Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for April 2, 2021

Crypto Industry News:
DOGE surged over 18% after Elon Musk tweeted about alleged intentions to take cryptocurrency to the moon.

Musk's tweet seems to be an obvious analogy to the slogan "To the Moon" popular among the cryptocurrency community. It is used to describe an asset in a strong uptrend that never seems to stop growing - going up the chart as if towards the aforementioned Moon. Every member of the cryptocurrency community hopes that the prices of digital assets he keeps in his wallet will someday go there. But Musk has gone one step ahead: he wants to put the real Dogecoin on a real moon, 384,400 km from Earth.

"SpaceX will literally put Dogecoin on the literal moon," Musk said in a tweet. SpaceX is one of Musk's companies in the field of rocket building and space exploration. Technically, such an undertaking would be perfectly feasible.


Technical Market Outlook:
The ETH/USD pair has hit a new all time high at the level of $2.008 (at the time of writing the article). The market is out of the main channel, so the up move can accelerate. The immediate technical support is seen at the level of $1,963 and $1,941.The strong and positive momentum supports the short-term bullish outlook for ETH with a longer-term target at $2,035.

Weekly Pivot Points:
WR3 - $2,053
WR2 - $1,922
WR1 - $1,793

Weekly Pivot - $1,670
WS1 - $1,525
WS2 - $1,400
WS3 - $1,267


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 $2,100. The key long term technical support is seen at the level of $1,412, so only a weekly candle close below this level will invalidate the bullish scenario.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum preparing for new all time highs

Ethereum bulls have managed to recapture the $1,900 level. Trend remains bullish as price continues to make higher highs and higher lows. There are some warning signals by the RSI but nothing more than a warning. As long as price continues to respect the support levels, trend will remain bullish.



Black line - support

Blue lines- bearish RSI Divergence

With price making a new all time high in closing prices, ETH/USD price pattern seems ready to explode higher. The RSI has a different opinion but as long as price is above the black trend line support, bulls have the upper hand. Support by the black trend line is at $1,660. Next upside target for ETH/USD is at $2,200.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin bullish trend remains intact

Bitcoin is trading at $58,780. Price remains inside the long-term upward sloping channel and it continues to respect the channel boundaries and continues making higher highs and higher lows. There is a chance that we might see a pull back this weekend towards $54,500 where we find important support.



Blue lines- bullish channel

Red line - resistance (broken)

BTC/USD has resistance at $60,000. I do not believe that the most probable scenario is for Bitcoin to break the resistance towards new all time highs now. I believe it is more probable to see a pull back towards the red trend line as a back test of the break out of the resistance which is now support. The $54,000 price level is key because there we also find the lower channel boundary. A pull back towards that level for the creation of a higher low is more probable, in order to gather momentum for a new all time high.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Dogecoin adds over 20% following Elon Musk's recent tweet



After Tesla CEO Elon Musk added bitcoin to his Twitter bio, the price of digital assets surged. This time, Musk backed Dogecoin. As a result, the cryptocurrency gained in value.

"SpaceX is going to put a literal Dogecoin on the literal moon," Musk said in his Twitter post.

The tweet sparked an instant surge in the price of Dogecoin. It jumped from $0.0540 to $0.066, facing the local resistance level.

However, the previous tweets from Elon Musk were of greater interest among retail traders. For example, following his last tweet about the Dogecoin sale on February 15, the price of DOGE collapsed by almost 26%, to $0.0471 from $0.0639.

"If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue. I will literally pay actual $ if they just void their accounts," he stated.

This tweet was one of the numerous Dogecoin-related posts made by Elon Musk over the past year. He once said that the cryptocurrency had a chance to become "the currency of Earth in the future", adding that he had bought some coins for his nine-month-old son.



Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN for April 01 - 02, 2021: Buy above $58,900 Symmetrical Triangle



The BITCOIN this morning of the American session in 4-hour charts is trading above the SMA of 21 and above +1/8 of Murray with a strong bullish trend.

Goldman Sachs is preparing to offer Bitcoin to its customers, just as PayPal allows payments with BTC, many more companies, are allowing cryptocurrencies in their payment portfolio, which increases the demand for BTC.

