Cryptocurrency Analysis

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Ethereum volume analysis for April 28, 2021

1. Analysis of ETHTUSD volume on the Binance exchange.

In this analysis, we will use the data on horizontal trading volume from the Binance exchange on daily charts. The analysis is based on the footprint-profile theory. According to it, the movement of the level with the highest traded volume during the day can indicate a possible direction of the trend. The level with the highest traded volume is the level where the maximum number of transactions has been made. This is the level of a major market player. Accordingly, if the maximum volume level moves higher, this indicates an uptrend. A downward movement of this level indicates a downtrend. A chaotic movement signals that the market is trading in a sideways trend.

26.04.21 - The level of the maximum traded volume (POC - Point Of Control) - 2483.02
27.04.21 - The level of the maximum traded volume (POC - Point Of Control) - 2548.11

The POC has moved up, and the price is above the POC level. The market is trading upwards, so you can open long positions.


2. Long-term trend analysis.
A trend is the trader's friend. Many market participants know this saying but do not know how to use it. The answer is simple: trade only in the direction of the trend. In this case, your trades will have more profit potential with less risk. The classic Dow Theory describes three main trends:

long-term;
medium-term;
short-term.

You need to analyze these trends before opening any trade. This is what we are going to do in the analysis below.

The long-term trend in this analysis is a daily trend. Trades will be opened on the daily chart and held for several days. The analysis of the daily trend is carried out with the help of the EMA(48) - an exponential moving average with a period of 48. If the daily candlestick closes above the EMA(48), this will mean that the quotes are moving in an uptrend and we should open long positions. If the daily candlestick closes below the EMA(48), this will mean that the quotes are trading downwards and we should go short.



The price is above the EMA(48). The long-term trend is upward. In this situation, you should open long positions.


3. Medium-term trend analysis.

In this analysis, the medium-term trend is a trend on the four-hour chart (H4). The EMA(48), an exponential moving average with a period of 48, will also be used in analysis. If the candlestick closes above the EMA(48) on H4, this means that the quotes are moving in an uptrend and we should buy. If the candlestick closes below the EMA(48) on H4, this means that we have a downtrend and we should sell.



The price is above the EMA(48). The medium-term trend is upward. Therefore, it is possible to open buy orders.


4. Short-term trend analysis.

The short-term trend in this analysis is a trend on the H1 chart. It can show a point where we can enter the market. Here, we will again use the EMA(48) - an exponential moving average with a period of 48. If the candlestick closes above the EMA(48) on H1, this means that the quotes are trading upwards and we should buy. If the candlestick closes below the EMA(48) on H1, this indicates that the trend is downward and we should go short.



The price is above the EMA(48). The short-term trend is upward. Therefore, traders can go long. The long-term, medium-term, and short-term trends coincide.


5. Japanese candlestick analysis.

The classic Japanese candlestick analysis is applied to the daily trading chart. In this analysis, we will also analyze the daily candlestick.



The daily candlestick closed upwards, the candlestick is white. The high is above the high of the previous candlestick. The candlestick pattern matches the trend, it has a long body and small shadows. According to the candlestick analysis, it is possible to open long positions.


6. Conclusion.

Volume analysis - BUY.
Long-term trend - BUY.
Medium-term trend - BUY.
Short-term trend - BUY.
Japanese candlestick analysis - BUY.

Conclusion: On April 28, you can open long positions as the different types of analysis provide the same 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, and BCHUSD.


Statement:


We continue to keep the long position on Ethereum open.

The risk is 1% of the deposit. Stop-loss orders for new trades can be placed beyond the daily extreme point. We do not set take-profit orders, as we will continue to move SL beyond the extreme points of the future sessions.

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

Trade along the trend and you will make a profit!





Maxim Petrov
Analytical expert
InstaForex Group © 2007-2021

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Trading Signal for Bitcoin, for April 28 - 29, 2021: Sell Below $57,000



In the early American session, Bitcoin, BTC/USD is trading below the 200 EMA located at 57,150. Besides, at this level there is the strong resistance of 6/8 of murray, giving some downward pressure to Bitcoin.

From its all-time high around the 64,000 zone, BTC fell to 47,000 in just 2 weeks, in view of the strong volatility of Bitcoin investors are watching for BTC to break the 60,000 zone again to add new positions in the market .

As long as Bitcoin remains below the 200 EMA and below the psychological level of 60,000, it is expected that there will be some consolidation to accumulate more bullish positions and break this barrier and may reach the key level of 72,500.

In the short term we expect to sell below 57,000 and buy if it bounces off the 21 SMA around 53.125. The eagle indicator is showing a bearish signal, which we could expect a correction in the next few hours.


