Cryptocurrency Analysis

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Technical Analysis of BTC/USD for February 23, 2021

Crypto Industry News:
The high volume of the transfer to the Bitcoin exchange wallet on February 21 aroused many questions and controversies.

The entity (or group of entities) has transferred approximately 28,000 BTC worth more than $ 1.5 billion to an address that is said to be part of the OKEx OTC service. A certain @ThisIsBullish on Twitter noted that the OTC address had additionally assigned BTC to several wallets, one of which allegedly belongs to a "rich" address that has been linked to multiple cloud mining and money laundering scams in Asia.

Stock exchanges have seen huge drops in BTC reserves recently. They fell by around 635,000 compared to the March 2020 peak. They largely coincided with a period of increases in the BTC / USD exchange rate, which soared by around 1,200% over the same period.

The OKEx deposit as mentioned above came in the meantime when bitcoin was showing signs of fatigue. The cryptocurrency hit a new milestone above $ 58,000 on Sunday, leaving the author of the tweet concerned about the prospect of an imminent sell-off.


Technical Market Outlook:
The BTC/USD pair has crashed almost 20% in 24h, from the all time high at $58, 258 to $48,195. Currently, the market is testing the lower channel boundary and if this level is violated, then the next target for bears is seen at the level of $45,710 and $43,714. The overbalance of price is obvious as the level of $51,775 had been violated as well. The bulls are trying to protect the level of $50,000 as the main technical support, but it looks like they are losing this battle.

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

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Technical Analysis of ETH/USD for February 23, 2021

Crypto Industry News:
The recent correction in the cryptocurrency market has been the largest we've seen in a while. While most digital assets have experienced severe drops, the price of ethereum on the Kraken exchange has experienced a real rollercoaster.

The exchange's trading platform today recorded an event that has certainly made many hearts beat faster. Ethereum, the second largest cryptocurrency, has experienced a flash crash.

In one hour's candle, ETH dropped to $ 700 - a massive 63% drop from the stock market's daily high. The volume of this hourly candle was also significant. A total of 75,500 ETH worth around $ 131.5 million passed from the opening to the closing by traders.

As always in the case of flash crashes, the price rose again after the decline and remained at a level adequate to other averages on other exchanges.


Technical Market Outlook:
The ETH/USD pair has started a sell off recently and the price has fallen to the level of $1,540 (at the time of writing the article). The sell off was dynamic and sudden, so all of the levels will now act as a technical resistance for the market. The next target for bears is seen at the level of $1,478 and $1,438. The nearest technical resistance is located at the level of $1,648. The weekly and monthly time frame trend is still up. The bullish scenario is valid as long as the level of $1,412 is broken.

Weekly Pivot Points:
WR3 - $2,476
WR2 - $2,254
WR1 - $2,101

Weekly Pivot - $1,876
WS1 - $1,724
WS2 - $1,492
WS3 - $1,337


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $2,100, so any correction or local pull-back should be used to open the buy orders. Please notice, the up trend starting to go vertical, so the volatility will be higher than average. The bullish scenario is valid as long as the level of $1,412 is broken.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

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Technical analysis of Litecoin/USD for February 23, 2021



After a rally to 237, Litecoin is making a correction towards the neck-line near 178.70. We currently see support near 191.43 and again at the former neck-line resistance, which now acts as support near 178.70. Once this correction is complete renewed strength is expected for a rally towards the S/H/S bottom-target near 325 with the possibility of an extension closer to 415.

Short-term a break above minor resistance at 210.00 will indicate that the correction from 237 has completed and the next impulsive rally higher towards 325 is in motion.


Trading recommendation:
Buy Litecoin near the 178.70 - 191.43 support-area with your stop placed at 122.50 for the next rally higher to 325.





