Cryptocurrency Analysis

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The markets continue to buy cryptocurrency until new legislation is introduced in the States.



Over the past three weeks (or a little more), bitcoin has managed to rise in price by $ 18,000. And this is the whole problem of the first and main cryptocurrency in the world. $ 18,000 is a growth worthy of the strongest upward trend. Such growth of the cryptocurrency shows infrequently, and at this time, we can not conclude that it was appropriate. To begin with, the fundamental background for bitcoin remains extremely weak. In China, all miners were kicked out, and the legislation concerning cryptocurrencies and any digital assets was tightened. New legislation is being developed in the States, which will also be designed to tighten the regulation of the cryptocurrency segment. Therefore, the war of the authorities of the two largest countries with bitcoin clearly cannot contribute to its growth.

Although bitcoin has already taken a strong place in the modern financial system, this does not mean that the central banks of the largest countries of the world will turn a blind eye to a decentralized and uncontrolled currency. Of course, it is unlikely that bitcoin and its "brothers" can already be banned. Given that you can own bitcoin in any country, and there is no link to the geography of bitcoin, then in any case, everyone can take possession of the digital currency one way or another. However, governments and central banks are almost guaranteed to control this area and collect as much taxes from it as possible. Thus, in the near future, bitcoin may seriously lose its popularity. It should be understood that many large and institutional investors cannot and do not want to buy bitcoin through various exchangers or dubious Internet sites. For such large clients, bitcoin can be bought on stock exchanges, through major international banks, and so on. However, any such operation will "pass" through the US Tax Administration. And, there is no doubt that many countries will introduce similar legislation in the future. Therefore, the current growth of bitcoin is increasingly similar to the desire of traders and investors to buy "full." At the same time, the new tax legislation has not yet begun to take effect in the United States. After all, there were no fundamental reasons and grounds for its growth.



In technical terms, bitcoin continues to be in an upward movement on the 24-hour timeframe and has reached the level of $ 47,500. This level is important because it is the minimum of April 26 and 50% of the movement from the absolute maximum of the value to the minimum of 2021. At the moment, bitcoin has bounced off this level, so there are expectations of a new drop in quotes to the level of $ 29,700, which we are counting on. However, on the 4-hour timeframe (to be discussed in the next article), a trend keeps the current trend upward. And we remind you that no matter what the fundamental background is, if there is a clear technical trend for the instrument, you need to trade according to it.





Paolo Greco
Analytical expert
InstaFintech Group © 2007-2021

[IFX_Selena]

Trading Signal for Ethereum for August 13 - 16, 2021: Sell Below $3,250



The daily chart of Ethereum (ETH/USD) shows a strong bullish tone. The accumulation of the last daily candles around $3,200 level is a clear sign of exhaustion of the bullish force with a probability of a prolonged correction in the short term.

The last 7 candles that are accumulating in the area of $3,000 could tell traders that time is ripe to take part of the gains of 81% profitability accumulated in the last three weeks to avoid losing everything.

From its all-time high at $4,364 to its low of July 17 at 1,704, we have added the Fibonacci indicator. The level of 61.8% of Fibonacci results in $3,437 this will be a key point for Ethereum.

We can expect a pullback towards the 61.8% level, after this attempt to break this level. If it fails to consolidate above this zone, it will be a sign that ETH has only made a technical correction and could resume its main downtrend.

The cryptocurrency market remains optimistic, since BTC, the main engine of all other cryptocurrencies, is approaching the target of $50,000. If BTC reaches this level, ETH could follow it due to the positive correlation and reach the level of 3,437 (61.8% Fibonacci).

The technical reading of the Eagle indicator shows that it is approaching an overbought zone. In the short term, there could be a downward correction. Therefore, the key level to sell is below 3,125, where there is the 6/8 Murray support. If a pullback towards 3,437 occurs, it will be an opportunity to sell there. The target for both scenarios is the level of $2,500.


Support and Resistance Levels for August 13 - 16, 2021
Resistance (3) 3,475
Resistance (2) 3,357
Resistance (1) 3,296

Support (1) 3,090
Support (2) 2,942
Support (3) 2,824




Dimitrios Zappas
Analytical expert
InstaFintech Group © 2007-2021

[IFX_Selena]

Politics has stake in cryptocurrency!

The old saying was, cryptocurrency may not be interested in politics, but politics is interested in cryptocurrency. Now, cryptocurrency is interested in politics, too.

Over the past few weeks, the blockchain industry has mobilized against a heavy-handed attempt at increased regulation. It was a show of force against a cryptocurrency tax provision in the Biden administration's $1 trillion infrastructure package. A provision that fundamentally misunderstands and endangers the domestic cryptocurrency market. These efforts will likely be in vain in the short-term, as the political machine bulldozes over attempts to amend the bill.

