Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of BTC/USD for August 24, 2021

Crypto Industry News:
Iran will again allow Bitcoin and other cryptocurrency miners to operate in the country from the last week of September.

According to a publication by the Iranian newspaper, Tavanir, the national energy organization, made the decision in early August. In May, the Iranian government banned cryptocurrency mining operations. The decision was then made to prevent miners from overloading the network during the hot summer months.

Bitcoin miners have been blamed for endless power cuts and power shortages in Iran. The size of the problem was that Iran reportedly stopped exporting electricity to neighboring Afghanistan.

However, it is illegal cryptocurrency mining operations that are the most likely cause of a heavy burden on electricity supplies. Therefore, only authorized miners will be able to resume operations after the ban is lifted in September.

As Iranian authorities continue to insist on regulating cryptocurrency mining operations, the country's ministry of commerce granted 30 mining licenses in June.

Iran began legalizing Bitcoin mining in 2020, when it issued over 1,000 licenses in January 2020 alone. However, the government seems interested in domestication of its cryptocurrency mining sector, and parliament is even considering a bill banning the use of "foreign" cryptocurrencies for payments in the country.

The government also expects Bitcoin and cryptocurrency mining to become a major economic activity in the country, forecasting revenue of $ 1 billion in May.


Technical Market Outlook:
The BTC/USD pair has made a new swing high at the level of $50,382. The bulls are in full control of the market and the next target for them is seen at the level of $51,147 and $52,330. The immediate technical support is located at the level of $49,733. 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 - $57,092
WR2 - $53,247
WR1 - $51,171

Weekly Pivot - $47,506
WS1 - $45,262
WS2 - $41,681
WS3 - $39,415


Trading Outlook:
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 $70,000. The next mid-term target is seen at the level of $50,000. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).







Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BTC analysis for August 24,.2021 - Potential for test of $53.000

Technical analysis:



BTC has been trading sideways at the price of $49,250 but there is potential for the test of important pivot at $53,000.


Trading recommendation:
Watch for buying opportunities on the pullbacks wit the upside target at $53,000.

Support level is set at the price of $48,000

Stochastic oscillator is showing overbought condition with bear cross but there is no price action to confirm.





Petar Jacimovic
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin vulnerable to a pull back.

Bitcoin remains in a bullish trend as price is making higher highs and higher lows. The recent high at $50,436 was not followed by a higher high in the RSI. This bearish divergence is the second one we see and the warnings of an imminent pull back should keep traders alert.



Red line - support trend line

Blue line- bearish divergence

The RSI has not been following price to new highs for the last few days. This is a warning that the up trend is weakening. Bulls need to be cautious. Support is found at $46,800-$47,000 where the red upward sloping trend line is found. Breaking below this red trend line will be a sign of weakness. More downside will be expected. The RSI continues to provide bearish divergence signals. The chances of a pull back towards $45,000-$42,000 have increased.





Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

MicroStrategy acquired 4000 more bitcoins



We have repeatedly said that the last round of bitcoin's growth looks very strange. The cryptocurrency has grown by almost $21,000 in total over the past few weeks, despite the fact that there were no good reasons and fundamental factors for this. Moreover, this growth was very systematic and unhurried. Earlier, bitcoin could pass 5-6 thousand dollars a day based on the statements of Elon Musk or other news of an absolute "hype" nature, but now in recent weeks, the growth has been exceptionally calm. Perhaps Bitcoin is really changing and becoming more stable and less volatile. However, this does not mean at all that the exchange rate is now taken at $100,000 or higher, as many crypto experts like to predict. At this time, the quotes of the first cryptocurrency have again approached the ascending trend line on the 4-hour timeframe, so the fate of the cryptocurrency for the next few days and weeks will be decided in the coming hours. If the overcoming of the trendline happens, it will significantly increase the probability of a new and powerful drop of bitcoin. It can be recalled that we are inclined to the version of the return of BTC to the level of $29,700 and the subsequent fall even lower. If there is a rebound from the trend line, then bitcoin will remain in a bullish trend. So far, it should be noted that buyers have not been able to bring bitcoin to its next target level of $51,350 this time. From our point of view, the factor of hasty purchase of coins by investors, until the new tax legislation is introduced in the United States, has already been recouped with a vengeance. It's time for it to go down.

