Cryptocurrency Analysis

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BTC analysis for April 13,.2021 - Intraday overbought condiiton and potential for downside rotation towards $61.300

Further Development



Analyzing the current trading chart of BTC , I found that BTC reached daily extreme levels and that upside movement started to slowdown in tempo, which is sign for potential downside rotation.

Due to extreme condition watch for potential intraday selling opportunities with the downside target at $61.300.Stochastic oscillator is overbought, which is another sign of potential downside rotation....





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin rises to nearly $63,000. Largest crypto fund MicroStrategy Inc. will pay salaries in BTC

Bitcoin is making its way to new all-time highs and is close to the $63,000 mark. Recent news in the world of cryptocurrencies contributes to the growth of bitcoin and going beyond the channel in which it has been since March 15, allows a new jump. But at the same time, be careful not to be pulled at the highs into another false breakout.



From a technical point of view, the chart shows how the bulls, after the classic return and consolidation at the level of $59,400, made a new leap and now rested on another resistance in the area of $63,000. A breakout of this range will open a direct road to the highs of $65,000 and $67,000. If we do not see active purchases in the area of $63,000, bitcoin may quickly slide back to the support area of $59,400, but at the same time, the bulls will try to build the lower border of the new side channel from it with a maximum in the area of $63,000. If there is no activity of buyers in the area of $59,400, the first cryptocurrency will slide lower – to the support of $55,440.

Today it became known that the European Investment Bank plans to use the power of the blockchain to sell its bonds, potentially contributing to the expansion of the use of the technology as a tool for the debt market of the European region. As reported by the investment division of the European Investment Bank, it was decided to hire Goldman Sachs Group Inc., Banco Santander SA, and Societe Generale AG to study the issue of the so-called digital bond in euros, which will be registered and placed using the blockchain. Meetings with investors for the first sale of this new instrument will begin on April 15.



Let me remind you that recently the European Central Bank is also showing much attention to the debt capital market, as well as to the digital euro, the creation of which will be decided in the near future. The President of the European Central Bank Christine Lagarde also spoke about this last week, who during an interview noted that the European regulator could launch the digital euro in the next five years. "We have to make sure that we are doing everything right - we have a great responsibility to the Europeans," Lagarde said in an interview with Bloomberg. "Let's be realistic - the whole process of developing and implementing a digital euro can take about four years, and maybe more," said Lagarde. The European Central Bank has conducted extensive research and received about 8,000 questions answered as part of a public consultation process on the potential launch of the central bank's digital currency. The study will be sent to the European Parliament, and then the governing council of the ECB in the middle of this year will decide whether to continue experiments in this direction or not.

Let me remind you that recently the European Central Bank is also showing much attention to the debt capital market, as well as to the digital euro, the creation of which will be decided in the near future. The President of the European Central Bank Christine Lagarde also spoke about this last week, who during an interview noted that the European regulator could launch the digital euro in the next five years. "We have to make sure that we are doing everything right - we have a great responsibility to the Europeans," Lagarde said in an interview with Bloomberg. "Let's be realistic - the whole process of developing and implementing a digital euro can take about four years, and maybe more," said Lagarde. The European Central Bank has conducted extensive research and received about 8,000 questions answered as part of a public consultation process on the potential launch of the central bank's digital currency. The study will be sent to the European Parliament, and then the governing council of the ECB in the middle of this year will decide whether to continue experiments in this direction or not.

MicroStrategy Inc. takes one step further and decides to pay income and dividends to its four directors, bringing management closer to the strategy of investing in the largest cryptocurrency. MicroStrategy Inc noted that the earnings are calculated in US dollars, then they will be converted into bitcoins, after which the payment will take place. Shares of MicroStrategy jumped 4.9% to $745.94 in New York trading. Over the past year, the company's shares have risen by almost 500%.





Jakub Novak
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin activated inverted head and shoulders pattern

Bitcoin is breaking above its resistance at $59,000-$60,000. So far price has respected support levels and the bullish channel it is in. In previous posts we mentioned that a break above the resistance neckline of the head and shoulders pattern would activate the bullish target of $65,000 and next at $75,000.



