Cryptocurrency Analysis

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Ethereum analysis for March 26, 2021

Ethereum made a low at $1,544 level. Price is now bouncing off the medium-term upward sloping bullish trend line. Price still is making lower lows and lower highs. For trend to change price must break recent broken support at $1,720 that is now resistance.



Red rectangle - resistance

Black line - support trend line

Blue line - bearish divergence

Some time ago we warned traders of the bearish RSI divergence and the imminent pull back. Price had also formed a bearish Head and shoulders pattern and our initial target was $1,500. We came $44 close to that target and as long as price is below the red rectangle resistance area we expect to see the $1,500 level. However after today's bounce, if price pulls back again and bounces off the trend line again, then we should start forgetting $1,500 and look for higher levels. $1,660 is also a short-term resistance but not as important as the $1,700-$1,720. A rejection at $1,660 or $1,700-$1,720 could provide us with the next leg down.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN for March 26 - 29, 2021: Key level $54,000



The BITCOIN manages to stop its fall in the 8/8 area of Murray located around 50,000, also a psychological level, now seeking a recovery after losing 10% of its value in 24 hours, and is trading in the area of 53,116 level from the 200 EMA on 4-hour charts.

Earlier this week, the president of the FED, Jerome Powell, assured that cryptocurrencies are very volatile and therefore are not really useful as a store of value and are not backed by anything. They are more of an asset for speculation.

Yesterday, after the warnings about a financial bubble behind its value multiplied in the mouth of analysts, it stood at around 50,400, a collapse of 12.5% in the last week.

The founder of the cryptocurrency trading company BTCC, Bobby Lee, told the US network CNBC that Bitcoin could reach $300,000, before the so-called bubble bursts. And beware, people should be aware that it could fall between 80% and 90% of its value from its maximum value.

On the technical level, we note that the BTC is about to overcome the downward pressure, once again being above 54,000, a recovery is expected to face the resistance of 56,250 and 59,950.

On the contrary, we noticed a formation of a bearish wedge, if confirmed, it should try to break the support of 50,000, there is the 8/8 of Murray, with targets at 43,750, the 7/8 area of Murray and strong support.

We recommend selling below the 200 EMA with targets at the 50,000 psychological level.


Support And Resistance Levels For March 26 - 29, 2021

Resistance (1) $53,981
Resistance (2) $55,504
Resistance (3) $58,226

Support (1) $52,132
Support (2) $50,567
Support (3) $48,760




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for March 26, 2021

Crypto Industry News:
Fidelity has applied to the US Securities and Exchange Commission (SEC) to launch an ETF. It is supposed to track the price of Bitcoin, measured by the results of the Fidelity Bitcoin index.

FD Funds Management, a subsidiary of Fidelity, has revealed that it plans to provide financial support to a Bitcoin ETF called the Wise Origin Bitcoin Trust, CNBC said. On Wednesday, the company filed a Form S-1 with the SEC, a preliminary declaration of the fund's registration.

The filing explained that the Wise Origin Bitcoin Trust "is an exchange-traded fund that issues common stocks" that will trade on the exchange, adding:

The investment objective of the Trust is to attempt to track Bitcoin performance as measured by Fidelity Bitcoin Index PR results adjusted for the Trust's expenses and other liabilities.

The ETF is sponsored by FD Funds Management while the Delaware Trust Company is the trustee. Fidelity Digital Asset Services LLC (FDAS) is the trustee of the Trust and will hold all BTC on its behalf as described in the application.


Technical Market Outlook:
The BTC/USD pair has broken below the 61% Fibonacci retracement located at the level of $52,213 and made a new local low at the level of $50,325. This is a third consecutive lower low since the high at the level of $61,322. If bulls want to rally above the short-term trend line resistance seen around the level of $58,223, they need to break through the levels of $53,290, $54,012 and $55,810 first. The momentum is now weak and negative, which supports the short-term bearish outlook. The longer term trend is still up and intact and any breakout above trend line will be considered as bullish with a target at $60,000 and above.

