Cryptocurrency Analysis

[IFX_Selena]

Traders have reduced long Bitcoin positions in the amount of $ 3.5 billion.


Yesterday, Bitcoin began a powerful downward correction and many traders immediately had this question, "Is this the moment to reset long positions which will lead to a drop in the bitcoin exchange rate by 80-90%? The experts and pseudo-experts of the cryptocurrency market say who are often just the owners of the "cue ball", which means that it is profitable for them to warm up interest in this cryptocurrency so that it continues to grow, bitcoin can fall at any time almost to the values of $ 5,000 to $ 6,000. Bitcoin has no cost price or fair price, so it can fall as low as you want. This was already the case in 2017, and everyone remembers it. In 2021, everyone clearly understands that bitcoin is only an investment tool that leads everyone to buy with one goal in mind and it is to earn money. And everyone understands that sooner or later it will collapse in price. Companies like Tesla or Microstrategy are no exception. According to official data from cryptocurrency exchanges, yesterday, within one hour, traders closed long positions for $ 410 million. This is the official data. However, given the fact that the total capitalization of bitcoin is already about 1 trillion and it is likely that more closed long positions would be needed to drop the quotes by $ 10,000 dollars downward. Therefore, it is absolutely possible that purchases were closed for several billion dollars or even tens of billions. However, a little later, this information was published by the exchanges – the total closing of long positions amounted to $ 3.5 billion. Thus, one of the major players considered that he would have enough profit from the operation of buying and selling bitcoin which has increased in price five times over the past few months. Therefore, now everything will depend on other market players. The game begins on the nerves. Holders of a small number of bitcoins may be afraid that now the cryptocurrency will collapse down and start getting rid of their coins. However, due to their number, this is enough for bitcoin to continue its decline. But when the big players start selling bitcoin then the cryptocurrency will definitely collapse. Therefore, the next few days for the "cue ball" can be extremely important. If the market's nerves hold, bitcoin will be able to continue its growth in the direction of the magic figure of $ 100,000 per coin. If not, it will collapse. These days, the comments of the whales of the cryptocurrency market like Elon Musk or other major holders or experts in this field will be especially important or just people that the market listens to. As discussed earlier, the market is extremely impressionable and is ready to respond with bitcoin purchases if it understands that larger players are also buying it at this time.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical analysis of Litecoin/USD for February 23, 2021



After a rally to 237, Litecoin is making a correction towards the neck-line near 178.70. We currently see support near 191.43 and again at the former neck-line resistance, which now acts as support near 178.70. Once this correction is complete renewed strength is expected for a rally towards the S/H/S bottom-target near 325 with the possibility of an extension closer to 415.

Short-term a break above minor resistance at 210.00 will indicate that the correction from 237 has completed and the next impulsive rally higher towards 325 is in motion.


Trading recommendation:
Buy Litecoin near the 178.70 - 191.43 support-area with your stop placed at 122.50 for the next rally higher to 325.





Torben Melsted
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for February 23, 2021

Crypto Industry News:
The recent correction in the cryptocurrency market has been the largest we've seen in a while. While most digital assets have experienced severe drops, the price of ethereum on the Kraken exchange has experienced a real rollercoaster.

The exchange's trading platform today recorded an event that has certainly made many hearts beat faster. Ethereum, the second largest cryptocurrency, has experienced a flash crash.

In one hour's candle, ETH dropped to $ 700 - a massive 63% drop from the stock market's daily high. The volume of this hourly candle was also significant. A total of 75,500 ETH worth around $ 131.5 million passed from the opening to the closing by traders.

As always in the case of flash crashes, the price rose again after the decline and remained at a level adequate to other averages on other exchanges.


Technical Market Outlook:
The ETH/USD pair has started a sell off recently and the price has fallen to the level of $1,540 (at the time of writing the article). The sell off was dynamic and sudden, so all of the levels will now act as a technical resistance for the market. The next target for bears is seen at the level of $1,478 and $1,438. The nearest technical resistance is located at the level of $1,648. The weekly and monthly time frame trend is still up. The bullish scenario is valid as long as the level of $1,412 is broken.

Weekly Pivot Points:
WR3 - $2,476
WR2 - $2,254
WR1 - $2,101

Weekly Pivot - $1,876
WS1 - $1,724
WS2 - $1,492
WS3 - $1,337


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $2,100, 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 $1,412 is broken.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for February 23, 2021

Crypto Industry News:
The high volume of the transfer to the Bitcoin exchange wallet on February 21 aroused many questions and controversies.

The entity (or group of entities) has transferred approximately 28,000 BTC worth more than $ 1.5 billion to an address that is said to be part of the OKEx OTC service. A certain @ThisIsBullish on Twitter noted that the OTC address had additionally assigned BTC to several wallets, one of which allegedly belongs to a "rich" address that has been linked to multiple cloud mining and money laundering scams in Asia.

Stock exchanges have seen huge drops in BTC reserves recently. They fell by around 635,000 compared to the March 2020 peak. They largely coincided with a period of increases in the BTC / USD exchange rate, which soared by around 1,200% over the same period.

The OKEx deposit as mentioned above came in the meantime when bitcoin was showing signs of fatigue. The cryptocurrency hit a new milestone above $ 58,000 on Sunday, leaving the author of the tweet concerned about the prospect of an imminent sell-off.


Technical Market Outlook:
The BTC/USD pair has crashed almost 20% in 24h, from the all time high at $58, 258 to $48,195. Currently, the market is testing the lower channel boundary and if this level is violated, then the next target for bears is seen at the level of $45,710 and $43,714. The overbalance of price is obvious as the level of $51,775 had been violated as well. The bulls are trying to protect the level of $50,000 as the main technical support, but it looks like they are losing this battle.

Weekly Pivot Points:
WR3 - $75,571
WR2 - $67,184
WR1 - $63,246

Weekly Pivot - $54,169
WS1 - $50,671
WS2 - $42,010
WS3 - $37,979


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 $60,000. 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