On the technical level we can see that the BTC in the last 4-hour candles has been trading between two converging trend lines that form a symmetrical triangle, indicating indecision between traders.

As Bitcoin is in a strong uptrend, we can expect a bullish break of the triangle, with targets at +2/8 from Murray, around 62,500.

Conversely, a break below the lower limit of the triangle, we expect a correction of the BTC with targets EMA 200 located at 54,214

The eagle indicator is showing a bullish signal, with targets towards 62,500, so we recommend buying the BTC as long as it remains above 57,000.


Support And Resistance Levels For April 01 - 02, 2021
Resistance (1) $60,211
Resistance (2) $61,519
Resistance (3) $62,950

Support (1) $57,212
Support (2) $55,522
Support (3) $54,214




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

ETH/USD starts rallying while BTC/USD fluctuates: reasons and prospects

In late March and early April, the cryptocurrency market shows rapid growth despite some fluctuations in the prices of separate assets. Market capitalization is approaching the $2 trillion mark, and the daily trading volumes of major coins continue to increase. The growth of cryptocurrency quotes is associated with a positive news background, the introduction of digital assets into Visa and PayPal payment systems, as well as the end of bitcoin expiration, which eased the pressure on the market.

Despite all the positive factors, BTC/USD is going through a local decline near the important psychological level of $60,000. As of April 1, bitcoin's price consolidated at around $58,500, having risen by 1.5% within a day. A slight decline in bitcoin is associated with critical comments of the US Fed's Chair who said that bitcoin could not become a "digital gold" as it is too volatile and not supported by anything. In addition, most BTC holders, including institutional investors, prefer to consolidate their profit in cryptocurrency rather than transfer it to fiat money. Due to this, the price of bitcoin is not growing as rapidly as it should considering the increasing demand (daily turnover of $61 billion).



Some worries regarding the performance of the BTC/USD pair are also associated with the consolidated movement of buyers who are massively opening long positions. Most of the sellers are large companies that react to the general market sentiment in the opposite way, using the mechanisms of crypto-exchanges that allow them to liquidate the positions of users. This speculative move is extremely beneficial for large players who can absorb the necessary volumes of assets without causing a significant increase in prices. In the near future, the quotes of the BTC/USD pair will continue to grow. After another record surge, the market should be ready for the subsequent pullback of the asset by 5-10%.

The main altcoin Ethereum is doing much better. On April 1, the ETH/USD pair showed a sharp increase to the level of $1,930. Within a day, the crypto asset has advanced by 6.2% and approached a record high. The market capitalization of ETH has reached $222.5 billion, and soon Ethereum will be able to move above its all-time high of $2,035.



The Ripple token also shows good performance amid the overall market euphoria. The asset has risen in price by 1.5%, and now the XRP/USD pair has stopped at around $0.556. The number of cryptocurrency users is growing thanks to cooperation with the payment systems. In addition, Ripple is going to acquire 40% of the leading cross-border paymentsspecialist Tranglo which is also a positive factor for the crypto currency.



Litecoin displays steady growth, with its price rising by 2.2%. The LTC/USD pair is now trading at $196, and the cryptocurrency shows good dynamics of the trading volume which indicates high growth potential. However, the asset still needs to overcome several important psychological marks to reach news highs.



The cryptocurrency market is starting the second quarter of 2021 with great prospects and positive news. The main factor that contributes to the growth of digital coins is the introduction of crypto transactions by Visa and PayPal for their US customers. Now cryptocurrencies have every chance to overcome important psychological marks, reach new record highs and bring the total market capitalization to $2 trillion





Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin closes first quarter with 103% rise



Bitcoin closed the first quarter of the year with a significant rise. It was the best quarter in the last 8 years. Notably, bitcoin's market capitalization totals $1.1 trillion.

In the first quarter of 2021, bitcoin soared to $58,790. The first cryptocurrency has been increasing for four quarters in a row. The smallest rise was just 18%, whereas the biggest one reached 168%. However, in the first quarter of 2020, bitcoin lost 10.58%.

