Cryptocurrency Analysis

[IFX_Selena]

Magnum Real Estate started accepting bitcoins



Potential buyers, including those from Hong Kong or mainland China, can now buy real estate with Bitcoin.

Magnum Real Estate said they will accept bitcoins as payments to the three ground-level shops worth US$29 million at a luxury residential project in Manhattan. This is another commercial move in New York City to accept a promising but volatile digital currency.

The stores at 385 First Avenue, also known as CODA, cover over 9,000 square feet of space and are currently leased to M&T Bank, Mighty Pita Restaurant and ProHEALTH Urgent Care Clinic. According to the developer, buyers will profit on them because they are fully built and are already generating income.

"We are a pioneer in bitcoin transactions and see a path where many more transactions can be done using blockchain," said Ben Shaoul, managing partner of Magnum.

This move makes CODA the first major income-generating asset to be offered to Bitcoin supporters. As such, Shaul said that any future resale of retail space can be made in foreign currency, depending on the buyer's preferences.

The firm also sold all of the apartments above the retail space, some of which were also paid for in cryptocurrency.

So, with an estimate of $ 29 million, the property is worth around 641 bitcoins at current exchange rates.

"I expect about two or three additional transactions in bitcoin this year for Magnum," Shaoul said, noting interest in luxury homes such as penthouses in Miami, condos in New York and mansions in Beverly Hills.

And according to Sonny Singh, chief commercial officer of BitPay, potential buyers from anywhere in the world, including Hong Kong or mainland China, can buy real estate. "The beauty of crypto is that it is a global digital asset," he said. "The buyer simply scans a QR code to pay."

To make it more clear, customers can make purchases in cryptocurrency, and BitPay verifies funds and accepts cryptocurrency on behalf of Magnum. The dollars are deposited into Magnum's bank account the next business day minus a 1% fee. But since the price is set in US dollars, the buyer will pay for the cryptocurrency at the spot rate at the time of purchase, Singh said.

"This investment could appeal to any Hong Kong or mainland Chinese buyer holding significant amounts of bitcoin and wanting the stability and cash flow of a long-term leased retail property in New York," noted Georg Chmiel, co-founder and CEO of Juwai IQI Group. "Unlike crypto, real estate cannot go to zero in value. This year alone, one bitcoin has been worth more than US$60,000 and less than US$30,000 [at different times]. That is more than a 50 per cent drop," he added.

James Pratt, director of James Pratt Auctions, which hosted the world's first online cryptocurrency real estate auction in Australia in April 2019, said: "With bitcoin, the transaction is rapid, and you do not lose out on an exchange or pay extra fees. [However] If you limit yourself to just bitcoin or cryptocurrency, you may [miss] some cash buyers not yet educated in cryptocurrency. The percentage of transactions with cryptocurrencies is still very low in countries like Australia and the US as compared to the mainstream method - at under 10 percent of all transactions over the last 12 months".

Nevertheless, Pratt expects a huge increase in crypto users, by around 5-10% over the next three years. But it will depend on the rate at which it is already growing and the fallout from the pandemic that has forced people to "research new ways of doing business".

However, the lack of sufficient regulation is a problem with Bitcoin and other cryptocurrency transactions, said Ken Lo, co-founder and chief strategist of HKbitEX. He also said that the settlement of payments using cryptocurrencies remains a challenge due to problems with money laundering, inadequate secure wallet options and lack of investor awareness.

Even so, Lo said blockchain technology provides better security and an easier way to track all transaction records, which could increase investor confidence. In addition, global legal and tax framework for cryptocurrencies is now evolving to cope with new developments.

And with the growing interest in cryptocurrencies around the world, increased regulation and wider adoption, Chmiel said it is reasonable to assume that cryptocurrency-only transactions could go mainstream, albeit not quite common, by 2025.





Andrey Shevchenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading plan for Bitcoin for September 20, 2021



Technical outlook:
Bitcoin is trading close to the $45,000 handle after hitting resistance around $48,500 over the last week. The crypto seems to have retraced its recent drop between $53,000 and $43,000 close to a fibonacci level around $48,500 mark (not highlighted on the daily chart). Ideally, bears are looking poised to drag towards $37,000 levels before the price resumes higher again.

Bitcoin's overall structure remains bullish until prices stay above $28,500 daily chart support. A continued drop below $35,000-36,000 zone will open the door to test $28,500 mark again. On the flip side, if bulls manage to come back around $37,000 mark, the uptrend would remain intact towards $65,000 and higher.

Bitcoin would remain under pressure until $37,000 mark, which is close to initial support around $37,400, the August 04 low. Immediate resistance is seen around $53,000 mark and a break there will confirm a bottom in place.


