Cryptocurrency Analysis

[IFX_Selena]

Bitcoin challenges major channel support

Bitcoin has pulled back from the resistance at $59,000 to $55,000 and the lower channel boundary. Price remains inside the upward sloping medium-term channel and as long as this is the case, we will continue expecting new highs. The inverted head and shoulders pattern is still valid but only gets activated if price breaks above $59,000-$60,000 neckline.



Blue lines - bullish channel

Red rectangle -neckline resistance

BTC/USD got rejected at the resistance yesterday and has pulled back towards the lower channel boundary. Bitcoin remains vulnerable to a bigger correction towards $40,000 but as long as it stays inside the bullish channel, bulls continue to have hopes. Bulls will regain full control of the trend specially if price breaks above the red rectangle resistance targeting $75,000 next.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for Bitcoin BTC/USD, for April 07 - 08, 2021: Key level $56,250



The price of Bitcoin has found support at the $56,250 zone, the 200 EMA zone on the 4-hour charts and below the 21 SMA, trading within a range from $60,000 to $56,000.

A look at market sentiment shows that traders are still holding leveraged long positions. These positions, analyst Filbfilb believes, must be liquidated before Bitcoin can make a meaningful attempt to hit new all-time highs.

Regarding altcoins, their strong performance is diminished, with Ether again below its all-time marker of $ 2,000 and moving away from all-time highs.

In the case of BTC / USD, the 200 EMA is expected to be its last support to give it the strength it needs and surpass its record mark.

Below the 200 EMA, we expect it to continue its decline to the key 50,000 support and psychological level.

We recommend buying above $56,250, and selling below $55,800, as Murray's +1/8 zone is key and we should keep an eye out for positions to the upside or downside.


Support And Resistance Levels For April 07 - 08, 2021

Resistance (1) $57,648
Resistance (2) $59,281
Resistance (3) $60,460

Support (1) $55,166
Support (2) $52,354
Support (3) $49,872



Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin Local and Global Perspectives: "big evolution", GS and ETF

Goldman Sachs CEO David Solomon expressed the opinion that a "big evolution" could soon take place in the cryptocurrency market. Now the largest investment bank has already started providing depository services. But in this industry, traditional financial institutions are still severely limited.

Solomon noted that now there is an increase in interest in the cryptocurrency industry from the bank's clients and Goldman Sachs is in a constant way of being able to satisfy it.

So, according to the head of the investment bank, significant changes may occur in the crypto market over the next two years. And back in March, Mathew McDermott of GS announced that the point of no return in their role as a safeguard against depreciation of cryptocurrencies has already been passed. But he believes that due to the large selection of digital coins, bitcoin is unlikely to maintain its dominance.

According to Goldman Sachs, the demand in the virtual currency market is now higher than it was in 2017. This is due to the growing interest of institutional investors, but which ones, the bank did not specify.

Meanwhile, the bank has filed an application with the SEC to launch its own bitcoin ETF.

Experts' opinions differ on how the approval and launch of exchange-traded funds for bitcoin will affect the crypto market.

Some believe that this will give greater freedom to large investors who are interested in digital currencies but are confused by the issue of regulation. Also, the ETF will remove the issue of concern about the security of bitcoins from such market participants.

Others point out that with the advent of ETFs, bitcoin will become mainstream in the financial world, which means that the market will receive a new impetus for growth.

Another opinion confirms that the launch of an exchange-traded fund will bring new investors and capital to the market, increase liquidity, but may become a double-edged sword. The flip side of the coin may be the emergence of a need for market centralization. Moreover, the arrival of a large number of speculators on the market can provoke frequent episodes of "short play."

But some believe that the launch of a bitcoin ETF in the US will not have a significant impact on the market. Experts with this opinion appeal to the experience of Canada, where such exchange-traded funds are already operating. Moreover, despite the permission of the country's authorities for ETFs, bitcoin still fell from $58,000 to $44,000 per coin.