However, not everyone thinks so. For example, the company MicroStrategy, which is now associated with bitcoin purchases, has purchased another 3,900 coins worth $177 million. This was stated by the company's CEO Michael Saylor. He also clarified that now his company is the owner of 109 thousand bitcoin coins worth about $2.9 billion. Thus, institutional investors also support "digital gold", but for some reason, reports about investments in bitcoin come mainly from Elon Musk and MicroStrategy. Of course, other large companies also buy bitcoin or various derivatives based on bitcoin, but we hear mainly about Tesla, SpaceX, and MicroStrategy...



Technically, bitcoin continues to be in an upward movement on the 4-hour timeframe, but it has adjusted to the level of $47,500. Thus, the next target for the growth of the first cryptocurrency remains the level of $51,350 and the price can follow this target if there is a rebound from the level of $47,500 or the trend line. It is advisable to sell bitcoin as soon as the price is fixed below the ascending trend line. The first target in this case will be the level of $43,852.





Paolo Greco
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for August 25, 2021

Crypto Industry News:
Michael Saylor's MicroStrategy once again made a massive BTC purchase. This time, the company's portfolio increased by 3,907 new Bitcoins, which was approximately $ 177,000,000.

Information about the increase in the amount of BTC appeared on the Saylor profile, which also revealed the current state of MicroStrategy's BTC portfolio.

Currently, the company has as much as 108,992 Bitcoins, which at the current rate (48,096 USD) gives 5,242,079,232 dollars. Thanks to price averaging, MicroStrategy's price drops by a few percent will not deprive them of profit. The average price at which a company bought its Bitcoins is $ 26,769.

"MicroStrategy has purchased an additional 3,907 bitcoins for ~ $ 177 million in cash at an average price of ~ $ 45,294 per #bitcoin. As of 8/23/21 we #hodl ~ 108,992 bitcoins acquired for ~ $ 2.918 billion at an average price of ~ $ 26,769 per bitcoin. $MSTR "

With 108,992 Bitcoins, MicroStrategy is the largest player of any company that publicly admits to purchasing cryptocurrencies. Tesla remains in second place with 48,000 BTC, and the podium is closed by Galaxy Digital Holdings with 16,402 BTC.


Technical Market Outlook:
The BTC/USD pair has tested the nearest technical support seen at the level of $48,089 and made a low at the level of $47,469. The bulls are in full control of the market and the next target for them is seen at the level of $51,147 and $52,330. The next technical support is seen at the level of $46,719. 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 - $57,092
WR2 - $53,247
WR1 - $51,171

Weekly Pivot - $47,506
WS1 - $45,262
WS2 - $41,681
WS3 - $39,415


Trading Outlook:
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 $70,000. The next mid-term target is seen at the level of $50,000. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).






Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for August 25, 2021

Crypto Industry News:
Ethereum is a large part of Grayscale's portfolio. A recent report shows that the fund currently manages over 3 million ETH worth over $10 billion. This makes Grayscale one of the biggest ethereum holders in the industry.

The asset manager gradually increased its exposure to ETH, adding almost 20,000 ETH to its portfolio in February. Recent reports confirm that since the publication of the last report, the New York-based company has expanded its portfolio with new cryptocurrency resources, which has increased the value of all assets under management from $ 33 billion to $ 41.4 billion.

The fund began offering investors a way to invest in bitcoin through the exchange. However, over the years, Grayscale has added more digital assets to its offering to give investors more exposure to the markets. Grayscale manages a portfolio of many cryptocurrencies. The assets he is interested in include bitcoin, ethereum, litecoin, ethereum classic, and many more.


