Cryptocurrency Analysis

[IFX_Selena]

SOLANA CONTINUES SURGING AND HITS NEW ALL-TIME HIGH: WHY ALTA'S BULLISH RALLY TO CONTINUE

For the last few days, Solana has accumulated and formed important support zones. The coin systematically fixed near the important support area at $140, following its upward movement. Onchain activity and trading volumes remained at a high level, which prevented the token from dropping significantly in value. Due to this fact, by September 7, SOL reached a new all-time high and made a powerful upward breakthrough to the new maximum.

Over the past 24 hours, Alta rose by 27.5% and at 1:00 p.m is quoted at $181.8. The token's weekly gain was 70% and trading volumes remain high, indirectly indicating the market's desire to continue Alta's rally. The SOL/USD pair hit a new historical high at $193, following rebound to the local support zone. The coin managed to stop falling and after a brief consolidation, continued the upward movement. This fact is indicated by the two-hour price movement, which becomes positive and proceeds to rise. However, Solana has to pass the historical limit of $193 to continue the bullish rally. There are several reasons for it, the most significant is the excessive profitability of the coin. After reaching a new high, the number of stops near $190 has risen sharply, and the MVRV continues to surge, indicating massive profit taking.



Excessive asset growth doubts getting even more profits.The duration of the current consolidation period will mainly depend on the market sentiment. There problems may arise, as experts from JPMorgan did not approve a rapid rise of Alta and associated it with a bubble. This has affected both Solana and the altcoin market as a whole. However, Solana SEO remarked on the conclusions of JPMorgan experts and said that the current growth of SOL was determined by the development of the project and market demand. Notably, after the developer's statement Solana hit a new all-time high, and the market reacted positively to it. According to monthly statistics, SOL/USD is one of the most demanded coins with a perfect reputation, such market reaction is natural.

Besides the fundamental reasons, the technical indicators also signal Solana's further rally. On the hour chart we see that the market is approaching the end of the consolidation phase: stochastic and RSI resume the upward movement, but MACD has not yet shown any sign of an upward reversal. At the same time, it is too early to indicate divergence, though there is a possibility.



The situation is completely different on the 4h chart: the bullish momentum, which allowed the coin to hit a new historical high, is completely exhausted and correction is coming. Stochastic has formed a bearish cross, while RSI has just started its descent towards 60. At the same time, the MACD on the four-hour chart also indicates a possible divergence and a local bullish signal.



There is no clear picture on the daily chart, but we see clear prerequisites for the resumption of the upward movement. The MACD continues a strong upward movement as well as the RSI (already in the overbought zone), but the stochastic indicates that a consolidation period is possible. Most likely, the situation will change on the daily chart after the end of the current trading day. Now the asset looks overbought, which is quite expected after reaching a new historical high. After a local correction and consolidation period all divergence and overheat of the asset will disappear. This is indicated by social activity, according to which SOL continues to be one of the most discussed assets. Onchain activity and daily trading volumes will allow the coin to form strong support zones near historical highs. There is also an upward trend in the number of longs, indicating that Solana's bullish rally will continue.







Artem Petrenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

TRADING SIGNAL FOR ETHEREUM ETH ON SEPTEMBER 07 - 08, 2021: SELL BELOW $ 3,891 (SMA 21)



On the 4-hour chart, Ethereum, ETH/USD, is trading below the SMA 21 located at 3,821. ETH has been consolidating at this level since September 3. After hitting a high of 4,024, it is now retreating. If the price consolidates below 3,750, the downward pressure is likely to increase.

Since Ethereum is overbought, there is likely to be a downward movement below 3,820 with the targets at the 200 EMA located at 3,273. At this level, we expect a technical bounce after which we will be able to buy with the target at 3,750.

The technical reading of the eagle indicator is showing a bearish signal and a decrease in the volume of the market. The levels of 3,270 or the 3,125 support line of 2/8 of murray will be good points to buy from.


Support and Resistance Levels for September 07 - 08, 2021
Resistance (3) 4,110
Resistance (2) 3,996
Resistance (1) 3,882

Support (1) 3,708
Support (2) 3,392
Support (3) 3,273


Trading tip for Ethereum for September 07 - 08, 2021
Sell below 3,821 (SMA 21), with take profit at 3,273, stop loss above 3,950.

Buy if there is a rebound at 3,273 (EMA 200), with take profit at 3,750, stop loss below 3,125.




Dimitrios Zappas
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

SHORT-TERM ANALYSIS ON BITCOIN.

Bitcoin made a high just below $53,000 and is now turning lower. In our last analysis we warned that there is a bearish scenario looking for a major reversal from current levels around $52,000 that could bring price towards $29,000 and lower. Although it is too early to call a major top, traders have to pay attention to the key resistance just above.



