Cryptocurrency Analysis

[IFX_Selena]

Trading plan for Bitcoin for November 25, 2021



TECHNICAL OUTLOOK:

Bitcoin has finally carved a meaningful bottom around $55,200-300 mark, in line with our expectations. Please note the pink rectangular box, which was marked several days earlier for prices to drop there before bouncing higher. The crypto has now also tested its fibonacci 0.382 retracement of the rally between $40,000 and $ 69,000 levels as displayed on the chart.

A push above $60,000 initial resistance will confirm that a meaningful bottom is now in place and that bulls are back in control. They should remain inclined to push through $75,000 mark before finding resistance again. On the flip side, a drop below $55,300 mark will drag the price further towards $52,000 zone before resuming higher again.

The overall structure continues to remain bullish until Bitcoin stays above its channel support trend line and subsequently above $40,000 price support. At the moment, traders might be looking to initiate fresh long positions with risks below $50,000 mark.


TRADING PLAN:

Potential rally towards $75,000, against $50,000.

Good luck!





Oscar Ton
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

More hedge funds start to acknowledge bitcoin


As bitcoin struggles to reach the lows of the week and ether attempts to break through the resistance of 4,367, EY, one of the four largest consulting and audit firms in the world, found that one in four hedge funds are ready to increase their investments in crypto next year. The 2021 EY Global Alternative Funds Survey showed that digital assets are gradually becoming more common in investor portfolios, albeit to a small extent.

Large funds getting used to bitcoin



EY has also identified hedge funds with a particular interest in cryptocurrencies. The study says that more and more companies are planning to start investing in alternative instruments next year, including cryptocurrencies. Currently, hedge funds are one of the most open platforms for investing in bitcoin and ether.

Due to the coronavirus pandemic, investors had to face serious challenges, including inflation, which is simply devaluating bond yields, repelling institutional investors from investing in these instruments. The coronavirus also helped investors change their attitude towards alternative instruments, including cryptocurrencies. While crypto is not currently popular with the majority of fund managers, the growing appetite among investors will force more companies to invest in this asset class.

The study found that just 1 in 10 hedge fund managers reported having exposure to these assets, indicating that there is room for future growth. The recent performance of these funds has been impressive. About 51 percent of investors surveyed said alternative investments have increased the value of their portfolios and exceeded their expectations.

This year has also seen exponential growth in the cryptocurrency industry. The rise of these digital assets has made companies and fund managers turn their attention to cryptocurrencies as relatively profitable instruments in today's confusing markets. Although their actual involvement in cryptocurrencies has not been as big as with other unregulated assets, large players continue to enter this market, which opens up huge growth prospects. The study highlights the resilience of the new industry and key transformations that make it more attractive to managers and investors.

In the short term, trading volume is expected to decrease over the next few days, especially on Thursday - Thanksgiving Day in the United States. However, some analysts expect increased volatility in the bitcoin and ether options market by the end of November.


Technical picture for bitcoin


After another attempt to rise to the $60,000 area, bitcoin lost its ground very quickly and returned to a strong support level of $56,400. Further growth of the trading instrument will depend on whether bulls will be able to regain control of the $60,000 resistance area. If this is so, we can expect a jump to the $64,000 area. If the price breaks below $ 56,400, this will be bad for us. In this case, the pressure on bitcoin will increase, and the price may retest the lows of $53,600 and $50,900.

Technical picture for ether

Another retest of the support level of $4,110 increased the demand for ether. This allowed the bulls to drive the instrument up to the resistance level of $4,360, a strong obstacle for altcoin buyers. A breakout of this level will quickly return ether to $4,578. If the breakout of $4,110 takes place, ether will come under pressure again and may head for the lows of $3,885 and $3,682.





Jakub Novak
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BTC analysis for November 25,.2021 - Double bottom in the play

Technical Analysis:




BTC has been trading upside today and there is the breakout of the contraction in the background, which is good sign for further upside movement.


Trading recommendation:
Due to oversold condition and potential for double bottom, I see potential for the upside movement.

Watch for buying opportunities on the dips with the upside objectives at $60,370 and $61,400.

Stochastic is showing fresh bull cross, which is another sign and confirmation for the upside movement.

Support level is set at $55,500





Petar Jacimovic
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Short-term analysis on XRPUSD.


XRPUSD continues to respect the key support area around $1. Price tested this support area yesterday once again. Support was held Price has bounced since then and is now challenging the important downward sloping resistance trend line at $1.05.



Red line -resistance

Blue rectangle - support area

XRPUSD remains supported. As long as the blue support zone remains intact, bulls have hopes. On the other hand, in order to see a short-term trend reversal, bulls will need to break above the red downward sloping resistance trend line and stay above it. Next major resistance is at $1.13 and next at $1.25. Breaking above these levels will open the way for a move towards $1.50-$2. Until then, price is vulnerable to a downward break that could push it close to $0.80.






Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Ethereum bulls target $4,520 and $4,700 in the short-term.

