Cryptocurrency Analysis

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BTC analysis for September 01,.2021 - Watch for the breakout of the upside channel

Technical Analysis:



BTC has been trading upside in last few hours and I see potential for the downside rotation.


Trading recommendation:
Due to tight upside channel and slowdown in the tempo, I see potential for the downside movement.

Watch for selling opportunities if you see the breakout of channel with the downside target at $46,700.

BTC is on the larger downside channel mode.

Stochastic oscillator is showing overbought condition and potential for the downside movement.




Petar Jacimovic
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for September 1, 2021

Crypto Industry News:
The US payment giant PayPal is exploring opportunities to offer stock trading after launching cryptocurrency trading services last year.

PayPal wants to buy or work with a financial giant to be able to launch its own stock trading service. The purpose of such decisions is to compete with rivals such as the cryptocurrency-friendly app Robinhood, US media speculate.

Citing anonymous sources, the media report notes that PayPal has held discussions with potential industry players, but is unlikely to launch a new service this year. It may take over eight months for PayPal to be potentially approved as a brokerage firm by the Financial Industry Regulatory Authority.

As part of the alleged plan, the payment giant has already hired brokerage veteran Rich Hagen as the new CEO of a division known as Invest in PayPal. According to Hagen's LinkedIn data, the director will be responsible for "PayPal's efforts to explore opportunities in the consumer investment industry."

Hagen is the co-founder and former CEO of Ally Invest, a regulated brokerage firm that acquired the online brokerage firm TradeKing in 2016. The new director of PayPal was also president of TradeKing.

PayPal officials said the company's potential plan to introduce an equity trading service is in line with CEO Dan Schulman's long-term vision to embrace many more financial services, including "investment opportunities". Following this news, PayPal shares rose 3.6%, while Robinhood HOOD shares fell by more than 6%.


Technical Market Outlook
The ETH/USD pair has made a new swing high at the level of $3,544 (at the time of writing the analysis), so the 61% Fibonacci retracement on the daily time frame chart had been broken. The next target for bulls is seen at $3,555 and $3,594, but the market conditions remains overbought. The nearest technical support is seen at $3,385 and $3,337.

Weekly Pivot Points:
WR3 - $3,712
WR2 - $3,560
WR1 - $3,379

Weekly Pivot - $3,218
WS1 - $3,063
WS2 - $2,891
WS3 - $2,721


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 1, 2021

Crypto Industry News:
The number of BTC addresses sending coins to exchanges reached the lowest monthly level - 4,831,226. This is according to on-chain data provided by the analytical company Glassnode.

This is a bullish trend as the number of bitcoins stored in cold wallets outstrips those found in cryptocurrency exchanges. This is another sign that there is a hodling sentiment among investors.

In the bitcoin network ecosystem, long-term breeders are gaining more and more. Their shares have recently reached a record level of nearly 12.75 million BTC. On the other hand, Bitcoin's average coin sleep rate hit its 3-year low - 4.475.


Technical Market Outlook
The BTC/USD pair has been seen consolidating around the level of $46,719 as the volatility decreases. The nearest technical resistance is seen at the levels of $49,316 and $50,456 (last week high). The key short-term technical support is seen at $46,719 and $46,209 (last week lows). On the higher time frame chart than H4, the bulls are having problems with the level of $51,189, which is the 61% Fibonacci retracement of the whole move down.

Weekly Pivot Points:
WR3 - $54,910
WR2 - $52,718
WR1 - $50,895

Weekly Pivot - $48,630
WS1 - $46,765
WS2 - $43,987
WS3 - $42,007


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 $51,189, which is the 61% Fibonacci retracement of the whole move down. 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]

Willie Woo and Jack Dorsey predict a great future for Bitcoin



Bitcoin continues to move just below the upward trend line and the Ichimoku cloud. Despite the fact that several strong sell signals have formed at once in the last few days, the markets are not in a rush to abandon Bitcoin. And from our point of view, this is a very significant factor at this time. It was mentioned earlier that there were no strong fundamental reasons for Bitcoin to rise by $ 21,000 over the past month. We assumed that its growth was provoked by the fears of market participants for the adoption of new tax legislation in the United States, with which the attractiveness of Bitcoin and other cryptocurrencies as investment instruments will greatly decrease due to tax collection. However, as practice shows, the markets have been acquiring the leading digital asset quite actively, but they are clearly in no hurry to get rid of it. Therefore, the local "bullish" trend may persist and continue. Technically speaking, Bitcoin sometimes moves just perfectly, but at this time, strong sell signals are simply ignored.

At the same time, some well-known analysts began to predict the growth of Bitcoin again to $ 100,000 this year. For example, this forecast was made by Willy Woo, who believes that a new wave of Bitcoin growth will begin in October-November of this year. He believes that large investors and long-term holders continue to accumulate coins, which will lead to an explosive growth of the asset sooner or later. And the founder of Twitter, Jack Dorsey, is going to launch a cryptocurrency exchange in the near future and delve into the cryptocurrency business. According to Dorsey, bitcoin can become the "national currency of the Internet", so it is the future. Earlier, Dorsey, Elon Musk, and Cathie Wood have repeatedly spoken positively about bitcoin and have repeatedly stated about their companies' investments in "digital gold" and derivatives related to it.