Blue lines - bullish channel

Green lines - Fibonacci retracements

As we mentioned in yesterday's analysis, Bitcoin is trading at a major Fibonacci retracement level where we usually see trend reversals. The 61.8% Fibonacci level is a key resistance. Price was expected to reach $52,000 and reverse. The reversal is under way and fully justified. Price has support at $47,000. I expect this level to be tested. Breaking below it will be a bearish sign. In the Daily chart of Bitcoin we also have a warning signal by the RSI as it has produced a bearish divergence. There are signs that the bullish trend is weakening. However there is no confirmation of a major top yet.





Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BITCOIN VS. GOLD: HOW TO AVOID A "MULTIBILLION-DOLLAR MISTAKE"

The CEO of Microstrategy said that his company avoided a "multibillion-dollar mistake" by deciding to invest in bitcoin instead of gold. Microstrategy currently has about 108,992 bitcoins on its balance sheet.

Michael Saylor tweeted on Sunday: "If I had chosen gold over bitcoin last year, it would have been a multibillion-dollar mistake."

He also published data on the payback of gold compared to bitcoins. According to him, over the past 12 months, gold has brought 5.88%, and the yield of bitcoin was 376.34%. In addition, the yield of gold compared to the main cryptocurrency was -80% over the past 12 months.

Microstrategy considered the prospect of bitcoin in time and made its acquisition one of its main goals.

Earlier, Michael Saylor said that gold is dead money, urging investors to sell it and buy bitcoin. He said that many intend to dump the precious metal, and if you wait until hedge funds start doing it, you can get out last at the lowest price.

In April, Saylor and Frank Giustra were already arguing about bitcoins and gold. At the time, the CEO of Microstrategy explained that "diversification does not make sense when there is an exact answer to an engineering problem." Then he drew the following analogy: "You will never be able to diversify the metal in the wing of an airplane, or the answer to a mathematical problem, or the shape of the ship's hull, or the oxygen content in the scuba tank. When the cabin pressure decreases, you do not put an oxygen mask on 10% of your family members. Money is a competition in which the winner gets everything. There is an answer. Choosing the wrong answer has terrible consequences."

Meanwhile, a survey by UBS, the largest bank in Switzerland, showed that banks see advantages in investing in cryptocurrencies such as bitcoin. Among respondents, 28% consider cryptocurrency an uncorrelated asset, and "11% would consider it an alternative to gold."

And what about those who are not ready to invest in either gold or bitcoin but use both for speculative trading? Be guided by technical analysis to find the best entry points, even if these transactions are short-term.

The BTCUSD chart shows that the main cryptocurrency has not yet managed to overcome the resistance zone of 52000.18 - 52929.55. The price bounces down from it and will probably test the strength of the level of $ 50,000 per coin. If the fight for it continues, bitcoin may go down to the corridor of 46299.48 - 50513.53 before it continues to grow.

And if the overcoming of the resistance zone of 52000.18 - 52929.55 happens quickly, then the nearest target for BTCUSD will be the level of $ 55,000 per coin.






Ekaterina Kiseleva
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BITCOIN HAS BECOME THE OFFICIAL MEANS OF PAYMENT IN EL SALVADOR TODAY: THE COUNTRY CREATES AN UNPRECEDENTED CHIVO WALLET FOR USE AND PAYMENTS IN BTC



Today, bitcoin has become an official legal means of payment in El Salvador. President of El Salvador Nayib Bukele said that now all countries of the world will look closely and with delight at their state.

Bitcoin officially becomes a means of payment in the country. The authorities of El Salvador hope that the adoption of bitcoin as a means of payment at the state level will help improve the economy in the country, attract more tourists from around the world and open up new opportunities for startups and businesses. The iconic McDonald's restaurant has become the first place where you can directly pay with bitcoins and without conversions.

Today, El Salvador has purchased approximately 400 bitcoins worth about $20,400,000, in order to bring stability to the state project, as well as to add bitcoins to the state treasury.

Now, for residents of El Salvador who want to make transactions in digital gold, a Chivo Wallet will be provided, where Salvadorans can store and use bitcoins without a commission. The government also says that local residents will be able to convert dollars to bitcoin and vice versa absolutely for free through a wallet.



President Nayib Bukele suggested that many countries will not understand this step here, but he is certain that his state needs to remain confident, technologically savvy, in order to keep up with innovations. Chivo Wallet is an official wallet that was developed by El Salvador, today it is already becoming available to every citizen of the country.

