Cryptocurrency Analysis

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Analysts of the Kraken crypto exchange: bitcoin will continue its growth to $ 90,000



While bitcoin continues to "stomp" and "push" around the level of $ 60,000, analysts continue to predict the future value of bitcoin. Many experts of the cryptocurrency market note that April has always been a good enough month for "digital gold", thus, the growth of the number one cryptocurrency will continue. According to the company's calculations, bitcoin can grow to $ 90,000 per coin in April. However, according to the experts of the exchange, a serious correction should first follow - at least by $ 10,000. The company's report also says that in March, bitcoin rose by 30% and shows an increase of more than 10% per month. Thus, the company concludes that the upward trend is likely to continue.

Meanwhile, CoinShares (which is the largest company in Europe by the amount of bitcoin) has published its financial report for 2020. According to this report, the company's profit doubled due to bitcoin investments. The company's total profit increased to $ 22.4 million, which is 2 times higher than in 2019. The company's assets grew almost 3.5 times in 2020 and now amount to $ 2.4 billion. "The fourth quarter of 2020 will be remembered by the world community as a turning point for bitcoin and other cryptocurrencies. The world has begun to recognize them as a genuine asset class. This new class of financial services has begun to attract institutional capital on a large scale," said CoinShares CEO Jean Marie Mognetti.

At the same time, various experts tried to explain why bitcoin has not been able to update its highs for more than a month. According to Michael Ross-Johnson, director of the crypto platform Chatex, the news background is to blame. According to the head of Chatex, if a new positive background arrives, then bitcoin will be able to continue its growth. However, the news background should be really strong and positive, as bitcoin is already trading very expensive. Some experts believe that in 2021, the prospects for bitcoin will depend entirely on the mood of large and institutional investors. According to some, when the crisis is over and the economy recovers, investors may want to return to traditional and low-risk investment tools. Thus, the outflow of investments from the cryptocurrency segment may begin. However, for such a development, the majority of investors must want to sell bitcoin and buy stocks and bonds. At the same time, if the world is faced with a full-scale third "wave" of the COVID epidemic, it could provoke governments around the world to provide even greater financial support to their economies. And investors in this situation will continue to flow to the crypto market in the hope of protecting their capital from depreciation and inflation. In this case, bitcoin will continue to grow.

There is also an opinion that everyone who wanted to buy bitcoin has already done so. The cryptocurrency is heavily overbought, so it is difficult for it to continue showing growth. There is no influx of new investors, and the forces of existing buyers and owners of "digital gold" are no longer enough to continue the growth of quotes. Plus, the current value of the "cue ball" - is high and already a very small number of new investors are ready to buy it at such a cost.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Technical analysis for Bitcoin



Bitcoin stays hopeful and continues to approach the level of $ 60,000.00. The breakdown of this level and updating the historical high (61633.80) will open the way to the next important psychological target of 65000.00. Currently, the nearest supports are the daily Ichimoku gold cross levels (short-term trend 58339.30 - Fibo Kijun 57037.42). However, what's more important that will give influence for the strengthening of the bearish mood is the combination of support levels in the areas of 55,000.00 (liquidation of the daily golden cross + entry into the daily cloud) and 50,000.00 (psychological level + weekly short-term trend).



Bullish traders have the primary advantage in the smaller time frames, but at the same time, the pair is in the downward correction zone for quite some time. On the morning of April 11, the first resistance of the classic pivot levels (60581.13) was tested. If the price moves up, it is important for the bulls to update the high (61182.80) and continue rising, focusing on the upward borders of the higher time frames and the resistance of the classic pivot levels set at 62552.96 (R2) and 63923.12 (R3). But if the support levels of 59210.97 (central pivot level) and 58197.70 (weekly long-term trend) breaks down, it will change the balance of power in the smaller intervals, and open up new bearish targets for them.



Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart are used in the technical analysis of this instrument.




Evangelos Poulakis
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of BTC/USD for April 12, 2021

Crypto Industry News:
HSBC reportedly put MicroStartegy shares on a "blacklist". They were to be classified as a "virtual currency product" and excluded from trading for HIDC customers.

Buying MicroStrategy (MSTR) stock is reportedly no longer possible for HSBC customers on the bank's online trading platform - HSBC InvestDirect (HIDC).

According to an alleged bank announcement to customers, HSBC instructed users who already own MicroStrategy stock not to buy additional stock.

The MSTR blacklist appears to be part of the bank's updated policy that prohibits users from interacting with investment instruments whose entities have anything to do with cryptocurrencies:

"HIDC will not participate in the facilitation (purchase and / or exchange) of virtual currency products or products related to or relating to the operation of virtual currency."

According to an alleged HSBC announcement, MicroStrategy is a virtual currency product, hence the reason for the blacklisting.

