Cryptocurrency Analysis

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Bitcoin will not fall below $40,000. Forget about crypto winter

Bitcoin continues to trade sideways at 52,929.55 - 57,513.35 between the two blue dotted lines. Moreover, the volatility of the main cryptocurrency slowed down even more, as the BTC/USD quotes found local support at the level of 100 on Fibo Expansion ($55,777.08 per coin). Once again, returning to the resistance of 57,513.35, its price may finally continue to rise if it breaks this level and consolidates higher.

As for the global outlook for bitcoin and the market as a whole, opinions, as always, are very different. It is not the first time that the Bank of England Governor Andrew Bailey has stated that Bitcoin investors are at risk of losing all their money and should be prepared for this. Some experts call the main cryptocurrency "the mother of all bubbles".

Nevertheless, large investors still believe in digital assets and continue to invest large sums in them. This, by the way, is the main difference between the growth in 2017 and the current bullish rally.

For many, it is no secret that after such a strong strengthening in the market, at least a significant downward correction should occur. This, of course, is not a bubble and it will not burst (most likely). But it looks overheated at times. Especially when it comes to altcoins, including the acclaimed Dogecoin.

In one of the earlier reviews, we talked about the signs of crypto-winter and the expectations of a corrective collapse. But there is also an opposite opinion. For example, Dmitriy Sheludko, a specialist and CEO of the Biconomy.com exchange from Canada, believes that such a concept as crypto winter is a thing of the past forever.

He notes that the recent growth is entirely due to the large market participants. Institutional investor money such as funds and banks entered this market forever. The perception of bitcoin and other digital assets has changed. Now large banks are looking for opportunities to provide their clients with cryptocurrency products one by one. This has become the norm and a new reality. Consequently, there will be no big rollback.

Large investors will now struggle to keep Bitcoin above $40,000 per coin. Now everyone benefits from its further growth. And new waves of renewal of historical values are likely to begin even before the fall.

Sheludko also notes that Ethereum may well grow to $5,000. But it's worth remembering its correlation with bitcoin, so reaching this mark is likely after the summer too.

If you focus on technical analysis, then the level of $41,980 per coin serves as a strong support for the main cryptocurrency - the maximum from January 8. And the nearest medium-term target for growth remains the area of $66,000 - near the resistance of the ascending channel 43,033.38 - 47,017.82 - 61,759.10 from February 28.







Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

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Elliott wave analysis of Ripple for May 10, 2021



Ripple is on the move higher again after a correction to 1.3210. The rally following this low is clearly a five wave rally indicating that the impulsive rally higher to 1.9670 and above is in motion. Short-term we are looking for a break above minor resistance at 1.6957 and 1.7636 to confirm the rally higher to 1.9670 and ultimately above here to for a continuation towards 3.31 as the next long term target.

Support is now seen at 1.5100 which ideally will be able to act as a floor for the expected rally higher.


Trading recommendation:
Buy Ripple for more upside pressure towards 1.9665 and ultimately higher to 3.31.





Torben Melsted
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for May 10, 2021

Crypto Industry News:
Ethereum, the largest altcoin, surpassed the $ 4,000 mark for the first time in history. ETH's market capitalization rose to $ 467 million. This means the cryptocurrency is on track to surpass JPMorgan Chase in value. The largest bank in the US is - after Friday's closure - now worth $ 488 billion.

Part of the reasons behind the rise in the price of ethereum may be related to the rise in institutional interest. The Coinshares report found that institutions had bought more than $ 30 million in ETH in late April. The funds are now believed to hold $ 13.9 billion in ETH or its tools.

Significant progress has also been made in terms of adoptions. Last week, the European Investment Bank announced it would be issuing $ 120 million in ETH bonds in partnership with major banking entities such as Goldman Sachs. In addition, the development of decentralized finance - one of Ethereum's key sectors and use cases - continues at an bullish pace.

However, the most bullish catalysts on the horizon are two major network infrastructure upgrades: EIP-1559 and ETH 2.0. The EIP-1559, which is now to be included in the London hard fork, will review the ETH fee structure and is expected to significantly reduce gas costs while making ETH a more deflationary asset.



