Cryptocurrency Analysis

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Technical analysis on XRP/USD for February 25th, 2021.

XRP/USD had a very volatile week with a high at $0.6474 and a low at $0.3615 while price is now at $0.4625. Price is under pressure for a second week in a row. This week price tried to push inside the major resistance area of $0.61-$0.75. The stay there was short-lived.



Orange rectangle - major resistance

XRP/USD has made a double top around $0.63 and so far there could be no weekly close above this level. If such a price action were to happen, then that would be a sign of strength and would increase chances of a break out. If price breaks out and above the recent double top at $0.75-$0.76 then we should expect XRP/USD to push higher towards $1.20-$1.30. Until then we prefer to be neutral as price is vulnerable to another strong pull back.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for Bitcoin (BTC/USD) for February 25 - 26, 2021: Target at $62,500



The Bitcoin (BTC / USD) this Thursday morning, is trading above the psychological level of $ 50,000, above the 8/8 of Murray and with targets at $ 56,250 and higher at $ 62,500.

If BTC continues to consolidate above 50K, we expect the bullish force to push it to a resistance level at $ 56,250.

We can also note that the Bitcoin has left a formation of a symmetrical triangle, which has been broken to the upside, if the price of BTC remains above this pattern a new upward movement is likely in the next few days.

Conversely, a break below $ 48,520 could be a sign of a bearish move to the 200 EMA located at $ 42550.

Our recommendation is to buy above $ 50,000 with targets at $ 56,250.


Support And Resistance Levels For February 25 - 26, 2021

Resistance (1) $53,571
Resistance (2) $55,435
Resistance (3) $56,250

Support (1) $47,738
Support (2) $46,719
Support (3) $44,548





Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin Incipient Buying Phase!

Bitcoin trades in the green at 51,650 at the time of writing and it seems strong enough to jump way higher again. The rate has retested the short-term uptrend line and now it moves upwards.

I've told you in my previous analysis that BTC/USD maintains a bullish outlook and that we may have a great buying opportunity from above the $50,000 if the rate stabilizes above this level.

Technically, the corrective phase was ended after printing a major bullish engulfing reversal pattern. Fundamentally, the price could continue to increase as we don't have any reasons why the rate could register an important decline.


BTC/USD EDGES HIGHER!



As you can see on the H4 chart, the rate consolidated above the uptrend line, S1 (49,419), WL1, and right above the 50,000 psychological level signaling that it could resume its growth.

Now is traded above 51,415 short-term higher high signaling a potential growth towards the PP (53,895), WL2, or even up to the 58,367 all-time high. So, you should keep in mind that Bitcoin's price could increase further as long as it stays above the black uptrend line.

A larger corrective phase will be signaled only by a valid breakdown through the immediate uptrend line.


BITCOIN TRADING TIPS!

Buy BTC/USD if the price closes the current H4 candle above 51,415 former high and use the Pivot Point (59,895) as the first target. Closing above the PP signals further growth towards WL2 or even higher towards fresh historical highs.




Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for February 25,.2021 - Potential completion of the upside correction and new downside swing towards $45.300

Further Development



Analyzing the current trading chart of BTC, I found that there is potential for the completion of the upside corretion and new downside wave.





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading plan for Bitcoin for February 25, 2021



Technical outlook:

Bitcoin might have carved a meaningful top around $58,300 levels on February 21, 2021. The crypto had dropped over 20% since then to $44,500 mark, before pulling back higher again. It is seen to be trading around $49,850 levels at this point in writing and is expected to continue lower towards $37,700 levels over the next few trading sessions.

Immediate resistance according to daily chart is seen around $59,000 levels, while intermediary support is at $44,500 respectively. Bitcoin might pullback at least towards $52,000/500 mark before resuming lower again. Potential remains for a drop towards $37,500/700 levels, which is fibonacci 0.382 retracement of the entire rally between $3,850 and $58,300 levels respectively.

Also note that a much deeper correction could be underway since $58,300 highs but it could be too early to predict at this point. A break below $22,500, where one year trend line support is seen would be considered as extremely bearish and Bitcoin can drop even further. Over the short term though a minimum retracement towards $37,700 can be expected.


Trading plan:

Remain short against $60,000, target $37,700 at least.

Good luck!





Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Charlie Munger speaks against Bitcoin



At the annual meeting of the Daily Journal, Vice Chairman of Berkshire Hathaway, Charlie Munger, spoke against Bitcoin, dismissing the swift rally of the cryptocurrency.

