Cryptocurrency Analysis

[IFX_Selena]

Sweden to regulate crypto transactions soon

Following the steps of other central banks, Riksbank announced that it will start regulating crypto transactions in Sweden soon. Obviously, the growing popularity of cryptocurrencies are attracting the attention of policymakers.



Ireland and Japan already joined the move against cryptocurrencies, but so far it did little harm to the market. Derville Rowland, one of the senior officials in the Central Bank of Ireland, said the craze in the market is very concerning because cryptocurrencies are speculative, not to mention unregulated. He said investors need to be aware that they could suffer huge losses in the crypto market.

The central bank of Sweden agrees on these statements and pointed out risks such as money laundering and fraudulent schemes. Because of this, the government is already tightening standards for crypto transactions, but not in terms of a ban, but on the development of control at the international level.

Many governments have long been trying to suppress the crypto market, but their efforts are obviously unsuccessful. As such, China stepped up its measures, placing a ban on crypto transactions in the country. They reasoned that risks are very high, enumerating concerns on scams, money laundering and huge losses.

As for the United States, the Federal Reserve said it needs more time to decide the right approach to regulation.

The European Commission basically said the same thing, affirming that it is figuring out what is the best way to create a regulatory framework for cryptocurrencies.





Jakub Novak
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for June 02, 2021 - Watch for the breakout of the upside channel to confirm further downside movement

Technical analysis:



BTC has been upwards. The price tested the elvel of $37.630 but I see potential for the downside swing due to overbought condition.


Trading recommendation:
Watch for potential selling opportunities and potential downside rotation towards $35.675. Downside target is set at the price of $1.854

Stochastic is showing overbought condition, which is sign that buying looks risky.





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for June 3, 2021

Crypto Industry News:
The BitMEX cryptocurrency exchange has renewed a $ 100,000 grant to Bitcoin developer Calvin Kim for another year. Kim also received $ 50,000 in additional funding from the Human Rights Foundation. Kim is working on the Utreexo project from MIT to help scale Bitcoin.

The size of Bitcoin (state) - a database that lists who owns which digital coins - typically grows over time, creating additional burdens on the decentralized network of hard drives that support the network.

The Utreexo algorithm promises to significantly reduce the size of Bitcoin from a few gigabytes to less than a kilobyte.

With additional annual funding behind him, Kim can continue to collaborate on the project. BitMEX started financing his work already last year. "The financial stability has allowed me to focus on the further research and development of the Utreexo Project," Kim said in a statement.


Technical Market Outlook:
The BTC/USD pair volatility has decreased significantly, but the bulls are climbing higher step by step in the direction of the technical resistance. The recent local high was made at the level of $38,886 (at the time of writing the article). The momentum is still hovering around the neutral level of 50, but is not dropping lower and the price is still seen around the short-term trend line resistance. The market still trades under the supply zone located between the levels of $43,1459 - $41,794, so bears are still in full control of the market 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:
Even 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]

Warren Buffett's 3 Principles for Working with Bitcoin



Over the past day, Bitcoin again showed no desire to trade actively. The quotes of bitcoin again all day stood around the levels of $36,000-$37,000 and only increased a little last night. Formally, bitcoin is growing, but hardly anyone can call this movement "the growth of bitcoin." From our point of view, the cryptocurrency simply continues to consolidate after the strongest fall and a corrective scenario (that is, a continuation of the fall) is still a more likely scenario. Thus, we absolutely do not expect Bitcoin to be above $42,000 per coin anytime soon. Keep in mind that after the upward trend in Bitcoin ends, the cryptocurrency usually loses up to 90% of its own value and goes into sideways movement for several years, into correction, into consolidation. From our point of view, the "bullish" trend is over, so in the next couple of years, Bitcoin is unlikely to be aimed at its highs. It should also be noted that the fundamental background for the world's first cryptocurrency has not changed at all lately. Thus, why should one expect that the demand for bitcoin will sharply increase? Investors and traders of various stripes and categories are waiting for specific data from the United States and China, where they may introduce a number of legislative initiatives that will significantly complicate the functioning of the entire cryptocurrency market in the near future, and make all cryptocurrencies much less attractive to investors.