Torben Melsted
Analytical expert
InstaForex Group © 2007-2021

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Bill Gates: I don't own bitcoin and have taken a neutral view on it



Currently, many traders and experts are wondering what will happen after the correction of bitcoin at the level of $10,000. One of the richest men in the world and the largest shareholder of Microsoft, as well as its co-founder, Bill Gates, expressed his opinion on bitcoin. Gates believes that digital currencies and blockchain technology are the future. However, according to Gates, currently, bitcoin is still developing and more steps should be taken so that bitcoin could be used by a wider audience. For example, the user should be able to cancel the transaction. "There's some really good technology in terms of sharing databases and verifying transactions that is talked about as blockchain, that is a good thing," Gates told CNBC. The tycoon himself is neutral about bitcoin as he stated. In an interview with CNBC, Gates said, "I don't own bitcoin. I'm not short bitcoin." The billionaire also said that his foundation is actively engaged in digital payment issues that can reduce transaction costs but the difference between bitcoin and blockchain technology is significant. Gate's foundation is trying to find a solution so that users can cancel the transaction and trace who is doing the certain activity to eliminate tax evasion and illegal activities. As for the future value of bitcoin, the former CEO of Microsoft believes that it can either grow or fall. Everything will depend on the degree of hype.

At the same time, analysts at JPMorgan are expecting bitcoin to fall. In their opinion, traders will not be able to keep the level of $ 50,000 until the market volatility significantly decreases. The bank's chief strategist Nikolaos Panigirtsoglu said that since January 2021, bitcoin has been growing exclusively due to the influx of retail investors. However, bitcoin could remain at high levels for a long period of time if the number of small investors is reduced to a minimum. Mr. Panigirtsoglu believes that small traders and investors will sooner or later start to leave the market, which will cause a collapse of bitcoin. Now investments in bitcoin are overwhelmingly high. However, if the situation changes even slightly, traders will immediately start withdrawing their money from bitcoin. The price for an asset will remain stable when it does not fall under the waves of mass sales. At the time of writing this article, bitcoin is worth exactly $50,000 per coin and it continues to decline. The nearest target for the fall is the Kijun-sen line, which currently is at $45,000. From our point of view, the fate of bitcoin will be determined in the coming days. If the current correction remains a correction, then the cryptocurrency will again reach $100,000 per coin. If not, investors should brace for a wave of mass sell-off of the number one cryptocurrency, which will definitely send other cryptocurrencies down too.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Traders have reduced long Bitcoin positions in the amount of $ 3.5 billion.


Yesterday, Bitcoin began a powerful downward correction and many traders immediately had this question, "Is this the moment to reset long positions which will lead to a drop in the bitcoin exchange rate by 80-90%? The experts and pseudo-experts of the cryptocurrency market say who are often just the owners of the "cue ball", which means that it is profitable for them to warm up interest in this cryptocurrency so that it continues to grow, bitcoin can fall at any time almost to the values of $ 5,000 to $ 6,000. Bitcoin has no cost price or fair price, so it can fall as low as you want. This was already the case in 2017, and everyone remembers it. In 2021, everyone clearly understands that bitcoin is only an investment tool that leads everyone to buy with one goal in mind and it is to earn money. And everyone understands that sooner or later it will collapse in price. Companies like Tesla or Microstrategy are no exception. According to official data from cryptocurrency exchanges, yesterday, within one hour, traders closed long positions for $ 410 million. This is the official data. However, given the fact that the total capitalization of bitcoin is already about 1 trillion and it is likely that more closed long positions would be needed to drop the quotes by $ 10,000 dollars downward. Therefore, it is absolutely possible that purchases were closed for several billion dollars or even tens of billions. However, a little later, this information was published by the exchanges – the total closing of long positions amounted to $ 3.5 billion. Thus, one of the major players considered that he would have enough profit from the operation of buying and selling bitcoin which has increased in price five times over the past few months. Therefore, now everything will depend on other market players. The game begins on the nerves. Holders of a small number of bitcoins may be afraid that now the cryptocurrency will collapse down and start getting rid of their coins. However, due to their number, this is enough for bitcoin to continue its decline. But when the big players start selling bitcoin then the cryptocurrency will definitely collapse. Therefore, the next few days for the "cue ball" can be extremely important. If the market's nerves hold, bitcoin will be able to continue its growth in the direction of the magic figure of $ 100,000 per coin. If not, it will collapse. These days, the comments of the whales of the cryptocurrency market like Elon Musk or other major holders or experts in this field will be especially important or just people that the market listens to. As discussed earlier, the market is extremely impressionable and is ready to respond with bitcoin purchases if it understands that larger players are also buying it at this time.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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US Treasury Secretary Janet Yellen criticizes Bitcoin again



