Cryptocurrency Analysis

[IFX_Selena]

BTC analysis for March 09,.2021 - Potential completion of the ABC upside correction and downside continuation

Further Development



Analyzing the current trading chart BTC, I found that the buyers got exhausted today and the downside rotation would be probably to correct strong upside movement from this morning.

BTC is getting closer to main pivot at the price of $55,000, which can be good area for selling opportunities.


Key Levels:

Resistance: $55,000

Support levels: $50,000 and $46,325..




Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Forecast for BCH/USD for March 09, 2021 – BUY/SELL. February gain: +10.93%

1. Analysis of BCHUSDT volume on Binance

The analysis is based on the horizontal volumes data on daily charts on the Binance exchange. The analysis is carried out based on the footprint-profile theory. According to the theory, the direction of the horizontal level with the highest trade volume within a day can indicate the likely direction of the trend. The highest trade volume is the level with the largest number of transactions carried out. That is, it is the level of major market players. Accordingly, if the highest trade volume level goes up, it indicates an upward trend. Otherwise, if the highest trade volume level goes down, it indicates a downward trend. Chaotic movements signal that the market is trading flat.

05.03.21 – the level of highest horizontal volume (POC – PointOfControl) – 507
08.03.21 – the level of highest horizontal volume (POC – PointOfControl) – 522

The POC has moved up. The price level is above the POC. The upward trend seems to have just started. Thus, you can open long positions.


2. Analysis of the long-term trend

A trend is your friend. Many traders know this saying but do not know how to use it. The answer is simple: trade only in the direction of a trend. Thus, your trades will have more profit potential with less risk. According to the classic Dow theory, there are three main trends:

-long-term
-medium-term
-short-term

These are the trends you should analyze before entering the market. Now, let's take a closer look at them.

The long-term trend is the daily trend. In this case, deals are made in the daily time frame and are held for several days. The analysis of the daily trend is made with the help of the 48-period exponential moving average (EMA(48)). If the daily candlestick closes above EMA(48), it will indicate the upward trend. Therefore, you should enter long. If the daily candlestick closes below EMA(48), then it is the downward trend and you should enter short.



The price is above EMA(48). It is a long-term sideways trend. Thus, you can open both long and short positions.


3. Analysis of the medium-term trend

The medium-term trend is the trend on the 4-hour chart (H4). In this case, we will also turn to EMA(48). If the candlestick closes above EMA(48) on the 4-hour chart, it will indicate the upward trend. Thus, you should enter long. Otherwise, if the candlestick closes below EMA(48) on the H4 chart, it will indicate the downward trend. Consequently, you should enter short.



The price is above EMA(48). We have a mid-term upward trend. Therefore, you should open long positions.


4. Analysis of the short-term trend

A short-term trend is the trend in the H1 time frame. Moreover, it can show an entry point into the market well. We will turn to EMA(48) again. If the candlestick closes above EMA(48) on the H1 chart, it will indicate the upward trend. Thus, you should enter long. Alternatively, if the candlestick closes below EMA(48), it will indicate the downward trend. Consequently, you should enter short.



The price is above EMA(48). It is the short-term upward trend. Thus, you should open buy deals. The long-term, the medium-term, and short-term trends coincide.


5. Japanese candlestick analysis

A classic Japanese candlestick analysis is applied to the daily time frame. In this particular analysis, we will also look at the daily candlestick.



We have a white upward daily candlestick. Its high is above the high of the previous candlestick. The upward movement is highly likely.


6. Conclusion

Volume analysis – BUY
Long-term upward trend – BUY/SELL
Medium-term upward trend – BUY
Short-term upward trend – BUY
Japanese candlestick analysis – BUY

Conclusion: You can both sell and biy the pair on March 09, 2021.


7. Statistics

To analyze how effective this approach is, the data on completed transactions is tracked. The forecast is made for four instruments: Bitcoin, Ethereum, Litecoin, and BCH/USD. Trading account monitoring:



February 2021 gain: +10.93%


Statement:

Current deals:

26.02.21 BCHUSDSELL: 465.86; SL: 568; Risk per deal: 1% of a $10,000 deposit with 0.96 lots.

A Stop Loss for new deals should be placed beyond the daliy extreme points. We do not set a Take Profit because we are going to move a Stop order beyond the extreme points of the upcoming sessions.

