Cryptocurrency Analysis

[IFX_Selena]

Technical analysis of Ripple for March 30, 2021



Ripple has broken out of the triangle consolidation towards the upside as expected. We still need a break above resistance at 0.6000 to confirm the triangle completion and the continuation higher to key-resistance at 0.7644 and a break above here will open up the upside for a continuation towards resistance at 1.5000.

Support is now seen at 0.5336 which should be able to protect the downside.


Trading recommendation:
Buy Ripple here and place you stop at 0.5330.





Torben Melsted
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Litecoin advances towards $200

Litecoin recently made a high around $230 and turned lower towards the key upward sloping trend line at $176. Price briefly broke below the key support and swiftly recaptured it the following day. Price seems to respect the support trend line but bulls need to be aware of the warning by the RSI.



Red line - support

Blue line- bearish divergence

LTC/USD has so far formed a higher low at the red trend line support once again. Resistance is now found at $208 and next at $230. Bulls need to continue making higher highs and higher lows in order to maintain control of the uptrend. Any break below the red support trend line will be a sign of weakness and combined with the fact that the RSI has made a bearish divergence already, we could next see a deeper decline towards $140-$120. Until then bulls remain in control.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin and Ethereum remain supported.

Despite the recent selling pressures on BTC/USD and ETH/USD, both cryptocurrencies tested important trend line support levels and bounced off of them. Price remains in control of the bulls but some warning signs give bears some hopes.


Bitcoin


Blue upward sloping lines - bullish channel

Blue downward sloping line - bearish RSI divergence

Red line - resistance

Green rectangle - key support

Red rectangle -target if green rectangle fails to hold

BTC/USD is still trading inside the bullish blue channel. Price today is breaking above the red short-term resistance trend line. Key support as shown by the green rectangle is found at the recent low of $50,325 and the lower channel boundary at $52,500. As long as price is above this area bulls remain in control. If support fails to hold then we should expect a retracement at least towards the red rectangle and 38% Fibonacci retracement at $40,000. The bearish divergence in the Daily RSI is an important warning that should not be ignored.


Ethereum


Black line -support

Blue line - bearish divergence

Red rectangle -resistance

ETH/USD is breaking above horizontal resistance today. Price has respected the black support trend line and has potential to move to new highs specially if price breaks above the next short-term resistance of $1,870. The RSI has given us a warning with a bearish divergence. This does not rule out a new higher high, but bulls need to be cautious. Breaking below the black trend line support will be a bearish sign and would imply that a bigger correction is imminent.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN, BTC/USD for March 29 - 30, 2021: Buy above 56,250



The BITCOIN, this Monday morning is trading above the key level of 56,250, showing strong bullish signal, now it is located above the SMA of 21 and above the EMA of 200, after having broken the downtrend channel.

Last week we saw how the BTC, fell to the minimum of the 50,000 psychological level, found strong support, from that point it is rebounding, pointing to the target of 62,500.

Because the bias remains bullish for BTC, we expect that there will be a consolidation above the 56,250 level, there is +1/8 of murray, support level for now, and the bottom of the bearish channel that should hold for a new boost to 62,500.

Given that we expect a consolidation at 56,250, we recommend buying at those levels with targets at 59,000 and 62,500 in the short term. The eagle indicator is showing bullish signal.


Support And Resistance Levels For March 29 - 30, 2021

Resistance (1) $58,226
Resistance (2) $59,448
Resistance (3) $62,595

Support (1) $56,921
Support (2) $55,516
Support (3) $54,603




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Dogecoin could outshine even most popular cryptocurrencies



The year of 2020 has not been tough on everything. The crypto market is a pleasant exception. Most digital currencies, including Dogecoin, were picking up steam. The major difference between Dogecoin and other cryptocurrencies is that it is neither an inflationary nor deflationary digital currency. In other words, there is no limit on the number of tokens in circulation. This feature enables Dogecoin to behave more like a fiat currency. Interestingly, it was invented as a joke to mock dubious cryptocurrencies. At present, it ranks 10 th popular digital currency, now trading at $0.05 per token and having the market capitalization of $7.33 billion.