Trading plan:
Profits might be realized @ 44,000-45,000 on shorts taken earlier. (48,000-48,500)

Good luck!






Oscar Ton
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin: How to determine further price movement by metrics of network activity

Over the past two days, bitcoin quotes have fallen significantly, thanks to which the analysis of on-chain indicators of network activity has been significantly simplified. At the same time, it is not necessary to use metrics that display a picture of the cryptocurrency's network activity without accompanying technical tools. The number of unique addresses, the total volume of transactions, as well as mentions in social networks and the dynamics of their movement may indirectly indicate further price movement.

*Learn and analyze

Daily Active Addresses is an on-chain indicator that displays the number of unique addresses that are in contact with the cryptocurrency network. It is used to display the current interest in a particular coin and the dynamics of the growth of the number of unique users over a certain period.

This indicator is more fundamental and can be used both for medium and long-term analysis of the state of the currency and prospects for the future, and analyzing the impulse price change. Let's take the example of the current state of the on-chain metric of the number of active addresses in the bitcoin network. As of 10:00 UTC, there are 753,000 unique addresses in the BTC network. For an asset with a market capitalization of about a trillion, this is an average indicator. This indicates that the market is not in a phase of active growth, which is accompanied by increased on-chain activity and a large number of new addresses. In addition, the charts show a divergence between the current value of bitcoin and the number of unique users.

*Learn and analyze

Divergence is a discrepancy between several specific metrics or technical charts of a financial instrument.

Several more conclusions can be drawn in addition to the obvious conclusion that the cryptocurrency is not in the stage of rapid growth. To do this, we will need to expand the dynamics of the graph and analyze the historical context. Judging by similar periods, after the Daily Active Addresses indicators were in this range, a powerful price increase followed. With this in mind, we can conclude that now bitcoin is in the accumulation stage, which will be followed by growth. In addition, this graph can indicate the local highs and lows of the coin's network activity. Thanks to this and using additional tools, it is possible to track the growth or decline in the transaction fees in the cryptocurrency network.



When analyzing Daily Active Addresses and comparing its data with the number of transactions, you can see a significant divergence. This is due to the growing institutionalization of the crypto market: as of September 20, more than 50% of all major global companies have invested in digital coins. With this in mind, it is worth understanding that several large bitcoin holders can carry out transactions for an amount greater than 50% of unique addresses. Due to this, a divergence is born, which is a common value for bitcoin and ether charts.



Thanks to the on-chain metric Daily Active Addresses, it is possible to determine what is the reason for the sharp growth of the cryptocurrency. If during the price rally the number of unique addresses is above 800,000, then, most likely, the retail audience and a small percentage of institutions are behind the price movement. If the number of addresses is below 500,000, and the price continues to go up, increasing the gap, then, most likely, a large whale is behind such a movement of quotes. Having received primary data on the assumed nature of the price increase, it is possible to conclude its feasibility and prospects, because the retail audience is often held hostage to impulsive decisions that only harm the price of the coin.

Analyzing the current indicators of bitcoin network activity and supporting the assumptions with historical context, technical indicators, we can conclude that the coin is in the stage of consolidation and accumulation. The number of unique addresses is on average, and the asset price fluctuates in a narrow range, while large companies continue to accumulate the volumes necessary for growth. At the same time, it is worth taking into account the local collapse that occurred on the market today. As a result of combining the metric of the number of active addresses and the total volume of transactions, whales do not produce a large number of transactions, and the retail audience is gradually falling due to the collapse of the price. It is likely that after the situation stabilizes, we should expect a significant increase in bitcoin's on-chain metrics.











Artem Petrenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BTC analysis for September 20,.2021 - Strong selling pressure and potential for the test of $38.000

Technical Analysis:



BTC has been trading downside as we expected. The BTC is heading towards 100% projection at $38,000.


Trading recommendation:
Due to strong downside pressure and the breakout of the 5-day balance, watch for selling opportunities on the rallies.

Downside target is set at the price of $38,000

Stochastic is showing another fresh bear cross on the daily time-frame, which is good confirmation for the downside movement.






Petar Jacimovic
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin under pressure.

Bitcoin is trading just above the recent low of $43,127. Price has made a bearish reversal from $48,600 price level where it was trading two days ago. In our last analysis we warned Bitcoin bulls to be cautious as there were warning signs of a reversal and move lower.



