Cryptocurrency Analysis

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Bitcoin is not losing its growth potential. What to do today?

How to make money on cryptocurrencies?
To start making money systematically on the cryptocurrency market, it is important not to rush anywhere. The market will not disappear tomorrow, so there will be opportunities for earning money every day. It is better to allocate enough time to learn how to trade on cryptocurrencies and only then trade. It is important to understand that only those who treat trading as a profession and not entertainment can consistently earn money in the market. Is it possible to quickly acquire a new profession? No. This requires enough time. Therefore, if you want to make money on cryptocurrencies, then give yourself time to learn. Time is needed for:

- training courses
- daily practice
- books on trading
- testing of trading strategies, etc.

The time spent on training will give you invaluable experience and will allow you to take a more objective look at the cryptocurrency market. If you do not rush, you will lay a good foundation for your growth as a trader. By gaining experience and knowledge, you will be able to trade as professional market participants. Let's look at the current market and try to understand what the big players are doing now.


Analysis of bitcoin futures volumes from the Chicago Futures Exchange (CME)
Bitcoin continues to keep from falling (see the image at the beginning of the article). Most likely, the potential for further growth remains, the fall of last week was stopped. The corridor movement continues in the market, bitcoin is held between the levels of 50300 - 60000. It seems that in this range, there is an accumulation of positions by large players before a new move. Consider the levels of maximum horizontal volumes from the Chicago Futures Exchange. These volumes show the activity of major players.

03/25/21 – The level of the maximum horizontal volume (ROS-Point Of Control) – 50815
03/26/21 – The level of the maximum horizontal volume (ROS-Point Of Control) – 53995

The ROS has moved up and the price continues to hold above the last ROS. This indicates the strength of buyers and in the short term we may see an upward movement. Therefore, from the point of view of volume analysis, today we can consider purchases.


Trend Analysis
Trend trading offers great prospects. But trends in the market occur infrequently. Traders try to enter the market often, and while the market is flat, such trades can be ineffective. Trade less often, but trade according to the trend. Analyze short-term, medium-term and long-term trends, and when they coincide, look for a point to enter the market. These forecasts use an exponential moving average to analyze the trend:

The long-term trend is EMA 1152 (blue) on the H1 timeframe, which is similar to EMA 48 on the D timeframe;

The medium-term trend is EMA 288 (red) on the H1 timeframe, which is similar to EMA 48 on the H4 timeframe;

The short-term trend is the EMA 48 (black) on the H1 timeframe.



All three trends are the same. The price is higher than all three EMAs, respectively, the trend is upward. In this situation, from the point of view of trend analysis, you can consider purchases.


Japanese Candle Analysis
Japanese Candle Analysis helps to look into the future. A good understanding of candle configurations makes it possible to predict the market and avoid losing trades. Let's analyze yesterday's daily candle:



Yesterday's candle is black, it was closed at the bottom, the bears won. The body and shadows of the candle are completely inside the previous candle, which could be due to the weekend. Candle configuration -Tweezers - the last two candles have almost identical highs. The candle configuration is reversed, it is possible to move down. From the point of view of candle analysis, today we can consider sales.


Conclusions. Statistics.

Volume analysis – BUY
The long-term trend is BUY
The medium-term trend is BUY
The short- term trend is BUY
Japanese Candlestick Analysis is SELL

General Conclusion: 03/29/21 – you can buy and sell bitcoin in the short term, as different types of analysis give different forecasts, the market is flat.

Only statistics can show the effectiveness of any trading approach. According to these forecasts, transactions are made on a separate account and open statistics of these transactions are provided. Transactions are made on four instruments - Bitcoin, Ethereum, Litecoin, BCH USD - which are analyzed in a similar way. The result for the two months of 2021 is +10.42%.


Regulation:



At the moment, one transaction is open:

03/25/21 Litecoin SELL: 174.44 SL: 201; Risk per transaction: 1% of the deposit. With a deposit of$ 10,000, the lot is 0.04.

I do not open new deals today, there is uncertainty in the market. The transaction on BCH USD, closed at breakeven.