"I don't think Bitcoin will become a medium of exchange for the world," he said. "It is too volatile to be a good medium of exchange, and is kind of an artificial substitute for gold," he added.

According to Munger, one main reason is that central banks like to control their banking system and their cash reserves.

To add to that, Munger doesn't like gold. Hence: "Since I never buy gold, I never buy bitcoins. I recommend other people to follow my practice."

Munger also said Bitcoin reminds him of an old quote from Oscar Wilde about hunting foxes: "Hunting for foxes is an ineffable pursuit of the inedible" (from The Woman Who Doesn't Matter).

A shareholder then asked Munger if the Daily Journal would follow Tesla's example and include Bitcoin in its balance sheet. To it, Munger responded: "We will not follow Tesla in Bitcoin"

He also spoke negatively about brokers such as Robinhood, calling it "a dirty way to make money."

When asked which was better between Tesla's stock price or $ 50,000 Bitcoin, he answered: "I can't determine the order of priority between flea and lice, I feel the same here."

Of course, this isn't the first time Munger has verbally smashed Bitcoin.

Earlier, he said there are better things to invest in. However, this was in 2018, when Bitcoin was worth only $ 9800. Now, the cryptocurrency has exceeded 48,000.






Andrey Shevchenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Crypto market switches to sideways mode? Morning overview of popular cryptocurrencies for February 25, 2021

Choppy trade in the crypto market earlier in the week is calming down, showing some signs of a sideways mode. Consolidation could be both brief and long-lasting. It is rather hard to predict how long a trend will last in financial markets. Sometimes, it is almost impossible.

The common rule is that a consolidation period, especially a protracted one, is followed by a brisk escape from a trading range.

Bitcoin is still trading between a local low of $48,178.13 (plotted by a red dashed line), which is still serving as support, and resistance of $51,984.83 (61.8% Fibo expansion).

No one dares to predict how long this consolidation will go on. What is certain is that a downward target will be $45,553.17 in case the price exits the trading range downwards and 100% Fibo expansion in case the price leaves the trading range upwards.



Bitcoin Cash is carrying on with a consolidation in the range of $508.94 - $538.35. If the lower border is broken, the price will drop to $489.41 or even deeper to $465.48. Alternatively, if BCH/USD breaks the upper border upwards that will happen on condition of bitcoin's further advance, an upward target is seen at $611.50.



Following yesterday's breakout of 0.4760 plotted by the blue line, Ripple is now consolidating below this level. Technically, the price has some bearish momentum so that Ripple can decline to support of 0.4348. A further move will depend on the overall trend in the crypto market. Either XRPUSD will continue trading sideways or the asset will break one of the borders of a range from 0.4348 to 0.4769.



Ethereum is trading lower after the reversal downwards from resistance of $1,697.27 plotted by the red dashed line in the chart. While declining, ETH/USD seems to have found support at $1,572.74 which is likely to become the lower border of a consolidation range if it remains valid today. Things will clear up tonight whether the price will go on trading sideways or resume its fall.



Litecoin is still trading under low volatility in a range between support of 171.25 and resistance of 186.48. If LTC/USD exits the trading range downwards, the target levels will be the lows of this week. Alternatively, if the price breaches resistance of 186.48, the upward target is expected at 205.25.






Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Litecoin forecast for February 25, 2021 - BUY SELL. Monthly gains +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 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.

23.02.21 - The level of the maximum traded volume (POC - Point Of Control) - 170
24.02.21 - The level of the maximum traded volume (POC - Point Of Control) - 182

The POC has moved up, and the price is below the POC level. The market is correcting 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.



On the chart, we can see an upward trend. The price is above the EMA(48). In this situation, we recommend opening buy orders.


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 below the EMA(48). The medium-term trend is downward. Therefore, it is possible to open short positions.


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 do not coincide. Therefore, traders can open both short and long positions.


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 extreme points are within the extreme points of the previous candlestick. The candlestick pattern is Harami. An upward movement is highly likely.


6. Conclusions.

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

Conclusion: On February 25, 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 recommend opening 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 along the trend and you will make a profit!




Maxim Petrov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BCHUSD forecast on February 25, 2021 – BUY SELL. Monthly gain +10.93%

1. BCHUSDT volume analysis on the Binance Exchange.

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

23.02.21 – The level of the maximum traded volume (POC – PointOfControl) – 476
24.02.21 – The level of the maximum traded volume (POC – PointOfControl) – 533

POC has moved higher, the price is located below the POC level. The market is trading sideways, so you can open long and short 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 the trend. This way, 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.

