Cryptocurrency Analysis

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Ethereum broke through $3,000 and continues to decline: why is it good

After a powerful rally to $3,300, Ethereum begins to lose ground and decline. Today, August 19, the cryptocurrency broke through an important support level at $3,000 and as of 13:00 UTC, it is quoted at $2,900. At the same time, the coin has not yet exhausted its margin of safety, and bullish signals are visible on technical indicators, which the market is not in a hurry to implement yet. And this is good since, at the current stage, ether needs to pause to continue a healthy price rally above the $3,300 mark.

The main problem of ETH at this stage is the increasing discrepancy between trading volumes and price growth. This circumstance indicates certain unreasonableness of the rapid growth of the quotes of the altcoin. And unlike bitcoin, ether failed to correct the situation. The same applies to the on-chain indicators of the cryptocurrency. After the hype from the hard fork subsided, the coin began to lose its audience, but the price continued to move up. This discrepancy was partially offset by the fact that the recent rally of the asset was caused by the operations of institutional investors, while the retail audience remained distrustful. All these factors were not decisive, but raised concerns about the validity of the ETH rally. Given this, the market correction of the asset looks like a very useful tool for eliminating these discrepancies.



At the same time, it is absolutely obvious that the market has not yet exhausted the current reserve of interest in the altcoin. Firstly, this is evidenced by the activity of unique addresses that defended their positions and showed interest in purchases. In addition, the supply of ETH on the main cryptocurrency exchanges continues to decrease, which also indicates the interest of market participants. Also, this reduces the pressure of sellers on the asset, which confirms the fact that the correction of the ether is of a technical and health-improving nature. It also adds positive indicators of the seven-day MVRV, which remains in the negative zone and indicates the continued growth of interest in the cryptocurrency. It also indicates that there is no prospect of profit-taking, which could worsen the fall of the altcoin.



The interest in altcoin is also clearly visible on the one-hour chart. Buyers have already started buying off the price and are trying to return the asset above $3,000. Stochastic indicates a likely bullish breakout, but the RSI remains below the 50 mark. At the same time, the MACD indicates the continuation of consolidation and sideways movement. The four-hour chart shows more signals to weaken, but the tendency to enter $3,000 is still strong.



The daily chart shows the formation of powerful bullish signals, which can increase many times over if the ether manages to jump by $3,000 by the end of the day. At the moment, the situation around the quotes of the ETH/USDT pair is stable. The correction is of a technical nature and, most likely, tomorrow the altcoin will return to growth. A small drop in price will allow the asset to close the difference in price and on-chain indicators, which will strengthen the future rally.






Artem Petrenko
Analytical expert
InstaFintech Group © 2007-2021

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Japanese cryptocurrency exchange robbed of $80 million



Bitcoin sank by $4,000 in the last 6 days and fell to the support level of $43,852. However, we should not forget that in the last three weeks before this, the cryptocurrency grew by $18,000. Thus, the current downward movement is nothing more than a correction. However, if the bears manage to overcome the support level of $43,852, the decline in quotes is likely to continue. Recall that we expect a new decline in the quotes of the bitcoin in the area of $30,000. Also, there have been no special reasons for the growth of the cryptocurrency by $18,000 recently.

Meanwhile, hackers broke into Japan's Liquid cryptocurrency exchange and withdrew $80 million worth of digital assets from it. The administration of the exchange said that the circumstances of the incident are currently being studied, and for now the withdrawal of funds and deposits will be suspended. According to unconfirmed information, more than 100 bitcoin coins, almost 15,000 ether coins, were stolen from the exchange. The management of the exchange stated that at this time, it is tracking the movement of stolen digital assets and is looking for an opportunity to freeze and return the funds. Recall that this is not the first case of cryptocurrency exchange hacking. According to data from Kaspersky Lab, which specializes in the search for viruses and malicious fraudulent sites and programs, there were more than 1,000 sites on the Internet in 2021 aimed at deceiving the owners of digital assets.

It also became known that the United States and China are no longer world leaders in the distribution of cryptocurrencies. If earlier the two largest countries on Earth were directly involved in the popularization of the cryptocurrency segment, in 2021, they were replaced by developing countries, whose population sees bitcoin as a way to escape from high inflation (which affects the currencies of many developing countries). In addition, residents of developing countries are turning to cryptocurrencies to conduct business and make money transfers abroad since this method is much easier and less controlled by governments and central banks than bank transfers and transfers through payment systems. Now the TOP 5 countries on the cryptocurrency distribution index include Vietnam, India, Pakistan, Ukraine, and Kenya.