New users of this wallet receive a nice bonus of $30 in bitcoins after accepting this application, even if you are not a resident of El Salvador, you have the opportunity to receive this bonus.

The Government of El Salvador has taken a list of precautions to ensure that Salvadorans can freely access the site of the Chivo wallet, as well as to ensure that all their data remains confidential and is protected from fraudsters.

Chivo Wallet can be downloaded for Android via Google Play. The app is also available in the AppStore for iPhone users. The government of El Salvador also states that you can use bitcoin and store them at your own discretion, no one imposes this payment method. However, it is worth knowing that the dollar as a fiat currency is still the base currency for salaries, accounting and various types of payments.






Vitaly Kolesnikov
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

ELLIOTT WAVE ANALYSIS OF RIPPLE FOR SEPTEMBER 8, 2021



Ripple completed a five wave rally in wave i with the test of 1.4162. We should now see a corrective decline in wave ii close to the 61.8% corrective target of wave i near 0.8560 before the next rally higher to at least 1.7600 and possibly even closer to the extension target for wave iii near 2.3226 takes place.

Ultimately. we are looking for a rally to 3.2000 in this impulsive sequence.




Torben Melsted
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

CARDANO NOSEDIVES BY 15% DUE TO RUMORS ABOUT INCOMPATIBILITY OF NETWORK AND SMART CONTRACTS

Over the past few days, Cardano has been in the correctional phase and subsequent consolidation. Analysts made bullish calls on the coin amid high trading volumes and demand. Nobody doubted that it may soon hit a new historical high. Such elevated mood was seen before an important update of Alonzo, which introduced smart contract technology. However, Minswap, the first decentralized exchange on Cardano testnet, has run into severe scaling issues, raising concerns about Cardano's capability to run smart contracts. Users were unable to make transactions.

The coin fell by 9%. The market capitalization dropped to $83.4 billion despite the fact that in the previous day, it was about to touch $100 billion. Along with the price, there was a significant decline in social activity and trading volumes. As of 17:00, ADA/USD broke through several important support levels, trading at $2.59. The coin sank to $2.56 but bulls managed to push the coin to $2.65. Yet, it did not help much. On the contrary, it only worsened the downward movement. On the 2H chart, the price is in the negative territory at the level of 2.5%. It indicates that soon the coin may break below the important support level of $2.5. In addition, the cryptocurrency is approaching the bottom line of the entire upward movement. If it closes below this indicator, bulls will lose steam.





According to users, the main problem was a flaw in the coordination of transactions. The network could not process a large number of transactions and at the same time guarantee the safety of information and its integrity. The platform was still underdeveloped and its test version of the network immediately faced several challenges. Given the huge problems with conducting transactions in the DeFi sector, the project risks losing a great deal of clients. The Alonzo update is likely to improve the situation as it may fully introduce smart contract technology into the ADA network. However, the cryptocurrency and the entire project have been dealt a powerful reputational blow, which can undermine the bullish trend of ADA.

The technical indicators also signal a strong downward trend. Due to unverified rumors and the silence of developers, ADA has faced a mass sell-off. Taking into account the new historical high of SOL, it is quite predictable that investors are transferring their assets to the Solana project. On the 4H chart, bearish sentiment continues to strengthen, which may indicate that lows have already been reached today. The RSI, MACD and, stochastic indicator hit the bottom in a matter of hours.



On the daily chart, the situation does not change. All indicators point to a bearish breakdown of all support levels. Bears will try to push the price lower and the only obstacle is the weak attempts of bulls to hold the price at key support levels. However, judging by the current decline, ADA may break through the upward support line and the trend level. If the developers do not make comments about the error, ADA may dive below $2, followed by a long period of consolidation. The Alonzo update may be perceived by the crypto traders without enthusiasm. This is also confirmed by a sharp decline in on-chain activity and large transfers to cryptocurrency exchanges. For what it is worth, he ADA project has failed and the Alonzo update is unlikely to improve the situation.








Artem Petrenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

TECHNICAL ANALYSIS OF ETH/USD FOR SEPTEMBER 8, 2021

Crypto Industry News:
While Bitcoin has become legal tender in El Salvador, another Central American country is making progress towards the free use of cryptocurrencies.

The Republic of Panama presented a draft law regulating cryptocurrencies with the aim of making the country "compatible with Blockchain, cryptocurrencies and the Internet."

Posting the news on Twitter, Panama Congressman Gabriel Silva stressed that the new legal initiative could generate thousands of jobs, create new sources of investment, and make the government "more transparent".