Nevertheless, locally, bitcoin did not manage to break through the "ill-fated" resistance area of 58,340.66 - 59,517.79. As expected in yesterday's review, the BTC/USD quotes fell to the level of 100 according to Fibo Expansion, which is still relevant as a support. If it holds, there is a chance of recovery to the resistance zone 58,340.66 - 59,517.79. And if it is broken with a consolidation below, bitcoin may decline first to the area of $54,000, and then to $51,000 per coin.







Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for April 8, 2021

Crypto Industry News:
Sacramento Kings team chairman Vivek Ranadive said on Monday in the Clubhouse that anyone on his team could be paid any amount of Bitcoin. BTC enthusiast Neil Jacobs, who was present at the meeting at the Clubhouse, quoted Ranadive, saying:

"I will announce in the next few days that I am going to offer everyone at Kings that they will be able to get as much of their Bitcoin salary as they want, including the players."

Sacramento Kings became the first NBA team to accept Bitcoin as a payment option in the arena in January 2014, via Bitpay. In 2018, the team announced that they had become the first professional sports team in the world to mine cryptocurrency through a charity program called Miningforgood.

In addition, Kings are working with Blockparty on a blockchain-based rewards program and teamed up with CryptoKaiju to launch a line of crypto-collectables in professional sports. It also launched the first NBA live blockchain based auction platform for authentic Consensys and Treum memorabilia.

Meanwhile, professional footballer Russell Okung gets paid in Bitcoin. He said in January that he had received half of his $ 13 million in BTC salaries.


Technical Market Outlook:
The ETH/USD pair has dropped towards the trend line support around the level of $1,941 which is being tested now. There are some Pin Bars made during the test, so there is a chance for a sustained bounce back up above $2,000. So far the local high was made at the level of $2,024, but bulls are still making pressure to bounce higher and continue the up trend. The next technical support is seen at the levels of $1,887 and $1,873. The ATH had been made at the level of $2,149.

Weekly Pivot Points:
WR3 - $2,774
WR2 - $2,442
WR1 - $2,286

Weekly Pivot - $1,965
WS1 - $1,803
WS2 - $1,504
WS3 - $1,345


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 $2,500. 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 April 8, 2021

Crypto Industry News:
Thiel admitted this in his speech at a seminar on China and Big Tech. In his opinion, the approach that the Chinese take with regard to their own digital currency should be of great concern to Americans.

The weapon China uses in the arms race, Thiel says, is Bitcoin.

"Even though I'm a pro-crypto, pro-Bitcoin maximalist person, I do wonder whether if at this point Bitcoin should also be thought of in part as a Chinese financial weapon against the U.S." says Paypal co-founder Peter Thiel.

The question Thiel answered was not about Bitcoin itself, but about China's plan to create a digital yuan. Hugh Hewitt wanted to know if the digital yuan was "a threat to the dollar and its dominance in world markets."

Thiel believes that the matter lies elsewhere. He rejected the idea that a Chinese digital coin issued by the Central Bank of the Middle Kingdom should be some kind of "totalitarian measuring device."

The businessman felt that Bitcoin was the real worry in this case. In his opinion, it is more likely to serve as a functional reserve currency. The lower the dominance of the dollar, the less the influence of US monetary and foreign policy.

"If the Chinese see bitcoin's growth potential, perhaps - from a geopolitical point of view - the United States should ask tougher questions about exactly how it works," commented Thiel.



Technical Market Outlook:
The BTC/USD pair has broken out from the consolidation zone under the level of $60,000 and made a new local low at the level of $55,495 during the retrace. The next target for bears is seen at the level of 50% Fibonacci retracement located at $55,227. The nearest technical support is seen at the level of $54,719 and if violated, then the 61% Fibonacci retracement at $54,070 will be tested. The next target for bulls is the ATH located at the level of $61,632.

