Cryptocurrency Analysis

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Technical Analysis of ETH/USD for February 16, 2021

Crypto Industry News:
Deutsche Bank has joined the ever-growing ranks of large financial institutions researching cryptocurrency storage, aspiring to offer high-quality services to hedge funds that invest in this asset class.

According to a report by the World Economic Forum, host of the annual event in Davos, Switzerland, the Deutsche Bank Digital Asset Custody prototype aims to develop a fully integrated escrow platform for institutional clients and their digital assets, providing seamless connectivity to the wider cryptocurrency ecosystem.

In an excerpt on page 23 of the December 2020 report, Germany's largest bank says it plans to create a trading platform by combining digital assets with traditional banking services and managing a range of digital assets and fiat assets held in one easy-to-use platform.

Big banks are now announcing plans to roll out cryptocurrencies almost daily, and the Bank of New York Mellon, the world's largest trust bank, is joining the roster this week.

US banks have gained some regulatory clarity thanks to last year's interpretative letters from the Office of Currency Control. In Germany, companies are lining up to obtain special cryptocurrency storage licenses from the national regulator BaFIN.

The digital asset storage platform would be launched in stages. Ultimately, it would provide clients with the ability to buy and sell assets in partnership with top brokers (who act as concierges for hedge funds), issuers and proven exchanges.

The bank says it will also provide additional services such as tax, pricing and fund administration services, loans, staking and voting, and will provide an open banking platform to allow third-party providers to join.

Regarding the business model, the bank would start charging custody and then charge tokenization and trading fees. DB said it has completed the proof-of-concept and is aiming for a viable product in 2021, while examining global customer interest in the pilot initiative.


Technical Market Outlook:
The ETH/USD pair has been consolidating the recent gains after the market bounced from technical support located at $1,677. The market made a Pin Bar candlestick pattern as the levels below $1,700 were bought back up and the market is currently trading around the level of $1,800 again waiting for a trigger to resume the up trend. The next target for bulls is seen at the level of $1,900.

Weekly Pivot Points:
WR3 - $2,286
WR2 - $2,080
WR1 - $1,977

Weekly Pivot - $1,768
WS1 - $1,663
WS2 - $1,454
WS3 - $1,346


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 16, 2021

Crypto Industry News:
After a seemingly weekly breath, the bitcoin rate against the dollar suddenly soared higher. BTC briefly broke above $ 50,000, reaching $ 50,110 on Coinbase and $ 50,240 on the Bybit Singapore derivatives exchange.

The world's largest cryptocurrency also hit $ 50,000 at 5:16 AM on the Binance exchange after breaking through a massive sales wall.

A 30% increase over the past month, and an annual increase of over 400%, comes on BTC following reports that the investment cell Morgan Stanley is considering purchasing cryptocurrency.

The news about the purchase of bitcoins worth 1.5 billion dollars by Tesla does not fade. Additionally, Mastercard is announcing plans to open its network to cryptocurrencies, and BNY Mellon, the oldest bank in the US, offers bitcoin and cryptocurrency support.

Meanwhile, digital asset mutual funds continued to attract cash from investors.


Technical Market Outlook:
The BTC/USD pair has finally hit the $50,000 level. The next obvious target for Bitcoin is now $60,000. In the meantime, the local technical supports are: $45,902 and $43,720. The intraday support is $47,002. However, if the market is out of the main channel and the price is below the level of $43,125 ( overbalance level), then the chance for a deeper correction are high, so please keep an eye on this levels. Please notice, the momentum is now decreasing as the price go up, which might be the beginning for bearish divergence on H4 time frame chart.

Weekly Pivot Points:
WR3 - $65,941
WR2 - $57,841
WR1 - $54,644

Weekly Pivot - $45,671
WS1 - $42,441
WS2 - $34,081
WS3 - $31,183


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 $41,125 is clearly broken.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Litecoin Growth Prospects

Overcoming the mark of $195 per coin makes it possible to talk about the formation of a safe buying zone for the second half of February. Any long trades opened within the range of 195-185.50 will be profitable in the medium term. The probability of updating the annual and monthly highs is 80%.



