Cryptocurrency Analysis

[IFX_Selena]

Short-term view on XRP/USD for April 19, 2021

XRP/USD made a low today around $1.12 having made a high this week at $1.9617. So far price has retraced 61.8% of the latest rise after the break out at the beginning of April. Price has broken below our horizontal support levels and has reached our next pull back target area which was around $1.10.



Blue line - support (broken)

Orange line - resistance

Green rectangle - horizontal resistance

Red rectangles- horizontal support levels

Red lines -Fibonacci retracements

XRP/USD has already broken the blue trend line support and as per our analysis this was a sign that a deeper correction was coming. In our last analysis we warned traders that as long as price was trading below $1.80-$1.84 price was vulnerable to a move towards $1.10 specially if $1.40 was broken. Price has now reached the second horizontal support area and 61.8% Fibonacci retracement. This area of support is very important and we already witness a bounce off this support. In order to confirm a major low in place, price will need to break above the orange downward sloping resistance trend line. This resistance is at $1.61. Until then, there is still danger of a deeper pull back below $1.00. 61.8% retracement levels are usually trend change levels, so there are increased chances that price turns around from this support area and starts its next leg higher. If the low is in and we are starting the next bullish move, our target is at $2.55 and next at $3.41.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Major reversal in Bitcoin

Despite making a new all time high and activating an inverted head and shoulders pattern, Bitcoin ends the week under pressure and with a bearish reversal signal. Price has not only broken out of the bullish channel, it has also canceled the bullish inverted head and shoulders pattern. Bitcoin was already warning us with bearish RSI divergence signs. The reversal now is happening. How low can Bitcoin go?



Red lines - bearish divergence

Green lines - Fibonacci retracements

Blue lines - bullish channel

Bitcoin as we mentioned earlier has broken outside of the bullish channel. Price made a low today around $50,000 and is now trading at $55,800 area. Trend is no more bullish. There are signs that trend is about to change to bearish as price exits the channel. Bitcoin has support at $50,000 and I expect to see the 38% Fibonacci retracement around $41,000 if we break below $50,000. Making a deeper correction to lower Fibonacci levels is still possible but not my primary scenario yet. At current point in time I prefer to be neutral Bitcoin.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Problems with the supply of electricity in China have brought down bitcoin and the entire cryptocurrency market



On Saturday, the world's first cryptocurrency showed signs of wanting to start a correction. And on Sunday, it fell by $ 10,000, having immediately worked out the second support from those that we gave - $ 52,300 per coin. Some experts immediately said that the panic in the cryptocurrency market was due to the fall in the hashrate of the leading mining pools, which decreased due to several floods and accidents at coal mines in China. It is reported that the hashrate (bitcoin mining speed) has fallen by 40%. At the same time, this 40% drop was triggered by power outages in just one province of China. Also, along with bitcoin, the quotes of all other cryptocurrencies collapsed. However, it is still unclear whether what happened is just an accident, or whether this is the beginning of a protracted correction or a global decline in "digital gold"? To understand this, you need to understand what happened in China. There were problems with electricity due to accidents, thus, a drop in hashrate, but what does this have to do with the exchanges? After all, bitcoin fell in price because market participants began to sell it, and not because the hashrate fell or because of accidents at coal mines. Thus, traders could witness today how stable the current cryptocurrency market is. By and large, nothing terrible happened. Bitcoin will be mining slower than usual for a while, that's all. But this led to a collapse of quotes by $ 10,000, which means that many bitcoin owners simply lost their nerves. By the way, the accidents in China are a good explanation for what is happening for those who are interested in maintaining the "bullish" trend. After all, now the main thing is to prevent a panic in the market. Of course, now the most famous crypto experts are trumpeting that the "bullish" trend persists and this time is a great time to buy bitcoin on the cheap. However, from our point of view, bitcoin has all the chances of a collapse right now. First, many exchanges and stock markets will not open until tomorrow. So tomorrow will be the key day. If institutional investors support the sale of the "cue ball", then it can go to the figure of $ 40,000 per coin, or even lower. Secondly, we have repeatedly written in recent days that the bullish trend is weakening. This can be seen in any long-term illustration, even with the naked eye. Bitcoin is already extremely overbought, and the influx of new investors is drying up. Everyone who wanted to has already bought bitcoin. Therefore, from our point of view, the fall was in any case brewing. And the electric crisis in one of the provinces of China is just a push.