Since trading is carried out on daily charts, this recommendation is relevant throughout the day.

Trade with the trend and you will reap profit!




Maxim Petrov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin Upside Scenario Takes Shape!

Bitcoin trades at $54,199 at the time of writing trying to approach and reach new highs after ending its temporary and short-term retreat. The bullish bias remains intact, so BTC/USD could come back towards $58,367 all-time high soon.

Yesterday I've told you in my analysis Bitcoin Attracts Buyers! that Bitcoin will be expected to increase if it stabilizes above the $50,000 psychological level and beyond the Pivot Point. The rate has retested these levels and now it has registered a new higher high signaling more gains.


BTC/USD TARGETING NEW HIGHS!



BTC/USD failed to retest the uptrend line in the last attempts signaling strong bullish pressure. Closing above $52,666 former high signals a breakout through the R1 ($54,100) which acts as a static resistance.

Passing and stabilizing above the R1 will definitely that BTC/USD will approach the WL2, R2 (57,210), and the $58,367 historical high. Bitcoin could reach new all-time records, highs, as long as it stays above the uptrend line.


BITCOIN TRADING TIPS!

Today's bullish closure above $52,666 former high represents a bullish signal. BTC/USD should increase further if it closes above the R1 ($54,100). A larger growth could be signaled by a jump and stabilization above $58,000 psychological level.

If you want to invest or speculate on Bitcoin don't forget to place a Stop Loss somewhere below the immediate uptrend line. You can hide it under the $43,016 lower low.




Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Turbulence behind: what awaits bitcoin in the near future

For the first time since February 22, the value of Bitcoin has reached $54,000. Despite its price growth for several weeks, market participants are still looking towards the digital asset with apprehension. This is due to the high volatility, which provides a very painful fall for the cryptocurrency for traders. However, such a dynamic could not be observed all the time, and it seems that Bitcoin has finally broken out of the vicious circle.

The price correction is starting to weaken, and the main cryptocurrencies are slowly creeping up. Bitcoin has especially succeeded in this regard because the information agenda foreshadowed the active growth of the coin a week ago. However, in late February and early March, even positive news could not stop the price adjustment, which upset bitcoin's performance by several thousand. As of March 9, it is safe to say that positive changes have indeed taken place and the market has settled down.

First of all, looking at the charts, it becomes obvious that the situational volatility of the cryptocurrency has decreased. For the first time in two weeks, Bitcoin climbed to the mark of $54,000, although it dropped to a price of $53,700. The digital asset has shown a resilience that hasn't been seen in the past few weeks. Recall that the most painful drop by $4,000 occurred after Bitcoin returned to the level of $50,000. The situation has completely changed, and the main cryptocurrency is confidently holding its value at $54,000, which indicates preparation for further growth.



Also, the stabilization of the change in the price of bitcoin was influenced by positive news, including another investment from MicroStrategy. From February 28 to March 9, the value of the cryptocurrency increased by 27%, which was facilitated by positive statements in the media, investment influences, and the general development of the digital asset market (NFTs, hello). The conclusions made during the price correction are also important factors that will accelerate the growth of the quotes of the main crypto asset.

Large investors have become convinced of the predictability of Bitcoin, which makes it a more understandable and attractive investment component. Also, the main crypto asset showed that its growth is not the result of the abnormal activity of large investors who followed Tesla's example. This spring, the cost of bitcoin quotes may already reach $70,000 against the backdrop of numerous investment injections, positive news, as well as the general popularization of digital means of payment. Moreover, by the end of this year, in the absence of force majeure and other exceptional negative circumstances, Bitcoin may well cost more than $100,000.




Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Forecast for Ethereum on March 9, 2021 - BUY. The result for February is +10.93%

1. Volume analysis for the ETHTUSD instrument from the Binance exchange.

The analysis uses data on horizontal volumes from the Binance exchange on daily charts. The analysis is based on the Footprint-Profile theory, in which the movement of the level of the maximum horizontal volume per day can indicate the likely direction of the trend. The maximum volume level is the level at which the maximum number of transactions was made, that is, the level of a large player. Accordingly, the upward movement of the maximum volume levels indicates an upward trend. A downward movement of the maximum volume level indicates a downward trend. Chaotic movement of the maximum volume levels indicates a flat in the market.