The experience seems to be a turning point for cryptocurrency as a serious political force in Washington. Some of the industry's most visible and respected voices, like Ryan Selkis, Meltem Demirors and Barry Silbert, are signaling their new political awareness and willingness to spend big supporting politicians who understand this emergent industry.

The irony is radicalization of cryptocurrency once meant dropping out of the political process. By design, cryptocurrency empowers individuals over hegemonic corporations and states - it cuts out middlemen and bureaucrats. That's why there was some resistance to even calling senators from some corners of the blockchain industry - any engagement with the state is anathema.

But if banks and big tech companies are willing to spend to protect their interests, then so should cryptocurrency.

It is entirely possible that politicians will run for office with an explicit cryptocurrency mandate. Last year, 13% of Americans traded cryptocurrency, and many more aligned with its values of freedom and self-reliance. The Crypto Vote is likely to become a political force that professional polls can't ignore.

Investor and publicist Balaji Srinivasan wrote in a private message that cryptocurrency is the only thing that brings Americans together rather than pulling them apart.

Still, cryptocurrency will not be completely captured by the state and the lobbying process.







Irina Yanina
Analytical expert
InstaFintech Group © 2007-2021

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Technical Analysis of BTC/USD for August 13, 2021

Crypto Industry News:
According to a market analysis prepared by Blockdata, more than half of the largest banks in the world have exposure to cryptocurrencies and blockchain technology.

This shows that the largest banks (when it comes to the value of assets they manage) are willing to invest in companies related to cryptocurrencies and companies using blockchain solutions.

Blockdata, a company specializing in blockchain-related analytics, looked at the top 100 largest banks. It found that up to 55% of them now have exposure to cryptocurrencies and blockchain. This group includes both direct investments (an example may be the purchase of cryptocurrencies by a bank) and indirect investments (investment in a company that provides solutions related to cryptocurrencies).

Blockdata's research shows that the greatest interest in the cryptocurrency industry is shown by banking giants such as Citigroup, Barclays (interestingly in July, the same Barclays blocked transfers to Binance), Goldman Sachs (Goldman Sachs and bitcoin. A special change in optics or a romance with a trend?) And BNP Paribas (BNP Paribas | We need to understand what the world will be like not only in five, but in 10-20 years). Among the banks that are strongly interested in blockchain technology and cryptocurrencies, JPMorgan could not be missing (JPMorgan, Goldman Sachs and UBS invest in ETP Polkadot (DOT)).


Technical Market Outlook:
The BTC/USD pair has been seen approaching the recent swing high located at the level of $46,719. In a case of a breakout, the next target is seen at the level of $51,189, which is the 61% Fibonacci retracement level. The nearest technical support is located at $43,159 level, but the intraday technical support is seen at $44,555. Please notice the declining momentum and negative divergence at the H4 time frame chart support the short-term bearish outlook.

Weekly Pivot Points:
WR3 - $55,418
WR2 - $50,074
WR1 - $47,529

Weekly Pivot - $42,313
WS1 - $39,834
WS2 - $34,360
WS3 - $31,560


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

[IFX_Selena]

Technical Analysis of ETH/USD for August 13, 2021

Crypto Industry News:
Iran's National Tax Administration (INTA) is pushing for a legal framework to tax cryptocurrency trading platforms operating in the country.

Two months after Iranian President Hassan Rouhani's call to establish a legal framework for cryptocurrency trading, INTA detailed the need to legalize digital asset exchanges, cited by local media.

Reminding Iranian regulators that a legal framework is required to levy taxes, INTA said the government should only allow authorized exchanges to convert currency while tracking transactions.

The tax authority called for the legal framework to be maintained on the broader side of the spectrum to avoid harsh conditions for crypto exchanges that could trigger black market proliferation.

Capital gains tax, fixed base tax, and business tax are the three tax systems for cryptocurrency trading platforms proposed by INTA. However, the proposal does not specify mechanisms for taxing crypto companies.

According to sources, the proposal also included decentralized finance. In order to comply with anti-money laundering legislation, the proposal aims to establish an upper limit for transactions made on decentralized exchanges.


Technical Market Outlook:
The ETH/USD pair has resumed the rally and is approaching the recent high seen at the level of $3,274. The next target for bulls is seen at the level of $3,498 and $3,552. The immediate technical support is seen at the level of $3,122 and $3,000. Strong and positive momentum supports the short-term bullish outlook for ETH, especially for the weekend.

