Cryptocurrency Analysis

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Bitcoin lacks only one thing to become a full-fledged alternative to fiat money.



Bitcoin continues to rise and is likely to continue to rise until large investors and holders start to get rid of it. Experts around the world continue to understand the reasons for such a strong growth of cryptocurrency and name several reasons that can be considered factors for the growth of bitcoin. First, after bitcoin reached the mark of $ 50,000 per coin, it began to get almost all over the media. Every news agency or periodical considers it its duty to review bitcoin, as it is a banal popular topic in 2021. Everyone in the world began to be interested in bitcoin much more than before, providing an influx of new investors who increased the demand for the cryptocurrency even more. Secondly, at a time of ultra-low interest rates and falling yields of government and commercial securities, bitcoin has become a very attractive tool that can bring returns much higher than stocks or gold. Thus, the process of banal flow of money from the sphere of stock instruments and gold to the cryptocurrency sphere, which offers a high yield, has begun. Investors and traders who set themselves the task of not just saving money, but making money, naturally choose more cryptocurrencies, which it can be done in 2021. Of course, bitcoin remains an ultra-volatile instrument and threatens huge losses to its owners, but so far it is only growing, as the value of its owners' investment portfolios is growing. By and large, everyone in the market understands that the most important thing is not to miss the moment when the "cue ball" will be massively disposed of (as it was in 2017 when bitcoin fell in price from $ 20,000 to $ 3,000). Meanwhile, analysts predict a drop in bitcoin volatility in the coming years. That is, the cryptocurrency will approach its market properties to ordinary assets, securities, and fiat money. And, from the point of view of many experts, this will further fuel interest in it. Now a lot of people are afraid of bitcoin, as they are afraid of its possible strong fall and loss of their funds. But if the volatility of bitcoin decreases, it really will be regarded by many investors as a hedging tool and a calculation tool, which is not without its attractiveness (due to anonymity). Thus, in the coming years, the cryptocurrency may continue to gain popularity. Naturally, this is not a matter of a couple of months. Bitcoin can gain popularity for several years and even decades. But each new round will also mean an increase in its price. At least until it is fully controlled by governments or central banks (which may not happen).





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Elon Musk is once again influencing Bitcoin. The number 1 cryptocurrency is aiming for a fantastic $ 100,000



The bitcoin exchange rate continues to calmly rise in price and has already reached the mark of $ 57,000 per coin. There is still no question of any correction. In this article, we would like to analyze in detail the specifics of the cryptocurrency market and why bitcoin can grow to $ 100,000 per coin in the next one or two months. To begin with, let's remember that the number 1 cryptocurrency rose by $ 10,000 only thanks to a couple of tweets from Elon Musk and statements from representatives of several companies that they plan to work with bitcoin or invest in it. These actions are of great importance for the cryptocurrency market because they show the rest of the players what to do. It is these "cryptocurrency manipulations" that lead to serious price increases. Simply put, a huge number of bitcoin traders buy this cryptocurrency with one goal – to make money on growth. Accordingly, the more crypto traders join the "buy bitcoin" movement, the more its value will grow. Accordingly, large holders of bitcoin can only warm up interest in the cryptocurrency and make it clear to the market that they believe in further price growth and that $ 100,000 per coin (or any other goal) is an objective reality. That's what Elon Musk and the company are doing right now. The owner of Tesla and SpaceX has clearly shown an unhealthy interest in bitcoin in recent weeks. One of the richest people in the world (which automatically means a huge trust in his words) regularly comments on bitcoin, mentions it in his comments, and makes it clear that the cryptocurrency will continue to grow. And if the richest man on Earth says that the "cue ball" will continue to grow, then why not believe him? The latest news related to Elon Musk says that the businessman has joined the Internet movement "Laser Way for Bitcoin''. The meaning of this movement is to post images to their social networks with the image of "glowing eyes", which symbolize the further growth of the "cue ball". It is clear that everyone who posts such an image in their account is the owner of bitcoin and believes in its further growth. Now a similar image was posted by Elon Musk, and the number one cryptocurrency continued to rise in price. Thus, the main conclusion that we would like to draw is that large investors and players continue to manipulate the market to maximize the growth of bitcoin, in which they are personally interested. And it's not good, and it's not bad. This is reality. Recent events have already shown that if a large number of people unite with a single goal, they are quite capable of bringing down certain stocks or, on the contrary, provoking their huge and illogical (at first glance) growth. However, the price of any asset is determined by supply and demand. If an asset is bought, it increases in price. And why it is bought, it is no longer interesting to anyone in 2020-2021.