Weekly Pivot Points:
WR3 - $68,853
WR2 - $64,700
WR1 - $61,327

Weekly Pivot - $57,323
WS1 - $54,318
WS2 - $49,983
WS3 - $46,876


Trading Recommendations:
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 $41,125 is clearly broken on the e daily time frame chart.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for March 26, 2021

Crypto Industry News:
Fidelity has applied to the US Securities and Exchange Commission (SEC) to launch an ETF. It is supposed to track the price of Bitcoin, measured by the results of the Fidelity Bitcoin index.

FD Funds Management, a subsidiary of Fidelity, has revealed that it plans to provide financial support to a Bitcoin ETF called the Wise Origin Bitcoin Trust, CNBC said. On Wednesday, the company filed a Form S-1 with the SEC, a preliminary declaration of the fund's registration.

The filing explained that the Wise Origin Bitcoin Trust "is an exchange-traded fund that issues common stocks" that will trade on the exchange, adding:

The investment objective of the Trust is to attempt to track Bitcoin performance as measured by Fidelity Bitcoin Index PR results adjusted for the Trust's expenses and other liabilities.

The ETF is sponsored by FD Funds Management while the Delaware Trust Company is the trustee. Fidelity Digital Asset Services LLC (FDAS) is the trustee of the Trust and will hold all BTC on its behalf as described in the application.


Technical Market Outlook:
The BTC/USD pair has broken below the 61% Fibonacci retracement located at the level of $52,213 and made a new local low at the level of $50,325. This is a third consecutive lower low since the high at the level of $61,322. If bulls want to rally above the short-term trend line resistance seen around the level of $58,223, they need to break through the levels of $53,290, $54,012 and $55,810 first. The momentum is now weak and negative, which supports the short-term bearish outlook. The longer term trend is still up and intact and any breakout above trend line will be considered as bullish with a target at $60,000 and above.

Weekly Pivot Points:
WR3 - $68,853
WR2 - $64,700
WR1 - $61,327

Weekly Pivot - $57,323
WS1 - $54,318
WS2 - $49,983
WS3 - $46,876


Trading Recommendations:
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 $41,125 is clearly broken on the e daily time frame chart.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for March 26, 2021

Crypto Industry News:
While the legal status of cryptocurrencies remains unregulated in India, domestic companies involved in virtual assets must report their activities in their financial reports. The change is a result of the introduction of amendments by the Ministry of Corporate Affairs to Annex III to the Companies Act of 2013.

According to a document released on Wednesday, Indian companies that have invested or traded cryptocurrencies during the year must disclose their gains or losses.

Other cryptocurrency-related disclosures include the amount of cryptocurrency held by the company as at the reporting date as well as additional deposits made by clients for investment. Amendments to the Companies Act of 2013 will enter into force at the beginning of April.

Firms that need to disclose their cryptocurrency holdings are further reports after Indian securities regulators were keen to prevent entities from IPOs in the crypto market.

Indeed, some IPO promoters are already reportedly making statements stating that they will wipe out all their virtual currency holdings if the government ban cryptocurrencies.

Meanwhile, despite speculation about an impending total ban in India, the country's finance minister said the government is advocating a more calibrated approach to crypto. According to The Economic Times, Shaktikanta Das, president of the Reserve Bank of India, said that both the RBI and the finance ministry share the same views on cryptocurrencies.


Technical Market Outlook:
The ETH/USD pair has bounced from the key Fibonacci retracement located at the level of $1,549 and is currently trading around the level of $1,633, which is a technical resistance. In a case of a failure to rally higher, the next target for bears is seen at the level of $1,455 and $1,438. The weak and negative momentum confirms the short-term bearish outlook for ETH. Only a strong breakout back above $1,648 and then above $1,729 would terminate the sell-off and put the bulls back into control again.