The ascending cycle, which was carried out in the period of February 8 to 12, can be considered complete. To continue the growth, it will be necessary to go beyond the local accumulation zone. The closing of one of the days should occur above the weekly maximum. This will open the way for growth to the level of $240.

The probability of changing the momentum to bearish in the next two weeks is 20%. This makes it impossible to consider the sales of the instrument. Holding on to already opened purchases will be the most profitable solution in February. $240 per coin is one of the first, but far from the last, targets of the upward momentum.





Samanta Kruder
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Miners panic because of the shortage of equipment on the market, bitcoin continues to grow.



The growth of the bitcoin rate is an avalanche. Four months ago, it cost a little more than $ 10,000 per coin, which was considered as a quite fair price and many miners calculated ROI when investing in mining equipment, since the reward for the mined coin is constantly falling (the specificity of the Bitcoin token). It is known that there are no more coins on the bitcoin network, even though if we consider all the branches (so-called forks) from the largest cryptocurrency, then this statement can be controversial. But we will assume that the "cue balls" themselves are no longer becoming. Therefore, the reward for each mined block decreases after a certain period of time. Therefore, mining with the same value of bitcoin may even become unprofitable. Or not so profitable that crowds of people invest tens of thousands of dollars in equipment. Moreover, when bitcoin for a long time cost about 10-12 thousand dollars, no one knew where the cryptocurrency would move next. It seems that interest in it remains, but the cryptocurrency is not growing so that everyone rushes to buy and mine it. However, a lot has changed over the past four months. Now bitcoin costs $ 50,000 per coin, so mining it even with a reduced reward (calculated in blocks, not dollars) has become very profitable again. Therefore, a huge number of new miners rushed to buy equipment, even despite the fact that manufacturers raised the cost of it by half out of the blue. At the moment, the mining equipment market is experiencing a shortage of goods since many models are sold out on pre-orders for months in advance. There is a huge demand for supported equipment. There is a huge deficit in the semiconductor market. For example, the major miner manufacturer Bitmain completely sold out all of its products by August 2021. The model of the miner Antminer S19 Pro was sold at a price of $ 2000 apiece three months ago, now the price is $ 4000. According to the head of a large manufacturer of crypto-mining installations Canaan Inc. Nangeng Zhang, interest in cryptocurrencies will only grow due to recent statements by Elon Musk, as well as statements by many companies about their readiness to start official activities with cryptocurrencies. Also of great importance in the popularization of bitcoin and other tokens are statements of some banks about their readiness to start working with cryptocurrencies.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Billionaire Mark Cuban: Today, the value of any asset is not determined by its real utility.



Recently, the comments regarding cryptocurrency by various media personalities and billionaires have become almost mainstream. Thus, if the comments are helpful and will not affect the rate of a particular cryptocurrency in any way, everything would be clear. However, the tweet of Musk leads to an increase in bitcoin by $ 5,000. How much did the big Bitcoin holders and Musk earn on this jump? Assumingly, does the tweet was bought from him by large bitcoin holders? After all, the capitalization of the cryptocurrency has already exceeded a trillion dollars. Of course, there are people who will benefit from further appreciation of bitcoin and other cryptocurrencies. And why don't they really buy all sorts of loud tweets from people who take the words of the market very seriously? Just think about it, just one person, in one week, raised the value of the world's largest cryptocurrency by 20%. However, this is all lyricism.

American billionaire Mark Cuban, shared his opinion on the cryptocurrency segment. His opinion stated that at the present time the value of any asset is determined not by specific calculations or its utility, but only by what people think about it. That is why in the modern world, those who have not yet understood this simple concept lose, says Cuban. The billionaire gave an example from his childhood, when he discovered at a stamp show that many sellers were selling the same stamps at different prices. Therefore, it was easy to resell them and make record profits, taking advantage of this inefficiency in the stamp market. Approximately, the same situation occurred with the video game store chain GameStop at the end of January. Then users of the Reddit community raised the price of GameStop shares three times by simply agreeing to buy them online. This has resulted in various investment companies losing billions of dollars on this. So maybe GameStop's stock isn't worth as much as it's gone up, but is there demand? Yes, there are. If there is demand and it grows, then the price rises. So it turns out that theoretically, the shares of the diner can be worth more than Apple shares, if people rush to buy the shares of the diner. The most important thing is that in the 21st century, it turned out that fundamental reasons are not necessary for the growth of the value of an asset. Or any reason at all. A crowd gathers, they are given an explicit or implicit signal to buy (or sell) and in this way you can manipulate the value of the asset. Or the owner of a Tesla writes a tweet in a social network regarding any cryptocurrency and the entire cryptocurrency market reacts to it.

