Cryptocurrency Analysis

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Cryptocurrency market results on March 11, 2021

The correction of cryptocurrencies lasted less than expected. Apparently, the crypto markets have gone to re-assault all-time highs for the main cryptocurrency, while the altcoins will test their resistance levels.

With breakdowns, cryptocurrencies can continue to grow, while failure to overcome the current boundaries will again bring back the market to decline.

Once again, Bitcoin rose above the level of 100 on Fibo Expansion (55,840. 78 dollars per coin), but has not yet overcome the previous (yesterday's) highs. If the historical values of the main cryptocurrency are reached, either a new downward rebound or a breakdown is possible. Fixing BTC/USD above the maximum values of February 21 will open the way for quotes to the level of $60,000 per coin.



Bitcoin Cash returned to testing the resistance level of 551.56, marked with a red dotted line. If it is possible to gain a foothold above it this time, the pair will open the way to the level of 611.50. An alternative scenario is another rebound of BCH/USD down from the resistance of 551.56 with a target near the support level of 508.94, and then 465.48.



Ripple also rose, but so far it has not even broken through the intermediate horizontal of 0.4539 from the bottom up. If it is possible to overcome it, XRP/USD will move further to the resistance of 0.4769 (blue segment). A downward turn is possible both from the current level and from the level of 0.4769, the breakdown of which so far looks very unlikely.



Ethereum is recovering after the main cryptocurrency, although the quotes of ETH/USD have not yet reached yesterday's highs. The support level for the pair is still the horizontal 1697.27 (red dotted line), while the target for growth is the resistance formed by the level of 61.8 on Fibo Expansion. There is still a margin for it, and there, perhaps, a reversal will follow if bitcoin fails to overcome the historical maximum and pull the altcoins higher.







Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin to reach new highs, but bulls need to be cautious

Bullish trend remains valid in BTC/USD. As we mentioned timely with the formation of the inverted head and shoulders pattern, Bitcoin had to break above $51,700 to give a new bullish signal. Price has broken resistance and our view remains the same as when Bitcoin was trading at $49,000. Target is at $60k and a bit higher.



Blue lines -bearish divergence

Bitcoin is in a trajectory to make new all time highs above $60k and more precisely around $61,500 which the first target or even $64,500-$65,500 range. The RSI will most probably provide a lower high and thus a bearish divergence. If this happens we will have an important warning for bulls that must not be ignored. Major trend support is at $46,160 and as long as price is above this level trend is bullish. Breaking below this level will open the way for a pull back towards $41,000-$38,000. Until then we remain bullish looking for a move above $60k.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin is striving for records, the rest are catching up: what awaits the cryptocurrency market in the spring of 2021

Global markets were surprised and at the same time feared the continued growth of cryptocurrencies throughout February. Experts predicted a prolonged price correction for digital assets, which will stabilize the performance of the major coins. Everyone believed that the price adjustment would begin in the spring, and crypto assets would continue to grow until the end of February. This assumption turned out to be wrong, and thousands of retailers around the world felt losses from the price correction and high volatility of cryptocurrencies at the end of February.

In early March, there were hints of hope in the quotes of digital assets, which were overshadowed by increased volatility. In the first week of spring, the main cryptocurrencies were in uneven growth, making jumps in value up and down. Despite this, the market was enveloped in a warm blanket of high-profile announcements, investment injections, and new research on digital currencies.

As a result, the second week of March began with a strong growth of the main digital assets, which began to approach historical levels. For example, bitcoin overcame the main resistance of the market at the psychological mark of $50,000, and the current indicators of the main cryptocurrency breathe in the back of the historical record, being at the level of $56,800.



Things are a little worse for ethereum, given that the currency has only recently passed its psychological milestone of $1,800. At the same time, the cryptocurrency cannot fully gain a foothold on this indicator and over the past day fell to $1,700. However, as of 13:00 UTC, the digital asset shows rapid growth without any drawdowns.