MicroStrategy, a business intelligence and software company, is a pioneer in incorporating bitcoin (BTC) into its balance sheet among US publicly traded companies.

Since its first BTC purchase in August 2020, the Fortune 500 company now has over 90,000 BTC valued at approximately $ 5.26 billion.

The alleged blacklisting of MSTR shares would be the most recent of HSBC's recent moves against cryptocurrencies. Earlier this year, the world's sixth largest bank also reportedly blocked clients from transferring profits from cryptocurrency exchanges to their bank accounts.


Technical Market Outlook:
The BTC/USD pair has broken above the level of $60,000 again and made a local high at the level of $61,173. The momentum is still strong and positive, so the bulls might try to attack the ATH at the level of $61,632 soon. The immediate support is seen at the level of $58,522, but the key short-term technical support is located at $54,719. The weekly time frame trend remains up.

Weekly Pivot Points:
WR3 - $68,058
WR2 - $64,489
WR1 - $62,269

Weekly Pivot - $58,989
WS1 - $56,726
WS2 - $53,045
WS3 - $51,108


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 $54,719 is clearly broken on the e daily time frame chart.







Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for April 12, 2021

Crypto Industry News
One of the largest auction houses, Christie's, will sell a collection of nine CryptoPunks next month - widely regarded as the first non-convertible (NFT) token projects issued on the Ethereum blockchain.

According to this announcement, the auction house will auction a sample of the popular NFT design during the 21st Century Night Sale in New York on May 13. Importantly, the makers of CryptoPunk, Matt Hall and John Watkinson, sell nine CryptoPunks from their own collections.

"Overall, the kit presents both the rarest of possible CryptoPunks and highlights the variety of attributes that are the signature of the project," said Hall and Watkinson in a statement released by the auction house.

As with one of the last record NFT Beeple auctions, Christie's will accept offers and payments in the form of ETH, Ethereum's native cryptocurrency.

"CryptoPunk is the alpha and omega of the CyptoArt movement," art specialist Christie Noah Davis said in a statement. "It's a historic sale."

Released in June 2017 by Larva Labs, the CryptoPunk Collection includes a collection of images in the form of sets of 8-bit pixels. There are a total of 10,000 unique characters to collect. Each character's proof of ownership is contracted on the Ethereum blockchain. Each of the unique characters has different unique features and accessories, and some of these NFTs are considered rarer than others.


Technical Market Outlook:
The ETH/USD pair has made a new all time high at the level of $2,197 and keeps going up. The next target for bulls is seen at the level of $2,500. The momentum is strong and positive, so the up trend might be continued with occasional pull-backs. The larger time frame trend is up as well and there is no indication of the up trend termination. The immediate technical support is located at the level of $2,149 and $2,084.

Weekly Pivot Points:
WR3 - $2,536
WR2 - $2,369
WR1 - $2,274

Weekly Pivot - $2,100
WS1 - $2,008
WS2 - $1,819
WS3 - $1,739


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]

The attitude of institutional investors has changed dramatically to bitcoin



Bitcoin has not managed to overcome any of the support that we discussed in previous articles. Thus, the upward movement is resumed. Today, on Saturday, the quotes of the "cue ball" increased by 2.5 thousand dollars, and the price again went above $ 60,000 per coin. Of course, before the update of the previous local and absolute maximum near the level of $ 61,700, it is too early to talk about a full-fledged resumption of the upward trend. The classic "double top" reversal model can still form, however, the cryptocurrency is close to heading for the levels of $ 65,500 and $ 70,000. At the moment, it can be stated that the majority of investors continue to believe in the growth of bitcoin, thus, investments in cryptocurrency have resumed. However, there are few willing to sell the "cue ball", thus, the rate has refrained from overcoming all three levels of support.

Meanwhile, Tom Jessop, head of digital assets at Fidelity Investments, a financial holding company, said in an interview that bitcoin is now at a turning point for itself in terms of perception by institutional investors. According to Jessop, bitcoin is gradually entering the circle of traditional financial instruments and the attitude of investors to it is changing to a positive one. Jessop also noted that the growth of bitcoin quotes is facilitated by the policy of low rates applied by central banks, low yields on other "traditional" assets, as well as high economic stimulus measures that make investors fear inflation. "I think we have reached a tipping point. The pandemic has been a catalyst for institutional adoption, particularly the use of cryptocurrency as digital gold," Jessop said.

Earlier, the head of Fidelity Institutional Asset Management, Michael Durbin, said that most managers and investors do not yet fully understand the essence of bitcoin and cryptocurrencies in general. According to Durbin, "the vast majority are in training mode". Durbin predicted an increase in interest in cryptocurrencies over the coming years.

