Cryptocurrency Analysis

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Crypto market plunged. BTC/USD sank by $3,000

After a long stagnation, the cryptocurrency market has found momentum for growth. Over the past 5 days, the total cryptocurrency market capitalization has reached $1.86 trillion. Bitcoin and major altcoins were slowly but surely approaching key positions for further growth. However, as of March 31, the cryptocurrency market shows negative dynamics and a drop in total capitalization by 1%.

This behavior of the main digital assets does not seem entirely justified given the positive news background, as well as the end of the bitcoin expiration, which also put pressure on the market. Despite this, on Tuesday, the quotes of the BTC/USD pair reached an important milestone of $60,000, but over the past day, they fell by $3,000. At the same time, the positive dynamics of the total trading volume remain, which amounted to $197 billion. On March 31, the asset is holding at around $58,000, and this looks quite logical. The currency did not have enough margin of safety and interest of large investors to stay above the $60,000 mark.

At the same time, a positive news background continues to persist around bitcoin. Cryptocurrency platform Bakkt, together with Starbucks, introduced a mobile wallet for transactions with bitcoin. Also, Europe's largest cryptocurrency holder reported that it doubled its annual profits thanks to its first digital asset. Thus, the positive news background and increasing trading volumes will allow Bitcoin to stay close to the psychological mark. Retailers are currently showing interest in the BTC/USD pair, which will allow the cryptocurrency to update its all-time high. At the same time, without the interest of institutional investors, the asset can painfully sink in price due to the correction after a new record.



The case of the ETH/USD pair has worsened, which on Tuesday held positions at $1,860, but over the past day sank by 2%. As of March 31, Ethereum quotes remain in the region of $1,800, and the total trading volume is $28.8 billion. The general market downturn and the lack of interest from large investors pushed Ethereum away from important indicators. At the same time, the ETH/USD pair stands out against the background of other cryptocurrencies due to an early network update to version ETH 2.0. The market is holding its breath in anticipation of the launch of a new platform that will give Ethereum a huge leap forward in development and value.



A serious decline was outlined in the Ripple token, which sank by 7% over the past day. The current readings of the XRP/USD pair are $0.540. Despite Ripple's purchase of a 40% stake in Tranglo, the momentum has passed, and now the asset's quotes are more dependent on the course of the litigation between the SEC and Ripple.



Litecoin continues its downward movement over the past day. On March 30, the asset showed a symbolic growth of 0.6% and dropped in price by 3.5% in 24 hours. Now the quotes of the LTC/USD pair remain at $190 and show minimal prerequisites for further growth. The asset may close at $195-$200 in today's trading, but will not fix at this level.



The positive news background, as well as the impetus from Tesla, PayPal, and Visa, allowed the cryptocurrency market to start gradual growth, but it is obvious that the main crypto asset and altcoins lack a margin of safety. That is why digital coins sank in price, getting close to psychological marks, near historical highs. This situation could be corrected by the increased attention of the institutional investor, which did not follow the example of the payment giants. This may be because large companies have taken a wait-and-see attitude, waiting for important announcements related to the creation of EFT-bitcoin in the United States and the update of Ethereum to version 2.0.





Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

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Trading plan for Bitcoin for March 31, 2021



Technical outlook:

Bitcoin bulls might remain poised to push through fresh highs above $61,780 mark in the next several trading sessions. For the above bullish structure to stay intact, prices must remain above $50,000 mark, going forward. The crypto might produce a corrective drop towards $52,000/53,000 levels, as discussed yesterday before turning higher again.

Bitcoin is seen to be trading around $58,100 levels at this point in writing ad is expected to drop towards $52,000 mark in the near term. Bulls might be back in control after that and resume its rally towards $62,000 and $65,000 mark. Immediate support is $43,000; while resistance is fixed at $62,000 levels respectively. Bulls remain poised to push through resistance in the next few weeks time.

The religious uptrend that had begun since $3,850 lows in March 2020, remains intact for now. Bitcoin might still have some steam left to print higher highs around $62,000/65,000 zone, before giving in to bears and resuming lower again. Traders might be prepared to buy around $52,000/53,000 zone with risk around $43,000.


Trading plan:
Aggressive traders remain short with stop @ 62,000 and target @53,000

Then turn bullish with stop @ 43,000, target @ 63,000 and 65,000.

Good luck!




Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin forecast for March 31, 2021 – BUY. Gains for 2 months +10.42%

1. How to make money on cryptocurrencies?
To make money on cryptocurrencies, traders should become professionals or copy actions of experienced traders. We have already mentioned that there are three main resources – intention, time, and money. Today, we will focus on money.

Trader is a profession!

