Cryptocurrency Analysis

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The effect of Tesla and other large investors: what awaits Bitcoin and other cryptocurrencies in the spring

On February 8, an announcement took place, which, in many ways, will become decisive for the cryptocurrency market, especially bitcoin. After a rapid growth to $48,000, the main digital asset dipped slightly, stopping at around $45,700. However, experts believe that this is only a temporary phenomenon and the position of bitcoin will continue to strengthen.

Obviously, the main reason for the future growth of the main cryptocurrency was a message from the founder of Tesla about a large investment in a digital asset. A $1.5 billion investment from one of the world's foremost companies is a clear signal to other potential major investors. In this case, Tesla acts not only as a kind of pioneer but also as a guarantor of the security of both carrying out operations with cryptocurrency on an ongoing basis and investment injections.



It is also worth noting that, despite the clear increased demand for cryptocurrency after the announcement of Tesla, the situation is radically different from 2017, when, after a sharp rise, the volatility of a digital asset played a cruel joke with traders. First of all, the situation in 2021 differs in the composition of the participants: if in 2017 the increased demand for cryptocurrency was created by retail traders, now a huge company with a multi-billion dollar capitalization reports about large investment injections and future cooperation. This is a sign of reliability for other large investors who will maintain interest in Bitcoin, which will not lead to a significant drawdown or a complete collapse of up to $20,000.

With a favorable coincidence of circumstances and an adequate reaction from other large investors, bitcoin may continue to grow in price and by the spring, it may reach the $53,000 mark. This growth dynamic will also benefit other cryptocurrencies such as Ethereum. Even though today is already February 10, altcoin continues to rise in price against the backdrop of Bitcoin's success. The bottom line can be said that Tesla's statement of intent could radically change the balance of power and attitudes towards the cryptocurrency market. And if Musk's company is consistent, it will surely attract a steady stream of large investments from other giants in the world markets.




Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin continues to set new records



Bitcoin continues to set new records, surpassing $ 48,000 on Tuesday, which, in turn, pulled other digital tokens. This occurred amid the announcement of Elon Musk's investment in Bitcoin.

Musk, who is the current CEO of Tesla, has been commenting on digital coins for several weeks now. More recently, he talked about Dogecoin, which is an open source cryptocurrency launched in 2013. To date, Dogecoin has also exceeded its records.

Going back to Bitcoin, its popularity is increasing more and more. What was once an unmanaged asset suitable only for online speculators has become a financial instrument used by the world's most famous investment companies.

Indeed, this rise in BTC is good news for holders. However, it is also a boon for any company. Take Riot Blockchain (RIOT) for example. In the last two trading sessions, its shares have skyrocketed by 75%, while over the past 12 months, it jumped by a total of 2650%. Although this is very good, its value is still uncertain and unstable, being dependent on cryptocurrency rises or falls.

Kevin Dede, a cryptocurrency analyst, emphasized that "those trying to evaluate bitcoin miners face additional challenges."

In that regard, Dede forecast that shares of RIOT will grow from $7.5 to $28, but at the time of writing, it has already exceeded this value.

JPMorgan is also actively trading in the market, and it is one of the founders of Enterprise Ethereum Alliance, a group experimenting with a private version of the blockchain. Its announcement saying that it is using its own blockchain to enter into billion-dollar buyback agreements helped convince Goldman Sachs to join the new digital market earlier this year.

Meanwhile, Morgan Stanley CEO James Gorman was one of the first Wall Street leaders to put trust in Bitcoin. In 2017, Gorman declared that it was more than just a whim, and now, the bank has shown more interest in Bitcoin from traditional financial companies.

Three years ago, Goldman Sachs hired a crypto trader to help lead the digital asset markets with the aim of educating people in the company and customers about cryptocurrencies. The firm has previously pondered whether it needs to open a trading floor to create markets in digital currencies.

More recently, Goldman Sachs downplayed the value of Bitcoin as an asset class, saying the sharp fluctuations in its price prove that it is not a real unit of value. At the same time, the company is exploring the possibility of creating its own digital fiat token, but warns that it is too early to talk about it.

Nevertheless, interest in the cryptocurrency is increasing more and more.





Andrey Shevchenko
Analytical expert
InstaForex Group © 2007-2021

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Forecast and new targets for Litecoin

Contrary to other cryptocurrencies, Litecoin traded quite positively and skillfully yesterday.

The evening growth forecast within the sideways range of 171.25 - 186.48 perfectly coincided. Moreover, the quotes of the LTC/USD pair broke through the resistance level of 186.48. So analyzing the hourly time frame, a technical confirmation of this level as support can be observed. Now, we should expect an upward movement to the horizontal of 205.84. However, we should wait for this pair to consolidate above the previous day's highs first.