Meanwhile, good news finally came from Ripple, which announced the end of the lawsuit with YouTube over the fake distribution of XRP tokens. Against the background of this news, the token shows a steady growth over the past day and now confidently holds at the level of $0.454.



Another cryptocurrency has reached a critical milestone. Litecoin is holding at $200, but can't continue to grow, as it constantly rolls back to $190. The coin has been fluctuating for the second day, and it seems that the LTC historical record will not be broken until the end of the week.



Major cryptocurrencies have overcome stiff market resistance in certain positions and are now ready for continuous growth. By the end of the week, Bitcoin will overcome the $60,000 mark, and ETH is less likely to break through the $2,000 mark. Other cryptocurrencies are still far from their peaks, but one cannot fail to note the healthy growth of the market, which is supported by positive news and loud announcements. The cryptocurrency market starts spring full of hopes for a significant update of historical records.





Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

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BTC analysis for March 11,.2021 - Key pivot resistance at the price of $57.500 is on the test

Further Development



Analyzing the current trading chart of BTC, I found that there is key pivot resistance at the price of $57,500 on the test.

My advice is to watch for selling opportunities with potential downside target at $52,350


Key Levels:

Resistance: $57,500 and $58,300

Support level: $52,350




Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin's market value reaches $ 1 trillion



Bitcoin increased by about 5.2% and is now trading around $ 57,000. In February, it topped $ 1 trillion for the first time, hitting a record $ 58,350.

The gain came even as US consumer prices rose lower than expected in February, which suggests that broader inflationary pressures remain subdued. Bitcoin advocates defend the digital asset as a hedge against a future surge in inflation.

But even if hitting $ 1 trillion is very noteworthy, many said that assigning market capitalization is not an accurate representation, since Bitcoin is not a company nor an asset. Skeptics say that with no real assets owned by companies or government support like the dollar, investors are only buying faith in the cryptocurrency network.

Ether, the second largest cryptocurrency in the world, has grown by 3%. The rally reflects broader risk optimism following the Nasdaq 100, which recovered this week from an earlier decline that pushed it into a correction.

Bitcoin proponents argue that the digital asset is a storage of value that can be used as a hedge against inflation and a weakening dollar, while detractors contend that the cryptocurrency is in an incentive-fueled bubble that is likely to burst.




Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Morning review of the cryptocurrency market on March 11, 2021

Bitcoin almost reached an all-time high, then rolled back down from it. Such bad news is another reminder to traders that it is necessary to make an allowance for greed when setting a target in a trade, that is, to set a take profit slightly below the predicted target.

Altcoins failed to overcome their key resistance levels, and the market headed for a downward correction. It is necessary to update the technical guidelines and understand the power reserve of the coins in question, which is what we will do in this review.

After a short consolidation above the level of 100 on Fibo Expansion (55,840.78 dollars per coin), bitcoin failed to reach a historical high. This suggests that the strength of crypto banks is still limited.

Now, the BTC/USD pair has returned to the level of 100 on Fibo Expansion, which opens the way for quotes to the nearest support on the horizontal 61.8 on Fibo Expansion (51978.45 dollars per coin). However, an upward reversal may occur earlier, near yesterday's lows.

An alternative scenario for BTC/USD is a breakdown of the level of 61.8 on Fibo Expansion. If the pair is fixed under it, it will open the way for further decline.



Bitcoin Cash, despite another attempt, failed to gain a foothold above the resistance level of 551.56, marked with a red dotted line. After the BCH/USD rebounded downwards, the target for the pair's decline remains first the level of 508.94, and if it is broken - the support is at 465.48.



Ripple's attempts to overcome the resistance of 0.4769 (blue segment) since February 23 remain unsuccessful. This indicates the strength of the level. After a rebound from it down and overcoming the intermediate horizontal of 0.4539, the XRP/USD quotes opened the way to the next support of 0.4071 (the red segment on the chart).



