Cryptocurrency Analysis

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XRP renews three-year high, crypto market capitalization reaches $2 trillion: reasons and forecasts

The cryptocurrency market started quite vigorously in the second quarter of 2021 and continues to grow steadily in price. Over the past day, the total cryptocurrency market capitalization has increased by 4% and reached $2 trillion for the first time in history. The main sensation in April is the altcoins, which are gaining positions in the market from bitcoin. The local hero of the past days was the Ripple token, which updated the three-year record of value and continues to push the market up.

If you look at the situation in general, it becomes clear that the cryptocurrency market is growing and developing recently precisely due to altcoins, whose share in the total capitalization is gradually growing. Over the weekend, the main catalyst for market growth was ether, which set a new record ($2,146) and continues to occupy safe positions above the $2,000 mark. After a spurt to a new high, the Ethereum quotes dipped slightly, stopping at $2,093.



At the same time, over the past 24 hours, the value of the asset has increased by 4% and the current growth in trading volume ($241 billion) suggests that soon the indicators of the ETH/USD pair will storm new peaks. This is facilitated by the positive information background and the emerging independent growth dynamics, tied solely to the increased interest of large investors.

However, a few days later, on March 6, it was the XRP token that became the catalyst that allowed the cryptocurrency market to reach a value of $2 trillion. Over the past day, the Ripple coin has rapidly burst into the top 5 crypto assets in terms of total capitalization and updated a three-year record. Over the past 24 hours, the XRP/USD pair has risen 38%, and over the past hour, the asset has shown a crazy 10% growth. It is also worth noting the daily trading volume, which almost doubled and on March 6 is $45 billion.



The reason for the optimism of market participants was the news that Grayscale has documented its intention to transform its bitcoin trust into an exchange-traded fund (ETF), which will significantly increase the interest of institutional investors. Also, the circulation of rumors about XRP listing on the Coinbase platform has added happiness points to major market players. In general, at the current stage, the litigation between Ripple and the SEC has a positive effect on the position of the XRP/USD pair and contributes to its further growth to the level of $1.1.

Another altcoin is aiming for a historic milestone and hoping to rewrite it. Litecoin has grown by 11.5% over the past 24 hours, reaching $225. Judging by the current dynamics, the LTC/USD quotes may well swing at the psychological level of $230. If the asset manages to gain a foothold in this position, then reaching a new maximum value will be a matter of time.



Suddenly, the first cryptocurrency appears again at the end of the review, which is stuck in the region of $57,000-$60,000. The asset is in uncertainty, as can be seen from the growth dynamics: over the past day, bitcoin has risen in price by 2% but has not overcome the difficult milestone of $60,000. The growth of cryptocurrency over the past 7 days was only 1.5%. Even the next investment from MicroStrategy amounting to $15 million could not save the situation.



The main reason for the lack of bitcoin growth was the stabilization of the cryptocurrency market. Over the past few months, altcoins have significantly increased their market presence and become independent from the main crypto asset. In two weeks, the dominance of BTC in the market fell by 4%, which indicates a certain decline in interest specifically in bitcoin. This is because large companies are studying the market in which new profitable crypto projects continue to appear. Even though bitcoin indicators are kept at the level of $58,000, the asset has no visible prerequisites for overcoming the milestone of $60,000 and for setting new historical records.





Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

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ARK Invest predicts a tenfold rise in Bitcoin



While bitcoin continues to hover around the $60,000 mark, most experts continue to give out "free predictions" on the future value of the bitcoin. We have already noted more than once that the forecasts of those experts who themselves own bitcoin or other crypto assets should be divided by 8. We do not deny that in a year or two bitcoin can cost both $100,000 and $200,000 per coin. However, it should be clearly understood that those people who own large amounts of money in bitcoin are interested in the fact that the cryptocurrency continues to rise in price. The more new investors, both small and institutional, come to the market, the more bitcoin will rise in price, which, of course, is beneficial for all owners of "digital gold". Therefore, while bitcoin is at its peak of popularity, no matter how much it costs, there will always be a huge number of experts who will predict absolutely crazy values.

Analysts at ARK Invest believe that in the coming years, the capitalization of bitcoin will grow 10 times, and the "digital gold" itself will become the main financial instrument in the world. "Bitcoin is much better than traditional gold. There is a high probability that it will outshine gold in the near future," says ARK Invest crypto analyst Yassine Elmanjra.