The risk per transaction is not more than 1%, this approach is conservative. The stop loss for this system is set behind the minimum or maximum of the signal day, depending on the direction of the transaction. The profit is given the opportunity to grow without restrictions, since I do not set a take profit. I accompany the trade by moving the stop loss beyond the extremes of the new days.

Since trading is conducted on daily charts, this recommendation is relevant throughout the day.

Trade on the trend, and you will have great profit!





Maxim Petrov
Analytical expert
InstaForex Group © 2007-2021

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Litecoin New Upside Momentum!

Litecoin (LTC/USD) rallies after failing to stabilize under an uptrend line signaling that it could approach the former highs. It's traded at 193.32 level and it should reach 200.00 psychological level soon.

Technically, the bias is bullish, so the crypto may resume its upwards movement. The current rally could confirm an important growth ahead. LTC/USD should increase in the short-term if Bitcoin resumes its upwards movement.


LTC/USD EDGES HIGHER!


LTC/USD registered only a false breakdown through the uptrend line. Today's rally far above the Pivot Point (183.83) is seen as a bullish signal. The price has tested the uptrend line and now is targeting the R1 (199.64) and the 200.00 psychological level.

Closing above 197.00 former high indicates a further growth and a potential bullish fly above $200.00. Personally, I believe that only another drop under the uptrend line could invalidate the bullish scenario and could bring a short opportunity.


LITECOIN FORECAST!

Buy if LTC/USD closes above 200.00 psychological level and use the R2 (215) as the first upside target.




Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for March 29, 2021

Crypto Industry News:
Indonesia's deputy trade minister, Jerry Sambuaga, announced that his ministry would soon launch its own cryptocurrency exchange. The initiative will allow the government to take over part of the dynamically developing cryptocurrency sector in the country, where last year's cryptocurrency trading is estimated at around $ 4.44 billion, according to data provided by the deputy minister.

"In the near future, perhaps in the coming months, and maybe even next month, there will be an exchange regulating and adjusting transactions in these crypto commodities," Sambuaga said during the cryptocurrency webinar.

Sambuaga drew attention to the growing value of the Indonesian cryptocurrency market. He said, "This shows the future direction in which digital assets [and] digital goods can be an alternative. It may even be the main pillar of our trade growth. "


Technical Market Outlook:
The ETH/USD pair has bounced from the level of $1,541, which is the 61% Fibonacci retracement of the last wave up and went up towards the level of $1,800. The bulls had been struggling to continue the rally and the market is still trading below the short-term trend line resistance. The recent local high was made at the level of $1,729, so only a sustained breakout above trend line will open the road towards $1,800 again and put the bulls back into control of the market. The immediate technical support is seen at the level of $1,648.

Weekly Pivot Points:
WR3 - $2,053
WR2 - $1,922
WR1 - $1,793

Weekly Pivot - $1,670
WS1 - $1,525
WS2 - $1,400
WS3 - $1,267


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 BTC/USD for March 29, 2021

Crypto Industry News:
The US stimulus package in the amount of $ 1.9 trillion does not seem to - at least so far - not to significantly affect the increase in activity on the largest cryptocurrency trading platforms.

The above situation is puzzling because during the previous tranches of the stimulus package, cryptocurrency exchanges recorded a significant increase in inflows and trading.

The low purchase turnout in the bitcoin market has already caught the attention of many observers. Voyager said it was too early to suggest that this was a negative trend. He noted that recent tranches of stimulus for the US economy have also led to significant increases in depositing funds with these exchanges.

According to a tweet of Brian Armstrong, CEO of Coinbase, the largest cryptocurrency exchange in the US, an earlier round of stimulus stimuli resulted in an increase in deposits that were made at exactly the same amount as the value of the check ($ 1,200) that was being distributed at the time.

The tweet has since been removed and Coinbase declined to comment on the latest round of incentives due to a regulatory "quiet period" preceding the public market debut.