Ethereum failed to break the upper limit of the technical range between the support level of 1697.27 (red dotted line) and the resistance formed by the level of 61.8 on Fibo Expansion. ETH/USD still has a small margin to support, and then the direction of the pair will depend on whether the support of 1697.27 is satisfied or will be broken.






Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

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InfoWars creator lost laptop with a huge amount of bitcoins

The investment attractiveness of cryptocurrencies and bitcoin began to grow rapidly in late 2020 and early 2021. However, many forecasters talked about the future success of the coin back in 2011-2012. Recently, there has been a lot of news in the information space that retailers or investors are losing millions of dollars because they forget their laptop passwords or lose them altogether.

A similar situation occurred with Alex Jones, the creator of a major source of provocative news InfoWars. Back in 2011, the entrepreneur received a gift from a famous TV presenter of ten thousand bitcoins, when their price barely reached $4.5. We all know the future of the digital asset perfectly well. At the current exchange rate, the cost of the gift in the form of bitcoins now reaches half a billion dollars. Now, the main crypto asset is held at around $55.5 thousand.



Such incidents happen all the time and all over the world. For example, a similar case occurred in the British city of Newport, where a guy threw out a hard drive that stored a password from bitcoins in the amount of $461 million.

At first glance, such funny news does not have any impact on the market and the behavior of investors. But if you look closely, you can note two things. First, such a report shakes the information background, filling it with resonant amounts associated with cryptocurrencies. Secondly, such incidents contain two figures: the value of bitcoin in 2011 and ten years later. The widespread of such information events shows a wide range of people how much the price of a digital asset has increased over 10 years.

A few months ago, this kind of news would not have been of great importance, but right now the cryptocurrency market is actively occupying the information space. The Jones situation shows what dividends can be received by interested parties in transactions with digital assets. And although such events do not directly affect the quotes of individual coins, they clearly reflect on the psychology of participants in cryptocurrency exchanges.





Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

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Ethereum soars upwards as the network prepares to attract new and more extensive user base



This week started a good note for ether, its price reached $ 1,880 yesterday. Ether is currently showing a 148% gain since the beginning of the year, as the crypto asset is trading around $ 1,800. Against the backdrop of these gains, 104,000 ETH were moved from centralized exchanges, which could be in favor of self-storage, to invest in DeFi, to place bets in ETH 2.0, or in the hope of higher value in the future.

Scaling Ethereum will reduce the commission for each user, but at the same time increase the overall user base even more and therefore increase the overall commission.

This offer will help attract a new user base by making the platform easier, faster, and cheaper to use. The implementation of EIP-1559 will mean that only ether can be used to pay transaction fees on the network, strengthening its role in the ecosystem.

The small jump in the price of ether compared to bitcoin can also be partly explained by the fact that non-interchangeable tokens are becoming mainstream. Like Bitcoin, ether has grown in both price and popularity. In fact, the price of Ethereum has been rising faster than bitcoin since the beginning of 2021, driven in part by a flood of retail investors who have extra time and discretionary income due to the COVID pandemic, the exchange noted.

Ethereum is like the visible part of an iceberg. Because the Ethereum blockchain is so flexible, huge economic activity is happening right below the surface - in the form of categories of Ethereum-based cryptocurrencies, including DeFi, stablecoins, packaged tokens, and NFT.



Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of BTC/USD for March 11, 2021

Crypto Industry News:

It appears that major players, including institutions, have taken advantage of the decline in bitcoin's price to buy significant amounts of digital currency.

According to Material Indicators, an analytical company that studies on-chain data, Binance had the platform's largest-ever, massive buy orders worth over $ 100,000. Considering the fact that Binance is the world's largest cryptocurrency exchange by volume, this indicator clearly indicates whale activity.

It is surprising that such mass purchases by major market players are more common than ever - which is directly different from the size of smaller orders. While whale activity has increased for bitcoin purchases, smaller investor activity seems to be slowing down.