Ethereum continues to trade above the key support at $3,950-$4,000. Price tested this level twice and both times price bounced higher. This time price only pulled back towards $4,015 and formed a higher low. Price is moving higher with a strong bullish momentum.



Red lines - Fibonacci extension targets

Price is close to breaking above November 21st high at $4,431. This will open the way for a move towards our Fibonacci extension targets at $4,523 and $4,750. Support is at yesterday's lows at $4,159 and bulls do not want to see price break below this level. This would be a sign of weakness. Price has started making higher highs and higher lows and that is why we expect the upside move to continue higher over the next couple of sessions.





Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin whales buy back the fall


Bitcoin is slowly and confidently going according to plan - consolidating. The side range 55842.84 - 59283.67 does not lose relevance, volatility remains low. The situation does not look critical, but locally it is somewhat ambiguous.


Bitcoin whales buy back the fall

The analytical company Santiment reported that cryptocurrencies are using price reduction to replenish stocks.

Active Bitcoin whale addresses, which contain from 100 to 10,000 BTC, accumulated about 40,000 bitcoins during the fall of last week. With prices in the region of $ 57,000 per bitcoin, their savings amount is approximately $ 2.26 billion.


Coins are leaving cryptocurrency exchanges

At the same time, according to Santiment, the supply of bitcoin on the exchange continues to be depleted, although prices are declining. This means that the risk of a mass sale is reduced.

There is another interesting fact: the same analysts note that sentiment on the main cryptocurrency has reached the lowest bearish level in seven weeks.

The assessment is based on the data of the weighted sentiment tracker Santiment, which analyzes positive and negative comments related to the crypto asset. The analytical company states that prices tend to peak when social sentiment becomes too high and reach a minimum when the indicator becomes too low.

Another indicator is the Binance financing rates

Analyzing this data, Santiment reports:

"When from mid-October to mid-November bitcoin was well above $60,000, Binance's funding rates for most assets were in positive territory. This indicated the trader's excessive confidence and excessive price correction. Now everything looks much more neutral."


The "worst" scenario from PlanB

A well-known cryptanalyst said that, most likely, his monthly goals for bitcoin will not be justified and bitcoin will close according to the "worst-case scenario".

His goal for the end of November was at $98,000. Its achievement in the remaining five days before the end of the month from the current 58,000 is unlikely.

The expert himself states that his model for analyzing the ratio of stocks to flow (S2F) has not lost relevance because of this.








Ekaterina Kiseleva
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading signal for BITCOIN on November 25 - 26, 2021: sell below $61,294 (21 SMA)



Bitcoin (BTC/USD) and most of major altcoins are struggling to find bullish momentum, a possible sign that prices could continue to weaken in the coming days.

BTC price is trading below the strong resistance of 2/8 murray and below the 21-day moving average, around 61,294. As long as it remains below this zone, BTC is expected to continue oscillating between 56,250 - 62,500.

The bulls are trying to stop the correction near 56,250, but the bears are not willing to give up. On the other hand, BTC has a strong barrier around the 21 SMA located at 61,294 - 62,500, indicating that bears are trying to convert this level as strong resistance.

Since the beginning of October, Bitcoin has been forming a shoulder head shoulder pattern. According to the daily chart, the formation of the second right shoulder is finishing. A sharp break below 56,250 could result in a loss of 10k in price, towards the level of 45,500.

The volume of operations of the cryptocurrency market has decreased as we can see it in the daily chart. The eagle indicator shows a decrease in volume and the strength of the market is likely that a relevant news can send the BTC towards the psychological level of $ 50,000.

Our trading plan is to wait for a technical bounce or a pullback towards the resistance at 62,500 or 61,294. At this level, it will be a good opportunity to sell with targets at 56,200 and up to the 200 EMA located at 50,000.


Support and Resistance Levels for November 25 - 26, 2021
Resistance (3) 62,500
Resistance (2) 59,885
Resistance (1) 58,777

Support (1) 56,900
Support (2) 55,022
Support (3) 54,253


A trading tip for BTC November 25 - 26, 2021
Sell below 61,294 (21 SMA ) with take profit at 56,250 (1/8) and 50,000 (200 EMA), stop loss above 62,500.






Dimitrios Zappas
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bank of Canada Deputy Governor Paul Beaudry: Cryptocurrencies are not a threat to the financial system of Canada and other countries



According to Bank of Canada Deputy Governor Paul Beaudry, cryptocurrencies are not a threat to the dollar and the global financial system.

Beaudry said that cryptocurrencies can develop in parallel with the financial system and the IMF. This statement was made during a meeting at the Securities Commission in Ontario two days ago.

Beaudry is certain that cryptocurrencies have not yet reached such scalability locally that entire economies of countries could be at risk.

In turn, Beaudry said that the Bank of Canada is also carefully studying and monitoring the crypto market. He made it clear that the Bank of Canada does not believe that the crypto market is moving in a direction in which a threat to the entire financial system of Canada can be created.

The cryptocurrency is moving in its own direction, and the Canadian dollar is developing in its own direction, and they are not touching.