Thus, although recently there have been no reports of large investments of institutional investors in bitcoin, it seems that large investors continue to slowly buy up available coins, which leads to new updates to the records of the value of the number one cryptocurrency in the world. At this time, even central banks do not pose any threat to bitcoin. There are no rumors that the largest of them are ready to introduce bans or restrictions on the cryptocurrency sphere. Many people are testing their "digital currencies", however, it is still unknown whether they will create real competition for bitcoin and its "brothers". After all, central banks are going to introduce their digital currencies to just reduce the popularity of bitcoin and regain full control over cash flows, which was lost since the advent of cryptocurrencies.



Technically, nothing changes. At the moment, the quotes of the "cue ball" are above the level of $ 60,000, however, it will be possible to talk about a full-fledged overcoming only tomorrow. All three levels of support (the red lines in the illustration) have not been overcome, so from a purely technical point of view, an upward movement is now most likely. Now, if the market participants manage to overcome $ 61,700, then the next target will be the resistance level of $ 65,408.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin buyers still lack the strength to overcome $61,700



Yesterday, the bitcoin exchange rate maintained an upward direction, but once again failed to overcome the level of $60,000 and update its absolute maximum of $61,700. Thus, one can argue again that investors do not have enough strength to easily and simply overcome the previous maximum. Although, if you look at the illustration, you can clearly see that there were no special problems with overcoming each of the last three highs. It is likely that the upward trend is weakening and may end at any time. At the very least, a strong downward correction can be expected.

So far, investors are still keeping the bullish trend, but it is clearly visible how difficult it is for bitcoin to show growth now. It has already grown quite strongly in general. But it is still important to keep in mind that no currency or cryptocurrency or any other asset can maintain a steady growth forever. In 2020-2021, many large and institutional investors have invested in bitcoin. However, they also have a certain "ceiling" of demand.

The fundamental background is not too vital for bitcoin right now. That is to say, if the market now receives any hype news from Elon Musk or, perhaps, the statement of Jerome Powell that bitcoin will continue to develop regardless of the creation of a "digital dollar," investors would respond with new purchases of the "digital gold." But the problem for Bitcoin now is that investors are no longer ready to respond to different opinions with large purchases. Everyone understands that the US economy is recovering and the outflow of capital from the cryptocurrency market will begin sooner or later. Moreover, the future of bitcoin is still vague and uncertain. It is true that BTC has become very firmly embedded in the existing financial system in recent years, but it is still a new technology and concept for most people in the world. At this time, Bitcoin is a high-risk and high-yield investment tool, but not a currency or an analogue of a currency. You don't buy it to store money in it and make payments.



Technically, nothing changes. The bitcoin quotes are currently near the level of $60,000, but fully overcoming this level is still unlikely. All three levels of support (the red lines in the illustration) have not been overcome, so from a purely technical point of view, an upward movement is now highly possible. Now, if the market participants manage to overcome $61,700, then the next target will be the resistance level of $65,408.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin Expected To Hit New Records!

Bitcoin rallied today and now it stands at $61,094 below $61,788 all-time high. The price has invalidated a corrective phase, so it could resume its major upwards movement.

The outlook is bullish, BTC/USD could approach and reach new historical highs. The rate seems determined to jump higher after failing to reach and retest the uptrend line.


BTC/USD EDGES HIGHER!


BTC/USD has decreased a little but it has failed to retest the uptrend line signaling strong buyers in the short term. It's traded above $60,100 static resistance and now it challenges the first warning line (WL1).

A valid breakout through WL1 could bring a breakout above $61,788 historical high as well. The price could target the R2 ($64,674) and the red upside line if it ignores the immediate obstacles.


BITCOIN FORECAST!

It's risky to buy BTC/USD as long as it stays below the warning line (WL1). That's why we need confirmation before going long.

Jumping and closing above WL1, $61,788, and beyond the weekly R1 ($62,335) may offer us a new buying opportunity with a potential target at Falling Wedge's upside line, resistance.




Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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Local recession or full-fledged correction: ETH/USD, XRP/USD, and LTC/USD quotes began to fall

The past weekend was extremely positive for the cryptocurrency market. The indicators of the main altcoins have overcome psychological boundaries, which allowed them to show considerable growth. Despite the fact that over the past 24 hours the total cryptocurrency market capitalization has increased by 2% and reached $2.1 trillion, the main cryptocurrencies have taken a slight pause in growth.

After consolidating at $2,150, the price of the main altcoin - ETH - remained practically unchanged, and over the past day, the asset showed a symbolic growth of 0.4%. As of 10:00 UTC on April 12, the cryptocurrency is quoted at $2,150 but does not show significant prerequisites for further growth. Over the past few hours, the asset continued to show a decline in quotes by 0.4%. The local correction of the cryptocurrency is also indicated by the significantly decreased volume of daily trading, which amounted to only $27.2 billion.



