Cryptocurrency Analysis

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What is a cryptocurrency wallet?



Each wallet holds one or more private cryptographic keys that are required to access cryptocurrency funds, which are found in many fragments in a decentralized online ledger known as the blockchain. It's absolutely vital to keep your private keys safe, and losing a key can often mean losing your hard-earned cryptocurrency.

The most secure is a cold wallet. Digital wallets that store keys offline on a physical medium such as a USB drive are called cold storage wallets because they are not connected to the internet. The user retains full control over when and where the wallet is accessed, and all assets are stored offline, making it difficult for hackers to steal. But if you need to access your wallet quickly or on the go, this is not the most convenient option.

On the other hand, there are two types of hot wallets: software wallets and online wallets. Both versions are connected to the Internet. Software wallets are downloaded to a computer or mobile device, often as an app, while online wallets act as websites and are usually controlled by a major cryptocurrency exchange. Both have the same advantages: storing your crypto assets on the network makes it easier to transfer them, making hot wallets more convenient for users who intend to trade crypto assets frequently. But the downside is the same for both: an Internet connection exposes users to the risk of hacking.

So, if you're interested in crypto wallets, here's a breakdown of your options:

Hardware wallets: Keys are stored on a small physical device that you connect to your computer or smartphone for transactions.

Software wallets: Applications that you download to your mobile device or computer.

Online wallets: Browser-based wallets that allow you to interact with them as with a website.



Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

XRP/USD could soon provide a strong bullish signal

XRP/USD is respecting so far short-term support and is now challenging important short-term resistance. Breaking above $0.46 will be a bullish sign that could push price much higher towards $0.52 area.



Red rectangles - resistance levels

Upward sloping green line - support

Ripple is so far respecting the upward sloping support trend line. As long as price is above $0.44 the chances of breaking above $0.46 are high and our target is $0.52. Short-term we are bullish as price is forming higher highs and higher lows and a break out is imminent. Short-term stop for bullish positions is at the trend line support at $0.44.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN for March 04 - 05, 2021: Kel Level $49,000- Fibonacci Analysis



Goldman Sachs will restart its crypto-asset negotiations next week and is exploring other activities within the digital asset sector, which also includes projects related to blockchain technology and central bank digital currencies, reports 'Reuters'.

This data continues to support BITCOIN, which is struggling to stay above the $ 50,000 psychological level.

In the 4-hour chart we can see the correction cycle, from the maximum at $ 58,257 and the minimum at $ 43,065, Bitcoin has corrected to the 61.8% fibonacci at $ 52,558, it could be a sign of a continuation of the downward movement, or it would be preparing to 161.8% at $ 61,250.

If the BTC remains below the 61.8% fibonacci there is likely to be a bearish move in the medium term.

On the contrary, if it breaks the 61.8% Fibonacci, it could continue its bullish move until the high of $ 58,200 and reach the level of $ 61,250.

Support And Resistance Levels For March 04 - 05, 2021

Resistance (1) $53,157
Resistance (2) $55,396
Resistance (3) $58,226

Support (1) $48,029
Support (2) $45,250
Support (3) $42,901




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Forecast for BCHUSD on March 4, 2021

1. Volume analysis for the BCHUSD 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 maximum volume level for the 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, moving the maximum volume levels up indicates an upward trend. Moving the maximum volume level down indicates a downward trend. The chaotic movement of the maximum volume levels indicates a flat in the market.

02.03.21 – level of the maximum horizontal volume (POC - point of control) – 530
03.03.21 – level of the maximum horizontal volume (POC - point of control) – 519

The POC has moved down and the price is below the POC level. Perhaps a downward movement has begun, then you can sell.


2. Analysis of the long-term trend.

A trend is a trader's friend. Many traders know this saying, however, they 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.

It is all these trends that need to be analyzed before opening any transaction. In this analysis, we will do this.

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 EMA (48), an exponential moving average with a period of 48. If the daily candle closed above the EMA (48), it means that we are facing an upward trend and should buy. If the daily candle closed below the EMA (48), it means that the trend is downward and should be sold.



Price per EMA (48). The long-term trend is sideways, then you can buy and sell.


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 EMA (48), an exponential moving average with a period of 48, will also be used for the analysis. If the H4 candle closed 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 should be sold.



Price per EMA (48). The medium-term trend is sideways, then you can buy and sell.


4. Short-term trend analysis.

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



Price per EMA (48). The short-term trend is sideways, then you can buy and sell. Long-term, medium-term, and short-term trends do not coincide.


5. Japanese candle analysis.

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



Closing the daily candle up, the candle is white. The maximum is higher than the maximum of the previous candle. The candle configuration is a downward-pointing Hammer. Probably a sideways movement.