Janet Yellen, who recently became the US Treasury Secretary, and previously served as the head of the Federal Reserve, is one of the most ardent critics of bitcoin and other cryptocurrencies. According to Yellen, voiced just yesterday, the cryptocurrency is not effective for making transactions, since its price is not stable. Yellen acknowledged that blockchain technology can indeed provide the fastest and cheapest possible transfers, but there are many issues that governments need to study around consumer protection and money laundering. In other words, the authorities around the world will seek to take bitcoin and other cryptocurrencies out of the legalized sphere of activity, or will seek to create public alternatives to bitcoin, that is, digital dollars or digital euros. This is not the first time Yellen has promised to closely monitor the cryptocurrency market. Some experts also hold the view that the authorities will not leave bitcoin alone and will seek to crush it. For example, this is the opinion of investor Michael Burry, who previously predicted the collapse of the US mortgage market. The economist made several calculations, in which he clearly showed and explained that the US authorities will continue to increase the money supply to overcome the economic crisis. He also said that he does not believe in bitcoin as a global digital currency for the whole world. From Burry's point of view, the scale of bitcoin is not enough to achieve this goal. "I believe that the distant future for a decentralized currency is hazy. Centralized governments will not want to give up their monopolies on their own currencies. But in the short term, anything is possible. therefore, I do not go short on Bitcoin, " Burry said.

Barclays investment director William Hobbs said that the markets are increasingly behaving like sectarians towards bitcoin. He said that the future of bitcoin is uncertain, as central banks have sought to stimulate their economies over the past decade and have cut rates to unprecedented lows. However, that may change when rates start to rise. Bitcoin can then become a "wingless bird." Now, investors and traders are looking for ways to earn money, as banal deposits no longer perform this function due to negative or zero rates. Therefore, bitcoin is in the price. But that may change once the economy is on the path to solid growth. Hobbs also stressed that Barclays is not going to invest in bitcoin, as "it is several times more volatile than our riskiest asset class-emerging market stocks." From the point of view of the investment director, to get into the Barclays toolkit, an asset must have a positive return and be attractive for risk diversification. "Perhaps one day bitcoin will become the owner of these qualities, but now it can not boast of them," Hobbs said.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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"Failed" day for cryptocurrency: results for 02/22/21

Yesterday's trading session was marked by a significant and quite logical downward correction in the cryptocurrency market. But, as they say, it's not really evening yet. The last four-hour candle was particularly failed on the charts of almost all the coins in question. But whether the fall will end there is still unclear.

Bitcoin technically and naturally declined during the day after returning to the level of 100 on Fibo Expansion (mark 55830,19). Over the past four hours, the weakening has intensified with the quotes of the main cryptocurrency falling to $ 47,000 per coin. However, the price quickly recovered and so far we can say that the level of 61.8 of the Fibonacci extension as support has stood.

So far, the technical picture of BTC USD again has two scenarios: either a recovery to the horizontal 100 on Fibo Expansion or a fall to at least $ 48,000 per coin if the current support of 61.8 on Fibo Expansion does not stand.



Bitcoin Cash also fell after the main cryptocurrency, reaching a long shadow level of 508.94. But, the horizontal 611.50 has so far stood as support. If it is not broken on the next attempt, BCH USD can recover to the level of 667.95. Otherwise, the price will head south to the level of 611.50.