At the same time, bitcoin is on the verge of a new collapse. Recall that the key moment for "digital gold" was a double rebound from the level of $47,500, after which the quotes fell to the level of $43,852 and the upward trend line. Now, overcoming the trend line and this level will open the way for sellers to the level of $40,746. The fundamental background is absolutely not on the side of bitcoin right now, so the fall will be the logical end of the bullish microtrend that has formed over the past month.







Paolo Greco
Analytical expert
InstaFintech Group © 2007-2021

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Bitcoin hits a weekly low: will it go further?

Bitcoin continues its downward movement from the local high of $48,200. The market is fully implementing the weakening, which is demonstrated by the technical indicators of the cryptocurrency. The coin hit a weekly low at $44,800 and is trying to hold that milestone. Despite the contradictory indicators of the horizontal charts, bitcoin is still in the framework of an upward trend. At the same time, yesterday, August 18, the 200-day moving average was broken, which became an alarm signal for the bulls, and intensified the activity of the bears.

The main challenge for bitcoin in the current decline is the consolidation and a successful rebound above $45,000. As of 11:00 UTC, the cryptocurrency is quoted at $44,600 and is trying to start moving up. However, the bears will likely try to push the price even lower to the key support level at $44,200. With a bearish breakout, bitcoin could drop to $40,000 and below. At the same time, the market situation indicates a probable rebound of BTC from the current area due to the large concentration of longs and local positive investors. However, the coin made life difficult for itself by forming a resistance level at $45,200. On the one-hour chart, a bearish trend has appeared along this line, and pressure zones are now concentrated at $45,200 and $45,500. This indicates, that in the near future, the main cryptocurrency will not be able to break through the $50,000 mark. Buyers should now focus on the return of BTC's upward movement.



On the one-hour chart, bitcoin indicators are showing signs of weakening. For example, the RSI is gradually moving below 40. At the same time, the MACD and stochastic indicate a possible bullish momentum and price growth in the near future. The overall picture of the one-hour chart indicates the coin's tenacity on this line. Bitcoin will likely try to break through $45,000 after a short consolidation.



On the four-hour chart, bitcoin looks even weaker due to the MACD, which has gone beyond the zero mark and indicates a clear downward movement. At the same time, the RSI is trying to stay above the 40 mark, and the stochastic is trying to pull the rope, which ended in a local victory for the bears.



A clear bearish trend is emerging on the bitcoin daily chart, where all major indicators point to a downward movement. The MACD indicator confirms the breakdown of $44,200, and the stochastic crossed the zero mark, which indicates the inability of the bulls to buy back the current price drop. In general, the horizontal charts indicate a clear breakdown of the $44,200 mark and further movement towards $40,000. With the current market sentiment and the upward dynamics of social and on-chain activity of bitcoin, the probability of a rebound to the growth area is extremely high. However, if the $44,200 mark is broken, the chances of successfully working out the local bearish trend and further movement to the key zone of $37,300 increase significantly. With its bearish breakout, the local upward trend from July 20 is completely canceled, and the likelihood of a shift to the middle of the two-month range of fluctuations increases.







Artem Petrenko
Analytical expert
InstaFintech Group © 2007-2021

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Technical analysis for Bitcoin

Bitcoin


The encounter with the resistance of the weekly medium-term trend (46960) not only led to a slowdown but also resulted in a daily downward correction. In the morning, the bearish traders took over the short-term trend (45864). Further development of the decline and strengthening of bearish mood will direct Bitcoin to a significant support zone, where daily levels (42585 - 40900), weekly Fibo Kijun (42758), and monthly supports (41532 - 41165) combine their efforts.

But if the current decline ends and the resistance of the weekly medium-term trend (46960) is broken, the bulls will have an opportunity to rise to new upward targets, which are currently located at 51163 (weekly Fibo Kijun) and 49230 - 51161 (daily target for the breakdown of the cloud).



The bears currently have the advantage in the smaller time frames. Today, Bitcoin has already fallen into the influence zone of the first support of the classic pivot levels (43751), followed by S2 (43023) and S3 (41925). At the moment, it is in the correction zone and is testing the central pivot level (44848). The next important level is now in the area of 46000. A breakdown and consolidation above the key levels (44848 - 46000) will affect the current balance of power on the hourly chart, while the daily short-term trend (45864) will be returned to the bulls. As a result, the question will arise about the completion of the current downward movement, with the aim of a new test of the weekly resistance (46960).

Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart, are used in the technical analysis of this instrument.





Evangelos Poulakis
Analytical expert
InstaFintech Group © 2007-2021

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Neel Kashkari slams cryptocurrencies



Minneapolis Fed President Neel Kashkari slammed cryptocurrencies on Tuesday, saying that the market funds illegal activity and is full of fraud.

He noted that he was initially optimistic about tokens like Bitcoin, but now he deems them as fraud, hype, noise and confusion.

"I was more optimistic about crypto or bitcoin about five or six years ago. So far, what I've seen is 99% ... let me be charitable, 95% fraud, hype, noise and confusion," Kashkari said.

And so far, according to Kashkari, no one has clearly articulated how Bitcoin can solve meaningful problems better than existing currencies. He said he had not seen any use cases other than financing illegal activities like drugs and prostitution.

In any case, Bitcoin grew explosively over the past year, soaring from below $ 12,000 to above $ 63,500. But on Wednesday, it lost more than 3% and valued $ 45,250.



The rally of Bitcoin, along with peers such as Ethereum and Dogecoin, is keeping pace with the growing popularity among individual investors, as well as the rise in corporate and institutional ownership.

It also generated interest and criticism from central banks, some of which are looking to create their own government-sponsored digital currencies.

Kashkari is the last Fed member to join the criticisms against cryptocurrencies. And in Europe, ECB Governor Christine Lagarde called for global regulation of Bitcoin earlier this year, saying multilateral action is needed to stop "fun business" and money laundering.




Andrey Shevchenko
Analytical expert
InstaFintech Group © 2007-2021

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Technical Analysis of BTC/USD for August 19, 2021

Crypto Industry News:
Mikhail Fedorov, Ukraine's deputy prime minister and head of the national Ministry of Digital Transformation, revealed a possible case of early use of the planned digital currency of the central bank (CBDC).

In a recent interview published by the Ukrainian media TSN, the minister revealed the ministry's considerations to test CBDC using it in the payment of workers' salaries:

"Honestly, as one of the first pilot projects, we have the issue of paying salaries to employees of the Ministry of Digital Transformation in electronic hryvnia," he said.

Fedorov made these remarks arguing that the first launch of the e-hryvnia focused on a small, controlled use case and not on implementation into social payments. According to Fedorov, there is a need to test CBDC to prevent misuse, hence his call to pay staff salaries as a viable pilot program for the national digital currency.

The National Bank of Ukraine has been working on creating and issuing digital currency for several years. The Ministry of Digital Transformation is also significantly involved in the CBDC space, working with the Stellar Development Foundation to develop a common strategy for CBDC and digital assets in general.


Technical Market Outlook:
The BTC/USD pair has made a new local low at the level of $43,888 as the bears are now testing the lower channel line. Please keep an eye on the level of $43,686 because any violation would be negative for bulls and could deepen the correction towards the level of $43,159 - $41,794. The immediate technical resistance is seen at the level of $45,043 and $45,710.

Weekly Pivot Points:
WR3 - $54,673
WR2 - $51,130
WR1 - $49,247

Weekly Pivot - $46,037
WS1 - $43,891
WS2 - $45,515
WS3 - $38,510


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 $47,000. 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
InstaFintech Group © 2007-2021

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Technical Analysis of BTC/USD for August 19, 2021

Crypto Industry News:
Mikhail Fedorov, Ukraine's deputy prime minister and head of the national Ministry of Digital Transformation, revealed a possible case of early use of the planned digital currency of the central bank (CBDC).

In a recent interview published by the Ukrainian media TSN, the minister revealed the ministry's considerations to test CBDC using it in the payment of workers' salaries:

"Honestly, as one of the first pilot projects, we have the issue of paying salaries to employees of the Ministry of Digital Transformation in electronic hryvnia," he said.

Fedorov made these remarks arguing that the first launch of the e-hryvnia focused on a small, controlled use case and not on implementation into social payments. According to Fedorov, there is a need to test CBDC to prevent misuse, hence his call to pay staff salaries as a viable pilot program for the national digital currency.

The National Bank of Ukraine has been working on creating and issuing digital currency for several years. The Ministry of Digital Transformation is also significantly involved in the CBDC space, working with the Stellar Development Foundation to develop a common strategy for CBDC and digital assets in general.


