Cryptocurrency Analysis

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Technical Analysis of BTC/USD for May 21, 2021

Crypto Industry News:
The Russian State Duma, the lower house of parliament, adopted a bill in first reading that obliges MP candidates to disclose whether they had previously bought any cryptocurrencies. The relevant provision is to be included in the electoral law. Candidates for seats in parliament will be required to disclose the amounts they have invested to acquire digital financial assets as well as the timing of the investment.

The bill, which has been proposed by the government, introduces the necessary changes after the adoption of the law "On digital financial assets and digital currency," informed the news agency Prime.

Importantly, however, the above rules apply when the total amount invested in cryptocurrencies has exceeded the total income earned by the candidate and their household in the last three years. At the same time, Russian politicians will have to provide details revealing the source or multiple sources of funds from which such transactions are financed.

The new legal act amends two important federal laws - the law "On the election of the President of the Russian Federation" and "On the election of deputies to the State Duma".

The amendments also apply to the acts defining the basic electoral rights of citizens of the Russian Federation, including the right to participate in referenda, and a number of other legislative acts. The updated law will enter into force in the first elections following its adoption.


Technical Market Outlook:
The BTC/USD pair has been testing the level of $41,794, which is just above the 38% Fibonacci retracement seen at $41,096. The other immediate technical resistance is seen at the level of $40,922 and $43,159. Please notice, the market still trades under the trend line resistance and under the zone located between the levels of $43,1459 - $41,794. The market is in full control of bears and only a strong breakout above the level of $41,096 (38% Fibonacci retracement of the last wave down) would temporary change the outlook to bullish (but still corrective in nature).

Weekly Pivot Points:
WR3 - $67,286
WR2 - $62,987
WR1 - $51,788

Weekly Pivot - $47,852
WS1 - $35,984
WS2 - $32,386
WS3 - $20,567


Trading Recommendations:
Event despite the recent correction 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 $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).







Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin returns to $42,000 after yesterday's decline to $30,000



Bitcoin has gained ground and recovered to $42,000 today after yesterday's considerable drop to $30,000 due to the twists and turns of the crypto market in China. The country has made it clear that cryptocurrency has no value and its price is very easy to manipulate and impossible to predict because of its high volatility. "Recently, cryptocurrency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people's property and disrupting the normal economic and financial order," the central bank said in the statement.

After Elon Musk said that Tesla had diamond hands and the company was not going to sell off any bitcoin, the digital asset surged. Microstrategy CEO Michael Saylor also supported the BTC rally. He pointed out, " Entities I control have now acquired 111,000 #BTC and have not sold a single satoshi." BTC soared amid that statement. So, BTC made a rebound after yesterday's dramatic decline to the $30,000 support level. Notably, bitcoin could have gone even into a deeper correction if not for the intervention of the hodlers and the support of main crypto enthusiasts Musk and Saylor. To continue its growth to 45,000-50,000, BTC will have to break above the resistance level. This will be a very difficult task for BTC.

Yesterday BTC faced strong selling pressure and total havoc in the crypto market. After a significant drop to the resistance level of $30,000, many began to get rid of the cryptocurrency and sell it off massively. This led to a depreciation of almost 50% of the market value of the cryptocurrency.

However, the US Treasury Department has made new comments about digital assets. It said it will require any transfer worth $10,000 or more to be reported to the Internal Revenue Service. The US Treasury Department has taken a close look at Bitcoin and will now monitor the movements of whales on the network, which will trade for more than $10,000, and this will appear in the reports. "This is why the President's proposal includes additional resources for the IRS to address the growth of cryptoassets," the department added. "Within the context of the new financial account reporting regime, cryptocurrencies and cryptoasset exchange accounts and payment service accounts that accept cryptocurrencies would be covered. Further, as with cash transactions, businesses that receive cryptoassets with a fair market value of more than $10,000 would also be reported on." Joe Biden and his administration made such a proposal as part of their tax enforcement plan.





Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Long-term technical analysis for XRP/USD

XRP/USD was not unaffected by the sell of in cryptocurrencies this week. With a high this year close to $2, price so far had already made a strong pull back towards $0.88. With the sell off in cryptocurrencies this past week, XRP/USD made a new lower low at $0.83, but the stay below $1 was short lived.



Green rectangle - major horizontal support

XRP so far remains above our key support area of $0.65-$0.75 which was once a major resistance. Staying above this support area is key for the bullish trend we believe started this year. Taking a closer look we observe a possible triangle pattern being formed in XRP/USD.



Red lines- triangle pattern

In both pull backs, the price was supported below $1 and the stay below this price was very short. This is promising and confirms that important support by the lower triangle boundary. Price on the other hand got rejected at $1.70 area and this also confirms the importance of resistance. Breaking above the upper triangle boundary is key for the continuation of the up trend. Will a SEC settlement be spark that ignites the next upward move? Or will failure to bring a close to this case will make price continue to trade sideways for a few more months?






Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BTC/USD (Bitcoin) for May 21 - 24, 2021: Buy above 37,500



In the early American session, Bitcoin (BTC / USD) is trading above the psychological level of $40,000, forming a symmetrical triangle in 1-hour charts, with upside potential in the short term up to the zone of 200 EMA.

According to JP Morgan analysts, they have pointed to the fair price of Bitcoin based on a BTC volatility index, at $35,000. However, it is difficult for BTC to stay at that price, due to the strong demand it has. Besides, more and more companies are including BTC in their corporate investment portfolios. We believe that the fair value could be about the $100,000.

The most popular digital token is very volatile and prone to both panic and euphoria. So, its price has no limits when rising and falling. Hence, we must consider this digital asset with a lot of volatility and operate very carefully.

On the 1-hour chart, Bitcoin is consolidating above the strong 2/8 murray support located at $37,500, as long as BTC remains above this zone it could continue climbing to the 200 EMA located at $45,077.

Conversely, a price below $37,000 could have a bearish move to the $30,000 level and could form a double bottom, thus demonstrating the strong support and rebounding again. Therefore, below 2/8 of a murray we recommend selling up to 1/8 of a murray around $31,250.

The moving average of 21 also adds support to BTC. As we noticed, in recent days it has been bouncing above this area. So, we believe that there is a good opportunity to buy Bitcoin with targets at $45,000. A break above the 200 EMA can open the way to the psychological level of $50,000.

The eagle indicator in 1-hour charts, is showing overbought levels. A retracement of the BTC is likely in the next few hours to the support zone of $37,500, suggesting buy positions.


Support and Resistance Levels for May 21 – 24, 2021
Resistance (3) 47,581
Resistance (2) 46,321
Resistance (1) 43,125

Support (1) 39,467
Support (2) 35,811
Support (3) 33,645





Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for May 24, 2021

Crypto Industry News:
After the cryptocurrency market slump this week, Bitcoin lost around 24% of its value. Meanwhile, the anonymous email service ProtonMail has confirmed its support for the original cryptocurrency.

Despite the enormous volatility that has pushed Bitcoin's price below $ 30,000, ProtonMail said on Twitter that it continues to HODL its BTC to maintain its independence.

"Responsible financial diversification requires the ownership of certain assets outside of the traditional government-controlled banking system. Therefore, Proton will continue to HODL a significant portion of our reserves in Bitcoin to protect our independence."

By posting this message, ProtonMail is following in the footsteps of organizations such as MicroStrategy. Its CEO Michael Saylor said Wednesday that companies under his control have purchased approximately 111,000 Bitcoins, which are now worth $ 4.5 billion. These entities "did not sell a single satoshi, BTC, forever," said Saylor.

ProtonMail introduced Bitcoin as a payment option for ProtonMail membership in August 2017. The goal was to maintain a commitment to individual freedom and privacy. ProtonMail has previously announced that it has never cashed any of the Bitcoins it has accepted as payment. On top of that, the company also allows users to make donations in Bitcoin. There is a total of 2.2 BTC at the current address where users can send donations. It is currently around $ 74,000.


Technical Market Outlook:
The BTC/USD pair has been capped at the level of $41,794, which is just above the 38% Fibonacci retracement seen at $41,096. The market still trades under the trend line resistance and under the zone located between the levels of $43,1459 - $41,794. Bears are still in full control of the price and only a strong breakout above the level of $41,096 (38% Fibonacci retracement of the last wave down) would temporary change the outlook to bullish. The next target for bears is May 19th low seen at the level of $29,701.

Weekly Pivot Points:
WR3 - $58,682
WR2 - $52,643
WR1 - $41,961

Weekly Pivot - $35,513
WS1 - $25,163
WS2 - $18,359
WS3 - $7,655


Trading Recommendations:
Event despite the recent correction 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 $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).







Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for May 24, 2021

Crypto Industry News:
With the recent volatility in the cryptocurrency market and the growing dominance of Ethereum (ETH), the debate on the topic of ETH vs BTC has flared up. Even a few big players joined it. Wall Street banking giant Goldman Sachs recently published its Global Macro Research report. In it, he spared nice words towards the king of smart contracts - Ethereum.

Santeago Santos, general partner of ParaFi Capital, shared some key points and excerpts from the report. We can read in them:

"Ether beats bitcoin as a store of value. The Ethereum ecosystem... provides developers a way to create new apps. Most of DeFi apps are being built on Ethereum. The greater number of transactions in ether vs bitcoin reflects this dominance "- Goldman Sachs Global Macro Research

The banking giant also noted that Ethereum had the advantage of a pioneer. Ethereum has been supporting DeFi and NFT from the beginning. Goldman added that Ether is also "the right platform for the safe and private storage of information that can be monetized with tokens."

Creating a digital profile on Ethereum can help users store personal information, including medical history, asset ownership, intellectual property rights, and more. Goldman refers to the Ethereum platform as the "Information Amazon".