Ripple, whose volatility increased earlier than the rest of the cryptocurrencies collapsed and remained within a wide technical range between the support level of 0.4769 (the blue lower segment) and the resistance level of 0.6387 (the blue upper dotted line). Today, both borders of the corridor were reached, but the price managed to return to the area above 0.5564, from which the price can recover.



Ethereum also fell rapidly, but still held above the level of 1697.27. Now it serves as a support for quotes leaving the prerequisites for the recovery of ETH USD to the level of 1823.44. But if the fall resumes, the second cryptocurrency may fall down to the level of 1436.48.



Litecoin broke through the level of 205, 25 during the fall, and so far has gained a foothold under it. It remains a local target for recovery if it starts in the market. If the downward correction continues, the target for LTC USD to the downward trend will be the level of 171.25.





Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

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Sharp pull back in crypto Litecoin

In our last analysis on LTC/USD we noted that price had reached our bullish target and we preferred to stay neutral or with a very light bullish exposure as price was vulnerable to a sharp pull back. Before the pull back, price made a new high and turned sharply lower towards $180 earlier today.



Green horizontal lines - support

LTC/USD back tested today the previous highs made early January around $180. So far price seems to respect support and a long lower tail in the Daily candlestick would be a sign of strength. Staying above $180 is crucial for the short-term trend. Price so far has successfully back test support and now we could another leg higher to new highs. If support however fails to hold, then we should expect a bigger pull back even towards $120-$110.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Market correction or temporary downturn: major cryptocurrencies sank after Bitcoin's record

Over the past day, the cryptocurrency market has been actively growing in value against the background of a Bitcoin record. As a result, the total cryptocurrency market capitalization reached $1.69 trillion as of February 22. However, a negative agenda and a sharp decline in Bitcoin triggered a drop in prices for major digital assets.

Bitcoin reached a record price of $58,000, but today, it dropped sharply to $53,400 and continues to fall. Other digital assets also show deplorable performance. There are several reasons for the obvious market downturn: firstly, several days ago, Elon Musk spoke out quite categorically about cryptocurrency as not the most reliable way to invest money. It is worth noting that the word of a billionaire is not yet powerful enough to collapse the quotes of the entire market.

The second reason is more logical and related only to Bitcoin. Financial giant JPMorgan published a report stating that the value of the main cryptocurrency could plummet. This is possible if investors turn away from the Tether stablecoin. The company has not yet conducted an independent audit, which heightens concerns about the company's financial reserve. All this can destabilize the situation on cryptocurrency exchanges and cause panic, which will lead to an uncontrolled fall in the price of bitcoin.



In addition to Bitcoin, Ethereum is also showing a significant decline. After an all-time high of $2,000, the coin held at $1,900, but then steadily dropped to $1,760. And no prerequisites for further growth have yet been observed.



Litecoin was confidently holding at $240, but soon the coin slipped to $204. Despite the downturn, this altcoin shows certain prerequisites for rapid growth and has previously demonstrated freedom from market fluctuations.



Oddly enough, the XRP token is the only coin that showed growth on February 22. This comes amid news that Ripple is partnering with central banks to develop new digital assets. However, the situation with the token is unstable: in the morning, the coin held positions at the level of $0.640, but then fell sharply to $0.580. After a slight increase, XRP fell back to $0.565.



Despite the general downturn in the market, the main cryptocurrencies will hold onto safe positions and resume growth. Considering the supply and demand in the market, the growth of the quotes on the exchanges will last until the end of February, after which, most likely, a wave of correction will overwhelm the main altcoins. In connection with the report by JPMorgan, it is not entirely clear what will happen to Bitcoin. Everything will rest on two main factors: investor behavior and the official position of Tether.




Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

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BTC analysis for February 22,.2021 - Strong downside movement due to overbought condition and potentia lfor test of $48.000

Further Development


Analyzing the current trading chart of BTC, I found that the buyers got exhausted today and the result was the the strong downside swing with increase in momentum, which is good sign for further downside movement.




Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021