What do you think will be the reaction of bitcoin if tomorrow Elon Musk announces that he has sold all the coins he has?





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin reaches new record high and total: what is next?

As we expected, bitcoin skyrocketed amid the hype and constant news about intentions of large companies to invest in the virtual asset. Bitcoin is very close to the level of $54,000. The odds are that bitcoin will not stop there. As of 18:00 on February 19, the price of the cryptocurrency was $53.752. Apart from a new price record, Bitcoin's market value has surpassed $1 trillion, a milestone that puts the cryptocurrency in a very exclusive club.



The entire cryptocurrency market showed a meteoric rise amid such news. After the fall in the crypto market, Ethereum jumped to its usual levels and successfully consolidated there. Within a day, the asset, which is close to the recent record, is likely to break through the level of $2,000.



Ripple also gained momentum even though there were no fundamental factors for its growth. After the news about the upcoming trial between the company and the SEC, the coin fell to $0.5. However, over the past day, XRP has gained momentum growing to $0.553.



Like Ethereum, Litecoin faced some pressure due to bitcoin's growth. However, later, it also moved up. The cryptocurrency halted its growth at $232. Currently, it is rising up again.



Currently, the crypto market is literally experiencing a boom amid news about new investments in bitcoin, the use of bitcoin and other cryptocurrencies as a means of payment in different countries, as well as the start of research on new opportunities for digital assets. It seems that everything is moving according to the scenario where BTC will hit new record highs. Bitcoin is likely to reach the level of $56. Ethereum may break through the threshold of $2,000. We can expect new jumps in Litecoin as well. The growth of the cryptocurrency market will continue until the beginning of spring when a full-scale market correction may occur. It may hit altcoins especially hard.

Bitcoin is unlikely to extend large losses, roughly $4,000-5,000, but this decline will greatly affect other coins. It may also lead to investors' losses. In a situation where the cryptocurrency market is closely linked to bitcoin quotes, other coins can fall in price much more. The situation is particularly unpleasant for the Ripple token, which, in addition to the market correction, is under pressure due to the trial. Nevertheless, the correction is necessary for the further development of the cryptocurrency market. The beginning of 2021 turned out to be a landmark for the entire industry. Until recently, the crypto market barely passed the level of one trillion dollars in total capitalization, and a few months later, bitcoin alone broke this supposedly unachievable level.




Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for Bitcoin BTC/USD for February 19 - 22, 2021: Overbought



The upward trend in the cryptocurrency market continues with the euphoria, now the BTC this morning of February 19 is trading at $ 52,670 is about to reach the level of $ 53,125 in that area is located the +1/8 of Murray could enter the overbuy area.

On the other hand, retail traders are long while professional traders are less optimistic in the short term.

In view of the fact that there could be a correction of the BTC we recommend waiting for the support level located with the SMA of 21 at $ 50863, a bounce in this zone will give the bullish force with targets at $ 56,250.

On the contrary, a break below the psychological level of $ 50,300 we could sell with targets at $ 46,875, there is 7/8 of Murray.


