Cryptocurrency Analysis

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Bitcoin's global impact and adaptation is more important than overcoming the $100,000 milestone



The impact of Bitcoin on the global market is much more important than Bitcoin's path to $100,000. Experts say that the essence of the problem when it comes to cryptocurrencies is the potential and adaptation of bitcoin in the technological world within 10-20 years. After companies such as Tesla, Visa, Square, Mastercard, and others entered the game and allowed accepting payments in BTC, the global adaptation of the digital asset is even closer than it seems.

Big changes in the way the US government regulates digital assets are coming soon. Many analysts also highlighted the potential of using blockchain technology for decentralized storage.

Blockchain technology can help improve overall speed and reduce the cost of digital storage in the future. There are a number of business models that take advantage of this opportunity with the publicly available special cryptocurrency payment system Filecoin, one of the most impressive strategies at the moment.

There is a growing trend for companies to accept this digital currency as a form of payment. This entails the beginning of a new era in the world of digital currencies. Many banks support the desire of customers to own cryptocurrencies and other digital assets and are ready to provide this method whenever possible. Bitcoin is not something that will gain momentum, but rather become an ambassador from the world of cryptocurrencies, and its influence on Wall Street, investors, and the world will be indescribably huge.





Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Cathie Wood's Ark Invest buys Coinbase shares!



Slowly but surely, Bitcoin continues to grow. The ascending channel continues to contain the bitcoin quotes, and investors have not yet had a burning desire to start selling coins of the number one cryptocurrency in the world. Recently, there has been some positive news in the cryptocurrency sector that could help bitcoin rise more. There were reports of large purchases of bitcoin by Liberty Mutual, Starr Insurance, and Millennium, and these purchases would be enough for bitcoin to continue its growth. According to experts, out of 19 million mined coins, about 14 are dead weight on their wallets and are not turning around in any way. Thus, there is a maximum of only 5 million coins in circulation, and any transaction for 10,000 BTC or more can lead to a change in the exchange rate by 1-2%. In addition, just a few days ago, the listing of shares of the Coinbase cryptocurrency exchange began on NASDAQ, which also had a positive impact on all cryptocurrencies.

It is noteworthy that Coinbase shares immediately began to be bought up by large investment funds, one of which is the well-known Ark Invest, which is managed by one of the most famous investors in the world, Cathie Wood. In the States, they say that everything that Cathie Wood touches becomes more expensive. Therefore, as soon as the news about the Ark Invest investment appeared in the media, the value of Coinbase shares rose even more. All this says only one thing. Bitcoin and cryptocurrencies continue to gain popularity in general as a segment. Ordinary people and investors are increasingly accepting bitcoin and other tokens into their lives, learning how to handle them, and trying to understand their true nature. By and large, the popularity of bitcoin is only growing with each such news.

There has been no negative background for bitcoin recently. News about a possible ban on cryptocurrencies in India is a thing of the past. The crypto community pays more attention to the positive background. Moreover, there is a clear ascending channel now, in which the quotes are located. Thus, it will be very easy and simple to identify a possible drop in the cryptocurrency.



In technical terms, the overall picture remains the same. The upward trend continues and now bitcoin has another benchmark in the form of an ascending channel, and there are also two targets – the nearest resistance level of $65,400 and the next psychological level of $70,000 per coin. As well as three supports: $44,600, $52,300, and $56,000. The consolidation of quotes below the channel will be a signal for the beginning of a strong correction.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Bank of America: 74% of professional investors see bitcoin and other cryptocurrencies as a bubble



It is impossible to deny the fact that Bitcoin is gaining more and more popularity both among ordinary people and investors. But, as many studies say, most investors are still not ready to deal with bitcoin. For example, a survey conducted by the Bank of America of 200 professional investors who have more than $500 billion under their management showed that about 74% consider bitcoin and other cryptocurrencies to be a normal financial "bubble". About 16% do not think so, and 10% are undecided about the answer at all. What does this mean? First, bitcoin is still far from the most popular tool for investing among large private investors and institutions. Many people are not ready to invest in the "digital gold" for the same reasons that we have listed many times: cryptocurrency is too volatile and risky. And secondly, it suggests that bitcoin has a huge growth potential. Recall that the last surge in the growth of bitcoin occurred in 2020, when the whole world was covered with a crisis and a pandemic. That is, it is precisely due to the influx of institutional and large private investors who, in a panic, invested their money in something that could save them from inflation and the depreciation of other assets, that bitcoin showed such a strong growth. And if this is about 10-15% of the total number of potential investors that entered the cryptocurrency market, bitcoin can really become more expensive at least up to $1 million per coin. The remaining 85-90% may also eventually become interested in bitcoin. In addition, 33% of investors surveyed consider shares of high-tech companies to be the most popular asset, while 27% believe that the most popular asset is cryptocurrency. In general, even if the correction of bitcoin begins in the near future, as many experts say, everything is still going to the fact that bitcoin will continue to rise in price. And it really can be numbers much higher than $100,000 per coin.