Weekly Pivot Points:
WR3 - $4,076
WR2 - $3,643
WR1 - $3,334

Weekly Pivot - $2,889
WS1 - $2,597
WS2 - $2,147
WS3 - $1,835


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

[IFX_Selena]

China will continue to tighten the regulation of the cryptocurrency sphere



Bitcoin has grown by $16,000 over the past few weeks. However, such an impressive growth was practically not fueled by the fundamental background. So far, everything looks as if market participants are in a hurry to buy bitcoin not at minimum prices, but until the moment when new legislation will be adopted in the United States, which will provide for stricter regulation of the cryptocurrency segment. In other words, almost any operation related to cryptocurrencies will come to the attention of the Tax Administration if the new bill is passed by congressmen. After this happens, bitcoin will become less profitable to buy. We can link the current growth of the quotes of the main cryptocurrency only with this moment. But there is still little positive news for "digital gold". Yesterday, it became known that China is going to continue to tighten regulatory pressure on companies that are somehow connected with cryptocurrencies. The Central Committee of the Communist Party of China (CCCPC) and the State Council of the People's Republic of China have published a five-year plan that will be aimed at strengthening the regulation of the sphere of national security and various technologies. It is reported that over the next three years, the Chinese government is going to adopt a number of different acts and laws that are related to companies that are engaged in technologies, innovations, data processing, and more. In particular, related to the environment. The document does not directly mention cryptocurrencies and blockchain, but the improvement of the environment clearly implies that the ban on mining will not be temporary. The Chinese authorities will also seek to improve the areas of Internet finance, artificial intelligence, data processing, and cloud services. Thus, although not a direct impact, this news also affects the prospects of bitcoin, particularly, in China.

Also, the whole world continues to wait for the final decision of the US Congress on the bill, which concerns the "infrastructure package". It is in this document that the definition of the concept of "broker" is contained, which, according to the current text, applies to almost any participant in the cryptocurrency market. In general, from our point of view, the fundamental background for bitcoin is only getting worse, so we continue to expect it to fall, but you should be reminded that the cryptocurrency is very much dependent on the faith of market participants in its future growth. So far, this belief is strong, but there is always a technical analysis that helps to understand the current mood of the market.



Technically, bitcoin continues to be in an upward movement on the daily timeframe and has reached the level of $46,600. There was a pullback down yesterday, but, as can be clearly seen in the illustration above, the price failed to reach either the trend line or the Ichimoku cloud. Therefore, the upward trend is currently continuing, and the cryptocurrency may make another attempt to reach the level of $47,500. It will be possible to talk about a new drop of bitcoin no earlier than the consolidation of quotes below the ascending trend line.





Paolo Greco
Analytical expert
InstaFintech Group © 2007-2021

[IFX_Selena]

Cryptocurrencies are the best assets against corruption and inflation



Various analytical companies have long drawn analogies between corruption and poverty. The world-famous company Transparency International conducted a study where it showed a direct link between poverty and the percentage of the population who gave bribes in fiat.

Various analytical institutes have come to the conclusion that blockchain technology can contribute to the process of investigating corruption, since this technology can eliminate what would otherwise last for years, in just one click.

The federal government is trying to do everything to regulate the cryptocurrency market, track shadow transactions and manage user data. All the data stored in the blockchain software is almost impossible to lose, since they are shared between several computers, and the encryption of bitcoin and other altcoins completely protects your data.

Governments of many countries must find a compromise with citizens and offer various incentives to encourage their citizens to switch to the crypto market and digitalize.

More than 200 million people are already users of crypto exchanges and owners of cryptocurrencies. This is all due to the fact that bitcoin is decentralized and is not subject to the authorities and world banks.

People want to be independent from banks, the International Monetary Fund, defaults, devaluations, and so on, so cryptocurrencies are the best way to gain freedom and profitability. The rest of the people are simply not sufficiently aware of digital gold and the altcoin market, and are also afraid of the volatility of crypto assets, their anonymous structure and the lack of insurance in case of emergency situations.

More than one and a half billion people do not have bank accounts, and everyone has their own reasons for this. Many people do not want to bother with long documents and monotonous visits to banks for processing loans and bank accounts, many like an independent crypto climate, where everything happens without the participation of third parties and corrupt schemes.





Vitaly Kolesnikov
Analytical expert
InstaFintech Group © 2007-2021

[IFX_Selena]

Litecoin upside clouded

LTC/USD dropped significantly after reaching today's high at 179.79. It's located at 163.24 level far below the immediate upside obstacles. The price of Litecoin dropped as the price of Bitcoin plunged as well.