This is most likely due to the high price of bitcoin at the moment. Smaller retail investors are afraid to buy high, assuming the cryptocurrency price could collapse suddenly.

Material Indicators suggest that whales may sell in the face of a cryptocurrency raid, repeating a pattern of price increases and a quick correction. However, it does not seem to have happened yet - if it does - there may be other factors involved. For example, the volume of whale orders slowed after the announcement that a US $ 1.9 trillion stimulus package had passed through the Senate.


Technical Market Outlook:

The BTC/USD pair has made another higher high located at the level of $57,833. The next target for bulls is seen at the level of 127% Fibonacci extension of the last wave up seen at $58,275. The momentum remains positive, but it points down already, so any violation of the level of $52,039 might be the trigger to do lower towards $49,422. The larger time frame trend remains up and there is no indication of the up trend termination of reversal yet.

Weekly Pivot Points:
WR3 - $61,059
WR2 - $56,697
WR1 - $53,887

Weekly Pivot - $49,123
WS1 - $46,093
WS2 - $41,457
WS3 - $38,335


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 $60,000. 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.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for March 11, 2021

Crypto Industry News:

It seems that Nvidia's attempt to move Ethereum miners away from the new GeForce RTX 3060 graphics card by limiting its hash speed was short-lived.

Screenshots posted by Twitter account I_Leak_VN show a stack of eight RTX 3060 graphics cards operating at a much higher level than Nvidia's mining limit of 20-25 MH / s, while allegedly using Ethereum Dagger-Hashimoto's mining algorithm.

On the same day, a cryptocurrency-focused group from Vietnam published a graphic announcing that the RTX 3060 limit had indeed been bypassed and could now reach full power of 50 MH / s thanks to the modification.

According to reports on March 10, the breach of Nvidia's restrictions on Aether mining was apparently achieved using a custom modification. This contradicts the recent announcement by Nvidia's global public relations director Bryan Del Rizzo, who said on February 21 that secure interactions between GPU hardware, driver software, and computer firmware would prevent the removal of the limiter.

"It's not just the driver. There is a secure handshake between the driver, the RTX 3060 IC, and the BIOS (firmware) that prevents the hash rate limiter from being removed," wrote Del Rizzo on Twitter.

Nvidia has imposed a hash rate limiter to make its cards less attractive to cryptocurrency miners - especially those mining Ethereum. This came after high-profile concerns voiced by gaming enthusiasts who feared another GPU shortage due to demand from miners. According to Nvidia, Ether was the target because it has the highest global mining efficiency of any GPU-mineable coin.

In addition to the decision to limit the performance of Aether mining, Nvidia also announced the pending release of a graphics card specifically designed for cryptocurrency mining. Named the CMP line, the cards were to be sold to miners and were to be stripped of inputs for displays deemed unnecessary for cryptocurrency mining.

However, with the advent of the above-mentioned modification, these plans could come to naught and could cause a mad rush on the part of future miners to get more RTX 3060 units. Nvidia's future plans are also questioned given that it was going to release the upcoming RTX 3080 Ti with the same Ethereum mining restrictions.


Technical Market Outlook:

The ETH/USD pair has again hit the upper channel line around the level of $1,876, but the high was made in form of a Doji candlestick pattern. The market pulled-back and had been consolidating in a narrow range for some time now, so any violation of the level of 41,759 will open the road towards the lower levels like $1,748 and $1,700. Please notice, the 1:1 Fibonacci extension level located at $1,804 had been hit as well, but the response from bears is muted so far. The key short-term technical support is seen at the level of $1,633 and the next target for bulls is located at $1,902 (127% Fibonacci extension level).

Weekly Pivot Points:
WR3 - $2,090
WR2 - $1,882
WR1 - $1,810

Weekly Pivot - $1,598
WS1 - $1,500
WS2 - $1,295
WS3 - $1,210


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