05.03.21 – Maximum Horizontal Volume Level (POC - Point Of Control) - 1678
09.03.21 – Maximum Horizontal Volume Level (POC - Point Of Control) - 1738

The point of control has moved up. The price is above the POC level. It is likely that an upward movement has begun, you can buy.


2. Analysis of the long-term trend.

A trend is a trader's friend. Many traders know this saying, but do not know how to use it. The answer is simple: trade only in the direction of the trend. This way your trades will have more profit potential with less risk. According to the classical Dow theory, there are three main trends:

-long-term;
-medium-term;
-short-term.

These are the trends that need to be analyzed before opening any transaction. This is what we will do in this analysis.

The long-term trend in this analysis is the daily trend. Trades will be made on a daily timeframe and held for several days. The daily trend is analyzed using the 48-period exponential moving average (EMA (48)). If the daily candle closes above the EMA (48), it means that we are facing an upward trend and we should buy. If the daily candle closes below the EMA(48), it means that the trend is downward and you should sell.



The chart shows an upward trend. The price is higher than the EMA (48), so in this situation it is worth considering purchases.


3. Analysis of the medium-term trend.

In this analysis, the medium-term trend will be the trend on the 4-hour chart (H4). The E48-period exponential moving average (EMA (48)), will also be used for the analysis. If the H4 candle closes above the EMA (48), it means that the trend is upward and you should buy. If the H4 candle closed below the EMA (48), it means that the trend is downward and you should sell.



The price is higher than the EMA (48). The medium-term trend is upward, you can buy.


4. Analysis of the short-term trend.

The short-term trend, which can well show the entry point to the market, will be considered a trend on the H1 timeframe. The 48-period exponential moving average (EMA (48)) will help us. If the H1 candle closes above the EMA (48), it means that the trend is upward and you should buy. If the H1 candle closes below the EMA (48), it means that the trend is downward and you should sell.



The price is higher than the EMA (48). The short-term trend is upward, you can buy. Long-term, medium-term, and short-term trends are the same.


5. Japanese candlestick analysis.

The classic Japanese candlestick analysis is used for the daily timeframe. In this analysis, we will also analyze the daily candle.



The daily candlestick is closed upward, the candlestick is white. The maximum is higher than the maximum of the previous candle. Candlestick configuration - Trend candlestick, yesterday's candlestick has a large body. An upward movement is likely.


6. Conclusions.

Volume analysis - BUY.
The long-term trend - BUY.
The medium-term trend - BUY.
The short-term trend - BUY.
Japanese candlestick analysis - BUY.

General conclusion: On March 9, 2021 - you can buy.


7. Statistics.

To analyze the effectiveness of this approach, statistics on completed transactions are kept. Forecasts are made and transactions are made on four instruments: Bitcoin, Ethereum, Litecoin, and BCH/USD. Trading account monitoring:



The result for February 2021 is +10.93%.

Statement:

This transaction is open:

09.03.21 Ethereum BUY: 1831 SL: 1619; Risk per trade: 1% of the deposit. With a deposit of $10,000, the lot is 0.48.

For new trades, the Stop Loss is located behind the daily extreme points. We do not set a Take Profit, as we will accompany the transaction by moving the Stop Loss beyond the extreme points in the future sessions.

Since trading is conducted on daily charts, this recommendation is relevant throughout the day.

Trade with the trend, and you will gain profit!



Maxim Petrov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Heading for historic highs. Morning review of the cryptocurrency market on 03/09/2021

Cryptocurrencies rose over the weekend, but not all of them updated their technical guidelines. Bitcoin and Ether are facing the last frontier on the way to historical values. Will it be possible to overcome it, or the price will go to a downward correction today after several days of growth?

Bitcoin went up, breaking through the level of 61.8 on Fibo Expansion (51978.45 dollars per coin). The next target for BTC USD growth is the Fibo Expansion 100 level ($55,840. 78 per coin). The main cryptocurrency still has a small margin of resistance. And the dynamics of the pair will depend on whether it will be able to overcome this border. If the breakdown occurs and the quotes are fixed above the level of 100 on Fibo Expansion, BTC USD may continue to grow to historical highs. An alternative scenario would be a sideways decline between the 61.8-100 Fibo Expansion levels.