It was also estimated that it took bitcoin just 12 years to reach a capitalization of $1 trillion. It took Amazon 24 years to reach that figure, Apple 42 years, and Microsoft 44 years. Of course, this is not quite a correct comparison, since a cryptocurrency that was originally created as a currency is not the same as a company and/or its shares. However, the difference is quite interesting.

At the same time, the head of the asset management company BlackRock, which manages more than $8 trillion, believes that bitcoin will never be a substitute for fiat money. Larry Fink said in an interview with CNBC that despite all the positive news of recent times (Coinbase listing on NASDAQ, for example), he does not see an increase in interest in bitcoin among institutional investors. "We're studying it. We make money on it, but I'm not here to tell you that we're seeing broad-based interest by institutions worldwide," he said.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for April 16, 2021

Crypto Industry News
Dubai's Department of Economic Development, or "Dubai Economy", and the Dubai International Finance Center are working to expand their KYC platform to financial institutions across the UAE.

MCFD announced the planned expansion of the project in a communication published on its website. According to the announcement, both organizations signed an agreement to introduce the necessary solutions to extend the KYC platform to the entire UAE.

The project was first announced in February 2020, and by July 2020, 120 companies had been included. MCFD said the Blockchain-based KYC platform currently holds nearly half of all electronic KYC records in the UAE.

Addressing the need to accelerate the adoption of the Blockchain KYC system, MCFD said the platform will enable more efficient sharing of verified KYC data between licensing authorities.

For Abdulla Hassan, CEO of the Corporate Sector, Dubai Economy, Dubai is an integral part of the government's efforts to position the UAE as a viable global investment destination:

"After launching in 2020, the platform is becoming increasingly important not only in simplifying bank account opening procedures for investors, but also in enabling banks to digitally receive verified KYC data. This initiative has a positive impact on attracting business and the global Ease of Doing Business Ranking in Dubai and the United Arab Emirates, "he said.

The KYC Blockchain Consortium is one of the many examples of the positive stance of the Emirates government dealing with crypto and Blockchain technology.


Technical Market Outlook:
The ETH/USD pair has made a new all time high at the level of $2,541, but the Bearish Engulfing candlestick pattern was made at the top of the rally, so the market reversed towards the level of $2,381. The momentum is strong and positive, so the up trend might be continued with occasional pull-backs. The larger time frame trend is up as well and there is no indication of the up trend termination. The immediate technical support is located at the level of $2,290 and $2,201.

Weekly Pivot Points:
WR3 - $2,536
WR2 - $2,369
WR1 - $2,274

Weekly Pivot - $2,100
WS1 - $2,008
WS2 - $1,819
WS3 - $1,739


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 $2,500. 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 April 16, 2021

Crypto Industry News:
AXA, the second largest insurance company in Europe, became the first Swiss all-line insurer to offer its clients the option of paying their bills with Bitcoin, which was made possible by cooperation with the renowned cryptocurrency broker Bitcoin Suisse. Bitcoin payments will be accepted for almost all AXA products with the exception of life insurance due to regulatory barriers. AXA has cited the accelerated digital transformation of the global economy during the coronavirus pandemic as a key factor in its choice of cryptocurrency integration into its day-to-day operations. However, the insurer notes that already in 2019 it conducted market research, which shows that about a third of respondents aged 18 to 55 already owned or were interested in cryptocurrencies.

According to Claudia Bienentreu, head of open innovation at AXA Switzerland, the acceptance of Bitcoin payments is "AXA's response to the growing customer demand for alternative payment solutions as new technologies play an increasingly important role."

The configuration on the client side will be a simple online transfer with a reference number: the Swiss franc debt amount will be converted into an equivalent amount in Bitcoin and the indicated exchange rate will remain valid for a specified period of time. During this period, clients will not bear any currency risk and AXA will not charge any additional fees to clients who choose to pay their bills in Bitcoin rather than in fiat currency.

AXA itself will not keep any Bitcoin received on its balance sheets. Instead, Bitcoins will end up in the hands of the Bitcoin Suisse cryptocurrency broker. It's worth noting that while AXA itself does not add any Bitcoin payment fees, Bitcoin Suisse includes its own 1.75% commission when calculating the Bitcoin / Swiss Franc exchange rates for AXA clients.


Technical Market Outlook:
The BTC/USD pair has made a new ATH at the level of $64,786 and then broke below the level of $61,226, which is a 38% Fibonacci retracement level of the last wave up. The last local low was made at the level of $61,052 and this level is below the short-term trend line support as well. The next target for bears is a Fibonacci cluster located between the levels of $60,132 - $60,305. The momentum remains strong and the next target for bulls is seen at the level of $70,000. The immediate support is seen at the level of $60,000, but the key short-term technical support is located at $54,719. The weekly time frame trend remains up.

Weekly Pivot Points:
WR3 - $68,058
WR2 - $64,489
WR1 - $62,269

Weekly Pivot - $58,989
WS1 - $56,726
WS2 - $53,045
WS3 - $51,108


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 $54,719 is clearly broken on the e daily time frame chart.







Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021