Technical Market Outlook:
The ETH/USD pair has made a new swing low at the level of $1,829 during the weekend after a failure to bounce above The level of $2,861. The bears are in full control of the price and the next target for beats is seen at the level of $1,729, $1,633 and $1,544. Please notice, the market keeps trading out of the main channel, so the down wave might occur any time now. The nearest technical resistance is seen at the level of $2,201 and $2,639.

Weekly Pivot Points:
WR3 - $4,688
WR2 - $4,131
WR1 - $2,922

Weekly Pivot - $2,341
WS1 - $1,141
WS2 - $579
WS3 - $181


Trading Recommendations:
Ethereum has lost more than 50% of the recent gains from the lows of March 2020 and now is currently in the counter-trend corrective cycle. The next long-term target for bears is seen at the level of $1,728 (61% Fibonacci retracement of the last wave up) and $1,420 ( January 2018 swing high). The up trend is resumed when the level of min. $3,000 is clearly violated.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

The cryptocurrency market collapses like a house of cards



Almost every aspect of the cryptocurrency market now resembles the concept of 'house of cards'. The meaning of this expression is that if you draw one card, everything else collapses. And the same thing is now happening in the cryptocurrency market. After Bitcoin started to fall in price, all other cryptocurrencies also began to fall in price, although a couple of weeks ago, the "altcoin season" was being discussed with might and main. But as it turned out, as soon as the sales began, everyone immediately began to sell ether, litecoin, and other alternative tokens. The same goes for investors. As soon as the coins were sold off conditionally by Elon Musk (-10% for bitcoin from Tesla), other companies and institutions immediately began to reduce their investments in digital gold, except for MicroStrategy, which seems to be going to own bitcoin in proud solitude. The same goes for the fundamental background. As soon as the negative news from China began to arrive, they immediately began to provoke the appearance of new equally negative news. For example, this weekend, the Chinese cryptocurrency exchange Huobi announced the suspension and even curtailment of a number of areas of its activities and services for investors. It is not surprising if the Chinese authorities have begun to prohibit financial organizations from providing any services related to bitcoin, and in the near future they may even ban mining. Recall that in China, there are not only a lot of mining farms, but also a huge number of exchanges. It is clear that miners will find a way to mine cryptocurrency outside of China, but exchanges will have a hard time. There are plenty of places where you can place mining equipment on the ground. The problem is that bitcoin reacted to this news with a collapse. And the less it costs, the less profitable it is to mine it. Especially considering the increased prices for mining equipment over the past year. So, the fundamental background is not just bad at the moment, it continues to deteriorate. In the near future, we can expect some more surprises. Of course, it will not be without a new batch of forecasts that bitcoin "is about to rise in price to $100,000". But we are very realistic and do not own hundreds and thousands of bitcoin coins. Therefore, we believe that, at least, a long period of consolidation of the cryptocurrency begins. As a maximum, the collapse of the entire cryptocurrency market will continue.



Technically, Bitcoin fell to two important support levels on the 4-hour timeframe. The upward movement was very short-lived and now we recommend traders to monitor the behavior of bitcoin around the level of $30,500 and $29,873. If the price breaks these levels, then Bitcoin may continue its collapse.






Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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BTC analysis for May 24,.2021 - Inside days formation and potential for the breakout

Technical analysis:


BTC has been trading sideways at the price of $37.000 but I see potential for the breakout.


Trading recommendation:
My advice is to watch for the breakout of the inside formation to confirm further direction.

Resistance is set at $43.000
Support is set at $29.000

Downside breakout of the support at $29.000 can lead BTC towards the $22.000

Upside breakout of the resistance at $43.000 can lead BTC towards the $.48.000





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

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Short-term reversal signs in Bitcoin.

Bitcoin made another pull back towards $30,000 but price did not break recent low. Instead price is now bouncing higher towards $40,000 and so far price has broken the short-term resistance trend line at $37,000.



Red rectangle- major resistance

Red line - short-term resistance

Blue lines- Fibonacci retracements

Bitcoin has been in a bearish short-term trend since early April and the reversal from the $58,000 level. Bitcoin has so far retraced more than 50% of the entire rise from the 2018 lows. The RSI has already provided a bullish divergence in the 4 hour chart and price is now breaking above the red resistance trend line. Bitcoin could continue higher towards the red rectangle horizontal resistance where we expect to see the most important test for bulls. So a bounce towards $47,000 is justified and not out of the question. However even if price moves towards that level, it will not mean that a major low is in. Yes support is important around $30,000, but for now we can not talk about a major low.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

XRP back tests major broken resistance area.

So far the worst possible scenario for XRP has been confirmed. Price broke below the key support levels of $1,2 and $0.83 and has tested the major support, previous resistance area of $0.65-$0.75. Price today bounced off this break out area and so far we have a bullish back test of broken resistance.



Green rectangle - major support

Red line - support trend line

XRP/USD is now trading above $0.85 again. It was only a one and a half month ago when prices were challenging the green rectangle area and were breaking out. Now price is back testing the support around this level. Bulls need to respect both the upward sloping red support trend line and the horizontal support. Bouncing off the support level is a bullish sign but it is still too early to call a major low in.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021