Technical Market Outlook:
The BTC/USD pair has made a new local low at the level of $43,888 as the bears are now testing the lower channel line. Please keep an eye on the level of $43,686 because any violation would be negative for bulls and could deepen the correction towards the level of $43,159 - $41,794. The immediate technical resistance is seen at the level of $45,043 and $45,710.

Weekly Pivot Points:
WR3 - $54,673
WR2 - $51,130
WR1 - $49,247

Weekly Pivot - $46,037
WS1 - $43,891
WS2 - $45,515
WS3 - $38,510


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 $47,000. 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
InstaFintech Group © 2007-2021

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Technical Analysis of ETH/USD for August 19, 2021

Crypto Industry News:
The team behind the NBMiner mining software says it has partially broken Nvidia's anti-mining restraints.

In June, Nvidia implemented an algorithm called Lite Hash Rate (LHR) on all RTX 30 series graphics cards in an attempt to limit cryptocurrency mining. The limiter works both at the BIOS level and at the driver level, detecting the mining algorithms to then drastically reduce the mining power by up to 50% of the original capacity.

At the time, the company claimed that miners were disrupting its supply chain, consequently increasing the prices of graphics cards due to low supply. Nvidia has prioritize its gamer user base, stating that "this extra step will provide gamers around the world with more GeForce cards at better prices."

The latest version of NBMiner reportedly was able to bypass restrictions and boost the mining power of these graphics cards by up to 70%. The update is available on both Windows and Linux terminals. Although the software is free to download, miners must pay the team a development fee of 1% to 3% of the mining revenues.

The NB team has been developing methods to improve the performance of graphics cards for years and has promised to develop further improvements in the future.


Technical Market Outlook:
The ETH/USD pair has broken below the level of $3,000 with a new local low made at the level of $2,948. There was a Pin Bar candlestick formation at the end of the move down to the level of $2,948, but bounce towards the nearest technical resistance seen at $3,122 had been rejected. The next target for bears is seen at the level of $2,914 and $2,861.

Weekly Pivot Points:
WR3 - $3,888
WR2 - $3,615
WR1 - $3,448

Weekly Pivot - $3,162
WS1 - $3,024
WS2 - $2,746
WS3 - $2,578


Trading Outlook:
Ethereum have started the next wave up and violated the long-term target at the level of $3,000. 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
InstaFintech Group © 2007-2021

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Neel Kashkari: Bitcoin is hardly useful for US residents



Bitcoin has started to fall over the past week after it failed to overcome the level of $47,500, which is the 50% level of the entire drop in the quotes of bitcoin from 65,000 to 29,000 per coin. The last round of growth of the first cryptocurrency in the world still looks very strange and certainly unfounded. Therefore, we continue to expect bitcoin to fall back to the level of $29,700. However, a few weeks ago, only a few people believed that bitcoin would grow to almost $48,000 from the current $30,000-31,000 per coin, but it happened. What happened when the fundamental background remained very weak, and only the comments of Elon Musk, Cathie Wood, and Jack Dorsey could be noted from the positive news. All other news was negative for bitcoin, yet it still rose in price. As we said earlier, the growth of bitcoin was most likely due to the rush of investors and traders to have time to buy as many coins as possible before the US Congress passes new legislation that will seriously tighten the circulation of cryptocurrencies and other digital assets and increase tax pressure on all transactions. At the same time, it can be assumed that the market has already had enough of purchases, so it is ready to get rid of some of the coins as long as the exchange rate remains high.

Meanwhile, the president of the Federal Reserve Bank of Minneapolis, Neel Kashkari, criticized bitcoin and other cryptocurrencies and called them useless for American citizens. "I was more optimistic about crypto and bitcoin five or six years ago... So far what I've seen is... 95% fraud, hype, noise and confusion," Kashkari said. The president of the Federal Reserve Bank of Minneapolis also said that bitcoin is actively used to finance illegal activities. Kashkari also noted that thousands of "garbage" cryptocurrencies have appeared in recent years, most of which are banal financial pyramids. A little earlier, Kashkari called the Dogecoin cryptocurrency, which is actively supported by Elon Musk, as "a Ponzi scheme".



Technically, bitcoin continues to be in an upward movement on the daily timeframe and has twice worked out the level of $47,500, which is the minimum of April 26, as well as 50% of the movement from the absolute maximum of the value to the minimum of 2021. The quotes of bitcoin left the side expanding channel, but there was no more confidence in its further growth from this. Before overcoming the level of $47,500, we are again considering the option of falling to $29,700 or lower.