Interestingly, the second quarter of the year could be even more successful due to the gains in the first quarter. Usually, the second quarter of a year is the best period for bitcoin. Thus, by the end of the second quarter, bitcoin's price may exceed $100,000.

Of course, market participants understand that the current bitcoin's rally is significantly stronger than those logged in 2016 and 2017. If BTC continues gaining in value, it may skyrocket to $550,000 by the end of the year.

In the last three month, the first cryptocurrency came through a boom period. At the same time, most altcoins showed even better performance. Traditional market indicators were far from the bitcoin's dynamic. For example, this quarter was the worst period for gold that depreciated by 9.89%.

However, the US dollar showed a significant rise of 2.15%. Despite the new stimulus package worth $2 trillion, the greenback has been trading near its highs against major currencies.

At the same time, the new nationwide lockdown in France has a significant impact on the euro. Traders are also selling off the yen because of the return of foreign direct investment by Japanese companies after the recession amid the pandemic.





Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin on track to exceed gold's market capitalization

Bitcoin (BTC) is on track to reach or even exceed gold's market value. In fact, when the digital currency was trading around $ 100, its value had already reached roughly 10% of gold's market capitalization.



Currently, gold's market value is around $ 10.7 trillion. Bitcoin, by contrast, has approximately $ 1.1 trillion.

Obviously, this brings out the idea that BTC is already overshadowing gold as safe haven currency. Accordingly, it will soon become an obstacle to the growth of the yellow metal.

Now, crypto-lending firms, including Genesis and BlockFi, are cutting the interest rates they pay on large-scale Bitcoin deposits, potentially ending the glorified 4- 6% levels that have served as a staple of the lucrative market. And because of this, demand from large traders is dwindling, according to industry executives.

Apparently, there are too many Bitcoins looking for yield versus institutional demand, so lenders try to protect their margins by lowering deposit rates.

Therefore, starting Thursday, Genesis Global Trading will refinance its Bitcoin deposit rates from 2% to 3.5%, while BlockFi is going to reduce it from 3% to 2%.

This follows what analysts and industry leaders said earlier: the key factor that would drive institutional borrowing down is a shift away from the so-called "grayscale premium."

This refers to the difference between BTC price in the cryptocurrency spot markets and the BTC price at net asset value (NAV).

For example, when Grayscale Trust trades at the NAV, hedge funds and other investors could take Bitcoins and transfer them in exchange for GBTC shares. Then, after a six-month close, shares could be sold on the secondary market to retail investors, usually at a premium. Proceeds are then used to pay the lender.

But based on the current GBTC discount, large traders no longer have an incentive to borrow BTC.

And given the current situation of the industry, some crypto lenders believe it is time to take their market share.






Irina Yanina
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for April 01,.2021 - Broken bullish channel and symmetrical triangle.Potential for the drop towards $51.000

Further Development



Analyzing the current trading chart of BTC, I found that BTC got the breakout of the rising channel and the most recent symmetrical triangle, which is sign for further downside movement.

My advice is to watch for selling opportunities on the intraday rallies with the downside targets at $55.000 and $51.060.

Stochastic oscillator got the triple bearish divergence, which is another sign of weakness...




Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ripple Bulls To Regain Control!

Ripple seems undecided in the short term as it continues to move in a narrow range. Still, the outlook is bullish, so any decline could be only a temporary one.

Bitcoin, Ethereum, and Litecoin have increased in the short term. A further growth registered by these major cryptocurrencies could attract buyers on Ripple as well.


XRP/USD ACCUMULATES MORE BULLISH ENERGY!



As you can see on the H4 chart, XRP/USD has escaped from the triangle pattern, it has retested the broken resistance. Now is pressuring the 150% Fibonacci line which represents strong dynamic resistance.

I believe that the outlook remains bullish as long as the price stays above the pivot point (0.5329) level. A new higher high jump and close above 0.6020 right after a valid breakout above the 150% line could really signal further growth.


RIPPLE FORECAST!

Buy XRP/USD if the price jumps and closes above 0.6020 former high and use 0.7 psychological level and 0.7574 as upside targets.




Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021