Cryptocurrency Analysis

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Coinbase to buy over $ 500 million worth of crypto



Coinbase Global is reportedly buying more than $ 500 million worth of cryptocurrency. It is said to have received permission from the board of directors, according to a tweet posted by CEO Brian Armstrong on Thursday. Accordingly, its stocks rose 1.72% in the pre-market.

"We recently received board approval to purchase over $500M of crypto on our balance sheet to add to our existing holdings. And we'll be investing 10% of all profit going forward in crypto. I expect this percentage to keep growing over time as the cryptoeconomy matures," Armstrong said.

Several public companies now hold digital assets on their balance sheets, including Tesla. Last February, its CEO, Elon Musk, announced that they invested $ 1.5 billion in Bitcoin.

But at the same time, regulators have begun closely monitoring the cryptocurrency sector, as it has been subject to a high level of fraud. In fact, the $ 1 trillion infrastructure package that was passed by the US Senate last week and is currently being actively discussed includes a clause regulating digital assets.

Nevertheless, as of December 30, Coinbase has $ 48.9 million in stablecoin and $ 130.1 million in Bitcoin.





Andrey Shevchenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin breaks through $50,000 psychological level



So the moment has come for the breakdown of the psychological level of $50,000, it did not take so much time. The bullish cycle was clear, and since the spring correction, many cryptocurrencies have made x2-x3 from the bottom. I'm not talking about completing the journey, just don't forget why you are in the market. Withdraw partially received profit, increase your deposit.

The information background continues to feed the market with positive emotions. Today there was news that the largest debit electronic payment system PayPal, which, actively working with cryptocurrencies in the United States, opened up the opportunity for UK customers to buy, store and sell cryptocurrency.

"Our global reach, digital payments expertise, and consumer and business knowledge, combined with strong security and compliance controls, gives us a unique opportunity and responsibility to help people in the UK explore cryptocurrency," said PayPal Vice President Jose Fernandez da Ponte.

PayPal users in the UK can transact with Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

Based on the experience of PayPal in the United States, the functions of using cryptocurrency in the UK will be expanded in the future.

The news stream does not end there, one of the most influential crypto-exchanges, Coinbase, announced its intentions to purchase digital assets worth over $500 million and will invest 10% of all profits in them in the future. This was announced by its CEO, Brian Armstrong.

Do not forget that Coinbase shares are listed on the NASDAQ exchange, therefore, this message is addressed not only to the crypto world but also to institutional investors who invest in cryptocurrency through the company's shares.

This kind of investment approach is common among qualified market players, such as BlackRock, an investment firm that acquired stakes in Nasdaq-listed mining firms Marathon Digital Holdings and Riot Blockchain.

Investment volume: 6.71% of Marathon Digital Holdings ($207 million) and 6.61% of Riot Blockchain ($175 million).

Thus, the world's leading finance company BlackRock, which manages more than $8.7 trillion in assets, is focused on the growth of the crypto market in the future. Since the value of shares of mining companies is directly related to the growth of cryptocurrencies.

The latest news to date was the announcement by the first largest mortgage lender in the United States, United Wholesale Mortgage, that they plan to accept payments in cryptocurrency this year.

In fact, we are once again observing the process of adaptation of cryptocurrency in everyday life.

What is happening on Bitcoin and Ethereum trading charts?

The Bitcoin quote is trying to stay above the psychological level of $50,000, but this is not the most important thing. What traders are most interested in now is that the $50,000 level has been broken, which means that in theory, the upward cycle has recovered. This means that the all-time high of $64,900 can be updated soon, and the market will again enter a greedy period.

If our expectations coincide, then possibly from October to November, the local high will be updated.

Ethereum resumed its upward trend after a short stagnation. Buyers are on the way to the level of $3,500, which may be touched soon. The psychological region of $4,000/$4,300 will become a fairly strong obstacle for traders, but if by this time the hype becomes even larger, the region may lose its strength.



The index of emotions (aka fear and greed) of the crypto market is at 79 points, this is an area close to FOMO* (Lost Profit Syndrome*), where an insane amount of capital and new participants (excitement) are pouring into the market. In fact, the emotional state of the market returned to the levels of mid-April. This is very good for an upward cycle.






Gven Podolsky
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BTC analysis for August 21,.2021 - Upside pressure with potential for test of $53.000

Technical analysis:



BTC has been trading upside as I expected. The price reached first objective at the price of $50,000 but I see potential for the test of second target at $53,000.


Trading recommendation:
BTC is trading in the defined upside trend and the pullback plays are the best option under current condition.

Watch for buying opportunities on the pullbacks with the next upside target at $53,000

Stochastic oscillator is in overbought area but with evidence of the reversal....





