY. Gains for 2 months +10.42%

1. How to make money on cryptocurrencies?
To make money on cryptocurrencies, traders should become professionals or copy actions of experienced traders. We have already mentioned that there are three main resources – intention, time, and money. Today, we will focus on money.

Trader is a profession!

Is it possible to become a professional in this or that sphere without investing money in education? Can anyone become a lawyer, doctor, or an engineer for free? Of course, nowadays, it is almost impossible. To get a good job, one should be well-educated. If you decide to become a professional trader, you need to allocate some amount of money for education. Thus, we need money for the following:

- Educational courses. Future traders are recommended to take a variety of courses to learn different trading systems and approaches. The more you know about the market, the better you can understand it.

- Books on trading. Read the books of professional market participants who have achieved success in their business. Set a goal of reading one book every month. In this case, you will actively grow as a professional trader.

- Initial deposits. It is impossible to learn everything, trading on a demo account. It is like driving a car in a computer game. To polish your driving skills, you need to go on a real road with its risks and dangers. Thus, in trading, you need a real account in order to learn how to trade profitably. However, investing money, you should understand that you are just at the beginning of your way. Your initial goal is not to earn money, but to gain experience.

Anyone can become a professional trader investing both time and money in education. Let us take a look at the current market situation.


2. Volume analysis of BTC from the Chicago Mercantile Exchange (CME)
Bitcoin is gaining in value (a chart at the beginning of the article). Of course, it is not a confident rise. The price moves up and drops from its highs. However, the asset has all chances to hit a new high and break the level of $62,000 per coin. Traders can join the trend, as bitcoin is highly volatile and may jump in any time. Let us take a look at the levels of the highest traded volume from the Chicago Mercantile Exchange (CME). This volume reflects the activity of big players.

29.03.21 – the level of the highest traded volume (POC– PointOfControl) – 58,655
30.03.21 – the level of the highest traded volume (POC– PointOfControl) – 59,400

During the recent days, the level of the highest traded volume has been moving upwards. This proves the uptrend. At the moment, the price is at yesterday's POC. This reflects the balance between buyers and sellers. Thus, traders are recommended to open buy positions.


3. Trend analysis
Let us continue analyzing the trend. To understand the global market trend, use a daily chart. Open positions only in the direction of the current trend. We use the exponential moving average to analyze the trend.

Long-term trend – a blue EMA (1,152 ) on the H1 chart, which is an alternative to EMA (48) on D1;
Mid-term trend – a red EMA (288) on the H1 chart, which is an alternative to EMA (48) on H4;
Short-term trend – a black EMA (48) on the H1 chart



We can see an upward movement. The price is above EMA 48, whereas EMA 48 is above EMA 288 and EMA 288 is above EMA 1,152. This proves a confident uptrend. In this case, traders are recommended to open buy positions.


4. Japanese candlestick analysis
Market analysis with the use Japanese candlestick analysis is the third step in this trading system. Let us analyze yesterday's daily candlestick:



Candlesticks appeared on Monday and Tuesday are somewhat similar. Both candlesticks are white, the closing price is higher than the opening price. We can see long upper shadows that indicate a struggle at the highs. However, bears do not give up. Today, the maximum of yesterday's candle has already been broken. We are likely to see a continuation of the upward movement. Today, it is better to open buy positions.


5. Conclusion. Statistics
Volume analysis – BUY
Long-term trend – BUY
Medium-term trend - BUY
Short-term trend – BUY
Japanese candlestick analysis – BUY

Conclusion: On March 31, 2021, it is possible to buy bitcoin as various analysis types provide us with the same forecasts.

Only statistical data can show the effectiveness of any trading approach. Traders use these forecasts to trade on a separate account. Positions could be opened on four instruments: Bitcoin, Ethereum, Litecoin, BTC/USD. Each of them could be analyzed in the same way. Gains for 2 months +10.42%.


