Cryptocurrency Analysis

[IFX_Selena]

Ethereum overcame the last hurdle

Yesterday, despite a rapid surge in the volatility of the main cryptocurrency, Ethereum failed to gain a foothold above the highs of February 4. A new local resistance was formed at the level of 1761.85 on February 5. Now, it is broken and the way to the next target is open for ETH/USD quotes - the level of 161.8 according to Fibo Expansion.

It is important to note that the level of 1761.85 from February 5 is broken, but perhaps the price will still roll back to it, confirming it as support. However, before the target of 161.8 on Fibo Expansion, which is located at the level of 1892.12, the power reserve is not so big. Therefore, to get a better ratio of profit and risk in a trade if you want to buy now, you should switch to a lower time frame, up to 30 minutes, and look for confirmation of the truth of the breakdown of 1761.85 there.

As for the target for growth, the level of 161.8 for Fibo Expansion is just a reference point, and it is still impossible to say unequivocally that it will work. But the level of 100 has worked well, and we will see how it will be with 161.8.





Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for February 9, 2021

Crypto Industry News:

Chinese cryptocurrency miners are reportedly buying out the latest Nvidia laptops to mine Ether. According to several sources, Nvidia's latest GeForce RTX 30 laptops are becoming increasingly popular in China as a cryptocurrency mining tool. A Weibo user known as BTCer has posted several images of the GeForce RTX 30 series gaming laptops making up a solid cryptocurrency farm. "Laptop mine is ready," BTCer noted in a post featuring dozens of laptops stacked on shelves.

Several technical media, including VideoCardz and Wccftech, subsequently suggested that the mining farm was set up specifically for Ethereum mining. Reports also cited a recent amusing video by Bilibili Fish Pond user F2pool showing how easy it is to mine cryptocurrencies on a laptop equipped with the new RTX 3060 graphics card. Using a laptop plugged into a Starbucks wall outlet, the user reportedly mined 0.00053 ETH (o estimate of $ 0.89) in about two hours.

According to some estimates, a single GeForce RTX 3060 laptop has the potential to generate up to around 2.3 ETH per year ($ 3,900) at current prices, apparently being able to cover the cost of the laptop and energy costs in China. The various GeForce RTX 30 series laptops, which hit the market on January 26, cost anywhere from $ 1,000 to $ 2,000.

If the latest reports are true, Chinese GPU miners are apparently increasing demand in an already defective market. In January 2021, Nvidia's chief financial officer Colette Kress said the company's supply "is likely to remain tight throughout the first quarter," stating that demand for gaming was "off-scale" and the company was unable to keep up with it.


Technical Market Outlook:
The ETH/USD pair has hit the level of $1,745 and $1,755 which were the projected target levels for ETH after the triangle pattern breakout. The local high was made at the level of $1,782 in form of a Pin Bar candlestick pattern. After those levels were hit, the market reversed quickly towards the technical support located around the level of $1,478 and bounced. Despite the deep pull-back the up trend is being continued and the level of $1,755 might be hit again soon. The momentum is positive and market conditions are now bouncing from the oversold levels on the H4 time frame chart.

Weekly Pivot Points:
WR3 - $2,306
WR2 - $2,035
WR1 - $1,838

Weekly Pivot - $1,545
WS1 - $1,349
WS2 - $1,062
WS3 - $860


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $2,000, so any correction or local pull-back should be used to open the buy orders. Please notice, the up trend starting to go vertical, so the volatility will be higher than average. The bullish scenario is valid as long as the level of $830 is broken.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for February 9, 2021

Crypto Industry News: Form 10-K was received yesterday at the desk of the US Securities and Exchange Commission (SEC) informing about the allocation of funds in BTC by Tesla Inc. After many weeks of speculation, discussions and activity on Twitter, Elon Musk apparently made a decision to invest some of Tesla's assets in the most popular cryptocurrency.

The document reads:

"We have invested a total of $ 1.50 billion in bitcoin under this policy, and we may occasionally or long-term acquire and hold digital assets."

"In addition, we expect to start accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and limited terms initially [...]."