Meanwhile, Warren Buffett, arguably the most famous investor in the world, continues to refuse any investment in Bitcoin and other cryptocurrencies. There are several reasons for this, and probably everyone should learn the principles of Warren Buffett. First, Buffett believes that bitcoin has no intrinsic value. That is, if the shares of any company reflect a certain amount of real assets and products, then any cryptocurrency is just a piece of code. In theory, its value could drop to zero. The price of bitcoin depends only on the strength of the market's belief at a given time that the cryptocurrency will continue to be bought. More from nothing. Secondly, by all indications, bitcoin is not money, since it does not perform the basic functions of money. It is, of course, possible to accumulate funds in bitcoins, but it does not save value, as it is too volatile. Also, few people use Bitcoin to settle accounts with other entities. That is, bitcoin does not function as a currency of account. Warren Buffett's third principle is not to invest in what you don't understand. The world-famous investor does not hide the fact that he does not understand the essence of bitcoin, and therefore does not buy it. At least some of Warren's principles should be heeded by many investors.



Technically, bitcoin's fuse continues to fade, and the cryptocurrency itself is trading very sluggishly. At this time, investors are in no hurry to buy bitcoins again, and miners get rid of the mined coins. The fundamental background remains unfavorable, so we believe that digital gold has more chances to return to the level of $30,500 than to rise. 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

[IFX_Selena]

BTC analysis for June 03,.2021 - Watch for the breakout of the upside channel

Technical Analysis



BTC has been trading upwards at the price of $38.750 but I still no strong momentum, which can be a first warning for the downside rotation.


Trading recommendation:
Due to overbought condition and very controlled rally, I expect further downside rotation.

The breakout of the upside channel will confirm downside movement towards $33.455 and $28.950.

Stochastic oscillator is showing overbought condition, which is another of the potential weakness...





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

The era of digital currencies has arrived

ECB warns that countries who refuse to introduce digital versions of their national currencies may face serious problems in their financial systems and monetary autonomy.



This is because consumers and companies in these countries will have to depend on a small number of payment service providers, including foreign tech giants. Accordingly, this will affect the central bank's ability to fulfill its mandate and act as lender of last resort.

Aside from that, cryptocurrencies are gaining much attention, and even though governments are trying to take control of the industry, only a small part of it will be regulated. The easier option is to develop digital currencies and introduce them into the economy. Such will help to partially reduce the burden on the financial system, not to mention make it more flexible.

Hence, many countries, including the US, are taking such measures. In July this year, the Federal Reserve and the Massachusetts Institute of Technology are set to publish their research on this topic and the first results of their work.

Other countries have not seen major breakthroughs yet, but in 2020, Bahamas launched a digital currency called the "sand dollar", which is more of a money for a narrow circle of people. Brazil, which has been working on digitizing real (BRL) for a long time, plans to launch it in 2022. Canada is also working on digitizing loonie, but there are no plans to launch it yet. As for China, a pilot digital yuan will be launched in 2022.

Japan is still considering the idea of digital currencies, just like the Euro area. But ECB President Christine Lagarde said in an interview that a digital euro could emerge within the next four years if officials approve the project. The ECB believes it could help increase the international reach of euro, especially if it is designed with an emphasis on security, low transaction costs and interoperability with other services. But Lagarde emphasized that such is not the main motivation for the release of a digital asset.



Going back to cryptocurrencies, a lot depends on the range $ 31,000 - $ 41,000 because as long as Bitcoin remains there, the market will remain bullish. And if the quote goes above $4 1,100, BTC will have a chance to hit $ 46,700 and $ 52,000. But if the quote drops below $ 30,900, Bitcoin will collapse to $ 25,000 and $ 21,700.






Jakub Novak
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Second failure to break above $1.06 for XRP/USD

XRP/USD made another attempt to day to break above the key short-term resistance of $1.06. Price has made a high today at $1.075 but bulls so far are unable to stay above the resistance. Bulls need to recapture $1.06 in order to continue higher towards $1.20.



