Cryptocurrency Analysis

[IFX_Selena]

Trading Signal for ETH/USD, May 11-12, 2021



On the morning of the American session, the ETH/USD pair is trading within an uptrend channel since April 1, and above the 21 SMA on 4H charts. It still maintains its strong uptrend.

JPMorgan analysts believe that ETH/USD should trade at a price of $1,000, more than 70% below its current price.

The current and inaccurate value is due to increased institutional investments and network improvements according to analysts. They claim that these factors have led to a price increase, but the current price does not reflect actual network usage.

This bubble could burst and Ethereum could fall to the support level of 3475. In the short term, there is the 7/8 of Murray and if it trades below this level there could be a change in trend until the support of the 200 EMA around 2,550 in the medium term.

On the technical level, we can observe the formation of a reversal pattern called shoulder head shoulders, while ether is trading below the psychological level of $4,000, this pattern could finish forming and there could be a downward movement to the 3400 area.

On the other hand, a pullback towards +1/8 of murray, we hope it is a good selling opportunity, in view of the fact that the eagle indicator is showing a bearish signal and a strong correction is imminent in the coming days.

Our recommendation is to sell below $ 4060 or the ETH trading below 3890 with targets at 3400 in the short term.


Support and Resistance Levels for May 11 - 12, 2021
Resistance (1) $4,178
Resistance (2) $4,278
Resistance (3) $4,456

Support (1) $3,927
Support (2) $3,649
Support (3) $3,400




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading plan for Bitcoin for May 12, 2021



Technical outlook:

Bitcoin dropped to the $53,000 level yesterday before pulling back again. This was in line with our expectations. The crypto has again hit intraday resistance around the $58,000 level. A bearish reversal from here looks possible. Iy may decline to the $41,000-43,000 levels before Bitcoin resumes an upward movement again.

Bitcoin is seen to be trading around the $57,200/300 levels at this point in writing. It is expected to decrease to at least $43,000 soon. Immediate resistance is seen at $60,000, followed by $65,000; while support comes in around the $47,000 level respectively. A break below $47,000 will be seen as confirmation of a push further lower to the $43,000 and $410,00 levels respectively.

The Fibonacci 0.382 retracement of the previous rally between $3,850 and $65,000 is seen passing through the $41,000 mark. Hence, probability remains high for a bullish bounce if prices reach there.


Trading plan:
Remain short, stop @ 65000, target @ 41000

Good luck!




Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Dogecoin skyrockets due to Elon Musk



Dogecoin, which started out as an internet joke, saw massive gains on Tuesday, after Tesla CEO Elon Musk tweeted if the company should accept the token for payments.

Musk asked the question via a poll, in which more than 3 million participants responded.



Coinmarketcap said price hit from 46 to 54 cents after the tweet.



But on the day before, Dogecoin was trading downwards because Musk called it a "hustle". Its market capitalization declined strongly from $ 95 billion to $ 67 billion dollars.

Now, the token is the fourth most valuable cryptocurrency after Bitcoin, Ethereum and Binance Coin. It has gained 70% since mid-April, when Coinseed converted the holdings of its investors into the token.

SpaceX, Musk's commercial rocket firm, said it will take a trip to the moon in 2022 using a mini-satellite from Geometric Energy that was paid for in full by Dogecoin.

This will not be Tesla's first foray into cryptocurrencies, as back in March this year, the company announced it would accept bitcoins as payment for its electric vehicles.





Andrey Shevchenko
Analytical expert
InstaForex Group © 2007-2021

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Michael Saylor: Bitcoin is the main means of saving in the 21st century



Bitcoin quotes continue to hover around the $ 60,000 mark per coin. More crypto experts are beginning to believe that it is time for a new round of strong correction, which can take the cryptocurrency below the $ 50,000 level. The head of Microstrategy, Michael Saylor, called bitcoin a "destructive technology" and predicted its multiple growths in value. The head of the company, which is engaged in the development of analytical software, still devotes much more time to bitcoin. Recall that Microstrategy is the company that owns the largest number of bitcoin coins (more than 91,000). Michael Saylor believes that bitcoin will become the main means of saving in the 21st century. According to the CEO, humanity needs strong digital assets. "Bitcoin is the fastest growing and most destructive force in the world. In 12 years, it has grown from 0 to $ 1 trillion (by capitalization). It is the most disruptive technology in your life, more disruptive than Amazon, Apple, Facebook, and Google," Saylor said. Thus, the hit parade of crazy forecasts from large bitcoin owners continues. We remind you that any major investor is interested in the asset continuing to grow.