Cuban also talked about the concept of "means of saving". In his opinion, bitcoin is bought simply because people believe in it and give it value. The situation is about the same as with gold. There are many metals that are very similar to gold and have the same physical properties, but gold has more buyers, because people believe that this metal will be better at preserving value than platinum.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Elon Musk continues to manipulate the currency market



Once again, news from Elon Musk, who has recently become extremely interested in the cryptocurrency market, comes out. Recall that at first, his comment on the social network led to an increase in bitcoin by $5 thousand, and then his company Tesla announced the purchase of bitcoin in the amount of $1.5 billion, which provoked an increase of another $5,000. Thus, in principle, only Elon Musk is responsible for a fifth of the cost of the "cue ball" at this time. It's scary to imagine what will happen if Musk or other similar businessmen comment on cryptocurrencies every couple of days. However, Musk decided to give bitcoin a break and switched to the Dogecoin cryptocurrency. In the social network Twitter, Musk made a post in which he supports the potential solution of large holders of the Dogecoin. According to Musk, the problem with the token is that it is concentrated in too narrow a circle of owners. After this statement, Dogecoin fell by 19%. Earlier, the same Elon Musk commented on the same cryptocurrency Dogecoin (wrote that it is undervalued) and then followed a powerful growth. Thus, only one owner of Tesla is responsible for four powerful jumps in the cryptocurrency market and this is only in the last 7-10 days. Well, traders can once again personally observe what is happening in the cryptocurrency market and what are the reasons for this. Bitcoin, by the way, this night again rose in price and is already worth almost $50,000 per coin. At the same time, it is still extremely difficult to name at least one fundamental reason why the cryptocurrency has grown 5 times in a few months. And it's not just Bitcoin that's growing! Other cryptocurrencies are also being pulled up, ergo, the entire cryptocurrency market is growing. The more news of this nature from Elon Musk or other major investors and companies we will receive, the more likely it is that cryptocurrencies will continue to grow in price. We continue to insist that sooner or later there will be a collapse. There will not be a scenario in which bitcoin will grow to $100,000 per coin, and then adjust to $80,000 and remain at this level in the medium term. No, when large investors start taking profits on long positions, then the "domino effect" will begin, everyone will immediately rush to sell bitcoin and other major cryptocurrencies at the maximum value, which will lead to the collapse of the entire cryptocurrency market, as it was already in 2017. Therefore, we still believe that bitcoin is a great tool to make money, but we need to be prepared for its collapse.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN CASH for February 16 - 19, 2021: Key Level $690.00



The Bitcoin Cash has reached the level of the month of July 2018, registering a new maximum of $771. Now, it is preparing to reach the psychological level of $1000.00.

On the 1 hour chart, we note Bitcoin Cash (BCH) is trading above the 21 SMA and very close to the Murray resistance at 8/8, around $750.00.

Given that the eagle indicator is reaching an oversold zone in 1 hour, it is very likely that there will be a new upward momentum up to the $690.00 zone, the level where the uptrend line is located, with targets at +1 / 8 from Murray at $812.00.

In the medium term, it is expected that the BCH will reach a level of $4000.00 since this was the area in which many buyers acquired their BCH assets two years ago and, it is very likely that in the coming months the BCH will negotiate at these levels.

Our recommendation is to buy above $ 690.00, with targets at $ 812.00, (8/8 of Murray) on the other hand, a break below the bullish wedge pattern around $ 680.00 we could sell with targets at $625 and $550.


Support And Resistance Levels For February 16 - 19 2021

Resistance (1) $787.00
Resistance (2) $824.00
Resistance (3) $869.00

Support (1) $630.00
Support (2) $572.00
Support (3) $530.00





Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum. The weekly growth target is $ 1,900.