Technical Market Outlook:
The BTC/USD pair has bounced from the level of $50,313, which is the 61% Fibonacci retracement of the last wave up and the technical support as well. The bounce went up towards the level of $56,383, but the market is still trading below the short-term trend line resistance. Only a sustained breakout above this line will open the road towards $60,000 again and put the bulls back into control of the market. The immediate technical support is seen at the level of $53,290.

Weekly Pivot Points:
WR3 - $66,270
WR2 - $62,632
WR1 - $58,882

Weekly Pivot - $54,425
WS1 - $50,791
WS2 - $46,464
WS3 - $42,622


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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Technical analysis of Ripple for March 29, 2021



Ripple is in the very end of a huge triangle consolidation and we are looking for a break above resistance at 0.6000 as confirmation that the triangle consolidation is complete and the next impulsive rally towards resistance at 0.7640 is unfolding. Ideally, resistance at 0.7640 will be broken too and activate a S/H/S bottom. Meanwhile, a confirmed break above the neckline at 0.7640 will call for a continuation towards 1.5000 or a 100% rally. But for now lets look for a break above resistance at 0.6000 confirming more upside towards the neckline resistance at 0.7640.


Trading recommendation:

Buy a break above resistance at 0.6000 and place your stop at 0.4500




Torben Melsted
Analytical expert
InstaForex Group © 2007-2021

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Technical analysis of Litecoin/USD for March 29, 2021




Trading recommendation:

Buy a break above 226 and place you stop at 176.





Torben Melsted
Analytical expert
InstaForex Group © 2007-2021

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Technical analysis for Bitcoin

Bitcoin


The final support of the daily gold cross in the area of the important psychological level of 50,000.00 successfully stopped Bitcoin from moving down earlier. As a result, it went back to the attraction and influence zone of the key levels of the Ichimoku daily cross (Kijun 53996.55 - Tenkan 55131.81), closing the past day higher. These levels now form the current support.

Currently, the plans of the bulls still include breaking through the important psychological level of 60,000.00 and updating the maximum extremum (61633.80). If it declines below the (55131.81 - 53996.55) range, it will return the bears' prospects of overcoming the daily gold cross, whose final level is located at 52194.17. Further, their main task will be to break through the weekly downward correction to the short-term trend (45253.31). Towards this level, Bitcoin will enter the daily cloud (around 50000.00), and the breakdown of the weekly Tenkan will most likely end with the breakdown of the daily cloud and the formation of a new downward target.



The bullish traders are in favor in the smaller time frames. If they manage to maintain the key support levels of 55634.14 (central pivot level) and 54186.04 (weekly long-term trend), the upward movement will resume. Here, the next intraday upward targets are set at 57362.46 (R1) - 58320.12 (R2) - 60048.44 (R3).

On the contrary, the breakdown of support levels, sharp consolidation below and a reversal of moving averages, will allow us to consider continuing the downward movement. In this case, the downward targets will be set at 52948.16 and 51990.50 (support for the classic pivot levels).


Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart are used in the technical analysis of this instrument.





Evangelos Poulakis
Analytical expert
InstaForex Group © 2007-2021

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Ethereum rejected at resistance

Ethereum has risen from $1,544 to $1,731 level in 3 sessions. Price has respected the upward sloping trend line support but got rejected at the horizontal resistance at $1,700-$1,720. What was once support it is now resistance after the break down.



Red rectangle -resistance

Blue line- bearish divergence

Black line - support

Ethereum is still in bullish medium-term trend as long as price is above the black trend line support. Bulls need to recapture the $1,700-$1,720 level. The rejection we are witnessing today is not a good sign for bulls. If followed by a break below the black trend line support then we could see more selling pressures push price towards $1.400-$1.370.






Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Technical analysis of BTC/USD for March 28, 2021



Trading BTC/USD : Bitcoin

Closing above the Pivot Point ($55,205) could assure that BTC/USD will move higher towards cooling new highs.

The bulls must break through $56 k in order to resume the up trend.

Note :
As we know that :

1 BTC ---> $ 55,900 approximately
1 ETH ---> $ 1,709 approximately
So, 1 ETH ---> 0.03057245 BTC.

For that one Ethereum is only worth 0.03057245 Bitcoin (March 28, 2021).