Petar Jacimovic
Analytical expert of
InstaForex © 2007-2021

[IFX_Selena]

Technical analysis for Bitcoin

Bitcoin



The bulls tested the first target of the daily target (49230) during the previous week, indicating some slowdown at the close. Today, the high has been updated and bitcoin seeks to break through a new upward pivot point, which combines two important levels at once 51163 (the final level of the weekly dead cross of Ichimoku) and 51461 (100% working out of the daily target for the breakdown of the cloud). The breakdown and consolidation above the aforementioned pivot points are significant steps towards to further strengthen the bullish mood. Now, the nearest support in the higher time frame is the area of 46960, where the daily short-term trend and the weekly medium-term trend are currently located.



The current advantage allows the bulls to develop an upward trend and mark new highs. In this situation, the pair has broken through R2 (49940) and uses this level as support with a short pause. The next intraday reference point is R3 (50510). The key levels in the smaller periods form support levels that are responsible for maintaining the current balance. They are seen at 48558 (central pivot level) and 47489 (weekly long-term trend).


Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart, are used in the technical analysis of this instrument.





Evangelos Poulakis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN for August 23 - 24, 2021: Sell Below Psychological Level of $ 50,000 (61.8%)



Support and Resistance Levels for August 23 - 24, 2021
Resistance (3) 56,548
Resistance (2) 53,119
Resistance (1) 50,731

Support (1) 49,113
Support (2) 48,551
Support (3) 47,731


Trading tip for BITCOIN August 23 - 24, 2021
Sell below the psychological level of $50,000 (4/8) with take profit at 46,500 (50%) and 42,500 (SMA 21), stop loss above $ 51,000.

Sell below $ 51,650 (61.8%) with take profit at $ 46,500 (50%) and $ 42,500 (SMA 21), stop loss above $ 52,500.





Dimitrios Zappas
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Ethereum testing major Fibonacci retracement resistance level.

Ethereum recently made a pull back towards $2,944 from $3,334. This pull back was expected and justified. We were expecting a deeper pull back towards $2,700, nevertheless price reversed to the upside at $2,900 and today made a new higher high at $3,380.



Red lines - bearish divergence

Blue lines - Fibonacci retracements

Ethereum price is at an important Fibonacci retracement level. The 61.8% Fibonacci level is the most probable level for trend reversals. Price is testing the 61.8% level once again. The area around $3,400 is important resistance. Despite the new higher high in price today, the RSI did not follow and provided us with a lower high and a bearish divergence. This is an important warning for traders to be cautious.



Since the $2,944 low, price is making higher highs and higher lows. Support is found at $3,119. If price breaks below this level, then most probably a top is in and price has started another pull back. Breaking below $3,119 will be a bearish sign. Such price action could lead to a move lower towards $2,700. If bulls manage to break above $3,400 resistance area, next upside target is at $3,800.






Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin hovering near $50,000, what's next?

Bitcoin is rather predictable when it comes to technical analysis and usually meets traders' expectations. The level of 48,178.13, that the price broke through on Friday, has been serving as support for three days in a row. Moreover, BTC/USD has reached the psychological level of $50,000 per token. And this is good news for those who are waiting for bitcoin to develop further bullish momentum and return to all-time highs.

According to on-chain analysts, almost 90% of all bitcoin holders in the market are trading in the positive territory. And a rise in the price of the main cryptocurrency prompts the development of the digital coin.

Network data shows that about 70% of bitcoin addresses gained profit in June. Today this number has grown, and the average market entry is currently $45,000.

In the meantime, Santiment data shows that bitcoin price closely correlates with the development activity on Github. Now development activity of the main cryptocurrency is returning to its May values. At the same time, the price is approaching an all-time high of $65,000. But the market seems to be a little overheated now.

Does this mean that we should expect a downward correction?

From the technical viewpoint, the price has precisely tested the indicated levels which means that the local support at $48,178.13 is quite strong. Yet, the nearest technical resistance is found around $52,000 per coin. It is also likely that consolidation will take place within this channel. This is exactly what happened in the previous sideways channel. This means that BTC/USD can pull back from the reached level of $50,000.

A deeper correction is possible if the price breaks through the 48,178.13 level. Then a return to the sideways channel of 44807.24 - 48178.13 is very likely although a negative news background is required for this.

In the meantime, the fundamental background looks quite favorable. The good news today came from PayPal which announced its plans to expand its cryptocurrency services outside of the US. The payment system will allow UK citizens to buy cryptocurrency from their accounts.

At the same time, crypto experts see the new victory of bitcoin as a reason to remind the market about its far-reaching goals. McGlone announced that the main cryptocurrency, along with gold and long-term bonds, will show significant growth and become the market leader in the second quarter of 2021.

This week, market participants are waiting for the Jackson Hole Economic Symposium. The dollar's reaction to the Fed's stance on the monetary policy could affect BTC/USD as well. Although the market can be unpredictable sometimes, the technical picture provides a clear scenario, albeit with a slight fluctuation between the levels.







Ekaterina Kiseleva
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

What awaits BITCOIN after $50,000 per coin?

It is very obvious that the growth of bitcoin is a medium-term impulse. The probability that the exchange rate of the coin will grow in the medium term is high. But yesterday, the level of $50,000 per coin was reached, which may cause the formation of a corrective movement.

