Cryptocurrency Analysis

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Technical analysis for BCN/USD pair

BCN/USD



The month of May went down in history by the scale of the movement (size of the candlestick is impressive), frequent change of priorities (shadows of impressive size), and a bearish mood (May candlestick's body is bearish). The current deceleration and consolidation were outlined in the area of accumulation of levels of various time intervals 784 (weekly Fibo Kijun) - 709 (monthly Fibo Kijun + daily short-term trend) - 628 (historical level).

If the bears manage to break through the attraction and influence of the encountered levels and continue to decline, their interests will be directed to the pivot points of 464.80 (minimum extremum) and 408 (historical level). In turn, if the bulls leave the designated area in the near future, then the next accumulation of resistance awaits at 947 - 919 - 886 will be considered.



At the moment, the bulls in the smaller time frames are planning to take advantage of it. To do this, they are trying to consolidate above the key levels, which are combining their forces in the area of 690 - 675 (central pivot level + weekly long-term trend). For intraday bulls, we can note the pivot points in the form of resistances of the classic pivot levels (713 - 743 - 766). However, a change of mood can make the supports of the classic Pivot levels (660 - 637 - 607) relevant again.


Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart are used in the technical analysis of this instrument.





Evangelos Poulakis
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin Analysis on 2nd June, 2021



Today's Bitcoin price outlook is bullish as the market continues printing higher lows as bulls prepare to finally push the market back above the $40,000 mark. Once the $40,000 mark breaks, we can expect BTC/USD to move higher move towards the previous all-time high.

The BTC/USD price moved in a range of $35,787 – $37,479, indicating moderate volatility. A trading volume has decreased by 9 percent in the latest 24 hours and now totals $32,877 billion. The total market cap stands at $699 billion, resulting in market dominance of 41.85 percent.

On the 4-hour chart, we can see Bitcoin testing the $36,000 support overnight and currently preparing to move higher to the $40,000 mark. The overall market momentum has started to shift back to bullish after several weeks of retracement from the previous swing high of around $60,000. Since the Bitcoin price action is no longer able to make lower and higher lows, we should see BTC/USD could finally set a higher high above the $41,000 resistance over the next few days.

From there, BTC/USD is likely to move towards the next major resistance at $47,000 and retrace to confirm the trend reversal. After a higher low is set, Bitcoin will be ready for a much stronger move to the upside over the next weeks.

However, until the market continues to trade in an increasingly tighter range, we recommend staying on the sidelines and wait for further Bitcoin price action development.






Jan Novotny
Analytical expert
InstaForex Group © 2007-2021

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Cryptocurrency market analysis on June 2, 2021



The wave counting on the 4-hour chart of bitcoin still suggests an increase in quotes. At the moment, the construction of waves a and b of the new upward correction is presumably completed. If this is true, then the rise in quotes will continue as part of the construction of wave c with targets located above the peak of wave a, that is, above the $42,000 mark. At the same time, the market sentiment remains overly negative, which makes it impossible to consider this option with 100% confidence. Let me remind you that wave counting should look as simple and understandable as possible so that you can work it out and make money on it. This is exactly how it is now. Wave c can take on a more extended form than a or b, however, there are no wave structures less than 3 waves. Therefore, I believe that the rise in quotes will continue, despite the weak news background.

The news background for bitcoin, as I said, remains quite negative. There is simply no positive news right now. On the contrary, the situation around China and the United States is escalating every day. Let me remind you that China may completely ban mining and tighten regulation of the cryptocurrency market, while the United States can increase tax pressure on all cryptocurrency transactions as part of the fight against money laundering and tax evasion. In addition, none of the major players are counting on a quick recovery of the upward trend. Many institutional investors, on the contrary, are in no hurry to buy bitcoin, because they expect it to fall even more. JPMorgan chief strategist Nikolaos Panigirtzoglou believes that bitcoin will continue to fall in the medium term. "The inability of bitcoin to make a successful attempt to break through $60,000 will lead to a bearish impulse and will lead to further closing of long positions," Panigirtzoglou believes.

This option is being executed now. Panigirtzoglou also believes that bitcoin can drop to $24,000 and for some time is in the range of $24,000-$36,000. He explains that after the fall of bitcoin in recent months, institutional investors have greatly decreased interest in the main cryptocurrency, which prevents it from resuming growth. There is also an opinion that bitcoin may fall well below the $24,000 mark. Let me remind you that two global upward trends in the past ended just like this - a decline in quotes almost to the points from which the upward movement began. Thus, bitcoin may indeed be at the very beginning of its next long decline, which may take a year or two. At least until the news background improves, I expect only a corrective increase to a maximum of $42,000.