Weekly Pivot Points:
WR3 - $2,051
WR2 - $1,965
WR1 - $1,890

Weekly Pivot - $1,807
WS1 - $1,707
WS2 - $1,636
WS3 - $1,545


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]

Ripple Confirms Its Bullish Breakout!

Ripple is trading in the green at 0.53700 and it tries to get back higher after registering a minor retreat, correction. It has decreased a little to retest the immediate support levels before resuming its growth.

Technically, the crypto is still expected to increase after escaping from a symmetrical triangle and after registering a new higher high. Bitcoin decreased a little in the short term as well, a minor decline registered by Ripple, Ethereum, Litecoin, etc, was natural.


XRP/USD UPSIDE EXPECTED!


As you can see on the H4 chart, Ripple decreased to retest the triangle's upside line, the Pivot Point (0.4964), and the 0.5 psychological level after its failure to stabilize above the R1 (0.5700).

Jumping and closing above 0.57 could confirm a further growth towards 0.7 psychological level or higher. XRP/USD's failure to reach and retest the S1 (0.4433) signal an increase at least until the R1 (0.5700).


RIPPLE OUTLOOK & TIPS!

Buy Ripple if it jumps and stabilizes above 0.57 level. A new higher high indicates more gains. 0.7 and 0.7574 represent upside targets.

Technically, XRP/USD is expected to increase after escaping from the descending pitchfork's body and from the symmetrical triangle.




Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Good news for Bitcoin: ETFs from Fidelity and bonds from Goldman Sachs

Several interesting news regarding the prospects for the main cryptocurrency came in at once today. The interest of major market players in bitcoin is growing. And this, so far, means recognition and prospects for price growth in the medium term. Meanwhile, we are locally catching BTC/USD at around 50,000.

It became known that Fidelity intends to participate in the formation of an ETF based on the main cryptocurrency. This is about the Wise Origin Bitcoin ETF fund. It will be sponsored by FD Funds Management LLC. Fidelity Service Company, Inc. will take over the administrative role, while the Fidelity Digital Assets will serve as the custodian.

If the ETF gets regulatory approval, Fidelity plans to place its bitcoin index in it. The company notes that the task of the trust will be to study the fluctuations in the quotes of the main cryptocurrency based on the Fidelity Bitcoin Index PR.

The trust will directly grant access to the main cryptocurrency. And its papers will be evaluated every day on the basis of the index methodology. Those who want to invest will get access to the ETF through an account with a broker. At the same time, they will be able to avoid the risk associated with direct saving of bitcoin, its spot purchases and mining.

It is worth noting that this is not the only attempt to get approval to create an ETF for bitcoin. Last week, such a request was sent to the SEC by VanEck, and before that, WisdomTree and NYDIG filed it.

In the past, the Commission has rejected attempts to register Bitcoin ETFs. But now their approval may be facilitated by the coming to power in the United States of a new administration.

Goldman Sachs, another US investment giant, has announced plans to place bonds that will be linked to the ARK Innovation ETF, which includes cryptocurrency. The request for approval of the debt securities has already been sent to the regulator.

The document notes that the ETF can have access to bitcoin through a trust, as ARK Innovation includes securities of high-tech corporations, including those related to blockchain developments.

It is known that within the last 12 months, the value of ARK Innovation ETF units has increased in price in the past and reached $114. And Goldman Sachs is just looking for an opportunity to meet the growing demand of customers for bitcoin.

Meanwhile, local crypto-users are having a hard time. The support line of the upward trend 29241.46 - 43033.38 - 58340.66 from January 27 has been broken, and today's daily candle has already formed below it. The price reached the support of the local descending channel 61759.10 - 59869.35 - 53225.61 from March 13 and is inexorably approaching the price of $50,000 per coin.

Therefore, I think a lot will depend locally on whether the price will now break through the support of the current downtrend and whether it will stay above $50,000 for 1 BTC. If not, then it will be possible to continue to catch the main cryptocurrency near $48,000.






Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

What do you need to know about blockchain in 2021?