Support And Resistance Levels For February 19 - 22, 2021

Resistance (1) $53,570
Resistance (2) $54,320
Resistance (3) $57,096

Support (1) $51,059
Support (2) $50,138
Support (3) $47,738




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for February 19, 2021

Crypto Industry News:
BlackRock's chief investment officer Rick Reider admitted that the company is starting to "tinker" with bitcoin:

"We started to take a little interest in it [...] I have the feeling that technology has evolved and regulation has moved so much that many people think BTC should be part of the portfolio.

Reider says diversifying in terms of assets such as cryptocurrencies "makes some sense" because traditional safeguards like interest rates no longer work.

However, he declined to specify what percentage of the wallet should be kept in the flagship cryptocurrency:

"I will not give you the percentage of the allocation you would need. It depends on what the rest of your wallet looks like. "

BlackRock has been spinning around bitcoin for a long time

As early as January 20, BlackRock announced that it could gain exposure to bitcoin derivatives through two of its funds (BlackRock Global Allcoation Fund, Inc. and BlackRock Funds V).

BlackRock didn't get interested in bitcoin overnight. However, some of the management's earlier comments signaled that the company was actively exploring the industry, waiting for an opportune moment.


Technical Market Outlook:
The BTC/USD pair had made the all time high was made at the level of $52,516 and the next target for Bitcoin is now located at $60,000. The market is now consolidating the recent gains above $50,000. In the meantime, the local technical supports are: $45,902 and $50,000. The intraday support is $51,499. However, if the market is out of the main channel and the price is below the level of $43,125 ( overbalance level), then the chance for a deeper correction are high, so please keep an eye on this levels. Please notice, the momentum is now decreasing as the price go up, which might be the beginning for bearish divergence on H4 time frame chart.

Weekly Pivot Points:
WR3 - $65,941
WR2 - $57,841
WR1 - $54,644

Weekly Pivot - $45,671
WS1 - $42,441
WS2 - $34,081
WS3 - $31,183


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 19, 2021

Crypto Industry News:

Over the past two weeks, digital asset management firm Grayscale has purchased more than $ 344 million worth of Ethereum (ETH) on behalf of its investors.

According to data from the cryptocurrency trading and analysis platform Bybt, between February 3 and 13, the Grayscale Ethereum (ETHE) fund was receiving almost every day investments worth thousands of ETH worth tens of millions of dollars.

Grayscale made the biggest purchase in this period on February 12th. At that time, 52,730 ETH with a value of USD 1,770 each entered the fund's portfolios.

All in all, in just two weeks, Grayscale bought 197,890 ETH and a value of $ 344.3 million. According to Bybt, Grayscale Ethereum Trust currently owns 3.13 million in ETH, representing 0.2% of the total supply of the leading smart contract platform.

Increasing investor interest in the Ethereum fund goes hand in hand with the product being brought back to life in Grayscale. At the end of December, the company decided to temporarily close the fund.

In a new tweet, Grayscale reveals that he currently manages cryptocurrency assets worth $ 38.8 billion. Assets under the Ethereum Trust (AUM) umbrella are valued at over $ 5.57 billion.


Technical Market Outlook:
The ETH/USD pair has broken through the short-term trend line resistance located close to the level of $1,800 and hit the level of $1,946 (current all time high). The next target for bulls is seen at the level of $2000, but the market has made the Bearish Engulfing pattern on the H4 time frame chart, which indicates a up trend termination. The intraday technical support is currently located at the level of $1,873. Please notice, the level of $1,904 is the 161% Fibonacci extension of the last wave up, so the bulls must continue to move up, otherwise a consolidation will be a reason for bears to try to push the prices down again.

Weekly Pivot Points:
WR3 - $2,286
WR2 - $2,080
WR1 - $1,977

Weekly Pivot - $1,768
WS1 - $1,663
WS2 - $1,454
WS3 - $1,346


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $2,000, 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 $830 is broken.







Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

A company with 7 trillion funds has begun to take an interest in bitcoin.