Statement:


The following positions are opened at the moment:

25.03.21 Litecoin SELL: 174.44 SL: 201; the risk management is 1% of the deposit of $10,000, the trade volume is 0.04.

31.03.21 Bitecoin BUY: 58773.8 SL: 56700; the risk management is 1% of the deposit of $10,000, the trade volume is 0.05.

31.03.21 Ethereum BUY: 1834.85 SL: 1774; the risk management is 1% of the deposit of $10,000, the trade volume is 1.78.

Today, we can see two positions on bitcoin and ether.

The risk per trade is not more than 1%. This approach is conservative. Stop Loss is set beyond the minimum or maximum of the signal day, depending on the direction of the trade. I do not place Take Profit. Thus, the gain is not limited. I accompany the trade by moving Stop Loss beyond the extremes of the new days.

Since the trade is carried out on the daily charts, the recommendation remains relevant throughout the day.

Follow the trend and you will get profit!




Maxim Petrov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Crypto market plunged. BTC/USD sank by $3,000

After a long stagnation, the cryptocurrency market has found momentum for growth. Over the past 5 days, the total cryptocurrency market capitalization has reached $1.86 trillion. Bitcoin and major altcoins were slowly but surely approaching key positions for further growth. However, as of March 31, the cryptocurrency market shows negative dynamics and a drop in total capitalization by 1%.

This behavior of the main digital assets does not seem entirely justified given the positive news background, as well as the end of the bitcoin expiration, which also put pressure on the market. Despite this, on Tuesday, the quotes of the BTC/USD pair reached an important milestone of $60,000, but over the past day, they fell by $3,000. At the same time, the positive dynamics of the total trading volume remain, which amounted to $197 billion. On March 31, the asset is holding at around $58,000, and this looks quite logical. The currency did not have enough margin of safety and interest of large investors to stay above the $60,000 mark.

At the same time, a positive news background continues to persist around bitcoin. Cryptocurrency platform Bakkt, together with Starbucks, introduced a mobile wallet for transactions with bitcoin. Also, Europe's largest cryptocurrency holder reported that it doubled its annual profits thanks to its first digital asset. Thus, the positive news background and increasing trading volumes will allow Bitcoin to stay close to the psychological mark. Retailers are currently showing interest in the BTC/USD pair, which will allow the cryptocurrency to update its all-time high. At the same time, without the interest of institutional investors, the asset can painfully sink in price due to the correction after a new record.



The case of the ETH/USD pair has worsened, which on Tuesday held positions at $1,860, but over the past day sank by 2%. As of March 31, Ethereum quotes remain in the region of $1,800, and the total trading volume is $28.8 billion. The general market downturn and the lack of interest from large investors pushed Ethereum away from important indicators. At the same time, the ETH/USD pair stands out against the background of other cryptocurrencies due to an early network update to version ETH 2.0. The market is holding its breath in anticipation of the launch of a new platform that will give Ethereum a huge leap forward in development and value.



A serious decline was outlined in the Ripple token, which sank by 7% over the past day. The current readings of the XRP/USD pair are $0.540. Despite Ripple's purchase of a 40% stake in Tranglo, the momentum has passed, and now the asset's quotes are more dependent on the course of the litigation between the SEC and Ripple.



Litecoin continues its downward movement over the past day. On March 30, the asset showed a symbolic growth of 0.6% and dropped in price by 3.5% in 24 hours. Now the quotes of the LTC/USD pair remain at $190 and show minimal prerequisites for further growth. The asset may close at $195-$200 in today's trading, but will not fix at this level.



The positive news background, as well as the impetus from Tesla, PayPal, and Visa, allowed the cryptocurrency market to start gradual growth, but it is obvious that the main crypto asset and altcoins lack a margin of safety. That is why digital coins sank in price, getting close to psychological marks, near historical highs. This situation could be corrected by the increased attention of the institutional investor, which did not follow the example of the payment giants. This may be because large companies have taken a wait-and-see attitude, waiting for important announcements related to the creation of EFT-bitcoin in the United States and the update of Ethereum to version 2.0.





Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021