Technical Market Outlook:
The ETH/USD pair has tested the technical support seen at the level of $3,185 and is trying to bounce. 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

[IFX_Selena]

BTC analysis for August 25,.2021 - Breakout of the bracketing market and potential for further drop

Technical Analysis:



BTC has been trading downside today and I see potential downside continuation in the next period.


Trading recommendation:
Watch for selling opportunities on the rallies due to the breakout of the bracketing market in the background.

Downside target is set at the price of $44,000.

Stochastic oscillator is showing overbought reading and fresh bear cross with good price action for the downside continuation.

Key resistance is set at the price of $50,000





Petar Jacimovic
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BTC approaches important mark after bouncing from $50.5k and may exacerbate fall: Analysis and Forecasts

After a local correction and a period of consolidation, bitcoin resumed its upward movement on August 22. The result of the bullish rally was the breakout of a difficult resistance zone at $49,000 and the establishment of a local high at $50,500. Subsequently, the price of bitcoin began a downward movement and broke through several support zones due to an unsuccessful attempt to develop growth. As of August 25, bitcoin is moving along the upward support line and locally demonstrates powerful signals for weakening. If there is a bearish breakdown of this horizon, the market may receive a signal that will provoke an aggravation of the current BTC correction.

In addition, a potential "shooting star" pattern was formed on the horizontal charts of the cryptocurrency, which may indicate a fall in price. The completion of the current trading day, where a bearish reversal or leveling of this formation will be seen, will show how likely it is to realize the "shooting star" scenario. The price of bitcoin continued to fall, breaking through the local support zone at $48,800 and passing the next line by $47,600. Despite the obvious weakness of the daily MACD and stochastic, the RSI indicator is holding in the 60 zone, and the price is approaching an important level, where the upward support line passes. Most likely, it is near the $47,000 mark that the buyback of the current supply and the neutralization of the bearish pattern described above will take place. In this situation, BTC resumes movement towards $51,200, and in case of successful consolidation above this mark, the market receives a powerful bullish impulse.



However, if the bearish pattern is confirmed and the price successfully breaks through the upward support line at $47,000, then bitcoin is moving towards two powerful support zones. The first one is at $45,750 (this is where the bitcoin bounced back in mid-August), and the second one is formed under the round mark, at $39,750. On the way to the final support zone, the price will face several local upward barriers, including the longs zone, in the area of $42,000-$44,000. The pessimistic scenario is indicated not only by the technical indicators of the cryptocurrency but also by the declining trading volumes, which indicates the lack of resources for a powerful buyback and a possible bullish breakout. In addition, the "wedge" pattern is forming on the horizontal charts of bitcoin, which originates from the end of July, when the bullish move of bitcoin was launched. If the price continues to fall, then a local trend for a downward trend and a reversal of BTC/USDT quotes to the main support zones of the growth range may form on the charts.



When analyzing the on-chain indicators of the cryptocurrency, you can find benefits in the current correction. The indicators of Daily Active Addresses and Active Addresses (24h) indicate that the market is still not keeping up with the growth rate of BTC/USDT quotes. A correction to the main support levels can reduce the discrepancy between the price and the on-chain activity of the coin. In addition, this is another opportunity to increase the retail audience, because, despite the local bearish signals with a claim for something more, the market is set for growth. At the same time, the MVRV (30d) indicator continues to remain above 10%, which in the current situation can provoke profit-taking. The probability of this may increase significantly if bitcoin breaks through $47,000 and storms the key support levels. Massive profit-taking will break the current trend, but will significantly increase the pressure on BTC quotes.







Artem Petrenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin begins to gradually lose ground

Bitcoin is beginning to gradually lose ground after talks that the cryptocurrency has started to return to the exchange again and clearly not to strengthen the rate. In the futures market, positions worth $600 million have been liquidated over the past day, and the number of small addresses holding from 0.01 to 1 ETH and from 0.001 to 0.1 BTC has reached parity. All this suggests that the major players are not yet eager to return to the market, but mainly speculative traders are acting, but this affects the investor fear index and one can only guess what this will lead to.