Bitcoin Cash returned today all the losses of the end of last week. The quotes returned to the resistance level of 551.56, marked with a red dotted line. The further dynamics of BCH USD depends on whether the pair can break through this level. If it is fixed higher, it can continue to grow to the level of 611.50. Otherwise, we should expect a downward correction, the targets for which will be the horizontal 508.94 and 538.35.



Ripple slowly reached the upper limit of the range between the support of 0.4071 (red segment) and the local resistance of 0.4769 (blue segment). If it is possible to break through the resistance level of 0.4769, the pair will continue to grow to the level of 0.5564. Otherwise, the quotes will go downward to the support level of 0.4071 (red segment) with possible stops near the intermediate horizontal of 0.4539.



Ethereum has risen significantly over the weekend, approaching the resistance 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. If it is overcome, the price of ETH USD may continue to rise to historical highs. Otherwise, it will go down in the sidewall.






Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Forecast for Bitcoin on March 9, 2021 – BUY. The result for February is +10.93%

1. Analysis of volumes for Bitcoin futures from the Chicago Mercantile Exchange (CME).

The analysis uses data on horizontal volumes from the Chicago Mercantile Exchange on daily charts. The analysis is carried out on the basis of the "Footprint-Profile" theory, in which the movement of the level of the maximum volume per day can indicate the likely direction of the trend. The maximum volume level is the level at which the maximum number of transactions was made, that is, the level of a large player. Accordingly, the upward movement of the maximum volume levels indicates an upward trend. A downward movement of the maximum volume level indicates a downward trend. Chaotic movement of the maximum volume levels indicates a flat in the market.

05.03.21 – Maximum Horizontal Volume Level (POC - Point Of Control) - 48575
08.03.21 – Maximum Horizontal Volume Level (POC - Point Of Control) - 51000

The point of control has moved up. The price is above the POC level. It is likely that an upward movement has begun, you can buy.


2. Analysis of the long-term trend.

A trend is a trader's friend. Many traders know this saying, but do not know how to use it. The answer is simple: trade only in the direction of the trend. This way your trades will have more profit potential with less risk. According to the classical Dow theory, there are three main trends:

-long-term;
-medium-term;
-short-term.

These are the trends that need to be analyzed before opening any transaction. This is what we will do in this analysis:

The long-term trend in this analysis is the daily trend. Trades will be made on a daily time frame, and will be held for several days. The daily trend is analyzed using the 48-period exponential moving average (EMA (48)). If the daily candle closes above the EMA (48), it means that we are facing an upward trend and should buy. If the daily candle closes below the EMA (48), it means that the trend is downward and should be sold.



The chart shows an upward trend. The price is higher than the EMA(48), so in this situation it is worth considering purchases.


3. Analysis of the medium-term trend.

In this analysis, the medium-term trend will be the trend on the 4-hour chart (H4). The 48-period exponential moving average (EMA (48)) will also be used for the analysis. If the H4 candle closes above the EMA (48), it means that the trend is upward and you should buy. If the H4 candle closes below the EMA (48), it means that the trend is downward and you should sell.



The price is higher than the EMA (48). The medium-term trend is upward, you can buy.


4. Analysis of the short-term trend.

The short-term trend, which can well show the entry point to the market, will be considered a trend on the H1 timeframe. The 48-period exponential moving average (EMA (48)) will help us. If the H1 candle closes above the EMA (48), it means that the trend is upward and you should buy. If the H1 candle closes below the EMA (48), it means that the trend is downward and you should sell.



The price is higher than the EMA (48). The short-term trend is upward, you can buy. Long-term, medium-term, and short-term trends are the same.


5. Japanese candlestick analysis.

The classic Japanese candlestick analysis is used for the daily timeframe. In this analysis, we will also analyze the daily candle.



The daily candlestick is closed upward, the candlestick is white. The maximum is higher than the maximum of the previous candle. The candle configuration is a Trend candle. Yesterday's candle has a large body. An upward movement is likely.


6. Conclusions.

Volume analysis - BUY.
The long-term trend - BUY.
The medium-term trend - BUY.
The short-term trend - BUY.
Japanese Candlestick Analysis - BUY.

General conclusion: On March 9, 2021 - you can buy.