Green lines - Fibonacci retracements

Red lines - Fibonacci extension targets

Bitcoin has fulfilled our expectations and has reversed its trend. Price is expected to break below $43,000 and move towards our first downside target of $38,950. Short-term trend is bearish. In our last analysis we mentioned that a break below $46,600 would be a bearish sign and will open the way for a move to new lows. We are in the middle of the way and I expect price to continue lower. The warning signs were there. Bulls were warned.




Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

XRPUSD in its second leg lower.

XRPUSD has broken short-term support and is moving lower. Price remains in a bearish trend. Price is now at $0.91 and our target remains at $0.86 area. In our previous analysis we warned XRP bulls that the current price action was giving us signs of weakness and that a break below $1 would be confirmation that the next leg down has started.



Green lines - Fibonacci retracements

XRPUSD is now approaching our target at the 61.8% Fibonacci retracement. This is important support. Breaking below it, will open the way for a move lower towards $0.70. Bears remain in control of the trend. There is no sign of a bottom or a possible reversal. More downside should be expected.





Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Investors fear new tax code regulations



On Monday, bitcoin continued its steep decline. At the time of writing this article, the cryptocurrency's price has already lost $4,000, and the day is not over yet. Meanwhile, the bitcoin quotes descended to the support level of $43,852, from which previously it bounced at least twice. In addition, the 24-hour time frame shows that the trendline broke through the upper border of the sideways expanding channel three times. The channel is no longer relevant but its lines are still coming in handy. Besides, bitcoin hit another important level of $43,056, which is 38.2% Fibonacci. As a result, the sellers' task for today will be to break through all three supports. If successful, bitcoin decline may continue.

The decline in the bitcoin quotations has been expected for a long time. The cryptocurrency rose to $52,000 unreasonably. Therefore, the fall of the price to $30,000 is likely to happen. Two factors may facilitate this scenario. The first one is recent amendments to the US tax code according to which the data on all transactions over $10,000 in cryptocurrency will have to be submitted to the IRS. The second factor is the Fed's possible statement about the QE taper on Wednesday. The first factor will reduce investor and trader appetite for bitcoin. Given that many of the world's central banks have repeatedly drawn attention to the use of bitcoin for various criminal and illegal transactions, a certain share of its holders may refuse any possible interaction with the IRS.

The US government is intending to introduce taxation of transactions with cryptocurrencies, which may make investments in digital assets less attractive. However, the second factor means that there will be much less money poured into the US economy from nowhere. For more than a year, the market showed a bullish trend because the Fed regularly injected billions of dollars into the economy. If the Fed decides to reduce the flows, it will also affect bitcoin investment. The cryptocurrency's price may fall due to a decrease in demand. This process may have already started. The latest US dollar rally is seen to be unreasonable. It began last Thursday. Therefore, markets may have already started to calculate the possible outcome of the Fed meeting.

Nowadays, there is a trend towards stricter cryptocurrency laws in the world. Many central banks argue that cryptocurrency is not money. They are actively developing their own digital currencies, which they state are backed by the Central Bank itself. Therefore, governments may continue tightening legislation on cryptocurrencies, seeing them as a threat to financial stability and as an uncontrolled means of exchange, payment, and investment. Additionally, they are likely to increase tax pressure to generate revenue for the budget from a rapidly growing and evolving industry. Thus, it may become increasingly difficult for bitcoin to grow in value over time.



The 24-hour time frame shows that bitcoin resumed the correction but now it needs to break through the level of $43,852 and the upper channel line for the downward trend to continue. Only in this case, the cryptocurrency may be sold with a target of $40,000. Should a third bounce from the $43,852 level occur, then buying bitcoin with a target of $48,000 seems to be a winning strategy.





Paolo Greco
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin and Bloody Monday: Bearish Triumph or Correction?

Bitcoin has been holding up well all weekend in the narrow sideways range of 47,124.39 - 48,178.13 between the blue and red dotted lines. But Monday brought a new surprise: the price of BTC/USD came out of the consolidation zone downwards, rapidly approaching the strong mirror support level of 41,980.24.

At the time of writing, the price is hovering slightly above $43,400 per coin, with a daily loss of 7.98%.

The fall of bitcoin led to huge liquidations of $312 million - margin calls triggered. The average entry is about $45,000, which means that a drop below this mark can lead to the beginning of a serious correction in the market.

Meanwhile, various network data providers have noticed multiple spikes in supply on the exchanges, which is considered a negative sign. The money that appears on the stock exchange is usually sold in the market at some point.

At the same time, the average long/short ratio remains at 98% for long positions, which suggests a serious overheating of the market.