When the price of Ethereum falls to the zone of 1725 to 1698, it is necessary to consider purchases when forming any patterns starting from the m30 TF. The target growth zone is the average weekly move. Within this zone is the level of 1900. Its test should be considered as an opportunity to partially fix purchases opened in February. A test of this mark can lead to a large number of long positions being closed. The reaction will be a pullback to the 1600 level.



The limits of limit buyers are clearly limited to the levels of 1725 and 1698. These prices will be the fair price until the end of February. Purchases in this range have the category to break-even, since even in the case of a price reversal, it will be possible to exit positions at break-even.

For the higher timeframe, there is a clear upward trend which allows you to keep previously opened purchases. Since the beginning of January, not a single reversal pattern has been formed at the daily level, which indicates the strength of market buyers. To break this momentum, it will take at least a month, so all long positions opened at least 1698 will be at least break-even in the range of one to two months.




Samanta Kruder
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin is at already $50,000 in February

The movement of the last four days indicates the formation of a market maker zone. Bitcoin did not fall below the price of 45660, which suggests that this zone is becoming a defining support. Short-term speculative purchases are possible and profitable when entering the price range of 45660-46799. In connection with the formation of a local accumulation zone, the nearest growth target is the round level of 50000. Because this mark is in the range of the average daily course, it can be reached in the coming days.



The work in the upward momentum is confirmed by statistics. The engulfing pattern of the daily level formed on February 14 indicates the absence of strong resistance. Opportunities for growth to the level of $50,000 are not limited. The positive news feeds the ground for optimism. Market buyers are willing to pay a high price for bitcoins.

The change in dynamics should not be discussed until the exchange rate reaches the round mark of $50,000. This level will provide an opportunity for partial profit taking on speculative positions. A strong reaction will be caused by the closing of some long positions in the futures market. A sell pattern can be the formation of a candlestick engulfing of the daily level.




Samanta Kruder
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Twitter founder and rapper Jay-Z wants to make bitcoin a single currency for the entire Internet



As bitcoin begins to rise in price, a million rumors immediately begin to circulate around it, and the entire world community becomes more active in the direction of the cryptocurrency segment. Bitcoin has risen in price at a record high over the past few months, which has provoked a whole bunch of new opinions from various experts regarding the future of the world's number one cryptocurrency. In addition, the cryptocurrency segment itself continues to develop as more and more people and companies want to make money on blockchain technology, which is so popular in the 21st century. Football clubs are already launching their tokens, and central banks are thinking hard about digital euros. Large companies are buying up bitcoin. Twitter founder Jack Dorsey and well-known rap artist Jay-Z invested 500 bitcoins worth approximately $ 24 million in the development of the cryptocurrency itself and expanding its capabilities. The new fund will focus on turning bitcoin into a single currency for the entire Internet. Currently, the search for developers is underway, as well as members of the board of the new fund. "The internet needs its own currency, and bitcoin is the best option at the moment," Dorsey said earlier. Thus, the latest news suggests that humanity plans to continue working towards the popularization of anonymous cryptocurrency and sees it as the future. Unfortunately, many experts are also right, who say that cryptocurrencies in general and bitcoin in particular are hopeless. No matter how it is popularized by various media personalities, businessmen and the owners themselves (who are just most interested in this), it should be remembered that any cryptocurrency is just a piece of code that does not carry any practical benefit. Thus, any cryptocurrency is worth something only when there is a demand for it. Unfortunately, the price of bitcoin and its "brothers" is formed solely on the basis of demand. That is, why did the "cue ball" rise in price from 10 thousand dollars to 50? Has it become more useful? No. Has it become more valuable? No. Has it become more scarce? No. It has risen in price simply because more and more traders are joining the uptrend in order to make money on it. It should be understood that news like the purchase of Tesla bitcoins for $ 1.5 billion, this is hype news, which is just designed to provoke the growth of the "cue ball". If Tesla wants to sell bitcoins tomorrow, do you think it will share its opinion on this? The same applies to other news, such as the desire of the investment bank Morgan Stanley to invest $ 150 billion. This is still just a rumor or a plan for the future, not a reality, but this rumor can lead to a new growth of the "cue ball".




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021