If we assess the current situation, there is a risk that the LTC/USD pair may consolidate above the level of 186.48. And even despite the technical upward rebound, there is a possibility that the breakdown may turn out to be false. Therefore, it is necessary to place a stop loss when buying deals.




Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of BTC/USD for February 10, 2021

Crypto Industry News:

A recent study by Glassnode revealed that bitcoin supply continued to decline. The reason is that investors are gradually acquiring and accumulating assets with the intention of holding in the long term.

The data shows that approximately 78% of mined bitcoins are lost or kept. Glassnode adds that this leaves less than 4 million BTC to be shared among future market entrants. Potential interested parties may include PayPal, Square, S & P500 companies, ETFs and the like.

The recent rise in BTC price may have been fueled by retail traders as well. Twitter community investment sentiment hit record highs after Tesla announced that it had bought $ 1.5 billion worth of bitcoins in January.

Grayscale continues to grow its Bitcoin Trust, and its latest tweet suggests institutional investment firm-managed assets hit a record high of over $ 33 billion.


Technical Market Outlook:

The BTC/USD pair has been seen consolidating the recent gains in a narrow zone located between the levels of $44,992 - $47,995. The next target for bulls is seen at the level of $50,000. The key short-term technical support is located at the level of $42,560 and $44,692. Please notice, that despite the strong and positive momentum, the market conditions are now extremely overbought, so some market reaction is expected once the level of $50,000 is hit.

Weekly Pivot Points:
WR3 - $51,306
WR2 - $46,193
WR1 - $42,645

Weekly Pivot - $37,209
WS1 - $34,108
WS2 - $28,930
WS3 - $25,324


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 $50,000. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $30,000 is clearly broken.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for February 10, 2021

Crypto Industry News:

Ethereum, the world's largest altcoin, has crossed another milestone on the price charts with a valuation above $ 1,800.

Due to rising prices, ETH's market capitalization also exceeded $ 200 billion for the first time recently. It's worth noting that the cryptocurrency has been in a sustained upward trend since the beginning of 2021. In fact, ethereum seems to be looking for a ceiling for its valuation since 2018's ATH exceeded $ 1,448.

ETH options contracts outperformed BTC options in January 2021. Interest in ethereum has also increased in the derivative markets. 3,529,404 ETH option contracts were sold in January. From December 2020, contracts have increased by 18%.

Total turnover was close to USD 96 billion (BTC and ETH combined). Growing interest in the ETH market was also observed in terms of Open Interest. In January 2021, the number of open contracts for ETH increased from $ 800 million to an impressive $ 1.8 billion, an increase of almost 130%.

In the context of the popularity of staking in Ethereum 2.0, the statistics speak for themselves. According to Glassnode, the total amount of ether blocked on the Ethereum 2.0 network recently surpassed the $ 5 billion mark.

It's worth noting that validators who stack ether in ETH 2.0 will not be able to get their assets back until Phase 2 is launched, which is at least another development year. Such sentiments underline the long-term confidence in the development of ETH 2.0. EIP-1559 is also important.


Technical Market Outlook:

The ETH/USD pair has hit the level of $1,822 as another extension of the last wave up. The next target for bulls is seen at the level of 41,904 (161% Fibonacci extension of the wave C). The intraday technical support is located at the level of $1,745. The momentum is strong and positive and market conditions are now bouncing from the oversold levels on the H4 time frame chart.

Weekly Pivot Points:
WR3 - $2,306
WR2 - $2,035
WR1 - $1,838

Weekly Pivot - $1,545
WS1 - $1,349
WS2 - $1,062
WS3 - $860


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

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Forecast and trading signals for Bitcoin on February 10

Bitcoin, H1 time frame:


Bitcoin tried to continue rising in the H1 chart yesterday and it managed to do so. The absolute maximums were updated again, however, there was no movement by $ 5,000 - $ 7,000 up this time. The price broke through the resistance level of $ 45879, but it failed to resume growth with the same pressure. Thus, a correction is now in process. In general, the upward trend is maintained, proven by the upward trend line. Therefore, we cannot expect Bitcoin to move below this trend line yet. Today, it will most likely try to decline to the Kijun-sen line of the Ichimoku indicator. And although this is a fairly large segment – about 2.5 thousand dollars, it does not matter to Bitcoin. During the previous review on the "cue ball," it is recommended to trade upwards, as the level of $ 45879 was broken through. However, growth did not continue to the target level of $ 50834, as trading fully is now generally associated with increased risks, as the price is at absolute highs. There are no intermediate extreme levels, the movement is impulsive, speculative and can end at any time. Therefore, it is necessary to be careful.