6. Conclusions.

Volume analysis - sell.
Long-term trend - buy sell.
Medium-term trend - buy sell.
Short-term trend - buy sell.
Japanese candlestick analysis - buy sell.

General conclusion: 04.03.21 - you can buy and sell.


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, BCHUSD.

The result for February 2021 is +10.93%.


Regulation:


This transaction is open:

26.02.21 BCHUSDSELL: 465.86; SL: 568; Risk per trade:1% of the deposit. With a deposit of $ 10,000, the lot is 0.96.

For new trades, the stop loss is located behind the daily extreme. We do not set a take profit, as we will accompany the transaction by moving the stop loss beyond the extremes of the new days.

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





Maxim Petrov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for March 04,.2021 - Completion of the ABC correction and potential downside movment towards $43.300

Further Development



Analyzing the current trading chart of BTC, I found that BTC completed the ABC upside correction as I alerted you yesterday and that is ready for the new downside wave.

My advice is still to focus on selling opportunities on the rallies with the downside targets at $47,280 and $43,300.

Additionally,Stochastic oscillator got fresh bear cross, which is another sign of the downside wave.


Key Levels:

Resistance: $52,000

Support levels: $47,280 and $43,300.





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum Remains A Buy!

Ethereum is traded above 1,500 psychological level at 1,563 continuing to fight to stay higher after its most recent corrective phase. Technically, the crypto has managed to jump above immediate upside obstacles signaling the buyer's optimism.

Despite the short-term rebound, the pressure remains high, that's why we need confirmation that ETH/USD resumes its major uptrend. Bitcoin is bullish, so a further increase could signal that the crypto market will grow as well, Ethereum will be expected to jump higher if this scenario takes shape.


ETH/USD CONFIRMING THE BREAKOUT!



ETH/USD has jumped above the fourth warning line (WL4) and beyond the Pivot Point (1,549) level signaling a breakout. It has increased as much as 1,658 before dropping to test and retest the pivot point, the uptrend line, and the WL4.

I've told you in a previous analysis that Ethereum could resume its major uptrend if it makes a valid breakout above WL4 and if it comes back above the red uptrend line. As you already know from my analyses, a larger corrective phase was invalidated by the false breakdown through 1,352.


TRADING CONCLUSION!

Jumping and closing above 1,658 former higher high represents a bullish signal. The R1 (1,808) could be used as the first upside target if ETH/USD continues to increase.





Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin's capitalization will rise to $ 20 trillion says Kevin O'Leary



As expected earlier, Bitcoin continues to decline after it broke through the 61.8% Fibonacci level. At the moment, the quotes of the "cue ball" fell again below the level of $ 50,000 per coin and will most likely continue up to the previous local low. In particular, we are expecting it to decline at least to the level of $ 43,000. However, it was previously mentioned that everything will depend on whether buyers manage to keep Bitcoin above the $ 44,000 level. If so, there is a possibility that it will rise to $ 60-70 thousand per coin in the next month or two.

Meanwhile, famous Canadian investor, Kevin O'Leary, said that Bitcoin will become much more stable and less volatile in the future than it is now. According to him, the main digital asset will be used much more often for hedging risks, and accordingly, it will become more popular among large investors, which can lead to its extreme price growth. The TV show investor also believes that Bitcoin's total capitalization will rise to $ 20 trillion. It is with noting that its current capitalization is just under one trillion dollars. Mr. O'Leary also said that the price for 1 "cue ball" of $ 100,000 does not seem very high to him. On Tuesday, the investor tweeted that he plans to invest 3% of his portfolio in Bitcoin.

In addition, the Canadian businessman believes that the issue with the "purity" of coins is greatly serious. He does not urge others to buy Bitcoins of unknown origin, but to individually mine them. Not only that, he also considers the question of what energy was used to produce bitcoin to be very important. Thus, the issue of "green" energy is very important for him, which is true. As he stated, the coins that were mined on Chinese mining farms are not good, since the electricity that is produced in China is extremely harmful to the environment due to the high level of carbon dioxide emissions into the atmosphere. Therefore, Bitcoin, which spends a huge amount of energy on mining, turns out to be very harmful to the environment.