Weekly Pivot Points:
WR3 - $65,565
WR2 - $62,712
WR1 - $60,648

Weekly Pivot - $57,470
WS1 - $55,041
WS2 - $52,150
WS3 - $49,837


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]

BTC analysis for April 08,.2021 - Sellers in control and potential for the downside movement towards $50.750

Further Development



Analyzing the current trading chart of BTC, I found that sellers are in control as I expected in my previous analysis.

I still expect lower price on BTC and potential test of the downside targets at $55.000 and $50.8000.

BTC is testing the previous swing low at $57.000, which is now acting like resistance.





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

XRP and BTC: XRP growth illusion will be deadly for investors. Bitcoin is China's financial weapon against the US

Bitcoin has ignored statements from Goldman Sachs CEO David Solomon that the cryptocurrency market will face a "big evolution" in how it is regulated. In an interview with CNBC, the head of the bank confirmed that the company is showing a fairly strong interest in cryptocurrency and is determined in this direction, well, additional approvals with the regulator are needed. Let me remind you that last week, Goldman Sachs Group Inc. said they are close to implementing their proposal to provide access to trade bitcoin and other digital assets. So far, we are talking about clients from the private sector with fairly large accounts. By the way, other financial corporations also plan to provide rich clients with access to cryptocurrency trading.



According to Solomon, "severe regulatory requirements" from regulatory agencies currently prevent Goldman Sachs from transacting cryptocurrencies. There has been endless talk about Bitcoin regulation in recent years, but no concrete action has yet been reached. Back in January of this year, European Central Bank President Christine Lagarde called for regulation of the world's largest cryptocurrency, but that was the end of it.

Warnings at the end of last year by JPMorgan CEO Jamie Dimon that the United States could regulate the cryptocurrency market if bitcoin's market cap grows have also not yet been confirmed. At the time of Dimon's announcements, Bitcoin's market capitalization was around $ 330 billion and has now more than tripled to $1.07 trillion.


Cryptocurrency Could Disrupt America

The version that bitcoin can harm the United States was voiced today during an interview with crypto enthusiast and founder of PayPal, Peter Thiel. Although he is a supporter of cryptocurrency and believes in the long-term prospects of bitcoin, in his opinion, cryptocurrency carries significant risks for America. Thiel urged the US government to consider stricter rules for regulating cryptocurrencies, as he believes that at this stage, bitcoin can be partially seen as a financial weapon of China against the US. "China wants to weaken the dollar because it gives the US a lot of control. If China seeks to rein in bitcoin and other digital assets, perhaps the US should be asking harder questions about how it actually works," the investor added.



Bitcoin reacts to all this rather weakly after another unsuccessful attempt to get to its historical highs. At the moment, a large resistance can be seen in the region of $59,500 and it has not been possible to get out of this level in any way. Only a real breakout of this range will lead to new local highs in the region of $63,000 and $65,000. According to the latest forecast by Bloomberg, the bitcoin rate this year could reach $80,000. As long as the buyers are actively defending the support of $55,440, and it depends on this level - whether the bitcoin falls to a minimum of $51,900, or remains trading within this trading range. A breakout of $55,400 will lead to an active fall in the cryptocurrency, as there is emptiness below this range.


XRP succeeded
Ripple confidently overcame the $1 mark and only after that corrected slightly. Over the past few days, the altcoin price has risen by 73.3%. The cryptocurrency has long held a solid third place after Bitcoin and Ether but began to lose ground after the SEC filed a lawsuit against Ripple, which led to the collapse of XRP late last year. Ripple violated securities laws by not registering the sale of 14.6 billion XRP tokens, according to the commission, noting that $1.38 billion was raised solely to enrich Brad Garlinghouse and Christian Larsen. The lawsuit alleges that both men personally earned $600 million. Whether it is now fair to say that, against the background of such large growth, one can confidently say that the problems with the SEC have been resolved - I very much doubt it. XRP has once again overtaken Cardano and Polkadot, coming in fourth with a market cap of $44 billion. Matthew Solomon - CEO of Ripple and Brad Garlinghouse said they had access to documents that show the commission's views on crypto assets. In this regard, Ripple now needs to prove that their token is of the same value as bitcoin and ether, and if the SEC agrees with this, the dispute will be resolved.