We can only watch who will win this time – technical analysis, which predicts a strong new decline of the Bitcoin, or dubious fundamental factors, which are now expressed only by the next portion of the forecasts, that is, $ 100,000 by the end of the year.



From the point of view of technical analysis, Bitcoin continues to be in an upward trend on the four-hour timeframe, but a price consolidation below the upward trend line opens up bearish prospects for the cryptocurrency. The main cryptocurrency has consolidated below the Ichimoku cloud and the level of $ 47,500, so the downward target is now the $ 43,852 level. However, traders are not in a rush to get rid of Bitcoin, so it has been in a narrow range for several days and cannot continue to decline. Everything should be decided in the upcoming days.





Paolo Greco
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Ethereum and Bitcoin are gaining momentum at a colossal pace: which crypto asset will be on the scales of domination?



deVere CEO Nigel Green said: "Ethereum's conquest seems to be an increasingly plausible prospect." This month, such statements have the prerequisites for existence. Ethereum remains a much more scalable digital asset than bitcoin, and its network also provides huge opportunities for users, offering many different functions, as well as smart contracts.

According to Vitalik Buterin, ether will switch to a new Proof-of-Stake protocol, which will be more environmentally sustainable. Now bitcoin and ethereum work on the same Proof-of-Work protocol. Green said that ethereum surpasses bitcoin in everything except hype, popularity and media.

According to him, 2021 and 2022 will be a turning point for the main altcoin. Now there is only one cryptocurrency that can claim the throne on the crypto arena - and that is ethereum.

Eswar Prasad, professor of economics at Cornell University, said that it is impossible to say with 100% accuracy that ethereum will dominate bitcoin.

A priori, there may be difficulties when switching from the old protocol to the new one, there are also many risks associated with Defi products that may not fire and undermine the trust of users both in the products themselves on the network and in the ethereum itself.

However, Prasad said that bitcoin also does not position itself as a great tool for converting currencies. Its blockchain is very limited and non-multifunctional. The ether blockchain is more flexible and functional, especially for such services. It can also become the very lifesaver for exchanging and converting with high bandwidth.

Half a month ago, Goldman Sachs analysts already predicted a huge success for ethereum and gave five years for the ether to surpass bitcoin on the crypto-olympus within the next five years.

Justin Hartzman, CEO and co-founder of the Canadian crypto exchange Coinsmart, thinks that it will be difficult for ethereum to beat bitcoin on all fronts, since bitcoin has long been an established and proven crypto asset with a huge number of holders. According to Hartzman's forecasts, the next bitcoin reduction, at least twice, should occur in three years, which will serve as a catalyst for price growth.

Also, do not forget such altcoins as cardano and tezos, which are now the cherries on the cake, and are rightfully called the killers of ethereum. If they shoot, they will be able to take the possible market capitalization from the ethereum wallet over the next five years.

John Yadeluk, CEO of Bank Capital, spoke out and dispelled doubts that ethereum will surpass bitcoin in terms of market capitalization and popularity. Yadeluk does not see any scenarios in which the SEC can first approve the ethereum ETF, and only then approve the bitcoin ETF.



Investment firm Capital analyst Jason Packham also believes that this is a double-edged sword and a lot will depend on how the two crypto giants of the network solve their internal problems, how they scale, how they resist inflation, which is an attractive ground for investors.

Ethereum has the richest ecosystem in space, while bitcoin can be seen as an accumulative medium. Ethereum is a completely decentralized platform.

Packham also said that in fact, bitcoin is the best thing that could happen to humanity, and there will be nothing better than it. However, it is foolish to bet against ethereum, as its network is absolutely unique and rich, and its innovations are simply amazing.

Peckham stated that as a trader, he would have preferred ethereum, citing its innovativeness and dynamics of development. He believes ethereum will offer bitcoin higher growth potential in a bullish outlook.





Vitaly Kolesnikov
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin can invalidate its corrective phase

Bitcoin has turned to the downside in the short term, but the bias remains bullish. It was trading at 47,469 at the moment of writing. The price action has developed a minor flag, a down channel, which could represent a continuation pattern.

Technically, BTC/USD may offer us great trading opportunities soon. It's located between crucial levels, so a valid breakout is likely to bring fresh signals. Bitcoin is down by 1.63% in the last 24 hours and by 1.17% in the last 7 days. The trading volume has increased by around 20% in the last 24h.


BTC/USD STILL BULLISH



Bitcoin has dropped within the minor channel. The weekly S1 (46,544) and the level of 46,309 are seen as support levels. If the price hits a new lower low, closing below 46,309, it will fuel a deeper drop.

On the other hand, if the price stays above the support levels, makes an upside breakout from the current flag, and comes back above the weekly pivot point (48,572.14), it may invalidate the downside scenario and bring new long opportunities.


FORECAST

Jumping and stabilizing above the weekly pivot point (48,572.14) represents a bullish signal.





Ralph Shedler
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Short-term analysis on Bitcoin.