It should be noted that there are recently no reports about new large purchases of Bitcoins in the media and on the Internet. This means that only few have followed the example of Tesla and MicroStrategy. So far, many companies are ready to provide their clients with the opportunity to operate with Bitcoin and other cryptocurrencies, but not invest in them themselves. As a result, the fundamental background for the "cue ball" is not the most positive right now. This further increases the probability of its quotes declining to the level of $ 43,000, where its future fate will be decided.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Forecast for Litecoin on March 4, 2021. February gain +10.93%

1. Analysis of LTCUSDT volume on the Binance exchange.

In this analysis, we will use the data on horizontal trading volume from the Binance exchange on daily charts. 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 level with the highest traded volume is the level where the maximum number of transactions has been made. This is the level of a major market player. Thus, if the maximum volume level moves higher, this indicates an uptrend. A downward movement of this level indicates a downtrend. A chaotic movement signals that the market is trading in a sideways trend.

02.03.21 – The level of the maximum traded volume (POC - Point Of Control) – 182
03.03.21 - The level of the maximum traded volume (POC - Point Of Control) – 194

The POC has moved upwards. The price is below the POC level. The market seems to have started moving upwards. So, you can open long positions.


2. Long-term trend analysis.

A trend is the trader's friend. Many market participants are aware of this saying. However, they do not know how to use it. The answer is simple: trade only in the direction of the trend. In this case, your trades will have more profit potential with less risk. The classic Dow Theory describes three main trends:

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

You need to analyze these trends before opening any trade. This is what we are going to do in the analysis below.

The long-term trend in this analysis is a daily trend. Trades will be made on the daily chart and held for several days. The analysis of the daily trend is carried out with the help of the EMA (48) - an exponential moving average with a period of 48. If the daily candle closed above the EMA (48), it means that we are facing an uptrend and should open long positions. If the daily candle closed below the EMA (48), it means that the trend is downward and we should open short positions.



The price is above the EMA (48). The chart shows the upward trend. In this situation, you may open long trades.


3. Analysis of 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 the EMA (48). The medium-term trend is sideways. Therefore, you may open long and short positions.


4. Short-term trend analysis.

In this analysis, the short-term trend is a trend on the H1 chart. It can show a point where we can enter the market. Here, we will again use the EMA (48) - an exponential moving average with a period of 48. If the candlestick closes above the EMA (48) on H1, this means that the quotes are trading upwards and we should buy. If the candlestick closes below the EMA (48) on H1, this indicates that the trend is downward and we should go short.



The price is above the EMA (48). The short-term trend is sideways. The long-term, medium-term, and short-term trends do not coincide. Therefore, traders can open long and short deals.


5. Japanese candlestick analysis.

The classic Japanese candlestick analysis is applied to the daily trading chart. In this analysis, we will also analyze the daily candlestick.



The daily candlestick closed upwards, the candlestick is white. Its high is above the high of the previous candlestick. The candlestick pattern is formless. It has a long growing body. An upward movement is highly likely.


6. Conclusions.

Volume analysis: BUY.
Long-term trend: BUY.
Medium-term trend: BUY SELL.
Short-term trend: BUY SELL.
Japanese candlestick analysis – BUY.

Conclusion: On March 4, you can open long and short positions.


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:



The monthly gain in February 2021 was 10.93%.


Statement:

At the moment, we keep the position:

03.03.21 Litecoin BUY: 194.56 SL: 167; The risk is 1% from a $10,000 deposit with a trading volume of 0.04 lot.

We do not open a new position, as the situation in the market is uncertain. Stop-loss orders for new trades can be placed beyond the daily extreme point. We do not set Take-profit orders, as we will continue to move SL beyond the extreme points of the future sessions.

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

Trade with the trend and you will make a profit!




Maxim Petrov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum forecast for March 4, 2021 - BUY SELL. February gains +10.93%

1. Analysis of ETHTUSD volume on the Binance exchange.

In this analysis, we will use the data on horizontal trading volume from the Binance exchange on daily charts. The analysis is based on the footprint-profile theory. According to it, the movement of the level with the highest traded volume during the day can indicate a possible direction of the trend. The level with the highest traded volume is the level where the maximum number of transactions has been made. This is the level of a major market player. Accordingly, if the maximum volume level moves higher, this indicates an uptrend. A downward movement of this level indicates a downtrend. A chaotic movement signals that the market is trading in a sideways trend.

02.03.21 - The level of the maximum traded volume (POC - Point Of Control) - 1570
03.03.21 - The level of the maximum traded volume (POC - Point Of Control) - 1590

The POC has moved up, and the price is below the POC level. The price has fallen below the two previous POC levels. Apparently, the market has started to move sideways, so you can open both long and short positions.


2. Long-term trend analysis.

A trend is the trader's friend. Many market participants know this saying but do not know how to use it. The answer is simple: trade only in the direction of the trend. In this case, your trades will have more profit potential with less risk. The classic Dow Theory describes three main trends:

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

You need to analyze these trends before opening any trade. This is what we are going to do in the analysis below.