However, Beaudry believes that the crypto market could potentially create a vulnerability in the Canadian economy within 10 years if bitcoin and other altcoins receive even more approval and recognition from Canadian institutions.



The Bank of Canada does not consider the crypto market a dangerous threat to its economy. Beaudry is certain that although investors promote cryptocurrencies as a payment method as a faster and more secure way, however, they do not play an important role in payments.

The lion's share of coins that are currently on the crypto market are speculative reagents. Beaudry believes that stablecoins are unlike ordinary altcoins, such as bitcoin, Ethereum, cardano, and they can be a hindrance to payments.

The Bank of Canada is monitoring the stablecoin market. With careful and scrupulous observation by central banks of stablecoins, it is possible to understand what role these coins play and whether they pose a threat.

Canada continues to be a crypto-friendly jurisdiction. Earlier this year, Canada approved the first spot market-based ETF on Bitcoin.

Also, after China banned mining, Canada welcomed miners with open arms. Canada is the fourth country in terms of BTC hashrate performance..






Vitaly Kolesnikov
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Cryptocurrency market update for November 26, 2021



BTC'S 2ND FAILED ATTEMPT TO BREAK THROUGH $56,361 BARRIER

On Thursday, November 25, Bitcoin rose by $1,500 after its second failed attempt to break through the $56,361 barrier (76.4% Fibonacci level). It is a very important mark. A breakout there is likely to trigger a deeper correction. According to Glassnode analysts, many long-term investors keep buying out all available BTC volumes on exchanges, preventing the rate to go down. So far, it has been an accurate assumption since the price failed to fall below the abovementioned point. So, there is a likelihood that the current uptrend structure will become more complex. At the same time, the asset failed to break through the barrier twice in two days. This could indicate the completion of the first wave of the new uptrend.


IMF CALLS ON EL SALVADOR TO RE-EVALUATE ITS DECISION ON BITCOIN

As a reminder, El Salvador adopted BTC as legal tender. It was reported that the county is now planning to build the world's first Bitcoin city with no taxes other than the VAT. El Salvador's President Nayib Bukele intends to raise about $1 billion through the placement of Bitcoin bonds. Half of these funds will be used for building the city. It is difficult to say who would want to live in El Salvador, albeit in a city without taxes. Nevertheless, this is a very interesting idea. However, not everyone finds it appealing. The International Monetary Fund called on El Salvador's government to re-evaluate the decision to make BTC legal tender. According to the Fund, the country's authorities are not fully aware of all the financial and consumer risks related to cryptocurrency. They reminded the El Salvador government of bitcoin's high volatility and offered to limit the area of the use of the digital asset as well as tighten cryptocurrency regulation.

Meanwhile, JPMorgan said ether is better than bitcoin for long-term investments because it is less dependent on fundamental factors. ETH has surged 6 times since the beginning of the year compared to BTC that only doubled gains.



The current uptrend structure still looks clear. The wave layout cleared up after the instrument went above the high of supposed Wave 3. On the chart, there is now an impulsive 5-wave structure that began to form on July 20. However, in the last two weeks, the price has been pulling back from the highs, meaning that Wave 5 is about to complete soon. This wave will look shorter if Bitcoin breaks the $56,361 barrier successfully. Otherwise, Wave 4 could split into three smaller ones and Wave 5 could start to form with targets at about $74,000. If so, the price will continue to decline within the first wave of a new downtrend section. The formation of this section could be completed in 1-2 months. Meanwhile, BTC will be heading towards $45,000.





Chin Zhao
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Ethereum false breakout & bearish engulfing


Ethereum is dropping like a rock at the time of writing. It's trading at 4,389.77 far below 4,556.42 yesterday's high. In the short term, it has reached a strong dynamic resistance, so a temporary decline was somehow expected.

ETH/USD dropped by 3.75% from 4,555.25 today's high to 4,383.99 today's low. The crypto drops as the price of Bitcoin turned to the downside. Ethereum could test and retest the near-term support levels before trying to jump higher.


ETH/USD TEMPORARY DECLINE!


ETH/USD registered a false breakout through the descending pitchfork's upper median line (UML) and now it has turned to the downside. The bearish engulfing signaled a potential drop.

Now, it challenges the weekly pivot of 4,331.69 and the 23.6% retracement level. Unfortunately, it has failed to stabilize above 4,439.92 signaling that the pressure is high. The median line (ML) of the descending pitchfrok stands as a dynamic support.

Only a valid breakout through the upper median line (UML) could announce an upside continuation.


ETH/USD FORECAST!

Dropping and stabilizing under the descending pitchfork's median line (ML) could signal a deeper drop towards the 38.2% retracement level. A larger corrective phase could be activated by a valid breakdown below the 38.2% and under the 4,000 psychological level.

On the other hand, staying above the median line (ML), testing and retesting this dynamic support, or registering only a false breakdown could signal that ETH/USD could still grow.






Ralph Shedler
Analytical expert of InstaForex
© 2007-2021