And next:

"The prices of digital assets have been subject in the past and may continue to fluctuate greatly, including as a result of various associated risks and uncertainties. For example, the proliferation of such assets is a relatively recent trend and their long-term adoption by investors, consumers and businesses is unpredictable. Moreover, their lack of physical form, their reliance on technology to create, exist and transactional validation, and their decentralization can expose their integrity to attack and technological obsolescence. Finally, the extent to which securities laws or other laws apply or may apply in the future to such assets is unclear and may change in the future. If we have digital assets and their value drops relative to our purchase prices, our financial situation may suffer. "


Technical Market Outlook:
The BTC/USD pair has made a new all time high at the level of $48,216 after the Tesla new had been published. The next target for bulls is seen at the level of $50,000. The key short-term technical support is located at the level of $40,932 and $39,996. Please notice, that despite the strong and positive momentum, the market conditions are now extremely overbought, so some market reaction is expected once the level of $50,000 is hit.

Weekly Pivot Points:
WR3 - $51,306
WR2 - $46,193
WR1 - $42,645

Weekly Pivot - $37,209
WS1 - $34,108
WS2 - $28,930
WS3 - $25,324


Trading Recommendations:
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 $50,000. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $30,000 is clearly broken.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical analysis of Ethereum for February 9, 2021



Ethereum continues to push higher towards the Cup with handle target seen at 2,674. Near-term we see support at 1,671 and solid support is seen at 1,490 that should be able to protect the downside for the next push higher to 1,874 and 2,026 as the next sub-targets on the way higher towards 2,674.


Trade recommendation:
If long Ethereum you stop should be at 1,489




Torben Melsted
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical analysis of Bitcoin/USD for February 9, 2021



Since our last post on February 2, we have seen a clear break out from the Bull Flag indication more upside towards the next extension target at 52,804 and likely even closer to the extension target at 59,452 before the next more serious correction set in. Bitcoin was helped by the fact, that Tesla announced that it would buy Bitcoin for USD 1,5 bn.

Support is currently seen at 43,714 and strong support is seen near the 41,762 - 42,582 area. We expect the late support-area to be able to protect the downside for a continuation higher to 52,804 and above.


Trade recommendation:
If long Bitcoin place your stop at 38,020




Torben Melsted
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Forecast and trading signals for Ethereum on February 9

Ethereum, H1 time frame:


Ethereum continued to move upwards in the H1 time frame. But unlike Bitcoin, it pays attention to important levels and does not trade abruptly. Yesterday, this cryptocurrency showed calm growth. It rose by $ 191, which is also quite a lot, but still not a few thousand dollars. As a result of which, it managed to reach the level of $ 1,757.81, an extreme level. The price has rebounded from this level twice a few days back, which it did clearly. Thus, this level can and should be used in trading. If the price breaks through it, it is possible that Ethereum will further rise. However, there is no extreme level above the next resistance level of $ 1812.43, since it is currently at its absolute maximum value. Thus, if it fails to break through it, a downward correction will most likely happen, which one can consider.


Ethereum, M15 time frame:


Both linear regression channels are inclined above in the M15 time frame, signaling a short-term upward trend. However, the cryptocurrency failed to break through the level of 1757.81 twice and it is very evident in the chart that the price has never formed a "false breakout", unable to keep its position above this level for more or less an hour. Thus, we are directed to a possible correction to the critical Kijun-sen line.

The world's second leading cryptocurrency has gained access to the Chicago Mercantile Exchange. This significant global event for cryptocurrencies took place on the night of February 8. Ethereum quotes data will be provided by the Bitstamp, Coinbase, Gemini, itBit and Kraken cryptocurrency exchanges. It should be noted that on February 5, this cryptocurrency set an absolute maximum value ($ 1,760) per coin. So, yesterday's growth, which led to a new record, is logical and fundamentally justified. Now, a lot of experts are waiting for a deep correction in the cryptocurrency. But as part of the latest correction, it only managed to fall by $ 277, then rose again. In this case, the two main cryptocurrencies in the world: Bitcoin and Ethereum, continue to grow almost simultaneously. At the same time, many experts, especially economists, and those working for governments or central banks continue to insist that all cryptocurrencies are like bubbles that will burst sooner or later. This opinion is logical. It is long known that cryptocurrencies are not secured by anything and their value is determined only by supply and demand. You may think that this is common, as the price of any asset is determined by supply and demand. But in the case of cryptocurrencies, the supply and demand themselves depend only on the factor of "speculative" and "traders' sentiment." During calm periods, the second factor comes to the fore, but in times of strong growth or decline, the first one is ahead. In fact, all strong movements of any cryptocurrency are an attempt by traders to gain profit. Once strong growth begins, it provokes market participants not yet participating in it to connect, which makes an even stronger movement. Sooner or later, large players will begin profit-taking, and the price will surely start to decline. This is the specificity of cryptocurrencies.