Elmanjra also criticized the words of US Treasury Secretary Janet Yellen about the insolvency of bitcoin as a means of payment. Yellen also called bitcoin a "speculative asset." According to Elmanjra, these are absolutely outdated arguments that are voiced by people who do not have proper education and do not want to study this issue. However, we believe that Janet Yellen is right at the moment.

The fact that bitcoin is increasingly growing in price and, accordingly, is in demand among all categories of investors, does not negate its pronounced speculative nature, the highest volatility, and the fact that the cryptocurrency is often used in illegal operations, as it is decentralized and not controlled by any government. Thus, the forecast of a tenfold increase in the capitalization of bitcoin by the company that is engaged in investing in BTC looks at least not very plausible.

At the same time, MicroStrategy, which, we recall, is engaged in the development of analytical software, continues to invest all available funds in bitcoin. This time, the company purchased another 253 coins worth $15 million. This was stated by the head of the company, Michael Saylor. The purchase price of one coin was about $59,300. Thus, the company now owns a total of 91,579 bitcoin coins, most of which were purchased at an average cost of $24,000. True, the quotes of the bitcoin itself are no longer ready to respond with new growth to every such statement.

But the famous US investor Kevin O'Leary believes that it is time for the global community to pay attention to the environmental problem that cryptocurrency mining causes. According to O'Leary, the crypto community will divide bitcoin into two types in the coming years: "clean" and "dirty". "Clean" bitcoin is produced using renewable energy sources. "Dirty" bitcoin is produced using non-renewable energy, which provokes huge emissions of carbon dioxide into the atmosphere. O'Leary himself said that he would go on the side of clean bitcoins. Scientists have recently become increasingly concerned about the problem of CO2 emissions into the atmosphere. The extraction of cryptocurrency annually "costs" nature 60 million tons of carbon dioxide in the atmosphere.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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BTC analysis for April 06,.2021 - Completion of the ABC upside correction and new downside wave towards $55.000

Further Development



Analyzing the current trading chart of BTC, I found that there is completion of the ABC upside correction, which is sign for the further downside movement.

My advice is to watch fro selling opportunities on the rallies with the downside targets at $55.050 and $51.000.

Stochastic oscillator is showing overbought coundition, which is another sign for potential further downside movement.




Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

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Trading plan for Bitcoin for April 06, 2021



Technical outlook:

Bitcoin bulls are threatening to break higher but they might be successful after a corrective drop towards $54,000 at least. This is not a certainty but probability remains high after having taken out intermediary resistance around $60,000 levels earlier. Also note that $54,000/54,500 is passing near the fibonacci 0.618 retracement of the recent rally between $50,300 and $60,000 levels respectively.

Bitcoin bulls remain poised to resume its rally from close to $54,000/54,500 mark, going forward. At the moment, the crypto might be carving an up gartley which is a bullish pattern. It is seen to be trading around $58,400 levels at this point in writing and a flash drop towards is expected towards $54,000/54,500 at least. Also note that prices must stay above $50,000 interim support, to keep the above bullish structure intact.

Immediate price resistance is at $62,000; while support comes in at $50,000 and $43,000 levels respectively. If bears succeed in breaking below $50,000, it would confirm that a meaningful top is in place around $61,780 levels and that Bitcoin is heading lower towards $43,000 and $39,000 levels respectively.


Trading plan:

Buy @ 54,000/55,000, stop @ 50,000, target 63,000

Good luck!





Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

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Robert Kiyosaki: Bitcoin will climb to $1 million in five years



The author of the best-selling book "Rich Dad, Poor Dad" Robert Kiyosaki predicts that bitcoin will grow to $1 million within five years. Kiyosaki said that the devaluation of the US dollar makes bitcoin and gold incredibly attractive to people.

"I bought Bitcoin at $9,000 and I thought I was being fleeced but the reason I bought it at $9,000 was because COVID shut down the world economy... But now I look like a genius because today it is around $55,000. I think it's going to $1.2 million in five more years." he stated in an interview.

However, Kiyosaki remains an ardent fan of gold and silver.

"Bitcoin is still untested. But I have the wherewithal to withstand the hit if it goes down. But, gold and silver are God's money. I know, because I've traveled the world looking for this stuff," Robert said.

