Cryptocurrency Analysis

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Heading for Sunday highs? Cryptocurrency market results on March 15, 2021

The downward correction of the cryptocurrency market has stopped today. The coins have moved to a cautious recovery, so far resembling more consolidation. Nevertheless, technical prerequisites are being created for bitcoin, and then altcoins, to regain their lost positions.

Bitcoin was able to hold above the 100 level on Fibo Expansion today. An attempt to break it (punctures with shadows) turned out to be false, and the pair moved to recovery. Now, the nearest target for bitcoin growth is the level of the previous historical highs - the resistance of 58340.66, marked with a dotted line. And in case of overcoming this level and fixing above it, the main cryptocurrency will be able to continue its growth to the level of 161.8 on Fibo Expansion.



Bitcoin Cash held in the range of 508.94 - 538.35 and is consolidating in the middle of it. The nearest target for the pair's recovery is the level of 551.56, marked with a red dotted line. And if the pair breaks through it and gains a foothold higher, the BCH/USD quotes will open the way to the resistance level of 611.50.



Ripple stopped falling in the range between the support of 0.4071 (red line) and the resistance of 0.4539, which was associated with the recovery of the bitcoin price. Now, XRP/USD can either continue to decline to the support of the corridor, or first descend to its resistance, and then turn down.



Ethereum held above the support area of 1697.27 - 1789.44 (marked with red dotted lines) and is recovering after the main cryptocurrency. Now, if bitcoin reaches a historical high, the price of ETH/USD may rise to Saturday's highs. The nearest target for the pair's growth is the level of 61.8 on Fibo Expansion.







Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

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US regulator conducts an audit of the Binance crypto exchange: is there any reason to worry

In the last few days, many high-profile announcements in the field of cryptocurrencies have been associated with the Binance exchange. The company is really doing a tremendous job to expand the possibilities of cryptocurrencies and their areas of application. However, on March 12, a situation occurred that could seriously affect the company's reputation and the cryptocurrency market.

The US regulator (the Commodity Futures Trading Commission) has launched an audit of Binance. According to the authorities, the crypto exchange is suspected of allowing US residents to trade in financial instruments without a proper license. It should be noted immediately that this is just a check and suspicion, and not an irreversible truth of violation of the law.

The head of Binance, Changpeng Zhao, called such a notice an attempt to compromise the company's activities and sow panic among market participants. The CEO urged the public not to pay attention to the verification of the crypto exchange. Recall that on March 12, the company launched its own payment system Binance Pay, which allows absolutely any business entity to use cryptocurrencies as a means of payment.

Based on the dynamics of market development, public interest in it and investment processes, the launch of the system should be a great success. However, such statements about suspicions of trading without permits will at least cast a shadow on the company's reputation, and it will take some time before market participants completely remove doubts about any product that Binance creates and launches.

In the dry balance, we can say that there is nothing wrong with this news, but it happened at the most untimely moment. This investigation may significantly affect the future of the Binance Pay payment system and the further development of the cryptocurrency market. It is worth noting that the CEO of the company reacted instantly, and this is the right move in the current situation, which will reassure investors and other market participants. Now it remains only to closely monitor the results of the investigation, and only then we can draw certain conclusions.






Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for March 16, 2021

Crypto Industry News:

India is likely to pass a law that will make cryptocurrencies illegal in the country. In addition to the fact that trading and mining of cryptocurrencies would be illegal, the new law would also prohibit their possession. However, cryptocurrency investors will be able, without any legal consequences, to realize their profits within six months from the date of entry into force of the new law.

It is unclear whether the law provides for imprisonment for those who fail to comply with the provisions of the law.

While the details remain unknown, a law as passed would represent a huge blow to cryptocurrencies in any major economy. Although digital assets have been banned in China since September 2017, the Chinese can still legally own cryptocurrencies.

Unfortunately for the Indian cryptocurrency industry, commentators expect the bill will eventually pass the legislative process successfully as Prime Minister Narendra Modi's party has the required majority to vote it out.