In any case, there are two trading ideas for February 9:

1) Buyers took the lead again, pushing Ethereum towards new peaks. Thus, it is recommended to buy this cryptocurrency if it successfully breaks through the extremum level of $ 1757.81, with targets at the resistance levels of $ 1812.43 and $ 2029.00. In this case, Take Profit can be up to $ 249. It is also possible to buy it with targets of $ 1694.83 and $ 1757.81 if the price rebounds from the Kijun-sen line ($ 1635.00).

2) Bears initiated the formation of a downward trend, but they could not take the cryptocurrency below the Senkou Span B line and even approach the upward trend line. Therefore, it is recommended to trade below, with targets set at the level of $ 1694.83 and the Kijun-sen line ($ 1635.00), if the price rebounds from the extreme level of $ 1757.81. Anyhow, Rake Profit can be up to $ 97. Short positions, in turn, can be opened with the target of the Senkou Span B line ($ 1513.00), if the bears will be able to consolidate below the critical line.


Explanations for illustrations:

Price levels of support and resistance (resistance/support) - levels that are targets when opening purchases or sales. It is possible to place Take Profit levels near these levels.

The Kijun-sen and Senkou Span B lines are the Ichimoku indicator lines transferred to the H1 and H4 time frame.

Support and resistance areas - areas where the price has repeatedly rebounded.

Yellow lines - trend lines, trend channels and any other technical patterns.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Forecast and trading signals for Bitcoin on February 9

Bitcoin, H1 time frame:


Bitcoin immediately completed the correction and continued to strongly rise in the H1 chart. In just a day, it managed to grow by almost $ 10,000. This is the only noteworthy specific movement that traders need to know. As a result of this movement, quotes have consolidated above the resistance level of $ 45879. Thus, the direction to the resistance level of $ 50,834, which is also a psychological level ($ 50,000), is now theoretically open. In such conditions, it is recommended to trade only on a rise. Bitcoin can start to decline strongly at any time, but it is impossible to guess with the current moment. Therefore, it is recommended to start selling only when there are specific and clear sell signals. For example, a consolidation below the trend line. In a previous review, we recommended opening new purchases if the price rebounds from the trend line, but no such signal was generated yesterday. All this time, the buy signal for a rebound from the support level of $ 37721, which was recommended to support, persists. Thus, on this signal, traders could surely earn several thousand dollars, given the current cryptocurrency exchange rate is $ 46509.


Bitcoin, M15 time frame:


Both linear regression channels in the M15 chart are inclined upwards, which is not surprising due to Bitcoin's strongest growth. The level of $ 45879 was successfully broken, and it is clearly seen that a "false breakout" may occur if it tries to move below, but the price failed to stay below this level for 30 minutes. Thus, Bitcoin will most likely continue rising.

Many officials still believe that there is no future for cryptocurrencies, despite its high and growing popularity. It was mentioned previously that BoE's head, Andrew Bailey, believes that cryptocurrencies cannot be used as a means of payment due to their completely volatile value. He said that people need to be sure that the price of an asset does not change along the way from sender to receiver. Lloyd Blankfein, former president of Goldman Sachs, also said that it is impossible to accumulate and save money in cryptocurrency, since the rate can rise or fall by several tens of percent per day, and it is easy to lose access to your wallet. As for bitcoin specifically, many predict its value to drop due to the fact that most of the coins have already been mined (19 out of 21 million). However, this judgment has pros and cons. Anyhow, what may Bitcoin's trading strategy be, traders should always remember that the rate may fall down not by several thousand dollars, but by tens of thousands of dollars per day, which happened yesterday.

A new round of "speculative" growth is clearly in progress. There are no fundamental factors for the price growth of the "cue ball" and never existed. They could not be, since the cryptocurrency reacts with a growth of $ 5,000 to Elon Musk's tweet. What kind of stability can we even talk about? Bitcoin is the most technical tool, so when trading it, it is necessary to put the technical picture and signals in the first place.

In any case, there are two trading ideas for February 9:

1) Buyers took the lead again and continue to set records for Bitcoin's value. Thus, it is suggested to buy it again if the price holds above the level of $ 45,879, with a target set at the resistance level of $ 50,834 ($ 50,000). In such cases, Take Profit can be up to $ 3500. A buy trade from the level of $ 37721 can be closed with a profit for those who have not yet done so.