Red rectangle - neck line resistance

Light blue lines - inverted head and shoulders pattern

Blue lines - bullish channel

BTC/USD is trading near $63,000 and is above the neck line resistance. Trend remains bullish as price is still inside the bullish channel and continues making higher highs and higher lows. Support is now at the low of the right hand shoulder at $55,500. As long as price is above this level we remain optimistic for a move towards $65,000 and $75,000.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Litecoin remains on track of $286 target.

Litecoin is making new short-term highs. Price is making higher highs and higher lows. Trend remains bullish. After the triangle break out and the confirmation of the bullish signal by the back test, we see our bullish view remain intact targeting $286 as we mentioned in previous posts.



Blue lines - triangle pattern

Red rectangle- back test successful

Red lines -Fibonacci targets

LTC/USD is moving higher after the triangle break out as expected. Support is at $214 and as long as price is above this level we remain optimistic for a move towards our next target of $286. In the short-term we also find support at $239 the recent pull back low. Breaking below $239 will be the first sign of weakness. Until then we remain bullish.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN, for April 13 - 14, 2021: Buy above 62,000



The BTC / USD jumped to a new high of 62,996, while the US dollar is also weakening, Bitcoin has taken advantage of this weakness and now remains above 60,000, this level on several occasions, has been a strong barrier.

Given that it is now located above the SMA of 21 and the EMA of 200 in 4-hours charts it is likely that it will continue with its bullish cycle targeting the target at 68,750, this will be the next resistance as there is 3/8 of Murray.

For now there is no sign of a technical correction as the eagle indicator is approaching the overbought zone and is still giving a bullish signal.

Our recommendation is to buy if there is a rebound in the 62,000 zone, there is the 2/8 of Murray that acts as a good support or in 60,890, the trend line is located and the SMA of 21, both levels will be a good opportunity to buys.

On the other hand, a break and consolidation below 60,200 we should target the 200 EMA around 56200.


Support And Resistance Levels For April 13 - 14, 2021

Resistance (1) $62,931
Resistance (2) $64,459
Resistance (3) $65,408

Support (1) $62,049
Support (2) $61,056
Support (3) $60,222




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

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Ethereum may surpassed Bitcoin



The notorious billionaire from Dallas, Mark Cuban, is almost sure that Ethereum has the capacity to be on a par with Bitcoin and even leave it behind to take the lead. The developers of Ethereum have plans to implement huge changes to the network. The projection plans to reduce the commission and start the process of burning coins, which has become a bone of contention for miners. In this case, this network will have a completely new way of verifying transactions in the future. A lot of transactions can be performed in a second.

Cuban is optimistic about the Ethereum blockchain due to its innovative functionality and the ability to conduct secure financial transactions without the help of third parties. He believes that applications using smart contracts and Ethereum extensions will leave Bitcoin behind. And although he admitted that he is not going to sell his Bitcoin ever, he still praises ETH more than BTC. It is worth noting that the Ethereum network has played a central role in the growth of non-fungible tokens or NFTs, collectible digital assets that cannot be traded with each other at equal value.

The network should be eco-friendly and convenient for customers. If so, this will be a turning point in the use of Ethereum as a means of saving finances.





Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Ethereum forecast for April 13, 2021

1. Volume analysis of ETH/TUSD from Binance

The analysis is based on the traded volume data from the Binance exchange on the daily chart. The analysis is carried out based on the footprint-profile theory. According to the theory, the movement of the level of the highest traded volume intraday can indicate the likely direction of the trend. The highest trade volume is the level with the largest number of transactions carried out. That is, it is the level of major market players. Accordingly, if the highest traded volume goes up, it indicates an upward trend. Otherwise, if the level goes down, it indicates a downward trend. Chaotic movements signal that the market is flat.

11.04.21 – the level of the highest traded volume (POC – PointOfControl) – 2149.91
12.04.21 – the level of the highest traded volume (POC – PointOfControl) – 2149.91

The POC remains at the same level. The price is in line with the POC. The market is in the sideways trend. Therefore, you can enter long and short positions.