Of course, all this is good, but how they are going to do it - it was not said. Once a lawsuit was filed with the SEC, it means that they clearly think differently. In this light, the artificial growth of the ripple now looks more like the possibility of large investors leaving the market before its last fall and depreciation as an asset. The best solution now for trading ripples is short positions, since at any time official comments from the SEC can be given on this matter, which will quickly bring "ripple lovers" back to earth. As we can see, only the tough 0.8600 mark keeps the altcoin from quickly returning to the 0.6300 area.

Let me remind you that recently Ripple Labs Inc. said it plans to acquire a 40% stake in Asian cross-border payments specialist Tranglo. Ripple said in a statement that the merger will help meet the demand for the XRP affiliate token used in transactions. In its already beloved style, Ripple has announced that it is entering new markets in the region to meet the demand for cheaper, faster, and more reliable cross-border payments using cryptocurrencies.




Jakub Novak
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin on the verge of collapse. No influx of new investors



Yesterday, bitcoin reversed. Bulls failed to break the $60K barrier. Therefore, the correction is highly likely. Currently, there are three support levels located at 52,300, 44,500, and 56,000. The Kijun-sen line of the Ichimoku indicator is also located at the level of 56,000. Thus, volatility has dropped over the past 9 days and continues to decline. According to the crypto market experts, trading volume is also decreasing. This means that fewer bitcoins are traded on exchanges. Meanwhile, the influx and run-off of investors is small. Some experts link the recent bitcoin rally to the peculiarities of the crypto market. After all, if there are few market participants, any major transaction can lead to a strong rise or fall in the rate. Apart from that, the bitcoin market has been bullish for over a year. It is a long period of time. The bullish trend has never been so long-lasting before. However, everything has a time limit. Moreover, a technical correction is needed. On top of that, the influx of new investors that contributed to bitcoin's bullish run significantly decreased in recent months. Only few market participants are now willing to purchase the cryptocurrency for $60K per coin. As a reminder, many investors view BTC as an investment and not as a form of payment. Consequently, bitcoin should bring investors profits. Therefore, it should be bought at the cheapest price, and sold at the highest price possible. Maybe in the future, bitcoin will cost $100K or even $200K. However, it is unlikely to happen at the moment since bullish sentiment is fading. MicroStrategy seems to be the only one to continue investing in BTC. In recent months, around 10 more or less large companies have invested in the world's number one currency. In fact, companies such as Apple, Microsoft, and Amazon were not on the list. This means that not every company is ready to follow Tesla's suit. Even Elon Musk started to pay more attention to Tesla and SpaceX and not to BTC. Thus, bitcoin may grow to $100K during the next bullish period.



Bulls still cannot break the $60K barrier. Meanwhile, a full-fledged correction has not started so far. It seems that bitcoin is on the verge of collapse. The world's flagship cryptocurrency needs an influx of new investors. Otherwise, the largest part of market participants may think that the current price is bitcoin's highest value. In such a case, a sell-off will begin. Thus, if the price consolidates below one of the support levels (the image shows all three of them), it is likely to go down to the next one.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Local correction or protracted recession: traders lost more than a billion amid fall in BTC, XRP, and ETH quotes

The last few days have been favorable for the growth of cryptocurrencies, however, on April 8, quotes of major assets went down. Over the past day, the digital coin market has risen in price by 0.2%, which indicates the beginning of a downward movement of crypto asset indicators. At the same time, the news background remains positive, which at this stage does not prevent cryptocurrencies from falling below psychological levels.

Over the past day, bitcoin indicators increased by only 0.6%, but on the night of March 8, the asset's quotes fell sharply by 3%, which provoked significant losses among traders. Long positions of the BTC/USD pair with a total volume of $613 million were liquidated on cryptocurrency exchanges around the world. The closing of margin positions happened when bitcoin reached $55,500, but as of 12:00 UTC, the asset rose to $56,300. Bitcoin's daily trading volume also continues to decline, reaching $54.5 billion.