The bitcoin rate has come close to $ 52,000 per coin and, it seems, is not going to stop there. We continue to believe that the current growth of the cue ball is speculative. However, there simply cannot be other options. If we talk about more or less fair value of bitcoin, then this is probably the value that is observed during periods of calm. For example, from 2017 to 2020, the bitcoin rate fluctuated between $ 10,000 and $ 13,000 per coin. Now, in just a few months, it has grown more than fivefold. Thus, as in 2017, the hype will end sooner or later, and bitcoin will begin to fall. The only question is, how high will he be able to climb before traders begin to get rid of him? After all, none of the investors is going to keep money in bitcoins, pay with them, and so on. Bitcoin is an investment vehicle where you can make a lot of money quickly. However, if someone earns, then someone loses. For example, the 88 thousand traders who lost $ 570 million in the last jump in cryptocurrency. On the day the cryptocurrency hit its high, breaking the psychological $ 50,000 mark and then crashing down to $ 3,000, many margin positions were closed. Thus, bitcoin is not only a super-profitable instrument, but also a super-loss-making instrument, a super-dangerous instrument due to its very high volatility and unpredictability. The last days are still very calm days for Bitcoin. Elon Musk took a break and no longer comments on Bitcoin, switching to the hype of other cryptocurrencies. Thus, the market urgently needs new reasons to strengthen the cue ball. For instance, it could be news about new purchases of bitcoin by any company. Such companies from time to time declare their intention.

Although interest in bitcoin is still growing, this is a fact. And this fact can also help the "cue ball" rate to continue to grow. It became known that BlackRock, which has $ 8.7 trillion in assets under management, is interested in bitcoin and may transfer part of its reserves to this cryptocurrency. This was stated by its investment director Rick Reader. "Since the technology has developed quite high, bitcoin for many becomes part of the portfolio, which continues to push the price up." Reader also noted that his company does not recommend buying bitcoin or other cryptocurrencies to its clients. However, the company itself wants to follow the lead of Tesla and Micro strategy. Rick Reeder previously stated that he considers Bitcoin to be a much more functional asset than gold. Unlike many who predict the collapse of Bitcoin.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Janet Yellen believes that the risks associated with the cryptocurrency segment are growing



Investors are paying more and more attention to bitcoin and other cryptocurrencies, forcing them to grow even stronger. On the other hand, central banks and governments of many countries are either banning bitcoin (India, for example), or tightening legislation related to the cryptocurrency segment, introducing various taxes on mining or operations with cryptocurrencies. The governments of many countries continue to view cryptocurrencies as a threat to stability and want to control their turnover and clearly understand who owns what amount and where. However, for now, governments can only comment on cryptocurrencies and advise ordinary citizens not to deal with them, since, allegedly, cryptocurrencies are mainly used by scammers and terrorists. Although a few years ago, a study was conducted, the results of which showed that much more criminal operations are carried out in dollars than in all cryptocurrencies combined. Last week, US Treasury Secretary Janet Yellen took the floor again and stated that "the growing problem is the illegal use of cryptocurrencies and various digital assets. Cryptocurrencies are used to launder drug traffickers' money, as well as to finance terrorism." According to her, the private sector invests huge resources to find ways to prevent attackers from using technology improperly. Ergo, there is no doubt that central banks will continue to do everything to "curb" the cryptocurrency market. At a time when the Internet was just gaining momentum, a huge number of different online payment and settlement systems were created, which the states could not control in any way. But over time, the relevant laws were issued, the relevant concepts were defined, and now all these payment systems are controlled by governments. It is no doubt that it will be the same with cryptocurrencies sooner or later. At the moment, it is simply not clear how the state is going to track the owners of the cue ball and other cryptocurrencies. There are also a very large number of questions about taxation. For example: why should bitcoin be taxed if it is a debt repayment? The authorities of many countries believe that any transfer of bitcoin should be taxed and potentially brings profit to its owner. So, you need to share it with the state.