According to a draft bill released by Silva, the new rules aim to recognize cryptographic assets such as Bitcoin as an alternative global payment method for "any civil or commercial operation that is not prohibited by the legal system of the Republic of Panama." The authors of the act emphasized that cryptocurrencies enable quick and cheap payments, allowing the finalization of a financial transaction "regardless of the distance between the parties and the size of the transaction."

Unlike the Salvadoran government, which required local businesses to accept Bitcoins in exchange for goods or services, Panama's new cryptocurrency law is not intended to enforce mandatory Bitcoin acceptance. Instead, the law calls for freedom to use cryptocurrencies in Panama, the local television network Telemetro said.

Silva said the new bill was prepared in collaboration with Panamanian citizens and a multidisciplinary team made up of industry and technology experts. He noted that the regulations were drafted taking into account important guidelines provided by international organizations such as the Financial Action Task Force.


Technical Market Outlook
The ETH/USD pair has made a new swing high at the level of $4,029 and after a short period of consolidation the sell-off had begun. The price dropped to the level of $3,029 and then bounced back up to the level of $3,542. Currently, the price is hovering around this level, but the momentum is negative and weak, so another wave down should be expected. Please notice, that the long-term trend line support around the level of $3,150 was violated as well, which is not a good sign for the nearest future. The local technical support levels are: $3,337, $3,274, $3,185 and $3,122. The key technical support is still located at the level of $2,945.

Weekly Pivot Points:
WR3 - $5,271
WR2 - $4,663
WR1 - $4,404

Weekly Pivot - $3,750
WS1 - $3,518
WS2 - $2,851
WS3 - $2,607


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]

TECHNICAL ANALYSIS OF BTC/USD FOR SEPTEMBER 8, 2021

Crypto Industry News:
The Russian government reiterated its negative stance against a scenario in which BTC could be accepted as an official currency.

Dmitry Peskov, the official representative of Russian President Vladimir Putin, argued that Russia has no reason to consider Bitcoin legal tender, a local news agency said.

The Kremlin official argued that the unification of cryptocurrencies such as Bitcoin with traditional monetary instruments would only harm the country's financial and economic system.

"Undoubtedly, Russia is not ready for such moves," said Peskov.

Peskov's recent remarks are in line with the Russian government's long-standing skeptical approach to Bitcoin, recalling a similar statement by Anatoly Aksakov, a member of the State Duma and a key architect of the ban on cryptocurrency payments in Russia. In August last year, Aksakov argued that accepting cryptocurrencies as payments would essentially mean "destroying the financial system."

Russia officially banned cryptocurrency payments in the country under the 'About Digital Financial Assets' cryptocurrency law in January 2021. The law, however, does not prohibit Russians from buying or trading cryptocurrencies such as Bitcoin.


Technical Market Outlook
The BTC/USD pair has made a Doji candlestick pattern at the top of the rally at the level of $52,909 and then the sell-off had begun. The market dropper over 18% to the level of $43,159 briefly, but then bounced towards the level of $47,557. Currently, the bears are in full control of the market as the price is heading towards the level of $45,043, the last technical support before $43,159. The weak and negative momentum supports the short-term bearish outlook.

Weekly Pivot Points:
WR3 - $59,047
WR2 - $55,505
WR1 - $54,221

Weekly Pivot - $49,999
WS1 - $48,690
WS2 - $44,656
WS3 - $43,452


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 $59,506. 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]

EL SALVADOR ADOPTS BTC AS LEGAL TENDER



Bitcoin became El Salvador's legal tender on September 7, 2021. New regulations allowing people to use the digital asset as a payment option for goods and services entered into force on Tuesday. El Salvador became the first country to adopt bitcoin as legal tender.

Nayib Bukele, the current president of El Salvador, tweeted on Monday that the country now holds 400 BTC and confirmed the purchase of 200 coins ahead of accepting the cryptocurrency as a legal tender. That brings the value of the country's crypto treasury to more than $20 million at current prices.

From now on, El Salvadorans can use BTC to buy land or pay taxes. Notably, tax liabilities are set in US dollars. According to Bukele, this will lower commission costs for billions of dollars sent home from abroad since bitcoin remittances will cost less.

The government will give away $30 in BTC to every citizen who downloads the government's new digital wallet app. This will help them boost the adoption of the volatile asset whose value increased above $64K in April from $10,250 two years ago. In June, lawmakers voted in favor of the move to create a law to adopt bitcoin, with 62 out of 84 possible votes.

"El Salvador will be starting a real-time demonstration of Gresham's law (bad money drives out good). Most people seem to want to hoard dollars and get rid of Bitcoin—Gresham's law in action, Paul Donovan, the Chief Economist of UBS Global Wealth Management, said.





Andrey Shevchenko
Analytical expert of InstaForex
© 2007-2021