It is already becoming obvious that the main cryptocurrency cannot overcome the $60,000 mark for more than a week, and this may indicate a decrease in the upward momentum. Based on the charts, the market provides the asset with serious support just at the level of $50,000-$55,000. Soon, bitcoin will not be able to overcome the $60,000 mark, since the process of price consolidation is taking place at this stage. In this regard, the asset quotes are under pressure in the region of $57,000-$60,000, which does not allow it to overcome the difficult milestone. In turn, this was the beginning of a local correction, which will allow the crypto asset to continue to grow in the future.

More than $310 million was lost by crypto exchange users due to the forced closure of positions in the XRP/USD pair. The Ripple token fell from $1.01 to $0.900, which triggered the forced closure of long positions. However, as of 12:00 UTC on April 8, the asset resumed its growth and rose in price by 7.4%. At the same time, cryptocurrency quotes cannot gain a foothold above $0.940. Also, a sharp drop in daily trading volumes, which amount to $12.9 billion, testifies to a possible rollback of positions.



Ether indicators significantly sagged, which provoked losses of crypto-exchange users by $283 million. After another record, the quotes of the ETH/USD pair fell to $1,900. However, ether is starting to gain momentum and has risen in price by 2.2% over the past day, despite the sagging trading volume over the same 24 hours. As of 12:00 UTC, Ethereum's indicators again crossed the $2,000 milestone, which indicates a high level of asset support at this milestone. Unlike Bitcoin and XRP, the main altcoin can swing for a new historical leap, because the cryptocurrency has already reached the $2,014 mark.



The three main active assets in the digital coin market brought total losses to crypto-exchange traders amounting to more than $1 billion. Despite this, the majority of cryptocurrencies are demonstrating the dynamics for the next growth. This is also evidenced by the news background, which continues to be saturated with positive. The head of Goldman Sachs said that the cryptocurrency market will soon face an evolution associated with the expansion of the powers of banks when working with assets. In addition, there are numerous news that various cryptocurrencies are starting to accept taxes as payment, as announced in the Swiss canton. A real estate agency in California has also decided to accept payment in bitcoins.

Despite the local correction provoked by the sharp rise in XRP, the indicators of the main altcoins will continue to grow. With the main cryptocurrency, the situation is more complicated, because if the market does not show consolidation and high support at the level of $55,000-$60,000, then the asset may start a downward trend or sideways movement. And this indicates a possible drop in quotes to $40,000-$45,000.





Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN BTC/USD, for April 08 - 09, 2021: Market sentiment turning sour



The Bitcoin BTC / USD remains for several days consolidating above the EMA of 200 around $56,250, and below $60,000, little by little the bullish sentiment is fading, and a strong correction could occur in the coming weeks.

A report by Bloomberg Intelligence strategist Mike McGlone predicted that Bitcoin could soon approach $400,000, based on past Bitcoin bullish movements.

Although it does not give a specific time frame of when that peak could be reached, the report specifies that during the next quarter the price is likely to break the resistance of $60,000 and head towards $80,000.

Although this data does not support BTC sentiment, this apparent consolidation suggests that the market is waiting for a catalyst for its next cycle either bullish or bearish, so we must be careful.

A daily close above $60,000 is likely to rise to Murray's +2/8 around $62,500. $70,000 is expected to exceed this level.

On the contrary, a daily close below $56,250, we should expect a sharp decline to await a consolidation towards the $50,000 support zone, also called a psychological level. Below this level is the strong support of $40,000.

Our recommendation is to sell below $55,800 and buy above $56,250.


Support And Resistance Levels For April 08 - 09, 2021

Resistance (1) $59,799
Resistance (2) $60,460
Resistance (3) $61,012

Support (1) $56,728
Support (2) $54,909
Support (3) $53,676





Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021