Paolo Greco
Analytical expert
InstaFintech Group © 2007-2021

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Forecast for the main cryptocurrency pairs

The cryptocurrency market starts with a local correction and subsequent recovery of quotes on Wednesday. Within the top ten, only the Solana token showed a strong increase of 10%. Basically, cryptocurrencies began to collapse, and it is worth highlighting the Cardano altcoin. This coin declined by 4% and dropped to fourth place in terms of capitalization, giving way to Tether. Market leaders are in a phase of consolidation and correction, but the situation of Bitcoin, in particular, has become more complicated. As a result of local market adjustments, total market capitalization fell by 5%, namely to $2 trillion.

Bitcoin ended Monday in an extremely unfavorable position, closing below the 200-day moving average at $ 44,600. As a result, the cryptocurrency is trying to keep the support zone at $ 45,000 on Wednesday. If the coin manages to stay above the area of $ 45,000 which now acts as a resistance line, then Bitcoin will consolidate and return to the local growth range. However, if BTC breaks through this level, it risks dropping to the support zone of $ 42.6 thousand. On the daily chart, Bitcoin is showing bearish sentiment, although bullish signals are still visible. The greatest disappointment is shown by the stochastic, which has peaked at zero. The MACD may well continue the course indicating price consolidation, and the RSI rises again to the level of 60. On the four-hour chart, the situation is even better and the main indicators indicate the possibility of growth to the resistance zone at $ 46.1 thousand. Taking into account the growth of social activity and the activation of unique addresses, it is possible to expect a rebound from the current zone. However, only in the case of a powerful buyer who will be able to implement a local bullish signal.



The main altcoin started the current trading day with a continuation of the downward movement for the local support zone at $3.2 k. As of 12:00 UTC +00, Ethereum is quoted around $3.1 thousand and has every chance to break through this level by the end of the day. Ethereum also ended the previous trading day below the zone that it held for two weeks. But unlike Bitcoin, ETH demonstrates a strong bullish impulse and the bulls eagerly buy volumes below $3,100. On the four-hour chart, the cryptocurrency shows bullish signals that can develop into a full-fledged rally above the $3,200. On the daily chart, the stochastic shows clear signals to weaken, while the RSI has returned to the 60th zone, and the MACD signals an upward movement. Given the formation of a clear upward dynamics of the price movement (+1.5%), the main altcoin has every chance to close above $3,200 and continue moving to $3.5 thousand.



Cardano made a powerful breakthrough of three resistance lines, after which it broke through the $2 mark. However, the altcoin started Wednesday trading with a breakdown of the round mark. As of 14:00 UTC +00, ADA is quoted around the level of $2 and, judging by the dynamics of price movement (+1.5%), it will break through it this shortly. The current correction of the cryptocurrency is technical and is a component of the upward movement. In addition, an update in the altcoin network should take place soon, which will greatly strengthen the position of Cardano, which has become the main investment object for Wall Street investors. Despite the formation of a strong upward wave, ADA technical indicators indicate bearish signals on the four-hour chart. The MACD entered the red zone, and the RSI barely crossed the 40 mark. On the daily chart, the coin shows a clear bearish mood, which is supported by the fallen social activity of the altcoin. Considering this, the ADA may fall to the next support zone at $1.8 thousand, if buyers do not arrange a rebound to $2 on the current positions of the cryptocurrency.



The Ripple token finished winning back the positive news and began to systematically pull back to the key support zone by $ 1 after reaching a local peak at around $ 1.3. Earlier, the coin is quoted at $ 1.096 and is gradually approaching the $ 1.0740 zone. If the asset manages to stay above the lower border of the weekly trading zone, then this may be a signal to buy and return to the level of $ 1.2. On the four-hour chart, the cryptocurrency is showing a bearish mood, as a result of which the development of a bearish wedge has begun. In case of its bearish breakout, the price will meet the next support zone at the $ 1 mark. Taking into account the daily dynamics of the price movement and the RSI and Stochastic indicators, a breakdown of $ 1.0740 and further movement to the key support zone at $ 1 is quite likely. At the same time, the token can take advantage of a local bullish signal and bounce back to $1.1 due to the general state of affairs in the market. However, the current indicators of the asset indicate a continuation of the downward movement to the $1 mark.






Attachment 8448
Artem Petrenko
Analytical expert
InstaFintech Group © 2007-2021