Support And Resistance Levels For April 28 - 28, 2021

Resistance (1) $55,993
Resistance (2) $56,912
Resistance (3) $58,584

Support (1) $53,402
Support (2) $51,730
Support (3) $50,811




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

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Did Tesla crash Bitcoin?



The Bitcoin community continues to closely monitor the activities of Tesla and Elon Musk personally. Just recently, it became known that Tesla, which previously invested $1.5 billion in bitcoin, sold about 10% of its coins for a total of $272 million. This is stated in the report for the first quarter of 2021. And here, a very important point immediately arises: no one knows when exactly Tesla sold its bitcoin coins. After all, we can assume that they sold them at the maximum values or so, and it was after this transaction that the bitcoin began to fall. However, as we have already said, no one knows when this transaction was carried out. Although, it is a little alarming. About the same as the sale of almost all shares by top managers of the crypto exchange CoinBase, which recently entered the NASDAQ, is alarming.

Meanwhile, bitcoin began to fall again on Wednesday. Unfortunately, on the hourly time frame, the bitcoin quotes have overcome the downward trend line that we had hoped for. Thus, the Kijun-sen line on the 24-hour time frame and the 50.0% Fibonacci level remain important resistances. It is these resistances that determine whether the upward trend in digital gold will resume or whether the correction will resume. We are leaning towards the second option.

At the same time, PayPal CEO Dan Shulman said that the demand for cryptocurrencies exceeded the company's expectations several times. According to Shulman, in the next 5-10 years, the global financial system is waiting for big changes. He said that in 10 years, fiat money will move away, and few people will use it. Most people will use non-cash payment methods.

But many experts of the cryptocurrency community question the information that Tesla sold bitcoins, just "to check the liquidity of the token." According to many independent and disinterested experts, the only reason for selling BTC coins was the desire to make money on the exchange rate difference. According to various sources, Tesla bought bitcoin for $40,000-$43,000 per coin. Thus, wherever they sold them, they still made a huge profit. There are desperate disputes on the Internet now because of Tesla's act, as well as because of the words of Elon Musk himself that "he did not sell his personal bitcoin coins." It turns out that he also has personal digital assets, although he previously stated that he does not own bitcoin coins. In general, Elon Musk in the coming weeks may again become the number one figure for the cryptocurrency world, and his tweets in social networks may be more important than the results of the Fed meeting.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Litecoin vulnerable to a move lower towards $200

Litecoin recently made a low as all cryptocurrencies and then a bounce higher followed. As in most cryptocurrencies, our view is that this bounce will be short lived and another wave of selling will follow. Litecoin in particular has been forming lower lows and lower highs and unless bulls manage to recapture $286, we should expect another round of strong selling to push price towards $200 and lower.



Red rectangles- lower highs

Green rectangles - lower lows

Litecoin has reached our $330 target and then reversed strongly lower. Price is in the process of making lower lows and lower highs. This is a typical bearish formation and it came naturally after a multi month upward trend in prices. Let us not forget that a few months back in October 2020 price was below $50. It is justified after such a bull run for prices to make a correction. This is both healthy for the up trend and would provide more fuel for the next bullish wave. Technically price is vulnerable around current levels for a reversal lower. Bulls need to break above $286 in order to hope for a new higher high above $330 area. At current levels I believe the best risk reward ratio is offered by bearish positions. I'm bearish as long as price is below $286 looking for more downside.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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ETH hits all-time highs, LTC and XRP fluctuate, and DOGE goes up thanks to Musk: reasons and forecasts

The current week is becoming a turning point for the cryptocurrency market, whose positions sank significantly last week. However, due to the change in the bearish trend and the formation of a positive news background, the indicators of the main crypto assets went up. Over the past day, the digital coin market has again risen in price by 1%, and the total capitalization amounted to $2.150 trillion.

The main culprit for the change in the bearish trend was ether, which set a new maximum capitalization, reaching $2,700. The cryptocurrency continues to reap the benefits of the recent Berlin update, thanks to which commissions on the asset's network have decreased by 80%, which has become a determining factor for investors amid bitcoin's problems. Thus, over the past day, the ETH/USD pair has significantly increased in price by 5%. At the same time, the daily trading figures approached the very low figures of bitcoin and amounted to $41.5 billion. As of 13:00 UTC, the asset is quoted at $2,711, and judging by the current growth dynamics (+1%), the cryptocurrency may continue to grow.



The main reason for optimism and an active increase in ETH quotes was the news that the European Investment Bank sold bonds worth more than $100 million. Transactions were managed by the world's leading banks, including Goldman Sachs, Banco Santander, and others. All operations took place in the Ethereum blockchain, which was the result of a successful update of the Gas algorithms. This is the first precedent that will significantly increase the institutionalization of the cryptocurrency, given that as of April 28, ETH has no serious competitors in terms of speed and quality of transactions. Thanks to this, the ether can continue to grow to $2,750, but if the asset does not receive market support, it risks moving to a phase correction.