2. Long-term trend analysis

A trend is your friend. Many traders know this saying but do not know how to use it. The answer is simple: to trade only with the trend. Thus, your trades will be more profitable and less risky. According to the classic Dow theory, there are three main trends:

-long-term
-medium-term
-short-term

These trends should be analyzed before you enter the market. Now, let's take a look at them.

The long-term trend is the daily trend. In this case, trades are conducted in the daily time frame and are held for several days. The analysis of the daily trend is made with the help of the 48-period exponential moving average. If the daily candlestick closes above EMA 48, it will indicate the upward trend. You should enter long positions. Otherwise, if the daily candlestick closes below EMA 48, then it is the downward trend and you should enter short positions.



The price is above EMA 48. It is an upward long-term trend. That is why you should consider entering long positions.


3. Mid-term trend analysis

The mid-term trend is the trend on the 4-hour chart (H4). In this case, we will also turn to EMA 48. If the candlestick closes above EMA 48 on the H4 chart, it will indicate the upward trend. Thus, you should enter long positions. Otherwise, if the candlestick closes below EMA 48 on the H4 chart, it will indicate the downward trend. Consequently, you should enter short positions.



The price is above EMA 48. It is an upward mid-term trend. Thus, you can buy the instrument.


4. Short-term trend analysis

A short-term trend is the trend in the H1 time frame. Moreover, it can show an entry point into the market. We turn to EMA 48 again. If the candlestick closes above EMA 48 on the H1 chart, it will indicate the upward trend. Thus, you should enter long positions. Alternatively, if the candlestick closes below EMA 48, it will indicate the downward trend. Consequently, you should enter short positions.



The price is above EMA 48. It is an upward short-term trend. You can enter long positions. The long-term trend, the mid-term trend, and the short-term trend are in line.


5. Japanese candlestick analysis

A classic Japanese candlestick analysis is applied to the daily time frame. The daily candlestick is analyzed.



The white daily candlestick closed upward. Its high is above the high of the previous candlestick. It is a Doji candlestick pattern with a short body and long shadows. Based on Japanese candlestick analysis, the sideways trend is likely. That is why you can open long and short positions.


6. Conclusion

Volume analysis – BUY/SELL.
Long-term trend analysis – BUY.
Mid-term trend analysis – BUY.
Short-term trend analysis – BUY.
Japanese candlestick analysis – BUY/SELL.

Conclusion: You can buy and sell ETH/TUSD on April 13, 2021, since various analysis provide different forecasts.


7. Statistics

To analyze how effective this approach is, the data on completed transactions is tracked. The forecast is made for four instruments: Bitcoin, Ethereum, Litecoin, BCH/USD.


Statement:


A Stop Loss is moved below yestreday's low.

The risk per deal is 1% from the deposit. A Stop Loss for new trades is placed beyond the daily extreme points. We do not set a Take Profit because we will continue to move the Stop Loss above the extreme points of the upcoming sessions.

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

Trade with the trend and you will generate profits!




Maxim Petrov
Analytical expert
InstaForex Group © 2007-2021

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There is a new maximum cost update for Bitcoin!



Yesterday, the bitcoin exchange rate finally managed to break out of a very narrow price range and resume the upward trend. In principle, despite the fact that we expected and continue to expect a strong correction, everything is logical from a technical point of view. Three strong support levels kept bitcoin from starting to fall, and since the cryptocurrency, like any other instrument, can not stand in one place for long, the upward movement resumed. The analysis of the completely technical picture is shown below. Here, we will talk about the optimistic news for bitcoin.

