Cryptocurrency Analysis

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Technical Analysis of BTC/USD for March 15, 2021

Crypto Industry News:

Over the past ten years, Bitcoin has outclassed all asset classes available in the markets at least tenfold. Charlie Bilello, CEO and founder of Compound Capital Advisors, dressed it in numbers. He collected the results of the top asset classes on the basis of data from Ycharts and posted on Twitter.

In response to the above findings, Messari analyst Roberto Talamas stressed that bitcoin brought an average annual return of 230% - more than 10 times higher than the second-ranked asset class.

The US Nasdaq 100 index came second with an annual return of 20%. US large-cap companies - equities of US-based companies with a market capitalization of more than $ 10 billion - came close behind, with an average annual performance of 14%. US small-cap stocks were the only other asset class to record double-digit annual returns in the past ten years.

The data compiled by Bilello also shows that since 2011, gold has delivered an annual return of 1.5%. However, five of the last 11 years have resulted in a loss. According to Gold Price, the precious metal has fallen by 8.5% since the beginning of 2021.


Technical Market Outlook:

The BTC/USD pair has made another all time high at the level of $61,633 during the weekend and is currently pulling back from the highs. The market is about to test the technical support located at the level of $58,233. If this level is violated, then the corrective cycle might expand towards the next technical support seen at $54,314. The momentum remains positive, but is not that strong anymore, so please keep an eye on a breakout below fifty level on RSI indicator.

Weekly Pivot Points:
WR3 - $77,718
WR2 - $70,065
WR1 - $65,682

Weekly Pivot - $57,463
WS1 - $53,537
WS2 - $45,060
WS3 - $41,147


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 $70,000. 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 on the e daily time frame chart.







Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin mining has an extremely negative impact on the planet's climate and the environment. Bill Gates again criticizes "digital gold"

Attachment 5136

Bill Gates has long been a critic of bitcoin. According to the former head of Microsoft, bitcoin is too volatile and too unstable, and can also lead to significant losses. Also, according to the billionaire, "If you do not have as much money as Musk, then you should not deal with bitcoin". However, the problem for the whole world is not only that bitcoin is excessively volatile or used in illegal and criminal operations. The problem is that one transaction on the bitcoin network consumes more electricity than any other transaction. Electricity doesn't come from anywhere. Thus, the huge consumption of electricity by miners is a huge emission of CO2 into the atmosphere. Of course, if we are talking about the so-called "green energy", then there are no questions. But not all power plants in the world use renewable sources of electricity. But bitcoin is already being mined everywhere. Thus, according to research, only 39% of bitcoins were mined with the help of "green energy", that is, without harm to the environment. Scientists have already calculated several times that the amount of carbon dioxide that is released into the atmosphere during the production and transfer of bitcoins is equivalent to the whole of Argentina. That is the whole country. It was also estimated that one bitcoin transaction is equal to the number of emissions of 750 thousand transactions in the Visa payment system. Thus, it is not only Bill Gates who opposes bitcoin. Many scientists also regularly draw attention to the fact that the "cue ball" is extremely harmful to the environment. "If this is green energy, then mining the first cryptocurrency may be acceptable," Gates said.

At the same time, Microstrategy invested another $ 15 million in bitcoin. Thus, the total amount of BTC that the company now owns is 91,236 coins. Earlier, the company raised more than a billion dollars by issuing and placing securities among investors to invest in bitcoin. The total investment in BTC is already more than $ 2 billion. The company's shares have almost halved since February 9, 2021, but have recently shown a tendency to recover. Bitcoin itself has already grown to $ 61,000 per coin and at the moment, in any case, has brought Microstrategy and Tesla profit. The main thing is that now there will not be a collapse in quotes, as in 2017-2018. However, most experts are already inclined to believe that such a strong collapse will not happen, since interest among institutional traders in bitcoin is growing, and institutional investors are much more stable and calm owners of bitcoin than "hamsters" who try to sell the asset as soon as there is a minimal drop in quotes.




Attachment 5135
Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin has crossed the mark of $ 61,000 per coin. Is it Elon Musk's fault again?