7. Statistics.

To analyze the effectiveness of this approach, statistics on completed transactions are kept. Forecasts are made and transactions are made on four instruments: Bitcoin, Ethereum, Litecoin, and BCH/USD. Trading account monitoring:



The result for February 2021 is +10.93%.


Statement:

This transaction is open:

02.03.21 Bitcoin BUY: 49249.81 SL: 44455; Risk per trade: 1% of the deposit. When you deposit $ 10,000, the lot is 0.02.

For new trades, the Stop Loss is located behind the daily extreme points. We do not set a Take Profit, as we will accompany the transaction by moving the Stop Loss beyond the extreme points of the future sessions.

Since trading is conducted on daily charts, this recommendation is relevant throughout the day.

Trade with the trend, and you will gain profit!




Maxim Petrov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for March 9, 2021

Crypto Industry News:

In today's press release, Galaxy Digital Capital Management, the financial services and investment management subsidiary of Galaxy Digital, confirmed that it is likely to start trading the Galaxy Bitcoin CI ETF this week.

With the launch, Galaxy will join TSX Purpose as one of the pioneering ETF products in North America, where US regulators have yet to approve a single application.

Purpose has received tremendous interest and related volumes since the ETF's launch last month, around the same time Galaxy filed its application with regulators.

"We believe that the emerging digital asset class presents attractive opportunities for growth and diversification. The CI Galaxy Bitcoin ETF offers a simple and secure access point for traditional investors to gain exposure to Bitcoin" - commented Steve Kurz, partner and director of asset management at GDAM in the release.

Institutional demand for exposure to Bitcoin has not been offset by price volatility and bad press. Meanwhile, the ETF boom provides new competition to alternative market offerings, notably the Greyscale Bitcoin Trust.


Technical Market Outlook:

The BTC/USD pair has broken above the supply zone located between the levels of $52,039 - $52,501 and made a new local high at the level of $54,381 (in the time of writing the article). The next target for bulls is seen at the level of $54,908. 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

[IFX_Selena]

Technical Analysis of ETH/USD for March 9, 2021

Crypto Industry News:

US bank JPMorgan has 34 open positions in Blockchain technology posted on its website. Most jobs posted are for the United States, India and Singapore. Many of the positions are directly related to Onyx, a branch set up last October to oversee JPM Coin, a bank's wholesale payment token.

Numerous Blockchain Engineer positions focus on integrating both JPM Coin and Link with JPMorgan's payment architecture. When Onyx was launched, JPMorgan announced that the new division would have approximately 100 jobs.

Recently, big banks have spoken out about entering the cryptocurrency space, looking at areas like cryptocurrency storage and potentially digital asset trading. While JPM has been relatively quiet on these fronts, there is clearly a lot going on behind the scenes.

Contrary to JPMorgan's 56 "Blockchain" job search results, Goldman Sachs, who recently told Reuters that it is restarting its cryptocurrency trading position, only has two Blockchain / Cryptocurrency jobs. Morgan Stanley also has two Blockchain-related jobs open while BNY Mellon shows four positions.

Thirteen jobs at JPMorgan relate to Onyx and Link, three of which are based in Bangalore, India, two in Singapore and the rest in the United States. Marketing manager vacancies at Link are also listed, as well as an adjacent Blockchain position in commercial real estate based in Palo Alto, California.


Technical Market Outlook:

The ETH/USD pair has hit the upper channel line around the level of $1,834, but the high was made at the level of $1,859 in form of a Doji candlestick pattern. This indicates a possible pull-back towards the level of 41,753 in the near future. 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.

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

[IFX_Selena]

Ripple breaks short-term resistance

Ripple bulls have managed to recapture the $0.46 resistance level. Price continues to respect short-term support at $0.43 while bulls push price higher. Breaking above this resistance gives us target around $0.51 as we explained in previous posts. However the bigger picture remains unclear as XRPUSD is still vulnerable to a move lower as long as price is below $0.64-$0.75.



Red rectangle -short-term resistance

Red line - short-term support

Blue line -longer-term support

XRP/USD shows potential for another test of the double top resistance area of $0.64-$0.75. Price needs to hold above the blue support trend line otherwise we should expect a deep plunge towards the lows below $0.20. So far price actions seems constructive and we should expect more upside this week as price remains above $0.46.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021