The long-term trend in this analysis is a daily trend. Trades will be opened on the daily chart and held for several days. The analysis of the daily trend is carried out with the help of the EMA(48) - an exponential moving average with a period of 48. If the daily candlestick closes above the EMA(48), this will mean that the quotes are moving in an uptrend and we should open long positions. If the daily candlestick closes below the EMA(48), this will mean that the quotes are trading downwards and we should go short.



The price is in line with the EMA(48). The long-term trend is sideways. In this situation, you can open both long and short positions.


3. Medium-term trend analysis.

In this analysis, the medium-term trend is a trend on the four-hour chart (H4). The EMA(48), an exponential moving average with a period of 48, will also be used in analysis. If the candlestick closes above the EMA(48) on H4, this means that the quotes are moving in an uptrend and we should buy. If the candlestick closes below the EMA(48) on H4, this means that we have a downtrend and we should sell.



The price is in line with the EMA(48). The medium-term trend is sideways. Therefore, it is possible to open both buy and sell orders.


4. Short-term trend analysis.

The short-term trend in this analysis is a trend on the H1 chart. It can show a point where we can enter the market. Here, we will again use the EMA(48) - an exponential moving average with a period of 48. If the candlestick closes above the EMA(48) on H1, this means that the quotes are trading upwards and we should buy. If the candlestick closes below the EMA(48) on H1, this indicates that the trend is downward and we should go short.



The price is in line with the EMA(48). The short-term trend is sideways. The long-term, medium-term, and short-term trends coincide. Therefore, traders can go long and short.


5. Japanese candlestick analysis.

The classic Japanese candlestick analysis is applied to the daily trading chart. In this analysis, we will also analyze the daily candlestick.



The daily candlestick closed upwards, the candlestick is white. The high is above the high of the previous candlestick. The candlestick pattern is formless. It has a long growing body. An upward movement is highly likely.


6. Conclusions.

Volume analysis - BUY SELL.
Long-term trend - BUY SELL.
Medium-term trend - BUY SELL.
Short-term trend - BUY SELL.
Japanese candlestick analysis - BUY.

Conclusion: On March 4, you can open both long and short positions.


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 BCHUSD. Trading account monitoring:



In February 2021, gains amounted to 10.93%.


Statement:

We do not open a new position, as the market situation is uncertain. Stop-loss orders for new trades can be placed beyond the daily extreme point. We do not set take-profit orders, as we will continue to move SL beyond the extreme points of the future sessions.

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

Trade along the trend and you will make a profit!




Maxim Petrov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Cryptocurrency Market Review: March 4, 2021. Downward correction continues

Cryptocurrencies are still correcting downwards after bitcoin rebounded from its resistance level yesterday. From a technical point of view, most coins have a chance to go down further. Let's define some possible scenarios of further price movement for today.

Yesterday, bitcoin bounced off resistance located at the 61.8% Fibonacci level (near 52,068.06) and then declined. Now the price continues to go down towards the nearest support level of 48,178.13. However, its bearish run is limited. When the price reaches this level, it will most likely turn around towards the upside, approaching the 61.8% Fibo level. As an alternative, the price may break through the support level of 48,178.13 and then head for the next target at 45,553.17 (next red dotted line).



After rebounding from the 551.56 resistance level, Bitcoin Cash returned to the 465.48 - 508.94 range and reached its support level, as expected. If the price breaks through the level of 465.48, the way to the next lower level will open. An alternative scenario for BCHUSD implies a recovery within a sideways range of 465.48 - 508.94.



Ripple's technical levels have changed slightly. The level of 0.4539 now acts as local resistance. Its breakout has repeatedly turned out to be false. Therefore, if the market continues to decline, XRPUSD will have every chance to go down towards the support level of 0.4071. If the pair breaks through the current resistance level of 0.4539 and consolidates above 0.4769 (blue line segment), we will most likely see its further rally.



As for Ethereum, the situation is rather uncertain from a technical point of view. That is why I do not recommend entering the market. During yesterday's rally, the pair failed to reach the resistance level of 1697.27 (red dotted line). As a result, it returned to the range of 1519.84 - 1572.74. If bitcoin continues to lose in value, it could drag ETHUSD down to the level of 1436.48. In case the support area of 1519.84 - 1572.74 resists, the pair is likely to approach yesterday's highs.



Litecoin is also trading under pressure, trying to break through the lower border of the narrow range of 186.48 - 195.06. If the price still overcomes this border and consolidates below 186.48, the pair will most likely move towards the next support level of 171.25.






Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021