Bitcoin continued its upward movement over the weekend. During yesterday, a fairly strong upward movement followed, which led to an update of the previous local and absolute maximum in the area of $ 58,258. Now the new maximum of the "cue ball" is equal to $ 61,632. And at the moment, there are no signs of the beginning of a new round of correction. Thus, in the near future, bitcoin may grow to $ 70,000 per coin. Such a forecast can be made based on the previous growth cycles after each correction. In our previous articles, we have already said that the demand for bitcoin among institutional investors is growing. More and more large investors and miners are not in a hurry to part with BTC, as it would have been a few years ago. At the moment, most of the bitcoins are not in the hands of "hamsters" who are in a hurry to get rid of the cryptocurrency and make a profit, but in the hands of institutions, for whom investing in bitcoin is not the last means and who can afford to keep bitcoin in their portfolios for a very long time. Thus, based on this factor alone, we can conclude that bitcoin will continue to grow in price. Moreover, there are no more coins, their upper limit is limited to 21 million and at the moment there are about 2 million coins left unmaintained. Thus, despite the skepticism of many billionaires and experts of the cryptocurrency market, at the moment the most obvious conclusion is that bitcoin will continue to grow.

Meanwhile, the head of Tesla and SpaceX, Elon Musk, again got in touch and commented on bitcoin. This time, Musk noted that BTC is an anagram to TBC – The Boring Company, which is a subsidiary of SpaceX. "What a coincidence," Elon Musk said. What exactly this message means is unknown, but the notes of sarcasm are traced in it. At the same time, it became known that Elon Musk was sued by one of the Tesla investors, who is sure that he exposes the company to losses of billions of dollars with his tweets and comments. It also became known that Musk's company is engaged in BTC mining, which has never been mentioned anywhere before. Thus, the latest growth of bitcoin could again be associated with the comments of the odious billionaire.

Attachment 5134

As for the technical picture, the important support area of $ 43,000 - $ 44,000 stood, however, there was only one test of this area. So now everything looks very clear and understandable. Traders slightly adjusted the "digital gold", after which the upward movement resumed. The first resistance level of $ 58,226 has been overcome, so now the road is open to the psychological mark of $ 70,000 and the resistance level of $ 71,233.



Attachment 5135
Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Miners can collapse bitcoin quotes, but the US government is rushing to the rescue of "digital gold"



While bitcoin continues to rise in price, there is still talk about when the growth of "digital gold" will stop. All traders want to fix the maximum profit, but the "small fish" no longer have the same impact on the "cue ball" rate as a few years ago. Simply put, bitcoin is now being bought by large investors who can afford to keep bitcoin in their portfolios for years, thus keeping the value of the asset at a high level. Small traders chase profits, large institutional investors invest their funds for the future. Thus, we may never see the collapse of quotes by 80-90%, as it happened before. According to research by analyst Philip Swift, all the recent corrections were caused by the fact that miners sold the extracted bitcoins, which reduced the value of the cryptocurrency. In his analysis, Swift refers to the Puell Multiple indicator, which is calculated as the ratio of the value of the extracted bitcoins to the average value of the asset value over the past year. After reaching the maximum profit levels, sales follow, which provokes a correction in the value of the "cue ball". However, the nature of supply and demand for bitcoin has been changing in recent years. If earlier miners immediately sought to get rid of bitcoin, now more and more mining pools sell only a certain part of the extracted "bits". If a few years ago, few believed that bitcoin would continue to rise in price in the long term and sought to make a profit as quickly as possible, now that the mark of $ 100,000 per coin no longer seems fantastic, many are in no hurry to part with the "cue ball", the supply of which is very limited in the market. It should also be noted that a large share of the mining market is now made up of large pools, and not single-player mannerisms. These pools can simply afford to hold the extracted bitcoins. Thus, potentially, in the event of a sale of a certain share of "bits", the rate of "digital gold" is unlikely to go to zero. Various studies show that more than $ 1 trillion was accumulated by Americans during the pandemic. It is expected that this money will be spent in 2021, as the situation with the "coronavirus" is slowly improving, vaccination is in full swing, and the economy is recovering. Thus, experts believe that the propensity of Americans to thrift and save will decrease in 2021, therefore, a certain part of the accumulated funds may flood into the stock, debt, or cryptocurrency market. Thus, the demand for the "cue ball" in 2021 may also grow due to new institutional investors, as well as due to the influx of "hamsters".



Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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The vast majority of institutional investors plan to increase their investment in bitcoin



Bitcoin continues to grow. During the trading on Saturday, it broke its previous high, exceeding the value of $ 59,000 per coin. In the next few hours, the cost of one "cue ball" may exceed $ 60,000. Thus, the decline in BTC quotes a couple of weeks ago turned out to be a banal correction, and the markets show with all their appearance that they are going to continue investing in bitcoin. Although bitcoin has a fairly large number of factors to stop the growth, so far traders and investors take into account only those factors that speak in favor of continuing growth. This is confirmed by various opinion polls among investors, which show that interest in the "cue ball" is growing and is likely to remain high until the global economy stabilizes. For example, according to the Nickel Digital cryptocurrency fund, about 40% of institutional investors purchased bitcoin to protect against inflation (which, by the way, is not growing at a high rate in America). More than 85% of investors plan to increase their investments in cryptocurrencies over the next two years. About 56% of respondents believe that the growth of the "cue ball" will not be so strong, but it will continue. We also recall that earlier similar opinion polls were conducted by the investment bank Goldman Sachs. The results of this survey showed that the bank's customers believe that bitcoin will not fall below $ 40,000 per coin in 2021. About 40% of the surveyed clients own digital assets, and about 60% of the respondents believe that bitcoin will continue to rise in price. Thus, the mood of large investors can be considered positive, which probably gives strength to bitcoin. Inflation in the United States, as in the rest of the world, may indeed jump in 2021, given the trillions of dollars and euros that have been poured into the economy. Against the background of investors' fears for inflation, the yield of treasury bonds in the European Union and the same States is also growing. Thus, at the moment, it is still possible to conclude that it is the global changes in the economy over the past year that have caused the strong growth of bitcoin.



As for the technical picture, the important support area of $ 43,000 - $ 44,000 stood, however, there was only one test of this area. So now everything looks very clear and understandable. Traders have slightly adjusted the "digital gold", now you can start a new wave of asset purchases. Thus, according to the Ichimoku system, the upward trend remains, and the price has already overcome the previous high, and at the same time the resistance level of $ 58226. Consequently, the growth of quotes of the "cue ball" is likely to continue in the near future. Fundamental factors still speak in favor of bitcoin, but no one knows when a new wave of sales of the crypto asset will begin. Therefore, you should never forget about Stop Loss.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin ends the week near its all time highs

Trend remains bullish for Bitcoin. Despite the warning signals from the bearish divergence in the RSI, bulls remain confident of seeing price above $60,000. Short-term trend remains bullish as price is inside an upward sloping channel after the buy signal from the inverted head and shoulders break out at $51,700.



Green lines - bullish short-term channel

Red rectangle -support

Short-term support is at $55,660. A break below this level will most probably bring BTC/USD back towards the red rectangle for a back test of the break out. This red rectangle support area which was once resistance is at $51,700-$52,700. So bulls need to be cautious if price fails to stay inside the green channel.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Trading Signal for BITCOIN for March 12 - 15, 2021: Sell Below $56,250



Bitcoin has tried several sessions to consolidate above $ 56,250, at this level the +1/8 line of murray is located, this level is acting as a strong resistance, which has prevented Bitcoin from reaching the $ 62,500 area +2/8 murray level.

The eagle indicator has been in the overbought zone for several days, and is forming a bearish divergence, the fall of the BTC could occur only if it trades below $ 56,250, with targets at the bottom of the uptrend channel.

At the bottom of the 4-hour bullish trend channel, there could be a technical rebound, around $ 52,550, at this level we recommend buying with targets at $ 56,250, or higher to $ 62,500.

A break below the psychological level of $ 50,000 could see a drop to the zone of $30,000 in the medium term.


Support And Resistance Levels For March 12 - 15, 2021

Resistance (1) $56,797
Resistance (2) $58,226
Resistance (3) $60,226

Support (1) $53,426
Support (2) $51,742
Support (3) $49,137



Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of BTC/USD for March 12, 2021

Crypto Industry News:

The American banking giant Goldman Sachs recently decided to restart its cryptocurrency trading office. Apparently, this has led to an increased demand for digital assets among the customer base.

Goldman Sachs chief operating officer John Waldron said the company is researching how to meet the growing demand of customers looking to invest in Bitcoin, according to the report. The chief operating officer said Goldman Sachs will "continue to evaluate" and "engage" with cryptocurrencies for customers.