But once again – there is no reason to panic, the main thing is how bitcoin will behave in the event of a decline to the 200-day moving average – that's where real connoisseurs of medium-term investment and crypto enthusiasts will show themselves. Experts also note an increase in the bitcoin network by only 15%, while the Ethereum network has shown a jump of 58% since the beginning of the year, which indicates the continued popularity of this altcoin among new players. Of course, the boom in NFT has contributed to this.



Before we talk about the technical picture of bitcoin and ether, I would like to say a few words about the grandiose plans of another company counting on the bitcoin ETF. Valkyrie Investments believes that it is their fund that is at the top of the list for approval by the Securities and Exchange Commission of the first bitcoin futures exchange-traded fund in the United States. The Nashville, Tennessee-based firm requested regulatory approval two months ago to create the fund. They are sure that they were among the first to do this, after the positive comments of the Securities and Exchange Commission on this matter.

According to Steven McClurg, chief investment officer at Valkyrie Investments, the application remained hidden for a long time, as it allows smaller players and companies to submit documents confidentially, without fear of copying their ideas by major players. However, it is worth noting that here we are talking about a futures background, and not about a physical bitcoin. Let me remind you that at the beginning of this summer, the new chairman of the SEC, Gary Gensler, said that the regulator may be more open to bitcoin ETFs if it is based on futures, and not on the cryptocurrency itself. Immediately after that, a number of large management companies, including Invesco, hurried to apply for this type of product. Even though futures contracts require larger margin collateral, it is expected that this product will also be in high demand among institutional investors. However, submitting the first application does not mean that Valkyrie Investments will be the first to be approved.

Recently, Gensler has raised the topic of ETF many times, which must comply with strict SEC rules for mutual funds. This is done in order to help provide investors with all the necessary protection. Most of the pending applications for ETFs were filed in accordance with the laws of the 1930s, which are not quite suitable for the current situation with the cryptocurrency market. Many cryptocurrency supporters have expressed concern about the bitcoin futures fund, which they say is unnecessarily complex. Some experts believe that the Securities and Exchange Commission is being overly cautious and that they should not act so harshly against the newly emerging cryptocurrency industry.



As for the technical picture of bitcoin, its return to the area of $47,800 is not something terrible but simply has a corrective character. But the decline to the next level in the area of $45,900 will have a key role for the further short-term direction of the trading instrument. There is a 200-day moving average, which has a great impact on institutional investors. A break in this range will push BTC to a minimum of $42,500, and then it will be close to $37,300. It will be possible to talk about a new upward wave of bitcoin after a real exit beyond the resistance of $50,400, followed by an update of $54,400 and $58,000.

As for the technical picture of the ether, we remain in a hard channel, which is a good prerequisite for further growth of the trading instrument due to the accumulation of positions. A break of $3,300 will surely send ETH to the highs of $3,600 and $3,890. The nearest major support level is seen in the area of $3,000. Its breakdown will collapse the trading instrument to the lows of $2,700 and $2,440.







Jakub Novak
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin's short-term bullish trend remains supported.

Bitcoin pulled back towards $47,000 and touched the upward sloping red trend line. Price respected the trend line and is now bouncing higher around $48,300. Bitcoin trend remains bullish as long as price is making higher highs and higher lows.



Red line - support

Blue line - bearish divergence

Bitcoin has touched the upward sloping trend line three times so far and each time price bounced higher. This is happening again. Price action has confirmed that the red trend line is key support and breaking it will be a bearish sign. The RSI is warning us with the bearish divergence that a turn around is imminent. However so far price has not made any confirmed trend reversal. Breaking below $47,000 would be a bearish sign and would increase chances of a trend reversal in Bitcoin and a bigger pullback.





Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021