Red rectangle - resistance

XRP/USD is showing rejection signs at the red rectangle resistance area. A rejection here will open the way for a move lower towards at least $0.90. A daily close above $1.06 will be an important bullish sign that will give us $1.20 and $1.45 as the next upside targets. Support is at $0.97 in the near term, breaking below it will push price towards $0.90.






Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum remains on track for our $3,200 target

Ethereum continues making higher highs and higher lows after bottoming on May 30th at $2,170. Price formed a higher low and if this upward move is at least as big as the first bounce from the May 23rd low, then our expectation would be at $3,184.



Red rectangle - target

Blue lines - Fibonacci retracements

Black line - expected size of bounce

Ethereum is moving higher after reversing at the 61.8% Fibonacci retracement. Price is making higher highs and higher lows. Support is at $2,500 and as long as price is above this level reaching the red rectangle area is the most probable scenario. Major Fibonacci resistance is found at $3,300 and breaking above it will be a bullish sign.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum Challenges Crucial Resistance!

Ethereum increased in the short term, but now it has reached a resistance area. It remains to see how the rate could react before taking action. Taking out the resistance area could signal that the crypto may resume its growth.

Bitcoin has increased in the short term as well. So, further growth could signal that the altcoins could increase as well. You can use this positive correlation between BTC and the other major cryptocurrencies in trading.


ETH/USD IMMINENT BREAKOUT!


ETH/USD moved sideways lately inside of a triangle. Now is pressuring the pattern's resistance, the 50% retracement level, and the R1 (2841.67). Closing above these obstacles and above 2890.60 today's high could confirm further growth.

Still, you should keep in mind that only a valid breakout above 3,000 psychological level could really validate a broader upwards movement. Escaping from this range could attract more buyers which could lead the rate towards the historical high.


FORECAST!

Jumping and stabilizing above 3,000 should offer us a good long opportunity. The upside scenario could be invalidated if the price stays below the current resistance levels or if it makes only a false breakout above 3,000.






Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin Forecast for 3rd June, 2021

Bitcoin price prediction highlights BTC's consolidation extension while it remains pivotal at the $38,000 price range.

Bitcoin has formed a bearish pennant suggesting the crypto might drop towards the $28,000 price region soon.

Despite its misfortunes, preparations for Bitcoin's 2021 Convection are still underway, with over 21,000 participants confirmed.



The crypto market has started the day on the green today, June 3, with Bitcoin prices currently hovering around the $38,800 price region. At present, Bitcoin dominance in the market stands at about $42 percent, a decline of about 0.5 percent over the day.

Since the start of June, Bitcoin's price movement has registered a bullish start, with the crypto coin surging by about 9 percent since June 1. If Bitcoin continues with such a similar bullish trend, the number one crypto coin could rally past the $46,500 price region or record a 20 percent upsurge from its current $38,800 price tag.

However, for Bitcoin to realize this milestone, it has to break above two crucial resistance levels. The first resistance level investors need to consider is the first supply barrier at around $41,900, which also happens to be the axis of the right shoulder and the supply zone. The supply zone extends from $43,000 to about $46,630.

While it is unlikely for Bitcoin to close the day above the 12-hour candlestick around the $46,630 price region, the king crypto could register a significant price rally. On the other hand, if the number one cryptocurrency fails to close the day above the $34,049 region decisively, all the bullish prospects will go down the drain.

On looking at Bitcoin's 4-hour chart, it is evident that the Moving Average Convergence Divergence (MACD) indicator shows Bitcoin is currently in favor of the bulls. This comes from Bitcoin's gradual price movement that saw it move from May's 34,389 low to levels above the 0.00 mean line. Therefore, it is worth noting that the MACD technical indicator currently paints a bullish picture favoring the bulls. If Bitcoin maintains the current trend, the number one crypto asset could gradually resume its price rally as the bulls retest the $40,000 price region.





Jan Novotny
Analytical expert
InstaForex Group © 2007-2021