Nevertheless, network analysts point out that although the market is currently showing no signs of potential progressive growth, the data on the network still indicates that the bull market continues, and the bears are still not in control of the situation. Network indicators, such as stock inflows, show that there is no growing pressure from sellers in the market, and the current correction is of a short-term nature.

But let's look at it from the other side. Technical analysis allows you to assess the situation since the price includes everything. And now the daily candle is breaking through the local support level of 44,807.24, marked with a red dotted line. This means that the quotes are open to a path lower, to a strong mirror level of 41,980.24.

But the day is not over yet, which means we may well see a long lower shadow and a close above the red dotted support at 44,807.24. In this case, we can assume that the bulls retain the advantage.

If the price drops to the level of 41,980.24, it will become an alarming sign, since this is the last border separating the conditional "bullish" and "bearish" zones on the chart.

What does it mean? For speculative traders, this is the time to be wary of uncertainty. Will it be possible to buy if the price remains sideways between the support at 44,807.24 and the resistance zone at 47,124.39 - 48,178.13? In theory, yes, but the stop size will be very large in relation to the profit potential.

But if the level of 41,980.24 is confirmed as support, then a very good entry point can be formed here. But before that, false breakouts and even stop losses are not excluded, after which it will be possible to re-enter the long.







Ekaterina Kiseleva
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading signal for Bitcoin, BTC/USD, for September 20 - 21, 2021: Buy above $ 41,697 (EMA 200)



In the early American session, the price of Bitcoin (BTC / USD) is falling sharply below the SMA of 21 located at 47,000. It is also breaking the key support of 6/8 of murray located at 43,750. The 200 EMA located at 41,697 is likely to act as good support and there could be a technical bounce around this level.

Since the fall of September 7, BTC has not been able to recover to the psychological level of 50,000. It has made several attempts to consolidate above the SMA of 21 but failed. End each time it approached this moving average, sellers took control or short-term buyers liquidated their buying positions.

Technically, we can see that a bearish pennant pattern has been formed. This pattern is a sign of a further bearish trend. So, the price could reach the level of 41,697 in the short term. If the bearish force prevails, it could reach the key support of 37,500 (4/8).

On July 25, BTC broke the 200 EMA. After consolidating above this moving average, a new bullish wave began, which took the price to the high of 52,857. Now the only support that BTC has is this moving average. The 21 SMA now exerts downward pressure. If the price comes to test and if it manages to bounce above it, it will be a good opportunity to buy with targets at 47,000 and up to the 50,000 level (8/8).

On the contrary, a daily close below the EMA of 200 located at 41,697 will be a sign of the beginning of a bearish scenario so that the price could reach the level of 37,500. If the panic takes hold in the market, BTC tumble to the psychological level of 30,000.

Therefore, the key is to buy above the 200 EMA and sell below the 21 SMA. We believe that BTC is set to trade sideways in the coming days according to the daily chart. The eagle indicator is showing a bearish signal, we must wait for a break below 41,600 to be able to sell with targets at 37,500 and 30,000.


Support and Resistance Levels for September 20 - 21, 2021
Resistance (3) 46,875
Resistance (2) 45,624
Resistance (1) 44,314

Support (1) 43,750
Support (2) 41,121
Support (3) 40,625


Trading tip for BTC for September 20 - 21, 2021
Buy if Bitcoin rebounds at 41,697 (EMA 200), with take profit at 47,000 (SMA 21), stop loss below 41,000.





Dimitrios Zappas
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin vulnerable to slide further

Bitcoin was trading in the red at 43,619 level, hovering above the 43,000 psychological level. Technically, it has printed a false break with great separation below this level signaling a strong demand area.

Still, it remains to see what will really happen as the pressure is high. Making a new lower low, a valid breakout below the support zone may really announce a deeper drop. BTC/USD is likely to come under massive pressure in the short term. It has dropped by 9.19% in the last 24 hours. A deeper drop could drag the altcoins down as well.

The volume rose in the last 24h by 51.26%, while the market cap is down by 8.98%. More sellers will jump in if a larger sell-off is confirmed.


BITCOIN DOWNSIDE BREAKOUT ACTIVATES LARGER CORRECTION


Bitcoin failed to stay above 47,637 and within the Ascending Pitchfork's body signaling strong sellers and selling pressure. It has registered only a false breakout with great separation through 43,000 and 42,900 levels. Today's low of 42,453 is seen as a critical level.

Dropping and stabilizing below it may activate a further decline. This scenario could signal a potential drop below 40,000 psychological level.


OUTLOOK
A bearish closure below today's low of 42,453 may activate a larger downside movement towards 40,000 and 38,000 psychological levels.





Ralph Shedler
Analytical expert of InstaForex
© 2007-2021