As you already know, we have a correlation between the price of Bitcoin and the altcoins. Still, the current drop could be only a temporary one. LTC/USD dropped by 10.55% from today's high of 179.79 to today's low of 160.83.


LTC/USD CORRECTION!


Unfortunately, LTC/USD failed to stay above the R2 (169.92) and most important above the ascending pitchfork's median line (ML). A drop below 158.86, a new lower low, may signal a potential drop towards 149.26.

Its failure to approach and reach 181.26 static resistance signaled overbought conditions and indicated a potential retreat. Technically, a correction was expected after the most recent swing higher.


OUTLOOK
Staying above the R1 (159.88) and making a consolidation here could really signal that Litecoin may resume its growth. Also, a larger decline towards the 149.26 static support could help us to catch a new leg higher.




Ralph Shedler
Analytical expert
InstaFintech Group © 2007-2021

[IFX_Selena]

Bitcoin: Indication of rapid growth in the number of network users in recent days

Bitcoin prices corrected on Thursday, which is not surprising after so many bullish daily candles. The decline can be caused by the closure of long positions. Against this background, the strength of the support level 44,807.24 (lower red dotted line) is still in question. But do not rush to conclusions, the daily candle is not closed yet.

It should be noted that the struggle for a breakout and consolidation above this level lasts for four days. In parallel, the behavioral analytics platform Santiment shows that addresses from 100 to 10,000 BTC have significantly reduced their holdings. In the last four days alone, these whales have sold more than 40,000 BTC worth about $2.07 billion, which could be confirmation of profit-taking. But this may turn out to be only a short-term phenomenon.

Meanwhile, well-known cryptanalyst Willy Woo said that now, according to data obtained from within the network, the number of users of the bitcoin network "is growing at the fastest rate in history."

In particular, he pointed out that 1.2 million users were added over the past month, which, he said, "is equivalent to connecting a country the size of El Salvador every 2 months." Over the past 30 days, 1.2 million users have been added.

Dan Held, director of growth marketing at Kraken, notes that 1.2 million new users in 30 days is "probably almost the same number of users in the entire 2013-2014 cycle."

However, Woo notes that this number does not include users on centralized crypto exchanges like Coinbase.

The expert drew attention to another aspect of the change in the crypto market: circulating bitcoins are now distributed differently, and crypto whales are holding less than before.

According to data that Woo collected from various sources, including Glassnode, the share of large holders of cryptocurrencies (whales) has decreased and now stands at 25 percent. Previously, it was about twice as large.

Earlier, information from the South Korean network data collector CryptoQuant was presented on U.Today. The report says that whales hold about 48 percent of the BTC supply in circulation. Whales meant wallets with more than 1,000 BTC.

BTC reserves, which are held in wallets between 10 and 1,000 BTC (Woo calls them "middle class," but they are still whales), contain roughly 37 percent of the bitcoin supply. This number is also declining.

Public organizations (such as crypto exchanges, public companies, ETFs) own 18 percent of the main cryptocurrency supply and have grown.

Investors holding less than 10 BTC are also increasing their assets. Woo notes that their stocks are up 14 percent.

The demand and interest in bitcoin is growing. The transition of the main cryptocurrency to the range of 41,980.24 - 64,883.36 in the absence of a negative news background, I suppose, will return bitcoin to its all-time high. But the timing and speed of promotion is extremely difficult to predict.

In this regard, for the time being, I keep three possible scenarios, formed based on technical levels, as relevant.

-Return to horizontal level at 41,980.24 and confirm it as a support.
-Growth in the area of $48,000. Perhaps it will be in the current range of 44,807.24 - 48,178.13, between the two red dotted lines, or maybe after the first scenario has been worked out.
-Growth to all-time highs after consolidating above the $48,000 - $50,000 area.






Ekaterina Kiseleva
Analytical expert
InstaFintech Group © 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN for August 12 - 13, 2021: Sell below $45,312



above this level on the daily charts. So, if it fails to stay above this area, it is likely that in the long term BTC may fall to the level of $30,000.

Observing the graph, we can point out the immediate support for BTC at the 8/8 Murray line, and if the downward pressure continues, a fall is expected in the $40.625 area. This is the psychological level that is likely to give the market a new bullish momentum.

The key point is to sell below the 21 SMA at $45,312, with the targets at $43,750 and $40,625. The eagle indicator that measures the volume and strength of the market is showing a bearish signal due to the low volume of purchases.


Support and Resistance Levels for August 12 - 13, 2021
Resistance (3) 47,577
Resistance (2) 46,073
Resistance (1) 45,358

Support (1) 43,807
Support (2) 42,023
Support (3) 38,892




Dimitrios Zappas
Analytical expert
InstaFintech Group © 2007-2021