In the meantime, bitcoin is trading around $51-52 thousand per coin around the world. In Nigeria, the rate has already soared to $76,000. This happened after the central bank banned any financial institutions from providing services related to cryptocurrencies. It is believed that Nigeria is the most interested country in bitcoin. In the sense that its residents are most interested in bitcoin in the world. Previously, the Securities and Exchange Commission of Nigeria recognized digital assets as "securities," unless proven otherwise.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Dogecoin has surged more than 950% since the start of the year from less than a halfpenny to more than five cents a coin



Online broker Robinhood said on Wednesday that it intends to provide customers with the ability to deposit and withdraw cryptocurrencies including dogecoin based on memes.

The trading application that is popular with young investors currently allows customers to buy, sell and store cryptocurrencies such as Bitcoin on its platform, but users cannot withdraw their assets to transfer to other wallets.

In January, Robinhood temporarily disabled a feature in its app that allowed users to instantly buy cryptocurrency securities due to volatile market conditions caused by the boom of trade shares GameStop Corp. The brokerage company faced criticism from users who could not move their assets to other companies.

As part of a series of tweets, Robinhood said that it does not currently invest in cryptocurrency and does not use customer's cryptocurrency for its own benefit. The platform is fully designed to provide the ability to deposit and withdraw cryptocurrencies including DOGE. Robinhood Crypto does not currently invest in cryptocurrency and does not use client's cryptocurrency for its own benefit.

On Tuesday, Musk tweeted his suspicions and asked Robinhood CEO Vlad Teneva to explain the broker's previous decisions to restrict trading in GameStop Corp shares and Dogecoin during the January market mania.

On Wednesday, after much attention about who is the owner of the largest Dogecoin wallet, Robinhood tweeted that it would not confirm which addresses belong to them.

For operational security reasons and to protect customer privacy, a spokeswoman for Robinhood did not immediately respond to a request for comment.




Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin continues its growth, and Ethereum updates its all-time high: Is the cryptocurrency market awaiting a price correction?

As opposed to expectations, bitcoin continues to gain momentum, attracting more and more attention. On February 17, the price of the first asset reached $52,000, after which it was fixed at this mark. Amid the protracted growth of bitcoin, the entire cryptocurrency market shows a big increase. More than others, ether succeeded in this. Ether updated its all-time high of capitalization on February 18, increasing in price by 7%.

The main altcoin overcame the psychological threshold of $1,925 and consolidated at $1,912. The total market capitalization of Ethereum has reached $217 billion. It is worth noting that the price of ether soared to its historical level in just a few hours. The increase in the price of ether has led to an increase in the cost of commissions for transactions within the network. This indicator has again reached the mark of $20, and on separate exchanges, the transaction will cost more than $100.



The cryptocurrency market is once again experiencing local growth associated with the constantly rising price of bitcoin. However, the market may soon sink due to the price correction of bitcoin. This is evidenced by the statistical indicators of the number of buyers and sellers on crypto platforms. Most likely, the price increase for the first crypto asset will continue until the end of February. Bitcoin may well swing to $55-57 thousand, which will lead to another growth of the market and individual altcoins. However, already at the beginning of spring there are many more prerequisites for the market being overwhelmed by a price correction. This is also evidenced by the sharp jumps in the price of bitcoin, which leads to large financial losses among market participants.

Nevertheless, the price correction is necessary for the cryptocurrency market to further increase the total capitalization. The chances of developing digital currencies without a price correction are estimated by market participants as minimal. The market will benefit from falling prices for major digital assets, however, the adjustment will have a negative impact on individual cryptocurrencies. In the spring, bitcoin will most likely roll back in price to the level of $51-52 thousand, while ether will probably fall in price to $1,750-1,800. Much more incomprehensible is the situation with the Ripple token, which, after the news of the trial, does not respond to the growth of bitcoin. Nonetheless, at the end of the second and beginning of the third quarter, new records from the cryptocurrency market should be expected.




Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021