In technical terms, the main thing happened – the quotes went beyond the ascending channel. However, this can be stated with confidence only tomorrow, if today closes below the channel. Even though bitcoin went below the channel at $ 8,500, this does not mean that it will close today also below this level. However, if the consolidation takes place, the strongest signal for a strong correction will be received. It will also be important where the day ends relative to the three support lines. If, for example, the quotes are below $ 52,300, then the chances of moving to $ 44,600 will increase many times.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin lost 12% over the weekend and is awaiting the reaction of institutional investors to the events in China



On Sunday, the world's first cryptocurrency crashed down by 15% of its value, but by the end of the day, it managed to eliminate about half of the losses. However, the main thing happened – the bitcoin quotes went beyond the ascending channel, as well as below the critical line. Thus, the probability of the beginning of a long and strong correction is now very high. Recall that bitcoin, as well as the entire cryptocurrency market, collapsed due to the news of power outages in one of the provinces of China, which caused many mining farms to be disconnected and the hashrate of the network fell by 40%. This message sounded quite harmless yesterday, as the power outages are clearly expected to end soon. But a little later, it turned out that the power outage occurred in the region where the largest number of mining capacities in the country, which accounts for the largest number of mining farms, is located. Thus, up to 30% of the participants were immediately disconnected from the network, which led to panic and mass closing of long positions on bitcoin and on other cryptocurrencies.

A little later, another thing became known: it turned out that in the United States, the Ministry of Finance may launch an investigation against several large financial institutions that allegedly laundered money in cryptocurrencies. What these institutions are is not reported. By and large, this message can only be considered as rumors at the moment, since there were no official statements from the Ministry of Finance. Nevertheless, in total, these two events caused the effect of an exploding bomb and the cryptocurrency market crashed down.

At the moment, bitcoin is trading around $56,000 per coin, but the most important test is ahead. The European and US stock exchanges, which were closed on Saturday and Sunday, will open today, and we will be able to find out the reaction of large and institutional investors to the events of this weekend. Recall that some stock exchanges have bitcoin futures, as well as listed shares of companies associated with bitcoin. That is, for example, the shares of Tesla and MicroStrategy today can greatly decrease in price. In any case, no one knows how big investors will react to what has happened. At least on Monday, everything will depend on them, as private investors showed their reaction yesterday. If the sell-off continues, bitcoin will resume falling. Thus, it is still very early to relax, as anything can happen. Also, from our point of view, it makes no sense to buy bitcoin now, as several technical signals at once indicate the beginning of a correction.



In technical terms, bitcoin is fixed below the critical line, as well as below the ascending channel. According to all the canons of technical analysis and the Ichimoku indicator, a downward correction should now follow. However, we must also pay attention to one important fact: yesterday, BTC quotes fell exactly to the previous local low near the level of $50,770, and they bounced off it. This point, of course, hardly speaks in favor of the fact that the correction is complete, but it forced us to reconsider the support levels. Now, they are located at the following price values: $43,850, $50,770 and $55,990. Two of them were worked out yesterday.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin Major Rising Wedge

Bitcoin is trading at 56,948.00 at the time of writing, above 51,300.00 yesterday's low. The crypto registered an aggressive drop after reaching the 64,899 new all-time high.

A temporary decline was expected after the last upside movement. Unfortunately, the sharp drop signaled that BTC/USD could develop a larger correction. The pressure is high as the price has escaped from a potential Rising Wedge pattern.

A potential broader decline will force the altcoins to drop as well. BTC/USD has rebounded after the aggressive decline, but this could be only a temporary one.

BTC/USD AMAZING DROP!


I've told you in my previous analyses that BTC/USD is moving higher within a potential Rising Wedge pattern. It was somehow expected to approach and reach the upside line, but its failure to stabilize above 61,788.45 former historical high has attracted the sellers.

Now the price is located right below the uptrend line, Rising Wedge's support, and under the weekly pivot (57,508). Bitcoin has turned back to retest the broken downside levels.


FORECAST!
Stabilizing below the red uptrend line and under the weekly pivot (57.508) could confirm a corrective phase. It has registered only a false breakdown through the median line (ml) of the descending pitchfork and below 53,221 static support.

Personally, I believe that a larger downside movement, corrective phase, could be indicated by a drop and stabilization below the median line (ml) and after the rate makes a new lower low, bearish closure below 51,300.





Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for April 19, 2021

Crypto Industry News:
According to a series of filings filed with the US Securities and Exchange Commission on Friday, Coinbase insiders and early adopters sold a total of approximately $ 5 billion in shares on the first day of trading on the Nasdaq.

CEO Brian Armstrong sold 749,999 shares in three lots at prices ranging from $ 381 to $ 410.40 for a total of $ 291.8 million. While a Coinbase representative declined to comment due to the company being in a so-called "quiet period," this would mean Armstrong has sold approximately 1.5% of its stake.

Another SEC filing revealed that Coinbase director and VC investor Fred Wilson sold 4.70 million shares for a profit of $ 1.82 billion. Union Square Ventures, a VC firm led by Wilson, sold $ 4.70 million shares from its fund in 2012 for proceeds of $ 1.82 billion, according to another filing. The fund is also listed as the 10% owner of Coinbase shares.

The combined sales of Wilson and his firm's fund accounted for more than two-thirds of the $ 5 billion shares sold.

Software engineer and venture capitalist Marc Andreessen, who is Coinbase director and owner of more than 10% of the stock exchange, together with his company Andreessen Horowitz and two related entities sold a total of 1.18 million shares for 449.2 million dollars.