The main engine of the market last week - the XRP coin - sank 4% over the past day. At the same time, the asset continues to remain in the zone of turbulence, consolidating at around $1.35. However, given the more rapid growth of the asset, as well as low support at current indicators, the cryptocurrency will continue its downward movement. This is evidenced by a significant decrease in indicators over the past few hours by 1.7%. In addition, the daily trading volume is only $14.7 billion, which indicates a clear decline in the interest of market participants in the XRP/USD pair, which could tip the asset up to $1.1.



The indicators of the LTC/USD and DOT/USD pairs have sunk. However, given the more rapid growth of Litecoin, its fall was more painful – by 3%. At the same time, the asset does not show negative dynamics of changes in indicators, as it is fixed in safe positions. And even though the daily trading volume of $8.2 billion does not predict the growth of the cryptocurrency, this will allow the altcoin not to sink so much in price. Polkadot indicators sank by 0.5% over the past 24 hours, but the asset continues to show the dynamics of a decline in indicators by 0.5%. Considering the sagging trading volume to $1.2 billion, the cryptocurrency will continue to fall in price and may drop beyond the $40 mark.





Even though the market was covered by a wave of "healthy correction", which will allow cryptocurrencies to continue to grow, the news background remains positive. For example, the head of ARK Invest Cathie Wood said that blockchain is the most promising type of innovation, which promises cryptocurrencies a big role in the future of the economy. In addition, the Telegram company began paying debts to investors through the Telegram Open Network platform, which also provoked an increase in cryptocurrency performance.

The local decline in the quotes of digital coins will not affect their further growth in any way. Taking into account that the news background around the market remains positive, and the main cryptocurrencies continue to hold strong positions, it is enough to wait for a new impulse for immediate growth.





Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin Dominance Index declines



As the title of the article suggests, the bitcoin dominance index is declining in the long term. What does this mean? The dominance index is, roughly speaking, the percentage of the capitalization of a particular cryptocurrency in the total cryptocurrency market capitalization. That is, for example, at the moment the capitalization of bitcoin is $1.09 trillion, and the total market capitalization is $2.03 trillion. Thus, the bitcoin dominance index is 54%. Experts note that this is the minimum value for digital gold since April 2019. This fact suggests that market participants are beginning to pay more attention to altcoins. It is the alternative cryptocurrencies that are starting to grow in price, because more and more investors are willing to take risks and explore new tokens.

If bitcoin is constantly growing, and forecasts predict its growth to at least $100,000 per coin, why is it starting to lose popularity, instead of gaining it? From our point of view, it's because bitcoin is already very expensive. No matter how much it grows in price, with the conquest of new heights, the number of new investors will decrease because it is one thing to buy bitcoin for $20,000 when it grows in price for only a couple of months, and another thing at $60,000, when the cryptocurrency cannot update its absolute maximum for a whole month but has been growing for more than a year.

From our point of view, Bitcoin will continue to lose popularity in the long term. This will be because retail investors are losing interest in the first cryptocurrency since it is already very expensive and most of the small investors simply cannot afford to buy a tangible amount of bitcoin. And not everyone wants to buy 0.00012654 bitcoin. Why, if there is Ethereum, which is also growing in price? Or Dogecoin, which is also growing very vigorously at the suggestion of Elon Musk?

In general, all this suggests that it will be more and more difficult for Bitcoin to show growth in the coming months and in 2021. Of course, no one is immune from the "Elon Musk factor". If tomorrow, for example, Bill Gates speaks up and announces that he has decided to give up charity and invest his capital in various useful startups, and instead bought a couple of billion bitcoins, then a huge number of new investors will flood into the cryptocurrency market, continuing to inflate it like a soap bubble. However, if nothing like this happens, we will still expect digital gold to consolidate below one of the important support levels of $56,000, $52,300, and $44,600.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for Bitcoin BTC/USD, for April 12 - 13, 2021: Key level 59,300



The Bitcoin BTC / USD this weekend manages to climb above 60,000 and reached 61,153 its highest level in almost a month.

Business Today Magazine said that Bitcoin's remarkable gains this year have been fueled by its widespread acceptance as an investment and means of payment, accompanied by the flood of retail cash in stocks, exchange-traded funds and other risky assets.

On the technical level in the 4-hour charts we can see that Bitcoin remains with a strong uptrend, above Murray's 7/8 and above the 200 EMA.

The critical level is located at 59,300, if this level breaks there could be a correction of the BTC to the support zone of the 200 EMA around 56250.

Given that it is overbought, our recommendation is to wait for the break at 59300, in order to sell, with targets at 56250, as a break below the 21 SMA in 4-hour charts could result in a technical correction.


Support And Resistance Levels For April 12 - 13, 2021

Resistance (1) $60,703
Resistance (2) $61,767
Resistance (3) $62,876

Support (1) $58,532
Support (2) $57,426
Support (3) $56,362




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021