Technical Market Outlook:
The ETH/USD pair has made a new all time high at the level of $4,137 (at the time of writing this article) and keeps going up. The next target for bulls is seen at the level of $4,500. The zone between the levels of $4,000 - $3, 980 will now act as a short-term demand zone. The key short-term support is seen at the level of $3,596. The momentum is strong and positive, so it supports the bullish outlook for ETH.

Weekly Pivot Points:
WR3 - $4,545
WR2 - $4,714
WR1 - $4,394

Weekly Pivot - $3,656
WS1 - $3,369
WS2 - $2,577
WS3 - $2,290


Trading Recommendations:
The longer term up trend on the Ethereum continues despite the local counter-trend corrections. The next long term target for ETH/USD is seen at the level of $5,000. The key long term technical support is seen at the level of $3,881, 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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Technical Analysis of BTC/USD for May 10, 2021

Crypto Industry News:
There are many indications that the selling pressure on bitcoin is declining. Data in this regard was provided by CryptoQuant, referring to the indicator of stablecoins stored on exchanges and the behavior of miners. At the same time, institutional investors retain significant parts of their assets.

The narrative that BTC investors are constantly withdrawing their assets from exchanges, which should ease the selling pressure, was confirmed by the on-chain data provided by CryptoQuant as well as bitcoin's recent price action. Referring to the Stablecoins Ratio - that is, BTC reserves divided by the reserves of stablecoins on exchanges - the analyst noted that "the potential selling pressure is weakening."

This is because the amount of stablecoins in trading venues has reached an all-time high, which could lead investors to buy BTC and other altcoins instead of selling them.

In addition, miners also suspended their sales activities in early 2021. Further CryptoQuant data revealed that known miners' addresses have stopped uploading their newly distributed bitcoins to exchanges, meaning their selling pressure has also declined


Technical Market Outlook:
The BTC/USD pair has been seen trading above the level of $59,000 again, so the bulls are testing the key short-term supply zone located between the levels of $60,000 - $58,322. Any sustained violation of this level would mean another wave up in progress towards the level of $64,920. On the other hand, a failure would likely put the Bitcoin back to the consolidation zone back again.

Weekly Pivot Points:
WR3 - $67,229
WR2 - $63,211
WR1 - $60,975

Weekly Pivot - $56,852
WS1 - $54,336
WS2 - $50,318
WS3 - $48,012


Trading Recommendations:
Event despite the recent correction from $64,789 to $47,060 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 daily time frame chart (daily candle close below $50k).







Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Dogecoin will be an interplanetary cryptocurrency



After Elon Musk's Saturday Night Live broadcast on SNL (Saturday Night Live), Dogecoin's value plummeted from record highs, disappointing investors who were trying to push the coin to $ 1.

Everyone expected that the speech of the CEO of Tesla, or as it was called Doge father, will push the cryptocurrency even higher, and not fail by almost 25%.



Last week, the popular Gemini exchange announced support for dogecoin after eToro added it to its online trading app.

According to Coinmarket, it helped increase the market capitalization to $ 70 billion and above, becoming the fourth-largest coin. This amount is more than the market capitalization of the COVID vaccine manufacturer Moderna (MRNA), as well as Ford Motor Company (F) and largest oil company BP (BP.L).

By comparison, it took Amazon (AMZN) more than a decade to provide investors with a 10,000% return, while it only took Dogecoin five months.

Since the beginning of the year, the growth has been more than 14,000%.

In addition to the support from the founder of SpaceX, Dogecoin was also supported by rapper Snoop Dogg and Kiss bassist Gene Simmons.

It can be recalled that Musk invested $ 1.5 billion in Bitcoin last February and said that Tesla may even start accepting it as payment for its products.

In a statement released by the Geometric Energy Corporation on Sunday, SpaceX will launch a DOGE-1 Mission to the Moon in the first quarter of next year. At the same time, Elon Musk's commercial rocket company will accept a cryptocurrency created by memes – Dogecoin as payment. This will demonstrate the use of cryptocurrency outside of airspace and lay the foundation for interplanetary trading.