Bitcoin is trading below $48,000 having made another lower high at $49,553 and is now moving lower. In our last post we warned that price was expected to move lower towards $42,000. The chances still favor a move lower as price looks vulnerable to such a pull back.



Black line -key short-term support

Red lines - Fibonacci extension targets

Bitcoin is now testing the horizontal support at the $46,500 area. Breaking below this level will produce a sell signal. If support fails to hold, I expect Bitcoin price to first reach the $45,300 level and later probably the $42.600 level. Although my medium-term expectations for Bitcoin remain bullish, in the short-term I remain bearish looking for the creation of a higher low around the $40,000 price level before continuing the up trend.





Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading Signal for EThereum ETH for August 31, 2021: Sell Below $3,437 (7/8)



The daily chart of Ethereum (ETH/USD) is showing strong bullish signal. After having consolidated around 3,300 since August 6, the price made a bullish breakout above the 61.8% Fibonacci retracement, but it has strong resistance at 7/8 of murray around 3,437.

The key level of 7/8 murray is a strong resistance level that also represents a reversal. So, if Ethereum fails to stay above this level, there could be a drop to the 6/8 murray support at 3,125.

This critical 7/8 murray level could be a sign of the last effort of the market to rise above the 61.8% Fibonacci level. If it fails to consolidate above the psychological level of 3,500, there could be a correction to the level of 3,000.

If Ethereum breaks out of the 3,000-3,351 range, there would be a scenario in which sellers push buyers out of their bullish positions. In this case, the fall of Ethereum could increase and reach the level of the 200 EMA located at 2,300 and the level of 23.6% Fibonacci.

On the other hand, above the range of between 3,000 and 3,3351, the opportunity could be developing in favor of the buyers. For this, there should be a consolidation above 3,400. Only then could Ethereum rise and reach the level of 8/8 of Murray located at 3,750.

Market sentiment for Ethereum is developing in favor of buyers, but some negative news or rumors can quickly drive it down to the critical level of 2,500.

Therefore, according to technical analysis, as long as Ethereum remains below the 7/8 murray line, it will be a good opportunity to sell with the targets at the 3,125 and 2,750 levels of the 38.2% Fibonacci.


Support and Resistance Levels for August 31, 2021
Resistance (3) 4,062
Resistance (2) 3,750
Resistance (1) 3,437

Support (1) 3,125
Support (2) 3,012
Support (3) 2,812


Trading tip for EThereum for August 31, 2021
Sell below 3,437 (7/8), with take profit at 3,125 and 3,012 (50%), stop loss above 3,550.




Dimitrios Zappas
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin: hash rate recovery and holders' activity indicate growth

Growth is still difficult for Bitcoin. The sideways consolidation continues without changing the previous long-term forecasts. But two local consecutively declining highs on the daily chart create prerequisites for a deeper downward correction to the level of 44,807.24. Or the continuation of consolidation in the sideways between the lows of August 26 and the highs of August 23 ($46,000-$50,000 per coin).

Nevertheless, this step back of the main cryptocurrency is not intimidating from a long-term perspective.

Network analyst Willy Woo now predicts that Bitcoin will "go crazy" in the coming months as long-term holders continue to accumulate it.

In a new episode of the What Bitcoin Did podcast, Woo says long-term holders who have held the coins for at least five months will announce their presence soon.

"This is a macrocycle. You might have seen a similar situation at the bottom of 2015, 2014. You saw it during the 2019 lows, and in fact, you saw it during 2020. There was the Covid-19 crisis. Michael Saylor collected all the coins, and this was another peak in the accumulation of long-term holders. By next month at current rates, we will peak. "

By peak accumulation, Woo means a "white bar" followed by a run-up. The last acceleration from $10,000 to $60,000 began in October 2020. A few months before, the crackdown was from $4,000 to $14,000. So if we see a peak in October, then Bitcoin may start a new acceleration.

Woo draws his conclusions from network data and believes this cycle is different from the 2013 bull market. According to Woo, he doesn't believe the current bull race will end in one massive impulse.

Let's look at the situation from the other side - from the side of the hash rate renewal. After the collapse of the Chinese repression, CryptoQuant analysis showed that Bitcoin's hashrate is now recovering "well" and that miners are still in net accumulation.

The steadily growing hash rate and the net accumulation of miners are signs that they expect the price to rise.

Thus, growth to the historical maximum is possible, but how much longer Bitcoin will have to mark time, consolidating in narrow ranges, is difficult to say. And it is not necessary. But if the price of BTC/USD falls to the level of 44,807.24, marked with the lower blue dotted line, then when it reverses upwards, a good buy entry point is likely to form for both short-term positions and longer trades.







Ekaterina Kiseleva
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BTC analysis for August 31,.2021 - Watch for rally towards upper trendline

Technical analysis:



BTC has been trading upside, there is potential for the re-test of the resistance at $48,500.


Trading recommendation:
My advice is to watch for buying opportunities on the pullbacks with target at $48,500 but then potential for downside rotation due to downside trending mode.

Key resistance is set at $48,700





Petar Jacimovic
Analytical expert of InstaForex
© 2007-2021