The opportunities for earning money on cryptocurrency are endless. Its high volatility allows you to get a good profit in a short time. The last growth, which was started in mid-July, allowed BITCOIN to grow by 70%.

Today, the instrument is trading near the level of $50,000. This may cause the formation of a corrective movement. To do this, it is necessary that the closing of trading in today's American session occurs below the opening of yesterday. This will indicate the appearance of a large number of purchase orders and will provide opportunities for obtaining favorable purchase prices in the future.



The above pattern, if implemented, will allow us to consider fixing long positions and selling BITCOIN. The target of the fall can be noted as a significant support level of August at $44,000. The resulting flat zone will be an excellent indicator for further movement.

To continue strengthening the BITCOIN exchange rate, it is enough that the closing of trading this week occurred above the $50,000 mark. This will allow us to continue holding purchases of the instrument until mid-September.





Samanta Kruder
Analytical expert of
InstaForex © 2007-2021

[IFX_Selena]

Paypal is ready to expand its crypto services in the UK. Bitcoin clings to $ 50,000.

Bitcoin is trying to cling to $ 50,000 in order to continue the rally observed in the latter half of August. Its driving force is the recent announcement of Paypal that it is ready to expand its crypto services in the UK, which will allow customers to buy, sell and store four different cryptocurrencies on their platform.



Not long ago, large UK banks received instructions to suspend work with accounts that buy and sell cryptocurrency. There was also an active struggle with various kinds of advertising products, after the Advertising Standards Authority (ASA) said it will fight misleading ads promoting crypto investments. ASA is reportedly unhappy with the way cryptocurrency advertising campaigns are being carried out in the country, so they developed special and strict standards that must be followed. Any advertisements that do not meet these standards will be removed.

It seems that PayPal is taking this opportunity to open access to crypto transactions. UK is the first country it has gone to after providing a similar service in the US. And even though the stance of UK authorities is still unclear, access to the service should appear this week, while the service itself will be fully operational in the next few weeks. But there is a catch: clients must verify their identity in order to have access to the new function as corporate PayPal accounts are not supported.

Most likely, Bitcoin will skyrocket after the successful launch of the service. Earlier, it soared after PayPal gave US customers the opportunity to buy, sell and store cryptocurrency.

On a different note, Amazon is said to be considering joining the crypto industry soon. It is planning to provide payment services among its users. Perhaps, the driver is the statement of Elon Musk last month, which encouraged corporations to take a closer look at the crypto market and consider adding Bitcoin to their balance sheets.



This weekend, Bitcoin rose above $ 47,800, which gives hope that the token could reach $ 52,000 and $ 58,000 in the coming days and even hit $ 64,000 by the end of the year. But if it drops below $ 42,500, price will plunge to $ 37,300. The risk of losing all initiative will be quite high at this level.





Jakub Novak
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for August 24, 2021

Crypto Industry News:
UK residents can now buy, store and sell cryptocurrencies via PayPal - a significant milestone for the company that started offering digital asset services less than a year ago.

A global payment provider announced that UK customers will soon be able to access Bitcoin, Ethereum, Litecoin, and Bitcoin Cash via the PayPal website and mobile app.

This step marks the first expansion of PayPal's cryptocurrency services beyond the United States - a service that was launched last November.

Jose Fernandez Da Ponte, senior director of PayPal's crypto division, cited "digitization of money" during the pandemic as one of the main motivations to enter the cryptocurrency market.

"Our global reach, digital payment expertise and knowledge of consumers and businesses, coupled with stringent security and compliance controls, provide us with a unique opportunity and responsibility to help people in the UK discover cryptocurrencies," he said.

By offering its cryptocurrency services to UK residents, PayPal can play a big role in increasing exposure to digital assets in the country. Among all European countries, PayPal's share is the highest in Great Britain and amounts to over 2 million monthly active users.

Rumors of PayPal's cryptocurrency expansion plans have been circulating since last month when CEO Dan Schulman told investors that the UK was likely to receive the service soon. The company is also looking at the development of decentralized financing or DeFi, which is a possible precursor to future integration plans.


Technical Market Outlook:
The ETH/USD pair has made a new swing high at the level of $3,356 and keeps the momentum red hot. The next target for bulls is seen at the level of $3,489 and $3, 553. The immediate technical support is located at the level of $3,274. The strong and positive momentum supports the short-term bullish outlook despite the overbought market conditions on the H4 time frame chart.

Weekly Pivot Points:
WR3 - $3,720
WR2 - $3,519
WR1 - $3,345

Weekly Pivot - $3,142
WS1 - $2,951
WS2 - $2,757
WS3 - $2,565


Trading Outlook:
Ethereum have started the next wave up and violated the long-term target at the level of $3,550. The next long-term target for ETH is seen at the level of $4,394. Nevertheless, in order to continue the long-term up trend, the price can not break below the technical support at the level of $2,695. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls.







Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021