Cryptocurrencies have been gaining more and more popularity recently after several financial institutions, as well as well-known investors, supported cryptocurrency and blockchain technologies, which led to a sharp price growth.

Such a positive cryptocurrency has attracted the attention of governments and regulators who want to hone the sector against the backdrop of growing demand.

On Saturday, the Governor of the Bank of England Andrew Bailey decided to minimize the importance of the growth in the value of cryptocurrencies. He announced that cryptocurrencies do not yet have an intrinsic value, so everyone who invests in crypto currency should understand that they can lose all their money.

The governor's comments were similar from the warnings of the UK financial supervisor.

Nevertheless, investors of all countries are not deterred by such comments.





Irina Yanina
Analytical expert
InstaForex Group © 2007-2021

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Trading Signal for Ethereum ETH/USD for May 10 - 11, 2021: Sell Below $4,062



In the European pre-market, Ethereum ETH is trading at its maximum history for now, of $4,037, at the moment of writing this analysis.

In the chart, you can see a count that we have indicated of 15 days of rise in ETH with a yield of 82% in that short period. Now it is showing overbought levels and approaching +1/8 of murray around $4,062, with an imminent correction.

Last Monday, May 3, a week ago the cryptocurrency hit its historical maximum, exceeding $3,000. Now it is increasing by 32% in 7 days.

One of the factors that led Ethereum to reach these historic highs is the development of a season of coins which has to do with a growth in the dominance of market capitalization by altcoins, such as ETH.

Also Elon Musk in a television program spoke in a good tone about the visibility of this cryptocurrency. Musk referred to ETH as one of the fastest growing cryptocurrencies, along with bitcoin and dogecoin (DOGE).

Without a doubt, the markets are nourished by these comments, and they act immediately to buy these cryptocurrencies, as we saw in this strong bullish movement of ETH.

On the technical level, we note that Ethereum is reaching an extreme overbought level in the +1/8 zone of murray ($4,062), this level is key, as there could be a correction movement.

The technical reading of the eagle indicator shows that ETH is in an overbought zone, as the indicator signal is at 95, showing an imminent correction.

On the other hand, if the price of ETH surpasses this level of $4,062, the next resistance level is located in the +2/8 zone of murray at $4,375, and the immediate dynamic support is found at $2,945.

Our recommendation is to wait for a consolidation below $4,062, and sell below this level, with targets at $3,900 and $3,750.

A pullback below $3,900, there could be a strong correction to the $2,945 level, at this level is the 200 EMA that could give us a new opportunity to buy.


Support and Resistance Levels for May 10 - 11, 2021

Resistance (1) $4,121
Resistance (2) $4,265
Resistance (3) $4,375

Support (1) $4,011
Support (2) $3,904
Support (3) $3,867




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin Imminent Upside Breakout!

Bitcoin drops at the moment of writing, but the bias is bullish after failing to confirm a deeper drop. It's traded near a strong dynamic resistance, a valid breakout could signal more gains.

The bias is bullish despite the current decline. The bullish pressure is high, so BTC/USD could jump higher anytime again after ending its drop. It could come back to test and retest the immediate support levels.

Bitcoin has recovered after its last corrective phase, sell-off, and now is trying to consolidate its gains before moving higher.


BTC/USD BULLS IN CONTROL!



Bitcoin increased after registering only a false breakdown through the weekly pivot of 56,956. Now it has decreased a little after failing to hit the upper median line (uml) of the descending pitchfork.

Still, technically, I'm expecting the rate to reach the upper median line (uml) in the end. The bias is bullish as long as the price stays above the uptrend line.


FORECAST!

A new higher high, a valid breakout above 59,499, and through the upper median line (uml) is seen as a bullish signal, buying opportunity with an upside target at 64,899 all-time high.




Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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Dogecoin dips 35%



After soaring to 73 cents on Saturday, Dogecoin fell to 46.01 cents on Sunday, around 8:08 am in New York.



It happened right after Tesla CEO Elon Musk called the token a "hustle".