Other altcoins do not show such strong growth as ether. For example, XRP fell by 3% after yesterday's boom caused by Ripple's local victory over the SEC. The asset stopped near the difficult $1.40 mark, where the cryptocurrency had problems during the last growth cycle. Since the individual impulse for growth has exhausted itself, and the main attention has been drawn to the ether, the token indicators have taken a pause. A similar situation has developed for LTC, which is stuck at $255 and is barely approaching the psychological threshold of $260. It is worth noting that both XRP and litecoin show extremely low daily trading volumes, which indicates a lack of interest in the current prospects and positions of cryptocurrencies. The situation is slightly different for DOGE, which again broke the $0.300 mark after another tweet from Elon Musk. This asset shows enviable growth and cyclicality, which depends solely on the billionaire and the mood of his audience.







The indicators of the main cryptocurrencies indicate the end of local corrections and the beginning of an upward trend. This is evidenced by the stabilization of the bitcoin situation, the extensive institutionalization of the ether, and the normalized news background. For example, the other day, it became known that the Binance crypto exchange will create a platform for trading items tied to NFTs. Another important announcement that will have a significant impact on the growth of the cryptocurrency market in the future was the development of a blockchain platform for interbank payments. This was reported by representatives of JPMorgan, DBS, and Temasek, who are engaged in the development of the project. The creation of this platform can become a defining event in the development of blockchains in the framework of banking operations by citizens around the world. However, according to the results of April 28, we can say that cryptocurrencies will continue to remain within safe zones and will try to break through the psychological boundaries for the start of a new growth cycle. Ether may soon undergo a technical correction, and bitcoin, on the contrary, will complete it and begin the growth phase.





Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

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Is Bitcoin Decline Really Over?

Bitcoin is trading at 54,717 and it seems determined to come back higher after the rate has printed a reversal pattern in the short term. The corrective phase seems over after its failure to stabilize under 48,000 psychological level.

BTC/USD has printed a bullish pattern on Sunday signaling a potential upside momentum after the most recent sell-off. The price approaches new upside obstacles in the short term. Bitcoin's further growth should help the altcoins to increase in the coming period.


BTC/USD THROWBACK!


Bitcoin found strong demand around 48,000 psychological level. Its failure to stabilize under 50,000 confirms once again that the buyers are very strong despite the last correction.

As you already know from my analysis, BTC/USD was expected to drop after failing to stay above the red uptrend line and after its incapacity to approach the Rising Wedge upside line.

The rate bounced back from below the downside 50% Fibonacci line of the descending pitchfork. The pin bar printed on Sunday followed by a strong bullish candle signaled a bullish momentum in the short term.

Now the digital token is trading above the median line (ml) of the descending pitchfork and it could hit the weekly R1 (55,481) soon. Personally, I believe that the pressure remains high as long as it stays under the R1 and below the upside 50% Fibonacci line.


BITCOIN OUTLOOK!

Sunday's pin bar followed by an aggressive breakout through the weekly pivot (51,253) signaled that the decline could be over.

Its failure to approach the weekly S1 (44,889) signaled that the rate could come back higher towards the R1 (55,481).

Personally, I'm waiting to see a consolidation or a new temporary decline before going higher again. BTC/USD could decrease a little again in the short term before developing a larger upwards movement towards the all-time high.

It could come back to test and retest the weekly pivot and the descending pitchfork's median line (ml) before resuming its growth.





Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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Bitcon is back on the spotlight and may grow without hindrance: Tesla and Musk strongly believe in Bitcoin



The price of the number one cryptocurrency began to rise again on Monday, and the growth continued on Tuesday, all thanks to Tesla and Elon Musk. The value of Bitcoin is recovering from last week's crash and is now trading at 54 900- 55 000 dollars.

After a two-week boom when bitcoin lost a record price of $65,000, its price sharply began to dive down to $47,000. However, thanks to the genius of Tesla CEO Elon Musk and the car company's interest in him, the price went up again yesterday, and the growth continued.

The car company Tesla has published its first reported results for 2021. The seventh consecutive quarter was profitable. Earlier, the company announced that it was selling 10% of the captain's BTC for $100 million, which at first was a wake-up call for investors and the global crypto arena. But soon, Elon Musk said via Twitter that he was not actually selling BTC from his personal portfolio, and clarified that the sale was just a test of the "liquidity" of digital gold. Tesla believes very much in bitcoin and considers it the currency of the future.