Bitcoin, M15 time frame:


The lower channel of the linear regression turned down in the M15 chart, which gives Bitcoin hope for a correction in the coming days. However, the price has not even managed to consolidate below the level of $ 45879. There was one false breakout of this level, but the trades are currently going above it. This means that buyers are not yet taking profits on long positions and Bitcoin can further rise.

It was mentioned a few times in the previous articles that the cryptocurrency market is extremely volatile and unstable. Can you imagine Christine Lagarde or Jerome Powell making a statement after which the EUR/USD pair would rise by 10%? That is, for example, from $ 1.2200 to $ 1.3300. For such a thing to happen, the EUR/USD pair will need at least a couple of months. But Bitcoin can only do this in just a few days. It can be recalled that the president of Tesla and SpaceX first tweeted on his account regarding Bitcoin, stating that he believes in this cryptocurrency. And literally days later, Tesla announced to the US Securities and Exchange Commission that it had invested $ 1.5 billion on it. The company also said it is going to accept this leading cryptocurrency as a means of payment for Tesla electric cars. Tesla explained its decision by the desire to change the approach to investment policy, which will make it possible to earn money that is not involved in maintaining the necessary operational liquidity. It would seem that the transaction was already completed at the time of the report to the SEC. However, bitcoin is not gold, currency, or stock. It is subject to completely different rules of exchange rate formation. In particular, the most important factor on a trend is traders' mood or the "speculative factor". And for the mood of traders, just such tweets from Elon Musk are needed. As soon as it became known that Musk is favorable to bitcoin, and his company invested money in it, a new batch of traders rushed to buy the "cue ball" in the hope that the price will grow even more. That is, we are now in the next wave of uncontrolled growth. "Cue ball" is not needed by anyone, as a means of accumulation or preservation, instead everyone needs it as a means of gaining profit.

In any case, there are two trading ideas for February 10:

1) Buyers still control the cryptocurrency market and continue to set records for Bitcoin's value. Thus, it is recommended to buy it again if the price holds above the level of $ 45,879, with a target of the $ 50,834 ($ 50,000) resistance level. In such cases, Take Profit can be up to $ 4200 per 1 lot. Moreover, buying bitcoin is also possible if the price clearly and accurately rebounds from the Kijun-sen line ($ 42,753) with a target of $ 45,879.

2) Bears are resting again and are waiting for buyers to start fixing profits on long positions. Thus, it is not suggested to sell Bitcoin at least today or in the near future, as it is very risky on such a strong upward trend. It is necessary to wait until the upward trend is over and clear sell signals are observed, or at the very least, once the price consolidates below the critical line.


Explanations for illustrations:

Price levels of support and resistance (resistance/support) - levels that are targets when opening purchases or sales. It is possible to place Take Profit levels near these levels.

The Kijun-sen and Senkou Span B lines are the Ichimoku indicator lines transferred to the H1 and H4 time frame.

Support and resistance areas - areas where the price has repeatedly rebounded.

Yellow lines - trend lines, trend channels and any other technical patterns.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Forecast and trading signals for Ethereum on February 10

Ethereum, H1 time frame:



Ethereum continued to rise in the hourly chart yesterday. However, it met the resistance level of 1812.43, which it was unable to break through twice. Thus, a downward correction will now be possible. Until the resistance level is overcome, it is not worth counting on a new strengthening of the cryptocurrency. But fortunately, the upward trend of the two most popular cryptocurrencies persist. There are two ascending trend lines at once and so, we are only expecting a correction. In the previous review, it was recommended to continue buying Ethereum if the level of 1757.81 is broken through. This level was exceeded twice, so each time, traders could open purchases that allowed them to earn 4,000 points of profit. However, a clear rebound from the level of 1757.81 did not happen, so short positions should not have been opened yesterday.


Ethereum, M15 time frame:


Both linear regression channels are inclined upwards in the M15 time frame, signaling a short-term upward trend. However, the cryptocurrency failed to break through the level of 1812.43 two times in a row and it is very evident in the chart that the price has never formed a "false breakout", as it was unable to keep its position above this level for more or less an hour. Thus, we are directed again to a possible correction to the critical Kijun-sen line.

The price of the second leading cryptocurrency continues to ascend, just like the whole cryptocurrency market. One way or another, Bitcoin pulls other cryptocurrencies with it. In addition to Elon Musk's tweets and Tesla's report, which decided to invest in Bitcoin, Ethereum has its own positive news. This cryptocurrency gained access to the Chicago Mercantile Exchange on Monday, February 8. Thus, its recent growth is clearly reasonable. But at the same time, this cryptocurrency cannot still be called low-volatile. It was already mentioned a few times that almost any cryptocurrency is an extremely volatile instrument. This is proven by the data on the losses to traders of their deposits in trading in Bitcoin and Ethereum yesterday. For example, traders who opened sell transactions on Bitcoin lost around $ 1.2 billion, while with Ethereum, sellers lost 147 million dollars. Thus, we continue to warn traders that it is not difficult to lose their deposits when it comes to trading cryptocurrencies. However, if one clearly adheres to the strategy, do not try to guess the reversals and trade strictly according to the trend, then it can earn a lot. For example, many cryptanalysts now recommend taking profits on long positions, as growth already looks excessive. However, this does not mean that the Ethereum and Bitcoin cryptocurrencies should be sold. The growth of both can continue for some time, but the main point of this advice is not to take risk for nothing.