A long-term trend is a trend on the daily chart. Trades will be opened on the daily time frame 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), then we have an uptrend and we should open buy positions. If the daily candlestick closes below the EMA (48), then there is a downtrend and we should go short.



The price is holding at the EMA(48). The long-term trend is moving sideways, so you can both sell and buy.


3. Analysis of the medium-term trend.

In our analysis, a medium-term trend will be the trend on the 4-hour chart (H4). EMA(48), an exponential moving average with a period of 48, will also be used in this analysis. If the H4 candlestick closes above the EMA(48), then we have an uptrend and we should open buy positions. If the H4 candlestick closes below the EMA(48), then there is a downtrend and we should go short.



The price is located below the EMA(48). The medium-term trend is moving down, so it is recommended to open short positions.


4. Analysis of the short-term trend.

A short-term trend that can also show an entry point into the market is considered a trend on the H1 time frame. Here, we will again use the EMA(48), an exponential moving average with a period of 48. If the H1 candlestick closes above the EMA(48), then there is an uptrend and you should open buy positions. If the H1 candlestick closes below the EMA(48), then there is a downtrend and you should go short.



The price is below the EMA (48). The short-term trend is moving down, so you can go short. The long-term, medium-term, and short-term trends are moving in different directions.


5. Japanese candlestick analysis.

The Japanese candlestick analysis is applied to the daily time frame. In this analysis, we will also analyze the daily candlestick.



The daily candlestick marked with white closed higher. The extreme points are located within the same points of the previous candlestick. This candlestick pattern is called Harami. An uptrend is likely.


6. Conclusion

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

General conclusion: on February 25, 2021, you can go long and short.


7. Statistics

To analyze the effectiveness of this approach, we will keep the data on completed transactions. We prepare forecasts and open our trades on four major instruments: Bitcoin, Ethereum, Litecoin, and BCH/USD. Please, check other articles regarding this topic

Monthly gain in February 2021 is +10.93%.


Statement:


We do not open a new trade as the current market situation seems uncertain. When opening new positions, you should place Stop Loss beyond the daily extreme points. Do not place Take Profit, as we will continue to move Stop Loss beyond the extreme points in the future sessions. Since the trade is carried out on the daily charts, the recommendation remains 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 February 25, 2021

Crypto Industry News:
MicroStrategy increased its interest in Bitcoin by 27% after purchasing an additional 19,452 coins, bringing its total wealth to 90,531 BTC.

As announced on the company's website, the coins were purchased for about $ 52,765 per coin, which is equivalent to an expense of just over $ 1 billion. MicroStrategy CEO Michael Saylor said the company's goal was now twofold: to grow the analytics software company and buy more Bitcoins.

"The company continues to focus on our two corporate strategies: growing business intelligence software and acquiring and holding Bitcoin."

Within six months of MicroStrategy's announcement of its first $ 250 million investment in Bitcoin, the company has spent more than $ 4 billion on digital assets. Saylor said he had no plans to stop buying BTC any time soon.

"The company now owns over 90,000 Bitcoins, confirming our belief that Bitcoin, as the world's most widespread cryptocurrency, can serve as a reliable cryptocurrency. We will continue to pursue our strategy of sourcing Bitcoin from excess cash and may from time to time, depending on market conditions, issue debt or equity securities as part of a capital raising transaction to use funds to purchase additional Bitcoins. "

The purchase value of MicroStrategy exceeded the figures previously announced by the company, which announced on February 17 that it would raise $ 900 million to purchase more Bitcoins.


Technical Market Outlook:
The BTC/USD pair has retrace almost 50% of the last wave down and the recent high was made at the level of $51,292. The 50% Fibonacci retracement is located at the level of $51,599. There is a set of Pin Bar candlesticks at the recent sell-off bottom at the level of $44,936, so it is clear, that bulls are protecting the levels under $40k. Nevertheless, the next big resistance for Bitcoin is still seen at $50,000 and it must be violated to continue the bounce towards the level of $51,599 and $53,171. Please notice, that despite the bounce, the momentum is still weak and negative, so the bears are in control of the market for some time now.

Weekly Pivot Points:
WR3 - $75,571
WR2 - $67,184
WR1 - $63,246

Weekly Pivot - $54,169
WS1 - $50,671
WS2 - $42,010
WS3 - $37,979


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