Technical Market Outlook:

The BTC/USD pair has retraced 50% of the last wave up and is currently bouncing from the level of $54,012. The market is about to test the technical support located at the level of $52,466 - $52,039 as well. If this level is violated, then the corrective cycle might expand towards the next technical support seen at $49,422. The nearest intraday technical resistance is seen at the level of $55,091. Please notice the market keep making higher highs on the daily time frame despite the bearish divergence building since the level of $41,917.

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

[IFX_Selena]

Technical Analysis of ETH/USD for March 16, 2021

Crypto Industry News:

It does not look like Elon Musk's romance with cryptocurrencies will end. An application has been filed with the US Securities and Exchange Commission announcing the adoption of new official titles for him and another Tesla director.

From Monday, Elon Musk will be officially called "Technoking of Tesla" and the company's chief financial officer, Zack Kirkhorn, will be officially called "Master of Coin". An 8-K form filed with the SEC states:

"As of March 15, 2021, the titles of Elon Musk and Zach Kirkhorn have changed to Technoking of Tesla and Master of Coin, respectively," we read.

The application also states that Musk and Kirkhorn will retain their current positions as CEO and Chief Financial Officer.

Without a hint of the accompanying tweet that Tesla's CEO is famous for, viewers can only speculate as to why Musk and Kirkhorn have adopted the new titles.

In early February, Bitcoin's spot price rose by $ 3,000 in minutes when news of Tesla's $ 1.5 billion acquisition of BTC surfaced, taking the coin price to a new all-time high.

After Bitcoin's value - and Tesla's shares - fell sharply - the title of "world's richest man" was briefly lost to Elon Musk. However, neither Bitcoin nor Tesla spent much of their time stagnating as the revival of the coin's price quickly brought substantial profits to Musk and the company.


Technical Market Outlook:

The ETH/USD pair should continue the wave up towards the $2,000 level first and then towards the recent swing high seen at $2,035. The market keeps moving inside of the trading channel, but in order to do so, the technical support at the level of $1,725 should not be violated. Please keep an eye on the RSI indicator as it is pointing down already, so any breakout below the fifty level will accelerate the pull-back towards the channel lower boundary line.

Weekly Pivot Points:
WR3 - $2,266
WR2 - $2,113
WR1 - $1,975

Weekly Pivot - $1,820
WS1 - $1,716
WS2 - $1,552
WS3 - $1,423


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

[IFX_Selena]

Tesla officially gives CEO Elon Musk title of Technoking of Tesla



Reportedly, Elon mush has been given a new title. He has dropped his chief executive job title and crowned himself 'Technoking of Tesla'. Zach Kirkhorn, the company's chief financial officer, has also received a new title "Master of Coin."

Curiously enough, in a filing with US stock market regulator, the Securities and Exchange Commission, Tesla said, "Effective as of March 15, 2021, the titles of Elon Musk and Zach Kirkhorn have changed to Technoking of Tesla and Master of Coin, respectively." The electric car maker did not explain the reasons for the mysterious new titles.

Last month, Tesla announced that it had purchased $1.5 billion worth of bitcoin. The company also stressed that it would soon adopt it as a means of payment for cars, pushing the price of the world's most popular cryptocurrency to new highs.

Later on Monday, Musk tweeted an animation depicting a gold trophy decorated with coins and accompanied by a pulsing electronic soundtrack.

"I'm selling this song about NFTs as an NFT," the tweet reads.

Non-fungible tokens, or NET, are a new type of digital asset that is authenticated using a blockchain that certifies its originality and ownership. Their popularity has exploded during the pandemic, as enthusiasts and investors try to spend huge amounts of money on products that only exist online. It was not clear though whether Musk actually intended to sell the video or the song.

Musk's recent promotion of Dogecoin on Twitter has also raised the price of this cryptocurrency. Bitcoin hit a new high of around $62,000 over the weekend but fell about 5% in the early afternoon on Monday.




Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021