BTC/USD is at an all-time high against the dollar around the spot of $ 55 k - $56 k.

BTC/USD is inside in upward channel. Closing above the major support ($ 55,205) could assure that BTC/USD will move higher towards cooling new highs.

BTC/USD is continuing rising by market cap at a range between $1000 and $2500.

BTC/USD is trading at $ 55,900 after it reached $56,356 earlier. BTC/USD has been set above the strong support at the price of $ $55,205, which coincides with the 50% Fibonacci retracement level.

This support has been rejected three times confirming the veracity of an uptrend. The market is likely to show signs of a bullish trend around the spot of $55,205.

Buy orders are recommended above the area of $ $55,205 with the first target at the price of $ 56,356; and continue towards $57,000 in order to test the last bullish wave.

On the other hand , if the BTC/USD fails to break through the resistance price of $ 57,937 today, the market will decline further to $ 55,205 (return to pivot).




Mourad El Keddani
Analytical expert
InstaForex Group © 2007-2021

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Bloomberg's new forecast for the cost of bitcoin: $ 400,000 per coin in 2021

Well, at the end of this week, bitcoin again made an unsuccessful attempt to overcome the Kijun-sen line, which lies at the price value of $ 52,300. Quotes rebounded from this level yesterday, so in general, now the upward movement can continue. However, as we have repeatedly said, the upward trend for the "cue ball" has already been going on for more than a year, which is very much for the "hype" cryptocurrency and each subsequent round of the upward movement is weaker than the previous one. Thus, we still draw the attention of the cryptocurrency market participant to the fact that the "cue ball" now has two important supports: $ 52,300 and $ 43,000-$ 44,000. If the first support is overcome in the near future (and we give 65% probability for this option), then the downward movement will continue to $ 43-44 thousand per coin. From our point of view, a strong correction is long overdue. In the long run, bitcoin is likely to continue to rise in price. But in the short and medium term, it has already risen in price enough, thus, it is time for a correction. However, bitcoin cannot be adjusted like a regular currency pair. Its specificity affects it. Bitcoin, as we have already understood in previous articles – is primarily an investment tool. And when an investment instrument falls, it is sold off massively. This has been the case at least twice in the history of BTC, and probably will be the third time. Thus, we are preparing for a strong drop in the quotes of the "cue ball", although, in the long term, we believe that it can continue to rise in price in the direction of the notorious $ 100,000 per coin.

Meanwhile, the forecast of $ 100,000 per coin is no longer something fantastic. For example, Bloomberg senior commodities strategist Mike McGlone believes that bitcoin will eventually grow to $ 400,000 per coin. Its analysis and forecast are based on data on the history of the bitcoin movement since 2010. According to McGlone, bitcoin will grow to this crazy value in 2021. However, using this type of analysis (if it has become more expensive in the past, it will become more expensive in the future), you can predict any value of an asset. We remind traders of one of the main tenets of trading: "profitability in the past does not guarantee profitability in the future". The same applies to the movement of any asset or instrument. If an asset has become more expensive in the past, it does not mean that it will become more expensive in the future. However, $ 400,000 is not the craziest forecast for bitcoin. Earlier, the head of the Kraken cryptocurrency exchange, Jess Powell, predicted the cost of one coin for $ 1 million, and the head of the BTCC crypto exchange believes that the cost of "digital gold" will grow to$ 300,000 per coin. We remind you that the forecasts of those experts who are interested in the growth of bitcoin should be divided by 8. For people from the crypto industry, miners, and owners of the "cue ball", it is beneficial to support the opinion that bitcoin will continue to rise in price in any case. At the same time, the stronger, the better. The confidence of new traders and investors that the asset will become 100% more expensive attracts them to the market, which provokes an increase in the price of the asset, which is in the hands of those who already own it.



In technical terms, bitcoin continues to be on the verge of overcoming the level of $ 52,300 and will fall by 8-9 thousand down. We once again draw attention to the fact that each subsequent round of the upward movement is weaker than the previous one. This means that the upward trend is weakening. Therefore, a correction should be expected.




Paolo Greco
Analytical expert
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