2) Bears are resting again and are waiting for buyers to start fixing profits on long positions. Thus, it is not suggested to sell Bitcoin at least today or in the near future. It is necessary to wait until the upward trend is over and clear sell signals are observed.


Explanations for illustrations:

Price levels of support and resistance (resistance/support) - levels that are targets when opening purchases or sales. It is possible to place Take Profit levels near these levels.

The Kijun-sen and Senkou Span B lines are the Ichimoku indicator lines transferred to the H1 and H4 time frame.

Support and resistance areas - areas where the price has repeatedly rebounded.

Yellow lines - trend lines, trend channels and any other technical patterns.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Forecast for Ripple, Litecoin and Ethereum worked out (thank you, Tesla)

Tesla and Elon Musk became cryptocurrency newsmakers today. Tesla's reports about the purchase of bitcoin provoked the growth of the main cryptocurrency by 10%. After bitcoin, altcoins soared, but much more restrained.

Against this background, it's not only the morning forecast for Ripple that worked out but also for Litecoin and Ethereum.

Thus, the XRP USD quotes, which were trading at the level of 0.4222 today, bounced up from it, but stopped by the resistance level of 0.4532.

What do we have now on the XRP USD chart? Both limits of the 0.3914 - 0.4532 range were confirmed by false shadow breakouts. This is a good signal of a strong confirmation of the level. From a technical point of view, the quotes are now open to its downward trend with the first target at the mirror horizontal of 0.4222. If it is broken from the top down, the next support level will be 0.3914. If the price bounces up from 0.4222, a return to 0.4532 is possible.



Meanwhile, LTCUSD has reached the target of 163.64 and can now continue strengthening towards the upper limit of the technical range of 146.04 - 171.25. And if it does not consolidate above the level of 163.64 and bounces down, it will be possible to look at sales in the sideways direction.



The ETH USD pair is about to gain a foothold above the level of 1697.27, which will allow the quotes to continue growing to the level of 161.8 on the Fibo Extension.






Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Thanks to Elon Musk, bitcoin skyrocketed by 14% and updated the historical maximum of the total capitalization

The cryptocurrency market is experiencing a real "boom" in early February. The indices of the main digital assets grew rapidly, but Bitcoin and Ethereum stand out against this background. Also at the very top, "meme" asset Dogecoin suddenly appeared, which increased in price by 50%. It is noteworthy that Elon Musk had a hand in all this positive news for the cryptocurrency market.

The billionaire promoted Dogecoin on Twitter, and went even further with bitcoin and ether. Elon Musk's company invested a whopping $1.5 billion in bitcoin, which was reflected in Ethereum, which rose in price by 9%. The main cryptocurrency has completely "flown into space," having updated its historical maximum. In just an hour, bitcoin has grown by 14%, and the price of the digital asset now has exceeded the mark of $45 thousand. Now, the cryptocurrency is held at the level of $43.3 thousand, but the overall price increase for the day was 12%.



There were two reasons for the occurrence of such an explosion in the cryptocurrency market. The first one has already been pointed out: Tesla reported to the Securities Commission about an investment in bitcoin in the amount of $1.5 billion. The second reason is even more decisive. The company Tesla said that in the near future it will accept cryptocurrency as payment in accordance with the terms of the legislation. This statement was a real catalyst for the active growth of all major cryptocurrencies.

It is estimated that since bitcoin set a local minimum of $ 3.8 thousand in March 2020, the cryptocurrency has risen in price by 1084%, and as of February 8, the total capitalization of the first digital currency is $810 billion. Of course, this event can be called decisive in the further growth of prices for cryptocurrency. And companies such as Tesla and Visa will become the guides and main lobbyists of the cryptocurrency market in the implementation of financial transactions.




Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

LTC/USD surpasses our first target

LTC/USD has reached our $165 target from our analysis posted on January 31st when price was around $130. Short-term trend remains bullish as price is inside an upward sloping channel. Price has potential to reach $180 if bulls are strong enough to hold above $160.



Blue lines- bullish channel

Price is making higher highs and higher lows. Recent low at $144,86 is important short-term support also because there we find the lower channel boundary. Short-term resistance and short-term target is at the upper channel boundary at $175. As long as price is inside the bullish channel we remain optimistic looking for a test of 2021 highs. The momentum is bullish. Upside potential if bulls continue to hold above $125-$130 is at $220.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021