What can be a driving force for Dogecoin? What lies behind a rapid advance of this cryptocurrency in the recent years? In fact, it owes its growing popularity to social media and favor with celebrities. In particular, Elon Musk gave a thumbs-up to Dogecoin in his tweets. This propelled its rally, arousing interest among investors. Besides, Gene Simmons said that he would buy the token. Rapper, singer, and songwriter Lil Yachty also decided to invest in the cryptocurrency.

All in all, Dogecoin has shot up almost 900% since January 2021. The volume of Dogecoin transactions surpassed the one of Bitcoin-related transactions. This trend is expected to continue through Q2 2021. Under the optimistic scenario, Dogecoin is likely to trade at $0.0754225 per token in June and $0.076733 in July. In the worse-case scenario, it could decline to $0.0521378 in the summer. Crypto analysts foresee a further climb in Q3 2021. When it comes to long-term forecasts, predictions vary. Dogecoin is expected to trade at about $0.0781554 on average through Q3 2021.

It could close the year of 2021 at the level of nearly $0.087006 per token. The crypto currency is projected to enter the year of 2022 on the optimistic note at levels above $0.081. The bullish prospects remain valid for the whole 2022. Next year, Dogecoin could conquer the historic peak of $0.0941731 per token.

Crypto fans reckon that the year of 2023 will be even more successful for the popular digital token. The strongest level for 2023 is expected at near $0.1096323 and the lowest level could be $0. 0649150. Dogecoin could close 2023 at the price of $0.0745500.

To sum up, demand for Dogecoin is set to remain high, so it is going to trade at elevated levels.

Dogecoin has still been under the spotlight. Time will tell whether Dogecoin fans are right in their expectations.



Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading plan for Bitcoin for March 29, 2021



Technical outlook:

Bitcoin has rallied smartly after having print lows around $50,500 mark over the last week. The move has been in line with what was discussed and expected last week. At the moment, the crypto is hitting back side of trend line and might face resistance. It might be a good idea to book profits on the long positions taken over last week and remain flat.

Bitcoin is seen to be trading around $58,200 levels at this point in writing, and is expected to face some selling pressure due to trend line resistance. Immediate resistance is seen at $60,000, followed by $62,000; while interim support comes in around $50,000, followed by $43,000 respectively. If a bearish reaction is produced at current price, the crypto might drop below $50,000 as well, going forward.

The overall uptrend remains intact since March 2020 lows registered around $3,850 levels earlier. Since the immediate trend line was broken and prices are now testing its back side, which is resistance now, Bitcoin might face the risk of a potential bearish reversal here. Traders might take profits on long positions initiated last week.


Trading plan:
Consider taking profits on long positions taken earlier.

Aggressive traders remain short from @ 58,000, stop @ 62,000 and target is open.

Good luck!




Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for February 29,.2021 - Bearish divergence and overbought condiiton for potential downside rotation towards $54.900

Further Development

Analyzing the current trading chart of BTC, I found that BTC is in the overbought intraday condition and that is good to watch for selling opportunities.

Watch for selling opportunities due to overbought condition with the downside targets at $55.000 and $50.510.

Stochastic oscillator is showing bearish divergence and potential for the downside movement.


Key Levels:

Resistance: $58.250

Support level: $55.000 and $50.510.




Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

George Soros Foundation: Bitcoin is growing due to substantial growth in US money supply



Bitcoin continues to suffer below the level of $60,000. On one hand, all market participants expect that the cryptocurrency will continue to grow and continue to allow them to get rich unexpectedly. On the other hand, for bitcoin to continue to grow, a constant increase in demand and an influx of new investors and traders are necessary. It has already been mentioned that each subsequent round of the upward movement in the current trend is weaker than the previous one. From our point of view, this is a sign of a weakening trend, so it is expected to end soon. Also, in favor of the completion of the growth of bitcoin, the timing also speaks. BTC has been growing for more than a year, although usually such a long growth is not the hallmark of the cryptocurrency. Of course, the time frame is very arbitrary. Hardly any of the investors are guided by them when making decisions about buying cryptocurrency. But in general, not too protracted trends suggested that bitcoin is not a long-term investment tool, like, for example, stocks. Bitcoin is not bought now to sell in 10 years. It is bought (by the majority) on the HYIP in order to earn as much as possible and as quickly as possible. Perhaps, it will be present in the portfolio of every self-respecting investor in the future, but now it is not.