Based on the analysis, I believe that the three downward wave structure is complete. The current wave counting indicates a possible rise within wave c, I continue to recommend buying bitcoin for each MACD upward signal with targets located around $42,500. An unsuccessful attempt to break through the 61.8% Fibonacci level could lead to a new decline in bitcoin, but I believe that in the coming year the cryptocurrency will build complex corrective structures and will not resume the upward trend.





Chin Zhao
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin price trapped in a triangle pattern

Bitcoin remains below key short-term resistance of $40,000 but also above the major low around $30,000. Price has made no real progress over the last few sessions as price mostly moves sideways. Price has formed a triangle pattern and traders need to be cautious when price breaks out of the pattern.



Red lines- triangle pattern

The upper triangle boundary is at $38,600. A break above it would be a bullish signal. The lower triangle boundary is at $34,500. Breaking below it would be a bearish signal. Price is moving sideways but recent trend was bearish. Triangle patterns are usually found near the end of trends. So for now I believe that the most probable outcome would be a break to the downside but with limited potential. Nevertheless traders should focus on the triangle boundaries in order to get a clearer message about trend direction.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Trading Signal for ETH/USD (Ethereum) for June 02 - 03, 2021: Buy above $2,500



In the early American session, ETH/USD, (Ethereum) is trading above 4/8 murray with a slightly bullish bias, consolidating above the SAM of 21, although the price is trapped within a rising wedge on a 4-hour chart.

At a fundamental level, according to the CoinShares weekly report, significant institutional investments of $ 74 million was recorded last week as investors tried to take advantage of the crypto market crash in which many crypto assets lost more than 50% of their value.

However, the recent push from ETH has led to further speculation as to whether Ethereum is gearing up to overtake Bitcoin. Currently, Ethereum outperforms the flagship cryptocurrency in terms of transaction count, volume and fees, and trading volume.

According to CoinGecko, ETH / USD is currently the second most traded crypto asset - it has a daily volume of $ 38.8 billion, just behind Tether's $ 103 billion.

In view of the fact that the market is betting that Ethereum in the short term will reach levels of $ 4,000, this could be the consolidation and accumulation phase for a new bullish wave. So, the price could surpass its new registered maximum.

In the chart, you can see that ETH / USD is moving inside an uptrend channel, supported by the eagle indicator that is showing a bullish signal. The break of 2,700 could open the door for the cryptocurrency to the 200 EMA zone of about $ 3,125.

If ETH makes a technical bounce in the 2,500 zone or the uptrend channel, we recommend buying with targets at 2,800 and 3,125. As long as it remains above 4/8 of a murray, the outlook will remain bullish in the short term.


Support and Resistance Levels for June 02 – 03, 2021

Resistance (3) 2,903
Resistance (2) 2,819
Resistance (1) 2,694

Support (1) 2,607
Support (2) 2,482
Support (3) 2,395





Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

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Ripple Looks To Trade North!

Ripple changed little in the last hours after passing above a dynamic resistance. It remains to see how the rate will react as it is still located below some strong upside obstacles. XRP/USD moves somehow sideways in the short term after ending its sell-off.

Technically, the price of Ripple could confirm a larger growth soon. Still, we cannot exclude a minor decline to retest the immediate support levels before jumping higher. Bitcoin's potential growth could help the XRP/USD to increase as well.


XRP/USD BREAKOUT!



Ripple is traded at 1.0116 level and it stands above the 150% Fibonacci line which represented a dynamic resistance. Stabilizing above it and making a new higher high, to close above 1.1 psychological level confirms a strong swing higher.

In the short term, the price could still test and retest the broken 150% line before jumping higher. XRP/USD found temporary resistance at the 50% Fibonacci retracement level and at the weekly R1 1.0671.


RIPPLE FORECAST!

Ripple could extend its growth if it jumps, closes, and stabilizes above 1.1000 psychological level. Failing to stabilize under the 61.8% retracement level signaled that the corrective phase could be over.






Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin: Suspicious lull and bearish outlook from JPMorgan

The bitcoin chart does not give us any new information based on which the outlook for the main cryptocurrency and the market as a whole would become clearer. But the previous forecasts do not lose their relevance, BTC/USD is consolidating in a triangle, which means that its breakdown and momentum are just around the corner.

But even here, there is no clarity in the direction, it remains to wait since the equilateral triangle is still a servant of two masters. Meanwhile, forecasts and opinions of reputable analysts are also mixed.