Bitcoin can grow if there is a new influx of investments and investors. Its rate is not tied to anything other than the faith of investors and traders in it. Simply put, any cryptocurrency rises or falls in price only based on the factor of whether investors believe in its growth or not. Therefore, we will continue to read forecasts from the category "bitcoin will cost $ 1 million" or "bitcoin will become the main means of saving in the 21st century" for a long time. Despite the popularity of "digital gold," no serious investor will ever keep all their savings in one asset. Bitcoin may pull some of its investments from other traditional investment tools, such as stocks or gold (it has already pulled), but this does not mean that its share in the portfolios of investors and funds will grow constantly. Thus, we recommend paying more attention to the forecasts of those experts who are not personally interested in bitcoin continuing its growth. Plus, we should not forget that both the stock market and the cryptocurrency market are now growing, as the US government and the Fed (and not only them) are pouring vast amounts of money into the economy to stimulate it. Sooner or later, this process will end.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for May 12,.2021 - Broken rising wedge and potential for the downside continuation towards $53.180

Technical analysis:



BTC has been trading sideways today at the price of $57.000. I still see potential for the downside movement towards $53.180.

Watch for potential selling opportunities on the rallies with the downside target at $53.180.

Stochastic is showing fresh bear cross, which is sign for the further downside continuation.

Main pattern in the background is broken rising wedge....





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Reasons why bitcoin cannot continue to rise



Bitcoin still cannot continue to grow and is trampled around the level of $60,000 per coin. Ethereum, on the other hand, breaks all cost records and reached $4,300 per coin on Wednesday. Experts continue to understand why this is happening and whether it is worth waiting for new growth from bitcoin and when. The first thing that crypto experts pay attention to is that bitcoin is already too expensive. The more expensive an asset is, the more difficult it is for it to continue to rise in price. It should be understood that bitcoin is not a stock of Apple or Tesla, or any other company that cannot fall in price to zero (theoretically, although the latest crisis showed that even oil can be worth a negative value). Still, the shares are backed by the business itself, property, buildings, technologies, and production. But cryptocurrencies are not backed by anything. Therefore, the more this or that cryptocurrency grows, the more questions arise for it: how long will the growth continue? At the $60,000 mark, some investors simply start selling coins to lock in profits. Some investors are starting to transfer funds to Ethereum or Dogecoin, as they have much more growth potential than bitcoin.

But now there is no inflow of new investors in bitcoin. Because the price is too high. Experts also note that bitcoin now has no informational support. At the beginning of the year, bitcoin regularly grew on the tweets of Elon Musk or on the news about the entry into the stock market of a cryptocurrency exchange, or on data about Tesla and Microstrategy's bitcoin investment. All this supported the demand for bitcoin, and now there is simply no news of this caliber. Experts also note that there is now an "altcoin season", however, if there are no questions about the growth of Ethereum, then along with it, some cryptocurrencies are growing, which are generally frivolous instruments or were created as a joke. That is, many traders and investors are now playing with cryptocurrencies at roulette or sweepstakes. They no longer care what kind of cryptocurrency it is, who its creator is, what are its prospects. If it grows, capital flows into it. A striking example is Dogecoin, which is now showing crazy growth, because Elon Musk is already going to sell electric cars for this cryptocurrency, as well as send a mission to the moon, paying it in full for Dogecoin.



Technically, bitcoin has completed the upward trend on the 4-hour time frame. The quotes have consolidated below the upward trend line, and, from our point of view, this is a rather powerful signal to continue the downward movement. However, at the same time, BTC has already returned to this trend line and is testing it for strength from below. In any case, the upward trend in the short term has weakened for several days in a row, and we believe that a corrective scenario is still the most likely.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Paolo Greco, Analytical expert InstaForex Group © 2007-2021

Over the past few days, the cryptocurrency market has been in a volatile state, accompanied by fluctuations in BTC, XRP, and LTC. After a slight decline in ETH and a negative report by JPMorgan on the real value of ether, there were every prerequisite to assume that the market would go into correction. However, over the past day, the total capitalization of all cryptocurrencies increased by 5%, and the market exceeded the $2.5 trillion mark.

Ethereum became the main driver of the successful period of the entire crypto market. The asset continues to grow its audience and institutionalize. A recent and upcoming update to version ETH 2.0 acts as support in this. After the negative associated with the JPMorgan report, which said that the asset is overvalued by 100% and its real price is $1,000, the cryptocurrency quotes have held on to safe positions. As a result, over the past 24 hours, ether has grown in price by 8%, reaching a new all-time record of $2,346. Over the past week, the asset has risen in price by 32.5% and, judging by the volume of daily trading, has not yet exhausted its safety margin. In the near future, the asset may continue to grow, but in the longer term, it is hardly possible without correction. It became known that already in May, commissions on the ETH network, despite the update, increased by 563% and reached $65. It is this factor that can cause a decrease in demand for the asset and its further correction.