Recently, the interest of institutions in bitcoin has clearly decreased. At least, no new reports of large purchases of bitcoin were received, so it even seemed that everyone who wanted to have already bought bitcoin. However, at the weekend it became known that the Norwegian billionaire Oystein Stray Spetalen invested in both bitcoin and the largest cryptocurrency exchange in the country. It is noteworthy that a week before these events, Spetalen himself criticized the number one cryptocurrency, saying that it is absolutely meaningless and it consumes as much electricity as the whole of Norway. But according to online publications, the very next day after this criticism, Spetalen spoke with representatives of the MiraiEx crypto exchange and admitted that he was wrong about bitcoin. The size of the billionaire's investments in bitcoin and MiraiEx was not reported.

Meanwhile, the director of investments at Soros Fund Management stated that the global crisis has greatly contributed to the growth of the bitcoin rate over the past year. It was the crisis caused by the pandemic that forced the governments of many countries of the world to pour huge sums into their economies. Therefore, investors in the last year are very much afraid of high inflation, and assets that bring 1-3% profit per year have become uninteresting to them. According to Dawn Fitzpatrick, bitcoin would have remained a minor asset if not for the crisis. Fitzpatrick said that in the US alone, the money supply will increase by 25% in 2020, which leads to serious concerns that state currencies will depreciate. She also added that Soros Fund Management is engaged in investments in bitcoin.



In technical terms, bitcoin continues to be on the verge of overcoming the level of $52,300 and falling down by 8-9 thousand. We once again draw attention to the fact that each subsequent round of the upward movement is weaker than the previous one. This means that the upward trend is weakening. Therefore, a correction can and should be expected. So far, the Kijun-sen line is keeping the price above itself, but the fuse among buyers is clearly running out. A drop in bitcoin quotes to $43,000-44,000 is expected in the near future.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Crypto market on verge of collapse



The world's most praised cryptocurrency is still correcting. Despite the fact that BTC is located close to the all-time highs, it is unlikely to set another record in the near future. Still, anything can happen in the market. Currently, there are a lot of speculations that the world's first digital coin will rise in value. However, there has been no proof of such predictions. Those who claim that the coin can spike in the future are mostly those experts and investors who hold BTC. The more people believe in a surge of bitcoin, the more there is hype surrounding it. All the hype can boost the virtual asset, allowing those who have long invested in BTC to reap profit. That is, holders of bitcoin have to attract new buyers so that the token can continue growing. It looks like a financial pyramid principle. This means that the price of BTC depends on the number of people who believe that it can skyrocket to $100K or even to $200K. On top of that, central banks and governments worldwide are unlikely to leave cryptocurrencies be. For example, India is contemplating a ban on cryptocurrencies. Other countries may well impose taxes on virtual assets and try to substitute them for national digital currencies. The main reason for bitcoin's popularity is anonymity and a high price. Simply put, it is used as a payment means by those who have something to hide or those who simply want to make money on it. All this should be taken into account so that one can understand that bitcoin can plunge any time.

The fundamental background has not been favourable for bitcoin lately. Janet Yellen and Jerome Powell have criticized BTC once again. India is preparing to release a ban on cryptocurrencies. Some experts suggest that the Fed would fight digital assets by all possible means. In addition, the American economy is recovering rapidly. As a result, demand for such a risky asset as bitcoin may decline considerably. At the same time, the US central bank continues to pump cash into the economy and this money needs to be spent. Market participants fear that growing inflation in the US will force them to invest in more profitable assets, such as bitcoin, in the near future. Generally speaking, there are enough positive and negative factors for both a surge and fall in the value of bitcoin. The most important here is the balance between them. Otherwise, the bullish trend will either resume or end. Chatex's CEO Michael Ross-Johnson believes that BTC should have started falling a long time ago since many investors switched to their usual assets again. He assumes that small and retail investors will determine how big a fall in bitcoin will be because they will be the first to get rid of it.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

COVID-19 passport based on blockchain technology is already in use in New York



New York Governor Andrew Cuomo has announced the use of IBM's blockchain-based digital healthcare application to validate COVID-19 vaccination and test results.

- People will be able to print out their pass or store it in their smartphones as a boarding pass for air travel.

- The pass will be used to confirm a recent negative PCR result, antibody test, or proof of vaccination.

- The pass provides access to visit public places, such as Madison Square Garden and mass events.




Maxim Petrov
Analytical expert
InstaForex Group © 2007-2021