Thus, when opening long positions, it is necessary to note risk management and protective Stop Loss orders in case of a sharp price downward reversal. Many crypto experts also note the strong dependence of altcoins on bitcoin. Therefore, an excessively overheated bitcoin may begin to decline in the near future and pull other cryptocurrencies down with it.

In any case, there are two trading ideas for February 10:

1) Buyers took the lead again, pushing Ethereum towards new peaks. Thus, it is recommended to buy it if it successfully breaks through the resistance level of $ 1812.43, with the target set at $ 2029.00. In this case, Take Profit can be up to 18000 points. It is also possible to buy it with targets of $ 1,757.81 and $ 1,812.43 if the price rebounds from the Kijun-sen line ($ 1,652.00) or the level of 1,694.83.

2) Bears have recently corrected the cryptocurrency, but it is still lacking. Today, another correction is likely again. But given the strength of the upward trend, it is recommended to trade below, with targets set at the level of $ 1557.33 and the Senkou Span B line ($ 1513.00), if the price consolidates below the Kijun-sen line ($ 1657.00). Here, Take Profit can take up to 11000 points.


Explanations for illustrations:

Price levels of support and resistance (resistance/support) - levels that are targets when opening purchases or sales. It is possible to place Take Profit levels near these levels.

The Kijun-sen and Senkou Span B lines are the Ichimoku indicator lines transferred to the H1 and H4 time frame.

Support and resistance areas - areas where the price has repeatedly rebounded.

Yellow lines - trend lines, trend channels and any other technical patterns.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Litecoin has fulfilled its forecast. What's next?

Litecoin quotes came out of the proto-trading pattern at the downward resistance level of 171.25 and as expected, it reached the nearest support level of 163.34, marked with a blue dotted line.

Further from the horizontal of 163.34, there was an upward rebound. The price returns to the sideways resistance level of 163.34 - 171.25, and when it reaches it, LTC USD is again waiting for a "fork".

In the first case, if the resistance persists, the quotes will decline. If not immediately, perhaps after another strength test. In the second case, a successful breakdown of the 171.25 horizontal is possible, and if it is confirmed as support, the path to the next resistance level of 186.48 will open for LTC USD.



The local correction in the cryptocurrency market was associated with a downward pullback of bitcoin after an impulse growth. However, the main cryptocurrency also seems to have found the pullback boundary at 44787.66 and is bouncing up from it. If fixed above today's highs, BTC USD will open the way for growth towards the next target of $ 50,000 per coin. It is also possible to temporarily trade the current values, forming a sideways movement before forming a new impulse.






Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

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LTC/USD reaches next target area and resistance

In our last analysis we showed the bullish channel LTC/USD was in and noted that a push towards the upper channel boundary towards $175 was highly likely as long as bulls held price above $160.



Blue lines - bullish channel

LTC/USD momentum remains bullish as price continues making higher highs and higher lows. Price reached the upper channel boundary and made a high today at $174.51. Support is at $152.50 at the lower channel boundary. Any pull back towards that support level is considered a buying opportunity as bulls remain in control of the trend. Exiting the bullish channel is something bulls do not want to see.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Ethereum bypassed Bitcoin

The ETHUSD quotes soared today, once again updating the historical maximum and adding more than 5% over the past day. Since the beginning of the year, the price of the ethereum cryptocurrency based on the Ethereum blockchain has almost doubled. If we compare this with the growth of bitcoin, ETHUSD has overtaken BTCUSD by almost 60% in terms of growth rates.

What caused such a significant increase in the value of the second cryptocurrency?

First, the listing of Ethereum futures on the regulated Chicago exchange CME is already a big breakthrough in the history of the coin. This may increase the demand for cryptocurrency from institutional investors.

Secondly, we should not rule out an increase in interest in the cryptocurrency after the recent history with Reddit and sensational pumps. Confidence in the security of regulated markets could well be shaken.

Third, experts note that the crypto exchanges are now low in liquidity. There was a decrease in the volume of cryptocurrencies stored on exchange accounts to the lowest values over the past 16 months. The growing popularity of DeFi protocols can lead to a large amount of digital coins being transferred to DeFi.

Meanwhile, the ETHUSD quotes have slightly rolled back from historical highs, but the potential for their growth from a technical point of view remains.





Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021