Bad money drives out good ones, so he still buys a lot of silver and gold, bitcoin and ethereum.

According to the businessman, "The problem is too big, the pensions are going bust, baby boomers have no money, and the economy is being shut down... This fact makes us all at least become consumers of cryptocurrency, gold and silver."



Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Trading Signal for BITCOIN, BTC/USD for April 06 - 07, 2021: Sell below 57,000



BTC / USD, in 4-hour charts, is consolidating above the SMA of 21 and below the strong resistance of 60,000, psychological level.

In view of the fact that it has been trying to consolidate above 60,000 several times and has not been able to achieve it, now it has the dynamic support of 57,900 there is the SMA of 21, which could give it a strong bullish impulse and take it to the resistance zone of +2/8 of murray around 62,500.

On the other hand, a consolidation below the 21 SMA and the break of the 4-hour trend channel could accelerate the BTC decline, and exert pressure up to the 200 EMA around 55,800.

Also, a break in the 4-hour charts, below the 200 EMA, could change the scene and fall to the psychological level of 50,000 there is strong weekly support.

Our recommendation is to sell below the SMA of 21 because the eagle indicator is showing an overbought signal and there could be a downward correction of Bitcoin in the next few hours.


Support And Resistance Levels For April 06 - 07, 2021

Resistance (1) $59,687
Resistance (2) $60,460
Resistance (3) $62,083

Support (1) $57,291
Support (2) $55,844
Support (3) $54,895




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

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Ripple breaks out of major resistance area.

The last couple of days Ripple's XRP/USD has been on the spotlight as price is surging above $1, when last week it was trading below $0.60. With XRP again as the number 4 biggest market cap crypto coin, price has broken key resistance levels. Our $1.33 target does not look that far now.



Pink line - support trend line

Red lines - Fibonacci expansion

XRP/USD is trading above $1 and is heading towards the 161.8% Fibonacci extension at $1.33. Despite still being delisted by US crypto exchanges and despite lawsuit by the SEC, XRP/USD is soaring higher breaking one resistance after the other. Last week we started with a simple triangle break out and we warned that $0.70-$0.80 had to be broken for XRP/USD to reach $1 and higher. This is big news for XRP/USD and we expect price to continue higher over the coming days.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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BTCUSD and the inverted head and shoulders pattern

BTC/USD remains below the key neckline resistance at $59,800. For the inverted head and shoulders pattern we mentioned yesterday to be valid and activated, price must break above this resistance area.



Blue lines- bullish channel

Red line -neckline resistance

Pink lines - expected upward move size if neckline is broken

BTC/USD has support at $55,000. Bulls do not want to see price break below this level. Such a break down will open the way for a deeper pull back most probably towards $40,000. BTC/USD is vulnerable to a deep pull back as the Daily RSI suggests with the bearish divergence.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Ethereum hits new record of $ 2,150 after Visa's announcement of accepting crypto payments on its network



Visa's announcement that the company will agree to use Ethereum for transactions on its payment network is an ultimate indication that the mainstream financial industry is embracing virtual currencies. Visa's decision is the first time a major payment company has allowed such a currency to be used for payments.

The growth of the specified crypto currency is also due to the fact that the total market capitalization of the cryptocurrency industry has reached $ 2 trillion for the first time and has doubled in the last two months. The use of ETH in decentralized financial practices and deposit agreements has contributed to the growth of its status. This reduces the supply in circulation, while advertising, such as the growing demand for Visa, raises prices.

In this case, its value has surged over the previous year as the cryptocurrency's popularity has grown among both retail and institutional investors. All of these factors suggest that the next quarter and the rest of the year could be really very good for Ethereum.

As markets became more careful, it broke its previous record in February, and then became popular again due to the painting of the artist Beeple, which sold for 50 million pounds.




Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Technical analysis of Ripple for April 6, 2021



Ripple has rallied nicely through resistance at 0.60 and more importantly through resistance at 0.7644 calling for much more upside pressure in the weeks to come towards the 1.40 target and possibly alot higher, but for now the main attraction is the 1.40 target.

Before pushing higher towards 1.40 a back-test of the former key-resistance at 0.7644 could be seen, but is not a must.


Trading recommendation:

Buy near 0.7644 is possible for a strong rally higher towards 1.40




Torben Melsted
Analytical expert
InstaForex Group © 2007-2021