Technical Market Outlook:
The ETH/USD pair has crashed towards the level of $2,000 (the actual low was made at the level of $1.932) during the weekend. The bulls however manage to bounce and the long lower shadow was made at the daily candlestick. Ethereum is currently trading above the 50% Fibonacci retracement located at the level of $2,237 and is heading towards the technical resistance located at $2,288. The immediate technical support is seen at the level of $2,201.. The longer time frame chart still shows the up trend is intact.

Weekly Pivot Points:
WR3 - $3,314
WR2 - $2,2828
WR1 - $2,524

Weekly Pivot - $2,211
WS1 - $1,914
WS2 - $1,617
WS3 - $1,300


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 $2,000, 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 19, 2021

Crypto Industry News:
Since April 15, the hashrate of the Bitcoin network has dropped by more than 49% after hitting a record 218 exahashes per second. Meanwhile, regional reports have noted that China is experiencing power cuts and "security checks" on the Xinjiang network.

On Sunday, the hashrate of the Bitcoin network saw a 49% drop after hitting its all-time high (ATH). The data shows that on April 15 the BTC hashrate increased to 218 exahashes per second (EH/s).

Primitive Crypto founder Dovey Wan also spoke about the crashes the next day. He reported that Xinjiang is facing a major break in the face of an explosion at one of its mines, adding that its BTC hashrate is dropping by almost 30% immediately. Wan is counting on things to return to normal within a week.

Co-founder of the Coinmetrics.io blockchain data aggregator, Nick Carter also tweeted about the situation in China and the declining hashrate, saying that Xinjiang's falling net and its impact on BTC hashrate are what economists call a "natural experiment."


Technical Market Outlook:
The BTC/USD pair has crashed towards the level of $50,000 (the actual low was made at the level of $50,666) during the weekend. The bulls however manage to bounce and the long lower shadow was made at the daily candlestick. The BTC is currently trading around the level of $57,000 and the next target for bulls is seen at the level of 50% Fibonacci retracement located at $57,717. The key short-term technical resistance is located at the level of $58,345 and the nearest technical support is seen at $55,501. The longer time frame chart still shows the up trend is intact.

Weekly Pivot Points:
WR3 - $77,128
WR2 - $70,098
WR1 - $62,765

Weekly Pivot - $56,867
WS1 - $48,657
WS2 - $42,481
WS3 - $34,723


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 $50,000 is clearly broken on the e daily time frame chart.







Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical analysis of Litecoin/USD for April 19, 2021



It's only a week since we called for Litecoin to continue its advance towards the S/H/S target near 324 and Saturday this target was hit (the high was seen at 335.79). After hitting the target Litecoin was sold off in what we see as a correction and ideally support near 253 will be able to protect the downside for the next rally higher towards the extended S/H/S target seen at 479.60. It's possible that Litecoin will be halted just before this target near the 2018 peak at 375 for a temporary consolidation before higher again towards 725 or higher.

Only an unexpected break below 167.67 will call for a major top being in place and see a much deeper correction.


Trading recommendation:
Buy Litecoin near 253 for the next rally higher towards 375 and possibly even closer to 479.





Torben Melsted
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin went down 15% over the weekend



Bitcoin hit $ 64,000 on Wednesday after Coinbase Global debuted on the stock market. But on Sunday, the cryptocurrency fell by 15% due to three reasons.



The Central Bank of Turkey announced that it will ban the use of Bitcoin as a form of payment starting April 30. It will also prohibit companies from using crypto platforms.

There are rumors that the US Treasury will take action on crypto-related money laundering issues. Central banks are speeding up their plans of creating digital currencies. They are also planning to ban cryptocurrency mining in Inner Mongolia

But despite Sunday's drop, Morgan Stanley and Goldman Sachs will continue to provide access to cryptocurrency investments.

In fact, JPMorgan believes that Bitcoin will grow up to $ 130,000 per coin.

Thus, the outlook for the cryptocurrency is still positive, although there may be strong price dips in the middle.





Andrey Shevchenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Dogecoin soars by over 400%



Cryptocurrencies soared after Coinbase Global debuted in the stock markets. And, backed by the likes of Elon Musk and Mark Cuban, Dogecoin rose roughly 180% last Friday, reaching a market value of over $ 42 billion. Now, it is 18,000% higher than its value last year, when it traded at $ 0.002 and was worth about $ 250 million.



Demand for cryptocurrencies also grew after companies, such as PayPal and Square, began to allow Bitcoin transactions on their systems. Wall Street firms also started to provide access to tokens to some of the wealthiest clients.

As a result, adherents of cryptocurrencies found themselves enriched, benefiting very much from this unprecedented increase in digital assets.

In fact, Dogecoin has already gained over 400% this week, making it a leader among other cryptocurrencies.




Andrey Shevchenko
Analytical expert
InstaForex Group © 2007-2021