Goldman is also reportedly researching the launch of a Bitcoin ETF as well as further ways to store digital assets. Waldron said the current pandemic has "markedly accelerated" online shopping and would likely cause an "explosion" in digital currency payments.

Some in the cryptocurrency space are looking at Goldman's return as a bearish indicator for BTC. The investment management company originally set up its cryptocurrency trading post in the peak of the 2017 boom, after which Bitcoin's price dropped significantly.

However, many have pointed out that the cryptocurrency market is different from what it was four years ago.

Major companies have adopted Bitcoin as a reserve asset. The regulatory environment in the United States could also potentially be more favorable to cryptocurrencies under Joe Biden. On Wednesday, the US Senate banking committee voted in favor of cryptocurrency-friendly candidate Gary Gensler as chairman of the Securities and Exchange Commission.


Technical Market Outlook:

The BTC/USD pair has made another higher high located at the level of $58,275, which is the 127% Fibonacci extension of the last wave up. The market is currently consolidating the recent gains as the up trend on the H4 time frame is still valid. The momentum remains positive, but it points down already, so any violation of the level of $54, 314 might be the trigger to do lower towards $52,039. The larger time frame trend remains up and there is no indication of the up trend termination of reversal yet.

Weekly Pivot Points:
WR3 - $61,059
WR2 - $56,697
WR1 - $53,887

Weekly Pivot - $49,123
WS1 - $46,093
WS2 - $41,457
WS3 - $38,335


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

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Technical Analysis of ETH/USD for March 12, 2021

Crypto Industry News:

The Russian central bank expects to start pilot programs for its central bank's digital currency in 2022, the board member said.

Bank of Russia vice president Alexei Zabotkin said the bank plans to complete the digital ruble prototype by the end of 2021, local news agency Prime said Wednesday. He announced his plans at an internet event hosted by the Moscow New School of Economics.

Zabotkin said the prototype would not support "real transactions" but rather serve as a starting point for building an ecosystem.

"Based on this prototype, we will start introducing practice rounds next year," said Zabotkin.

The Bank of Russia officially announced its CBDC plans in late 2020, issuing a consultation document on the development of the digital ruble in October last year. In January, the Russian Banks Association released an opinion on the project, warning that all the models proposed by the Bank of Russia could be associated with a range of cybersecurity and fraud risks.

At the end of February, the first vice-president of the Bank of Russia, Olga Skorobogatova, reportedly announced that the bank plans to develop a concept for the selected digital ruble model. She said the bank has not ruled out the possibility of charging fees for transfers between digital ruble wallets.


Technical Market Outlook:

The ETH/USD pair had been consolidating in a narrow range for some time now, so any violation of the level of $1,759 will open the road towards the lower levels like $1,748 and $1,700. Please notice, the 1:1 Fibonacci extension level located at $1,804 had been hit as well, but the response from bears is muted so far except the fact, that the new local low was made at the level of $1,728. The key short-term technical support is seen at the level of $1,633 and the next target for bulls is located at $1,902 (127% Fibonacci extension level).

Weekly Pivot Points:
WR3 - $2,090
WR2 - $1,882
WR1 - $1,810

Weekly Pivot - $1,598
WS1 - $1,500
WS2 - $1,295
WS3 - $1,210


Trading Recommendations:

The longer term up trend on the Ethereum continues despite the local counter-trend corrections. When the correction is terminated, the next long term target for ETH/USD is seen at the level of $2,100. The key long term technical support is seen at the level of $1,412, so only a weekly candle close below this level will invalidate the bullish scenario.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

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Technical analysis of Bitcoin/USD for March 12, 2021



After break above the S/H/S bottom neckline at 52,223 Bitcoin is re-testing the former peak at 58,354. We expect this resistance will be able to hold back Bitcoins advance for a temporary correction closer to 53,731 before the next push higher through resistance at 58,354 for a rally towards the S/H/S bottom target at 61,480 and above.

Longer-term we are looking for even higher levels at a continuation higher to resistance in the 67,184 - 67,981 area.


Trading recommendation:

Buy Bitcoin near 53,731 for the next push higher to 67,184 - 67,981 area.




Torben Melsted
Analytical expert
InstaForex Group © 2007-2021