The XRP token remains in the range of $1.40-$1.50, which is actually a positive result. During the day, the asset has risen in price by 1%, which indicates the strong support of the cryptocurrency market. In the near future, the token will not show rapid growth without significant news impulses. In this regard, the asset is similar to LTC, whose indicators managed to overcome the $370 mark. Over the past 24 hours, the cryptocurrency has risen in price by 3%, but by 13:00 UTC it dropped to $365, which indicates that there are no prospects for Litecoin in the near future.





At the same time, a negative background has developed on the cryptocurrency market due to the SEC's statement that bitcoin is a speculative asset with a high share of risk. Investors' significant fears are caused by the rapid growth of unknown altcoins a week ago. Cryptocurrencies rise in price by tens of percent every day, which undermines the stability of the market. Many institutions are anxiously awaiting further developments that could trigger a sharp decline in the entire crypto market. The fact that the total value of all cryptocurrencies exceeded $2.5 trillion, where many leading experts and analysts predicted a correction, does not add optimism. In the next few days, coin quotes will continue to grow and try to overcome psychological boundaries, but in the longer term, the market will face a technical correction.




Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum: competition with bitcoin, "alt season" and new targets

The update of the all-time high on Ethereum yesterday raised its capitalization to almost $500 billion. As a result, Ethereum has grown by over 470% since the beginning of the year.

The second cryptocurrency is being fueled by growing institutional interest as well as the wider adoption of decentralized finance (DeFi) applications in the Ethereum ecosystem.

In yesterday's review, it was discussed that the growth in the number of active Ethereum addresses is one of the signs of the fundamental strength of the second cryptocurrency. Analysts at Negentropic, co-founders of chain analysis firm Glassnode, also note that Ether coins are leaving exchanges in cold storage. This suggests that buyers are not planning to sell anytime soon.

Other experts point out that the current rally has been triggered by spot buying rather than intense speculation in derivatives. Usually, under such conditions, the market grows steadily without the danger of "overheating". At the same time, open interest in futures on Ethereum remains high, and the demand for ETH options in April surpassed the demand for Bitcoin options for the first time.

Some experts interpret such dynamics and the ratio of interest in Ether and Bitcoin radically. For example, Lex Sokolin, chief economist at ConsenSys, believes that due to the high demand for DeFi and NFT, Ether will gain a use case advantage over BTC.

It is also noted that in the previous bullish cycle of the cryptocurrency, there was a transition of liquidity from bitcoin to other coins, with Ethereum historically being the main beneficiary of this movement. Experts from BlockchainCenter point out that now this "alt season" has also arrived.

Considering all these facts, we can conclude that the likelihood of further interest in Ethereum is high. But a lot will depend on how things go with ETH 2.0.

Opinions on Ethereum targets for 2025 vary, ranging from $20,000 to $100,000.

Locally, consistent technical analysis and the well-proven Fibonacci extension will help us in this process. After the price has consolidated above the 161.8 Fibo Expansion level (near 4211.07), we will look for new targets by stretching a new blue grid.

ETH/USD quotes have already consolidated above the 61.8 blue extension level. The nearest targets are 100 Fibo Expansion ($4,670) and 161.8 ($5,260 per coin).







Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin's inability to break resistance, brings price lower

Bitcoin got rejected at the major Fibonacci resistance at around $58,000-$59,000. Price also got rejected at the shorter-term 61.8% Fibonacci retracement at $57,250. So far bulls seem unable to break above resistance levels and this has put prices under pressure.



Red rectangle - resistance

Red line - critical support

Blue lines- Fibonacci retracements

Bitcoin is under pressure. Price is about to challenge the important support trend line and if price breaks below it, we should see a sharp move towards $47,000 follow. The trend line support is at $54,000. In all our previous analysis we warned traders that as long as price is below the red rectangle resistance area, price would be vulnerable to a move lower as price has formed a lower high. Maybe time has come for a lower low below $47,000. In order for bulls to regain control of the trend, they will need to break above $58,000.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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XRP/USD still vulnerable to a move towards $1.18-$1.

XRP/USD remains under key resistance levels. Price so far has managed several times to break above $1.60-$1.65 resistance but every time sellers dominated buyers. XRP/USD bears remain in control of the trend as long as price is below $1.55 at least.



Red line - short-term resistance

XRP/USD is making lower highs below the red downward sloping resistance trend line. Price needs to break above $1.56 in order for bulls to hope for a trend change. Since the high of $1.97 trend is bearish as bulls are unable to start a new trend with higher highs and higher lows. Price has made a lower high at $1.76 and as long as price is below that level, bears still have hopes for a move towards $1 and lower. Bulls will make a first step towards reclaiming the trend if they break above $1.56.






Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021