For example, JPMorgan bitcoin expert Nikolaos Panigirtzoglou said on Tuesday that the main cryptocurrency may well sink in the area of $26,000 per coin. He notes that due to the recent increase in volatility, a significant percentage of new entrants who only slightly plunged into the current situation and were almost confused are now leaving the market en masse.

The news background does not add optimism either: the bans of the regulatory authorities in China, the laws on crypto-taxes in the United States, and the epic with Elon Musk, although temporary, are bearish factors.

Against this background, the JPMorgan bitcoin expert believes that before bitcoin has any hope for a long-term reversal, its correction may deepen to $26,000.

One of Panigirtzoglou's arguments is the decline in institutional interest in May. Many experts have called the last month a breakout period, as many corporations rushed to buy bitcoin amid its growth. And the recent collapse cooled this ardor.

JPMorgan's pessimistic forecasts also support previously released data from the network, indicating that many new investors were selling their BTC coins during the correction.

It seems that bitcoin is rapidly evolving into a long-term asset class and rewards those who choose to hold it for long despite periods of correction.

Meanwhile, the technical picture on the BTC/USD chart has not changed since yesterday. The triangle on the 4-hour time frame has not lost its relevance, the price is growing inside the pattern. It remains to wait for the breakdown.

As for the decline to $26,000, as predicted by JPMorgan, it is too early to talk about it, but the target of 28,392.99 is quite realistic.







Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

ETH 2.0 needs more time, XRP and LTC are treading water, and DOGE skyrockets after listing on Coinbase Pro

Despite the general decline of the market, altcoins have historically maintained a positive attitude and are striving for growth. This is evidenced by the rise of the total market capitalization to the level of $1.78 trillion. Individual altcoins are trying to go beyond the fluctuation ranges, but the entire market is paying the price for over-dependence on the first cryptocurrency.

Ethereum was the only major coin to see significant gains in value. During the day, the asset went up by 7% and came close to the threshold of $2,800. The cryptocurrency has overcome the corridor of $2,580-$2,700 without any problems and continues to grow in price. This is evidenced by the local dynamics of changes in quotes (+ 1.5%). Ethereum indicators managed to break through the threshold of $2,720, where ETH dropped sharply in price on June 1. Judging by the charts, the next difficult level of the cryptocurrency will be around the $2,830 mark. The main reasons for optimism were recent reports from mining companies, according to which income from mining ETH in May became $1 billion more profitable than from mining bitcoin. Also, don't forget about the London update coming up. At the same time, Ethereum co-founder Vitalik Buterin said that the transition to ETH 2. 0 will take much longer than planned. In the short run, this will give additional bursts of activity and an increase in cryptocurrency quotes. However, in the long term, the coin runs the risk of missing the moment for absolute technical dominance over opponents.



The Ripple token, having emerged victorious from another round of confrontation with the SEC, failed to consolidate its success. In the past few hours, the cryptocurrency has fluctuated, which indicates a significant decrease in interest and complete wagering of news from the courtroom. The same is indicated by the daily trading volumes, which fell to $4 billion. Despite this, XRP manages to maintain the $1 mark, however, at this stage, the token's problem is similar to the bitcoin's. Due to the sell-off, the coin cannot accumulate critical mass, which prevented the crypto asset from taking advantage of the positive momentum.



A similar situation is observed with Litecoin, which managed to reach the $190 mark, but then sank to $178. At the same time, the asset managed to rise in price by 5% over the past day, but it shows instability, which is clearly visible on the horizontal charts. Given the low daily trading volumes and market pressure, the coin will not be able to gain a foothold below the $200 mark in the near future without a strong news impulse.



Such an impulse was received by Elon Musk's favorite asset Dogecoin, which soared 32% over the course of the day and reached $0.416. At the same time, the volumes of daily trading and the local dynamics of changes in quotes indicate the extinction of interest in the altcoin. First of all, such a demand for a meme cryptocurrency arose thanks to a successful listing on the Coinbase Pro platform, where the asset will be available from June 3. Musk also added fuel to the fire, thanks to which the Doge pump lasted until the evening of June 2.



The sentiment in the altcoin market is characterized by great upside potential, which is no longer constrained by the negative news background. For example, it became known that Daymak electric cars will be able to mine coins while they are in the parking lot. Also, the reports of mining companies added positive, as a result of which ETH has many times surpassed the profit of bitcoin. The Indian authorities have renounced the recent ban on the use of cryptocurrency in the country, and the British bank Standard Chartered is going to launch a crypto exchange for large companies, which will significantly increase the institutionalization of the market. Considering all this, we can expect a revival of the situation on the cryptocurrency market and the beginning of a protracted growth. The only problem holding back the growth of coin quotes is bitcoin. The first cryptocurrency is close to the formation of the "death cross", which, sorry for the tautology, will put an end to the positive end of the"altcoin season".







Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for June 3, 2021

Crypto Industry News:
The new Nvidia 3070 Ti and 3080 Ti graphics cards will be launched with built-in Ethereum hash rate limiters when they go on sale later this month. Nvidia announced the pending release of new cards during the Computex 2021 live stream, where it revealed the specs and release dates for both models.

Of particular interest to cryptocurrency enthusiasts is Nvidia's decision to market cards with built-in limiters designed to limit their usefulness for Ethereum mining.

The company previously committed to creating a cryptographic card designed to mine Ethereum and other GPU-compatible cryptocurrencies. The move was intended to divert demand from potential cryptocurrency miners, however Nvidia's insistence on releasing all of the latest crypto-cryptographic GPUs suggests that this plan may not be as final as initially expected.

Nvidia recently stated in its Q1 earnings report that it is unable to accurately estimate the demand coming from cryptocurrency miners. This is despite the fact that 3000 Series cards sell up to 300% more than retail cards, amassing millions of dollars in estimated aftermarket sales.


Technical Market Outlook:
Since the ETH/USD pair had broken through the upper channel line around the level of $2,505, the bulls keep pushing the prices towards the key short-term technical resistance seen at the level of $2,914. The new local high during this move up was made at the level of $2,799. Nevertheless, as long as the price is still under the level of $2,914, the bears are still in full control of the market and the next target for bears is seen at the level of $1,729, $1,633 and $1,544. The nearest technical support is still seen at the level of $2,201.

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]

JPMorgan: Bitcoin may crash to $24,000



Over the past day, Bitcoin has shown no desire to either restore the upward trend or start a new round of correction. It was a weak day for Bitcoin, which does not happen often. One may get the impression that at this stage of its formation, bitcoin has found, if not a "fair price", then the price of equilibrium between supply and demand, which are now present on the market. Now, everyone is waiting for new data to understand what to do with Bitcoin in the near future. There are two themes that threaten Bitcoin. Topics of a possible tightening of regulation of the cryptocurrency sphere in China and the United States. Recall that in China, financial organizations have been banned from providing any services related to cryptocurrencies, and they also want to ban mining. In the United States, they want to oblige all exchanges and other cryptocurrency companies to provide the Tax Administration with information on all transactions over $10,000, and in addition, they are developing other innovations, since the volume of the cryptocurrency market exceeds $1.5 trillion and many American investors use it for hiding their income, in order to evade paying taxes. Thus, governments are beginning to slowly "tighten the screws", which is very displeasing to investors and traders, who often use bitcoin and other tokens just to remove unnecessary assets from the field of visibility, as well as to make money on investments that are nowhere to be found and cannot be tracked. In general, this news does not add optimism to investors, so no one is eager to buy bitcoin now, even at the current "very attractive prices." We are inclined to believe that the decline in quotes will continue in the medium term, but bitcoin can also consolidate in the range of $32,000 - $42,000 for a couple of months. What we are definitely not expecting is the recovery of the upward trend.

Meanwhile, analysts at JPMorgan said that bitcoin could plunge to $24,000 per coin. The bank believes that after bitcoin fell by more than $30,000 in just a month and a half, institutional interest in this coin has greatly diminished. Thus, according to the bank, the fair price for 1 coin can be between the levels of $24,000 and $36,000. However, in the long term (5-10 years), Bitcoin may grow to $145,000 per coin. Such a "theoretical" mark can be achieved if each investor's portfolio contains equal shares of gold and "digital gold". In this case, their capitalization may become equal, and the price of bitcoin may rise to $145,000 per coin. But now, in the coming years, much will depend on the actions of governments and central banks. We agree with this forecast, as we also believe that in the near future BTC will be prone to fall. But in the long term, it will resume growth, as has happened more than once.



Technically, bitcoin's fuse has faded and it is now trading around the $36,000 level. At this time, investors are in no hurry to buy bitcoin again, and miners get rid of the mined coins. The fundamental background remains unfavorable, so we believe that digital gold has more chances of a return to the $30,500 level than growth. If bitcoin quotes manage to gain a foothold above the 38.2% Fibonacci level - $41,000, then this will slightly increase the likelihood of further growth in digital gold, but traders still need to get to this level.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021