However, it is unclear how much BTC Musk has in his portfolio. Two years ago, he said that he actually had 0.25 bitcoin. He has long been considered a strong supporter of the cryptocurrency, helping to increase the value of Dogecoin with the support of publications in state media earlier this year, but he has never disclosed whether he has increased his personal assets. Despite the unpredictable decline of bitcoin last week, it is now predicting its growth again after Tesla and Musk had their hand in it. The price of BTC is still almost twice as high as at the beginning of the year, and its value has increased by more than 600 percent compared to the same period last year.

If the sharp rise continues this week, it may push Bitcoin back to historical highs, and if not, then the necessary momentum will be lost.




Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Ethereum Tries To Validate Breakout!

Ethereum climbed as much as 2,719.47 today registering a new all-time high. Now it is trading lower at 2,615 level as the price has slipped lower to retest the broken levels.

Technically and fundamentally, ETH/USD is strongly bullish, so it could resume its upwards movement if it stabilizes above the former historical high of 2,645. It has escaped once again from an up channel signaling strong buyers.

Bitcoin has increased in the short term and it seems that its correction is over. ETH/USD should resume its growth if the price of Bitcoin jumps higher.


ETH/USD ANOTHER FALSE BREAKOUT?


ETH/USD jumped again above the upside line and beyond the weekly R1 (2,626.42). It has retested the channel's upside line and now is struggling to get back above the R1. Stabilizing above it could signal more gains.

A minor consolidation above the broken levels could bring a long signal as ETH/USD could extend its rally. The current upside breakout was imminent after the price's failure to confirm a deeper decline.


ETHEREUM FORECAST!

Stabilizing above the R1 (2,626.42) could signal a further growth towards the R2 (2,930.82).




Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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Dogecoin prices soar after social media posts from Musk and Cuban



Dogecoin prices went at a comical speed to the top on Wednesday due to the fact that Tesla CEO Elon Musk referred to himself as "The Dogefather". This was all after the sale of 10 percent of the company Tesla in BTC to check the asset in liquidity and a post on Twitter about Bitcoin the other day, expressing recognition of the token. Now, Elon has taken up his favorite creation in the form of dogecoin, calling himself the Father of cryptocurrency. The Elon effect, which spreads like lightning across everything his hand has touched, seems to be back in the arena. Dogecoin jumped 20 percent, to $0.35, and then the price fell slightly, but the growth will continue again after such a stratagem from billionaires.

In recent weeks, the coin has experienced a brisk rise and rose to a historical high of $0.43 in the first week of April. Elon Musk, as an avid crypto enthusiast, constantly writes Twitter posts about cryptocurrencies, which leads to a boom and sharp growth. A recent study conducted by a massive research platform showed that the lion's share of investors and buyers on the Internet are inspired by Musk's "tweet" and are willing to buy using cryptocurrency and invest.

Another crypto-enthusiast from Dallas, Mark Cuban, who has been putting Dogecoin and Ethereum is higher than Bitcoin in its own chart, calling the digital asset the only currency that traders de facto use for online purchases and transactions.

Earlier, Cuban was on a popular American talk show and said that the Doge is a much better investment in the future than a lottery ticket or a sports bet. "People spend their Doge and that means more businesses will start taking it," he said on Twitter the other day.






Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for April 29, 2021

Crypto Industry News:
The ATH set on the ETH / USD exchange rate yesterday is a thing of the past. In the last hour, the price of Ethereum surpassed $ 2,700 again, setting a new record at $ 2,757.

Regarding yesterday's record, it was speculated that it was largely triggered by reports that the European Investment Bank in Luxembourg decided to issue two-year bonds worth EUR 100 million on the Ethereum blockchain.

The issuance of these two-year bonds will be managed by such banking giants as Goldman Sachs and Societe Generale. Goldman Sachs also recently announced that it plans to offer its wealthy clients exposure to investing in bitcoin.

Another factor that may be behind the price of ethereum pushing to its historic high is the value of ETH locked in on the Beacon Chain deposit contract. At the time of writing this publication, it is approaching $ 11 billion.


Technical Market Outlook:
The ETH/USD pair has made another all time high at the level of $2,757. There is a Bearish Engulfing and Pin Bar candlestick patterns made at the top of this rally, so it might be a time for a local pull-back, but any further rally will lead to another wave up towards the round level of $3,000. The immediate technical support is located at $2,639. The momentum remains strong and positive, so the odds for another wave up are high. Only a sustained breakout below the $2,500 would change the short-term outlook from bullish to bearish.

Weekly Pivot Points:
WR3 - $3,085
WR2 - $2,863
WR1 - $2,509

Weekly Pivot - $2,289
WS1 - $1,926
WS2 - $1,691
WS3 - $1,326


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 $3,000. 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