Is it possible to become a professional in this or that sphere without investing money in education? Can anyone become a lawyer, doctor, or an engineer for free? Of course, nowadays, it is almost impossible. To get a good job, one should be well-educated. If you decide to become a professional trader, you need to allocate some amount of money for education. Thus, we need money for the following:

- Educational courses. Future traders are recommended to take a variety of courses to learn different trading systems and approaches. The more you know about the market, the better you can understand it.

- Books on trading. Read the books of professional market participants who have achieved success in their business. Set a goal of reading one book every month. In this case, you will actively grow as a professional trader.

- Initial deposits. It is impossible to learn everything, trading on a demo account. It is like driving a car in a computer game. To polish your driving skills, you need to go on a real road with its risks and dangers. Thus, in trading, you need a real account in order to learn how to trade profitably. However, investing money, you should understand that you are just at the beginning of your way. Your initial goal is not to earn money, but to gain experience.

Anyone can become a professional trader investing both time and money in education. Let us take a look at the current market situation.


2. Volume analysis of BTC from the Chicago Mercantile Exchange (CME)
Bitcoin is gaining in value (a chart at the beginning of the article). Of course, it is not a confident rise. The price moves up and drops from its highs. However, the asset has all chances to hit a new high and break the level of $62,000 per coin. Traders can join the trend, as bitcoin is highly volatile and may jump in any time. Let us take a look at the levels of the highest traded volume from the Chicago Mercantile Exchange (CME). This volume reflects the activity of big players.

29.03.21 – the level of the highest traded volume (POC– PointOfControl) – 58,655
30.03.21 – the level of the highest traded volume (POC– PointOfControl) – 59,400

During the recent days, the level of the highest traded volume has been moving upwards. This proves the uptrend. At the moment, the price is at yesterday's POC. This reflects the balance between buyers and sellers. Thus, traders are recommended to open buy positions.


3. Trend analysis
Let us continue analyzing the trend. To understand the global market trend, use a daily chart. Open positions only in the direction of the current trend. We use the exponential moving average to analyze the trend.

Long-term trend – a blue EMA (1,152 ) on the H1 chart, which is an alternative to EMA (48) on D1;
Mid-term trend – a red EMA (288) on the H1 chart, which is an alternative to EMA (48) on H4;
Short-term trend – a black EMA (48) on the H1 chart



We can see an upward movement. The price is above EMA 48, whereas EMA 48 is above EMA 288 and EMA 288 is above EMA 1,152. This proves a confident uptrend. In this case, traders are recommended to open buy positions.


4. Japanese candlestick analysis
Market analysis with the use Japanese candlestick analysis is the third step in this trading system. Let us analyze yesterday's daily candlestick:



Candlesticks appeared on Monday and Tuesday are somewhat similar. Both candlesticks are white, the closing price is higher than the opening price. We can see long upper shadows that indicate a struggle at the highs. However, bears do not give up. Today, the maximum of yesterday's candle has already been broken. We are likely to see a continuation of the upward movement. Today, it is better to open buy positions.


5. Conclusion. Statistics
Volume analysis – BUY
Long-term trend – BUY
Medium-term trend - BUY
Short-term trend – BUY
Japanese candlestick analysis – BUY

Conclusion: On March 31, 2021, it is possible to buy bitcoin as various analysis types provide us with the same forecasts.

Only statistical data can show the effectiveness of any trading approach. Traders use these forecasts to trade on a separate account. Positions could be opened on four instruments: Bitcoin, Ethereum, Litecoin, BTC/USD. Each of them could be analyzed in the same way. Gains for 2 months +10.42%.


Statement:


The following positions are opened at the moment:

25.03.21 Litecoin SELL: 174.44 SL: 201; the risk management is 1% of the deposit of $10,000, the trade volume is 0.04.

31.03.21 Bitecoin BUY: 58773.8 SL: 56700; the risk management is 1% of the deposit of $10,000, the trade volume is 0.05.

31.03.21 Ethereum BUY: 1834.85 SL: 1774; the risk management is 1% of the deposit of $10,000, the trade volume is 1.78.

Today, we can see two positions on bitcoin and ether.

The risk per trade is not more than 1%. This approach is conservative. Stop Loss is set beyond the minimum or maximum of the signal day, depending on the direction of the trade. I do not place Take Profit. Thus, the gain is not limited. I accompany the trade by moving Stop Loss beyond the extremes of the new days.

Since the trade is carried out on the daily charts, the recommendation remains relevant throughout the day.

Follow the trend and you will get profit!




Maxim Petrov
Analytical expert
InstaForex Group © 2007-2021

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Forex Analysis & Reviews: Ethereum Flirts With Resistance!

Ethereum drops at the time of writing trading at near 1,781 level. The price has reached an important dynamic resistance signaling that the swing higher may be over. Still, the decline could be only a temporary one.