Blockchain has been around since 2009, but most of us still don't know the concept of how it works. When you think about cryptocurrencies like Bitcoin, do you know how they can track large volumes of transactions? How do they ensure the security of these transactions? The answer is that blockchain is a panacea. The blockchain stores time-stamped transactions linked to each other in block form providing security.

Typically, blockchain systems include both blocks and transactions. These two types of records are unique and provide total security. Each block in the chain has a cryptographic hash derived from the previous block. This cryptographic hash uses the data from the previous block and creates a compact string.

As a result, the blocks should not have serial numbers. Over the past few years, blockchain has really conquered the world, and financial experts have supported this technology. There are some databases that are larger than others, the most obvious of which is the Bitcoin database.

Blockchain is arguably one of the most secure systems, as opposed to traditional banking, which is not as secure as most people think. There are a number of reasons why the blockchain is considered secure, taking into account its decentralization, therefore, it cannot be changed retrospectively.

Moreover, users of blockchain technology can protect their privacy, which has its advantages. But others point out that it helps cybercriminals keep their transactions anonymous. In this case, it is recommended to pay attention to everyone who hopes to use the blockchain on a larger scale.

If you don't know how blockchain and this technology works, it's time to learn more. 2021 and beyond are expected to be important for blockchain because some large organizations are applying it to their systems.





Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin crash could drag entire cryptocurrency market



If Bitcoin continues to fall, it will become a red rag for the bulls of other risky assets. But there may be a causal element that also spurs capital weakness. Bitcoin is primarily an indicator of risk appetite in the markets.

It is now a $1.6 trillion market with a history of sharp and serious sell-offs. After an incredible jump, it's perfectly reasonable to think that it could lose 20-40 percent. Imagine if Microsoft fell 20% in a week. This will have a ripple effect on stocks because the people whose wealth is tied to cryptocurrency are the tech elite whose wealth is primarily tied to the stocks of the companies they own. It is also the retailers who have played a key role in the COVID rally. This is leverage in today's market. This is likely to lead to a concurrent sale of the most profitable stocks of the past decade.

Bitcoin is trading at $51,225.3 today, down about 10% over the day. It was the largest one-day percentage loss since January 21. The downward trend led to a decline in Bitcoin's market capitalization to $962.0 billion, or 59.86% of the total cryptocurrency market capitalization. At its highest level, Bitcoin's market capitalization was $1,142.3 billion.

Bitcoin has lost 11.79% in value over the past seven days. Its trading volume for the day before writing this article amounted to $76.0 billion, or 48.48% of the total volume of all cryptocurrencies. It has traded in a range of $50,867.5430 to $59,882.1133 in the past seven days. At its current price, Bitcoin is still down 17.66% from its all-time high of $61,795.84 set on March 13.

Since crypto markets are often volatile, this could very well be another normal pullback in the current bull cycle. A correction is needed to create strength for further upward momentum as markets cannot move up in a straight line. In addition, a record $6 billion in options is expected to expire on March 26, which often causes some volatility.




Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN for March 25 - 26, 2021: Key level 50,000



The Bitcoin (BTC / USD), is down for the fifth day in a row against the dollar, having found support at the psychological level of 50,000, and at the bottom of the downtrend channel.

Jerome Powell's comments deflated investors' spirits, in which he compared Bitcoin more to gold, which, with the dollar, investors of this asset did not like.

In 4-hour charts, BTC is trading below the SMA of 21 and below the EMA of 200, with a negative bias, which, if it fails to exceed 53,500, the potential decline points to 43,750.

The 50,000 support is key since it is a psychological level and a very strong support, a rebound in this area will give us a good opportunity to buy with targets at 53,225 and 56,250.

Conversely, a break below 50,000 we recommend selling with Murray 7/8 targets located at 43,750.


Support And Resistance Levels For March 25 - 26, 2021

Resistance (1) $52,225
Resistance (2) $53,981
Resistance (3) $62,728

Support (1) $49,974
Support (2) $48,230
Support (3) $46,636





Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021