There has been a lot of skepticism and pessimism in Bitcoin recently. First, it has been rising in price for more than a year now. Previously, it was rare for an upward trend to take such a long time. Secondly, bitcoin has already grown significantly in price, so buyers with each new increase, logically, should become less. Third, everyone who wanted to buy bitcoin for the long term, has already done it a long time ago. Fourth, there was no news that could provoke a new round of purchases at such a high cost. Fifth, many market participants still doubt that central banks and governments will allow bitcoin and its counterparts to exist in peace. Keep in mind that all cryptocurrencies pose a threat to the national currencies and financial systems of all countries, especially developed ones. Plus, any of the upward trends in the past ended with a collapse of 80-90%. Thus, many expected that just in April, at least, a correction would begin. But it didn't start, and growth resumed instead. Only MicroStrategy continues to invest money in bitcoin. The company declares it publicly, even if the purchase is only a couple of hundred coins, and also continues to introduce cryptocurrencies into its internal life and activities. Now, its management has decided to pay income and dividends to its directors in cryptocurrency. It is reported that the remuneration will be calculated in US dollars, after which it will be converted into bitcoins and paid to the management. Thus, the company is still on the path of full immersion in the cryptocurrency world. It is difficult to say whether the crypto market reacted to this, or whether the demand for bitcoin has again banally increased? Earlier, after the really "hype" news, there were no questions about why BTC grew. Now, the market has become more calm, if such an expression can be applied to bitcoin at all. Another fact that should be noted is that the upward momentum is still weakening. We have formed an ascending channel and the course of bitcoin is located as close as possible to its lower border. Only thanks to yesterday, the cryptocurrency exchange rate moved slightly away from this line. However, buyers will need to hold the upward trend again. To do this, an influx of new investments is needed. In the near future, there may not be any problems with them, since a certain part of the money given by the American government will definitely move to the stock and cryptocurrency markets.



In technical terms, the overall picture remains the same. The upward trend continues and bitcoin has another benchmark. Now, there are two targets – the nearest resistance level of $65,400 and the next psychological level of $70,000 per coin. There are also three supports, which are $44,600, $52,300, and $56,000, as well as the ascending channel. Now, the consolidation of quotes below the channel will be a signal for the beginning of a strong correction.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for April 14, 2021

Crypto Industry News
Grayscale has partnered with the acclaimed New York-based Time magazine to jointly create an educational video series on crypto assets.

The partnership was announced in April by Grayscale CEO Michael Sonnenshein, who revealed that Time and its CEO, Keith Grossman, would receive a payment in Bitcoin.

Moreover, Time has no intention of converting the Bitcoins it receives as part of the transaction to fiat and will keep the crypto assets on its balance sheet. So far, no further details of the partnership have been released.

First published on March 3, 1923, Time and its online version have recently been active in the crypto space. In March, Time was making money on the NFT mania by releasing a set of tokenized magazine covers on the NFT Marketplace SuperRare, with the non-functional "TIME Space Exploration - Jan 19, 1959" token, downloading 135 Ethereum worth nearly $ 250,000 on March 30.

The company also revealed in the same month that it is looking for a cryptocurrency-friendly chief financial officer after placing a position on LinkedIn.

"The media industry is evolving rapidly. Time is looking for a CFO to help guide its transformation," it wrote.


Technical Market Outlook:
The ETH/USD pair has made a new all time high at the level of $2,398 (at the time of writing the article). 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 $2,314 and $2,201.

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

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Trading plan for Bitcoin for April 14, 2021



Technical outlook:

Bitcoin raises through fresh highs around $64,895 levels today before sharply reversing towards $61,400 intraday and then pulling back higher again. The crypto has swung over 6,500-7,000 points today until now as bulls approach a major resistance towards $72,000/73,000 mark. We had suggested yesterday to take maximum profits on the long positions taken earlier but another upside potential remains.

Bitcoin has pulled back from the highs and is seen to be trading close to $64,000 levels at this point in writing. Immediate resistance is above $73,000 mark now while support comes in at $55,000 levels respectively. A break below $55,000 will confirm that a meaningful top is in place and that bears are back in control.

Please note that Bitcoin remains poised for another rally towards $73,000 levels before finding strong resistance and reversing lower again. It is safe to remain long and exit any aggressive shorts initiated yesterday. There still remains something for bulls until prices stay above $55,000 levels, going further.


Trading plan:

Remain long with stop @ 55,000 and target @ 73,000.

Good luck!




Oscar Ton
Analytical expert
InstaForex Group © 2007-2021