ETH/USD could decline a little in the short-term trying to attract more buyers and more energy before taking out the immediate resistance. Ethereum drops as the price of Bitcoin falls as well in the short term.


ETH/USD BREAKOUT ATTEMPT!


ETH/USD reached the downtrend line and now is pressuring, retesting, the broken upper median line (UML) of the descending pitchfork. A temporary decline could be natural after the price's failure to stabilize above the R1 (1,823).

It could decline a little along the upper median line (UML) before starting to increase again. The outlook is bullish as the price is traded way above the uptrend line. A valid breakout above the downtrend line signal more gains ahead and activates a bullish opportunity.


ETHEREUM OUTLOOK!

Jumping and closing above 1,863 immediate high and through the downtrend line brings a long opportunity.

ETH/USD's failure to reach the descending pitchfork's median line (ML) has signaled that the price may approach and reach 1,943 higher high in the coming period.




Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for March 31, 2021

Crypto Industry News:
British regulators have identified the stablecoin market as their main target as part of their efforts to create a legal framework for virtual currencies in the country.

John Glen, the UK finance minister, said stablecoins will be the main focus of the government's cryptocurrency regulatory activity. The politician provided the news at a conference hosted by City & Financial Global on Tuesday, Reuters reported.

For Glen, the UK's decision to prioritize stablecoins over regulating the wider financial market is driven by concerns over monopolies emerging in the market, based on the limited number of participants offering fiat cryptocurrency payment services.

"Some companies have the potential to dominate quickly and displace other players due to their ability to scale and connect to existing online services," Glen noted.

Indeed, the minister's argument reflects the views expressed by financial regulators against the Diem project. Originally referred to as Libra, regulators in various countries have identified Facebook's global presence as an important risk factor for sovereign monetary policy related to the planned project.

Diem, for his part, tried to soften these regulatory guidelines by making changes to the draft. However, it has not yet received the necessary regulatory approval to start rolling out stablecoin.

Glen's comments are another sign that the UK government is focusing on stablecoins as part of its efforts to promote cutting edge innovation in the fintech industry. All of this is happening in connection with the country's withdrawal from the European Union.

In November 2020, Rishi Sunak noted that Brexit was a turning point for the UK financial services industry. Meanwhile, Sunak revealed that the government will prioritize the use of cutting edge fintech innovations such as central bank digital currencies and stablecoins to prove that the country is keeping pace with the emerging digital economy.


Technical Market Outlook:
The ETH/USD pair has hit the 127% Fibonacci extension level located at $1,847 and keeps heading up. The next target for bulls is seen at the level of $1,888, which is the key short-term technical resistance before the ATH at $1,941. The immediate technical support is seen at the level of $1,811, but for now the market made an intraday low at the level of $1,786. The strong and positive momentum supports the short-term bullish outlook for ETH.

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 31, 2021

Crypto Industry News:
PayPal announced the ability to allow US customers to pay with cryptocurrencies (including bitcoin and ethereum) across its global retail network. The BTC / USD exchange rate rose to $ 59,000. Will he attack the price record today?

According to a report released this morning by Reuters, the move could help bolster the daily use and adoption of cryptocurrencies such as bitcoin and ethereum among millions of online retailers worldwide. Additionally, PayPal's move could positively increase exposure and broader evidence of the validity of cryptocurrency use in a relatively niche sector.

According to yesterday's reports, customers with cryptocurrencies such as BTC, ETH, LTC, BCH in their PayPal digital wallets will now be able to convert their resources into FIAT currencies in shopping carts to make purchases.

This means customers would pay in cryptocurrencies, however PayPal will immediately convert digital assets into fiat currency and pay the sellers. For the merchant, this would mimic the current payment method, while for a PayPal user it would be a newer experience of spending cryptocurrency to purchase goods or services.

The service goes live one year after PayPal announced that it is launching its cryptocurrency-based business, which will be available to all 29 million sellers in the coming months.


Technical Market Outlook:
The BTC/USD pair has broke through the trend line resistance and made a top at the level of $59,612 (at the time of writing the article). The next target is seen at the level of $60,100. From there the road towards the ATH located at the level of $61,683 is very short. Strong and positive momentum supports the short-term bullish outlook for BTC.

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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Bitcoin neared $60,000 after confirming that PayPal has officially started accepting BTC payments



The bitcoin price made a correction before the record options expiry last Friday. As Visa and PayPal dealt with bitcoin and cryptocurrency payments, the ongoing rally above $59,000 was fueled by upbeat news from these giants. In other words, the market is in the middle of a bull cycle, and any correction is a boon for traders and investors.

The total market cap is showing a similar test of support, as the $1.5 trillion levels are crucial to hold. As the total market cap of the cryptocurrency has recovered from this correction, there is likely to be more room for growth as regions where it is at an all-time high will be tested.