Musk, 49, is the second richest person in the world. He previously helped Dogecoin gain popularity by tweeting a photo of himself and a Shiba Inu, the dog breed that conveys its image to the altcoin.

Originally made as a joke in 2013, Dogecoin has seen more than 16,000% growth over the past year, according to CoinGecko. Elon Musk is one of its biggest supporters, along with Mark Cuban, Snoop Dogg and Gene Simmons.

Earlier, Musk called Dogecoin "the future of the currency" and "an unstoppable financial instrument that will take over the world."

But on Sunday, DCG Holdco CEO Barry Silbert tweeted that people should convert from Dogecoin to Bitcoin, and added that if Dogecoin hits $ 1 by May 31, he will donate $ 1 million to a community-chosen charity.

Bitcoin, the current largest cryptocurrency, has slipped by more than 1% and is now trading around $ 58,000. Last February, Musk announced that he had bought $ 1.5 billion worth of the cryptocurrency, all while speaking out about the token's favorable characteristics.

On Friday, May 7, Musk wrote on his Twitter: "Cryptocurrencies are promising, but please invest with caution." He added a video in which he talked about the merits of cryptocurrency, especially Dogecoin.





Andrey Shevchenko
Analytical expert
InstaForex Group © 2007-2021

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BTC analysis for May 10,.2021 - Rising wedge in creation and potential drop towards $53.000

Technical analysis:



BTC has been trading sideways at the price of $58.000. Potential exhaustion on the upside and chance for the downside ration.


Trading recommendation:
Watch for potential selling opportunities if you see the breakout of the rising wedge pattern.

Downside targets are set at the price of $55.350 and $53.000.

Additionally, there is the bearish divergence on the Stochastic oscillator, which is good indication for the downside movement.Resistance set at $59.000





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

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Elon Musk and the Bank of England warn to take caution in investing in cryptocurrencies



Bitcoin continued its upward movement this weekend, but at the same time, it clearly lacks new fundamental reasons to continue this very rise. Simply put, despite breaking the important 61.8% Fibonacci level on the daily time frame, bitcoin's upward trend seems unlikely to continue. One gets the impression that the bulls are pulling bitcoin upward with their last bit of strength, but sooner or later they will miss it. The chart below clearly shows that the new short-term upward trend for bitcoin is drying up in the same way as the long-term trend (on the daily TF) was drying up a couple of months ago. Thus, a new round of downward movement may begin soon, despite all the forecasts of $100,000 in 2021.

Meanwhile, Tesla and Space X CEO Elon Musk urged everyone to invest in cryptocurrencies with caution. "Cryptocurrencies are promising, but please invest with caution," he tweeted. Recall that earlier, Musk repeatedly commented on various cryptocurrencies, which constantly provoked an increase in their value. At the same time, Musk has repeatedly called for caution in investing in digital assets. The Bank of England and its governor Andrew Bailey also warn about the danger. According to Bailey, cryptocurrencies have no intrinsic value, so investing and trading them pose a serious risk of losing all funds. He also added that such excitement in the cryptocurrency market is associated only with the "external value" of these assets.

Bailey recommends investing in cryptocurrencies only if you are willing to lose all your money. But while central banks warn, commercial banks continue to incorporate bitcoin into their operations. For example, according to the latest information, the financial giant Citigroup is going to launch the ability to trade cryptocurrencies and provide the ability to store them. According to the head of the bank's foreign exchange operations department, Itai Takman, since August 2020, their clients are actively interested in bitcoin, so the bank decided to provide them with the opportunity to trade cryptocurrencies, as well as provide new services and useful tools for the cryptocurrency sector.



Technically, bitcoin continues to be in an upward trend on the 4-hour time frame, but a slowdown in the upward movement is visible to the naked eye. The trend line clearly shows that at the moment the upward trend persists, however, if the price fixes below it, it will mean a new round of downward correction. We still believe that the corrective scenario for bitcoin is more logical at this time. However, we remind you that any fundamental theory must be confirmed by specific technical signals. Thus, to sell bitcoin, you need to wait until the trendline is crossed.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021