However, during this jump, several critical support levels were established. Currently, the significant storage space is $56,000. As long as this region maintains support, the market will have the potential for further growth. This sets new historical peaks and perhaps $70,000 by early summer.

This is a transitional moment where cryptocurrencies become a legitimate source of funding for making real transactions from millions of sellers, mostly from the asset class that you buy, hold, or sell.

Bitcoin will not be able to rely on the market capitalization of gold, which is $10 trillion. It will be much higher, which means that bitcoin will be worth hundreds of thousands of dollars. And if bitcoin hits new all-time highs, altcoins are likely to follow suit.




Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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XRP/USD finds resistance once again above $0.57.

XRP/USD is trading just below $0.57 right now having reached up to $0.5848 today. Price continues making higher highs and higher lows but today we see that bulls are unable once again to recapture $0.60.



Blue lines - support trend lines

Yellow rectangle - resistance area

XRP/USD has reached the $0.58-$0.60 resistance area for the 4th time over the last nine sessions. Four candles have long upper tails implying and confirming that resistance at $0.58-$0.60 is very important. A rejection here could bring price back to the first upward sloping blue trend line and the $0.47-$0.49 area. A break above $0.60 will open the way for a test of the most important resistance level of $0.70-$0.80.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Major cryptocurrencies nearing all-time highs: reasons and predictions

The cryptocurrency market is gaining ground after the bitcoin options expiry. The first crypto asset became a real driver for the growth in major altcoins. As a result, the total market value of all cryptocurrencies reached $1.8 trillion, while last week it was only $1.3 trillion.

The rally of digital assets was triggered by strong statements made by payment giants. For example, PayPal announced that it had started allowing US consumers to use their cryptocurrency holdings to pay at millions of its online merchants globally. The payment giant will charge no transaction fee and only one type of coin can be used for each purchase, the company said. At the same time, the best way to use the crypto asset as a means of payment at this stage is to convert it, PayPal noted.

This move could significantly boost the use of digital assets in everyday commerce in the United States. The increasing trading volume on cryptocurrency exchanges, strong demand for assets, as well as a positive news wave have contributed to higher quotes of major digital coins.

Thus, the BTC/USD pair has been holding above the psychological mark of $55,000 for more than three days. Over the past day, the asset has added as high as 3.5%, coming close to the absolute record high. If the cryptocurrency market continues to advance at the same pace, bitcoin will most likely hit a new all-time high this week.



The ETH/USD pair has managed to overcome the resistance level of $1,800 and is currently trading at $1,850. The main reason for surging optimism was a statement made by another payment giant - Visa. The company has launched a pilot that will allow the use of the cryptocurrency USD Coin to settle transactions on its payment network. This year, Visa is planning to significantly expand the list of its partners, which will definitely raise the interest in Ethereum among large investors. Thereafter, a growing number of companies will safely conduct transactions precisely through the platform of the main altcoin. In this case, the ETH/USD pair will be able to hit a new historical record with respect to its trading volume and market capitalization.



Against the backdrop of positive releases, the XRP token continues to rise in value. Over the past day, it has added 0.6%. Ripple has acquired a 40% stake in Asia-based cross-border payments specialist Tranglo for the purpose of expanding its RippleNet On-Demand Liquidity service which uses the digital asset XRP to source liquidity during cross-border transactions. So far, this news has not led to an increase in the token's daily trading volume, but the very fact of a higher customer flow will allow the coin to reach the $0.620 mark in the future.



The only altcoin that cannot boast of strong gains is Litecoin. The asset has advanced by only 2%. As of March 30, the coin has reached the challenging threshold of $200 but cannot yet break through it. The only factor that could drive the LTC/USD pair is positive dynamics of the entire cryptocurrency market. According to the trading charts, it can be seen that the asset has not enough strength to consolidate at important levels.







Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN for March 30 - 31, 2021: Sell below 60,400



The Bitcoin in this morning of the American session is trading with a strong uptrend, above the SMA of 21 and finding resistance at the zone of 59.435.

The eagle indicator is showing an overbought signal, and there is likely to be a correction to the support at 57.350.

The next resistance is located at the top of the bullish channel located at 60,400 at this level, we recommend selling, since there could be a technical correction.

On the other hand, a bounce at the bottom of the bullish channel located at 57.350, will be considered a good opportunity to buy with targets at 60,500.

Additionally, a sharp break in the uptrend channel, BTC could accelerate its decline to the 200 EMA located at 55,150. Below this level the outlook would change to a downward pressure to 8/8 murray levels around the 50,000 psychological level.


Support And Resistance Levels For March 30 - 31, 2021

Resistance (1) $59,448
Resistance (2) $60,311
Resistance (3) $62,283

Support (1) $58,226
Support (2) $56,807
Support (3) $55,275




Dimitrios Zappas
Analytical expert
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