Cryptocurrency Analysis

[IFX_Selena]

Trading Signal for Bitcoin BTC/USD for April 26 - 27, 2021: Key level $56,250



In the early hours of the American session, Bitcoin is trading at 53,651, after registering falls of 17% after reaching levels of 47,000 last week. Today on Monday, the most popular digital token asserts strength and once again exceeds the psychological level of $ 50,000.

Investors are keeping an eye on any news about the tax hike that US President Joe Biden is preparing for fear that the new strategy will punish investment in cryptocurrencies.

Nikolaos Panigirtzoglou, a strategist at JPMorgan pointed out that if Bitcoin does not exceed $ 60,000, the momentum signals will collapse and the currency will fall back to levels of $ 20,000.

However, cryptocurrency miners and operators continue with the euphoria of buying BTC, which they are optimistic that BTC will break the 64,000 barrier and reach levels of 75,000 and speculate that by the end of the year BTC may reach the 100,000, is quite encouraging the opinions of the analysts.

On the technical level we cannot be very optimistic given that in the 4-hour chart BTC is below the 200 EMA and has strong resistance at 56,250, if it exceeds this level, the outlook could change.

As Bitcoin consolidates below 56,250, and below the 60,000 level, a consolidation move is expected, between this resistance zone and the 50,000 support levels in the near term.

Our recommendation is to sell below 56,250 and buy above the psychological level of 50,000.


Support And Resistance Levels For April 26 - 27, 2021

Resistance (1) $54,452
Resistance (2) $55,128
Resistance (3) $57,088

Support (1) $52,015
Support (2) $50,984
Support (3) $48,981





Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin approaches important resistance



The world's first cryptocurrency is approaching a very important resistance after it rallied $6,000 on Monday. It is noteworthy that none of the cryptocurrency experts are trying to explain what is happening. That is, Bitcoin has skyrocketed 6,000%, which is more than 10% at the moment, and there are no comments in the leading cryptocurrency communities. The US Treasury no longer pursues large financial institutions with its fines, and US President Joe Biden no longer wants to raise taxes. The electricity supply in Xinjiang County is fully restored, and institutional investors want the bitcoin again. We believe that the rebound from the lows reached on Sunday turned out to be sharp, too sharp. This happens when the price hits a level where a large number of pending buy orders are located. If you look closely, the sharp increase began from the level of $47,400, which is nothing more than the previous local low.

Thus, it can be assumed that market participants concluded that the price would not go below the minimum of April 23, so they placed purchases at the minimum from this date, which led to a sharp rise in prices on Monday night, that is, at the Asian trading session. However, if the bulls won the local battle, then the war can still be lost. The fact is that having studied the last three corrections for bitcoin within the framework of the current trend, you can see that the cryptocurrency was usually falling sharply, but it was recovering more slowly. Moreover, each next price peak was located at a shorter distance from the previous one than the previous one. That is, the "bullish" trend was clearly weakening. Now the picture is as follows: a sharp drop in quotes - in 10 days, "digital gold" fell in price by $15,000, but today a sharp rise in prices by $6,000 also followed. In this way, all this looks like a desperate attempt by buyers to restore the "bullish" trend, but not a "natural" resumption of growth in bitcoin quotes. However, let's see, we should not guess. Below, we will consider an illustration, which can be used to make a more accurate prediction.



Let's take a look at the hourly time frame, which we have already provided in the last articles. There is a clear downward trend line with at least three pivots. In the next 6-24 hours, bitcoin quotes can reach it, and it turns out that the future of the cryptocurrency will be decided near it. If it is overcome, then the chances of new growth will increase many times. If there is a rebound, then the probability of a new round of correction is high. We tend to bounce and resume correction, but this is the market. Here you cannot be 100% sure of anything. You should only work with clear signals.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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ETH, XRP, and LTC. Altcoins recorded positive despite Bitcoin fluctuations

The cryptocurrency market finished on a minor note last week due to a sharp drop in bitcoin quotes. Major crypto assets also began to lose ground, causing traders around the world to lose more than $9 billion. However, over the weekend, after easing the market pressure, altcoins began to recover their positions, and, as a result, over the past day, the cryptocurrency market capitalization increased by 8.8%, reaching $2.065 trillion.

Ethereum played a decisive role in confirming the positive attitude of digital coins. After short fluctuations on Saturday, the asset found the necessary stability and began to rise in price. In the last 24 hours alone, ether has risen in price by 9.3%, and the volume of daily trading begins to creep up and, as of 12:00 UTC on April 26, amounts to $42 billion. The indicators of the ETH/USD pair are quoted at $2,490 and show excellent price growth dynamics. First of all, this is due to the consequences of the Berlin update, which improved the Gas transaction fee algorithm.



According to the analytical center Etherscan, the average commission on the ether network decreased by 80% to $2.2. This became a trigger for attracting new customers and very conveniently coincided with bitcoin's failures. The main cryptocurrency sank 11% and provoked a collapse of the entire market, including ether. However, taking into account many factors, most of the bitcoin audience moved to the main altcoin network. Given the clear technical advantage of ETH, which has been compounded by hash rate and commission issues on the bitcoin network, this looks quite obvious. Thanks to the updated algorithms, Gas ETH was able to grow its audience of institutional and retail traders. The latter entered the market during the weekend when major markets were closed and commissions began to decline. Major companies began to show increased interest in the air as early as Friday when the benefits of the recent update became apparent. The decisive factor for institutions was the collapse of ETH quotes against the background of BTC problems, which made it possible to enter the asset in very favorable positions.

XRP and LTC are recovering their positions, which are less susceptible to negative news but do not have such powerful growth catalysts as ether. At the same time, the Ripple token has risen in price by 16.5%, having managed to gain a foothold at the safe level of $1.1, where a lot of market support is concentrated. Thanks to this, the asset was able to push off and make a powerful leap, reaching $1.25.



Litecoin gained 6.2%, following the impetus of other altcoins. The asset has strong support at $230-$235. Some positive news was brought about by the news that the Binance cryptocurrency exchange is preparing to launch trading in Microsoft, Apple, and MSTR shares, fixed in tokens. However, the purchase of coins will be unavailable for residents of a number of countries where the regulation of cryptocurrencies has been tightened (China, USA) or they have been banned altogether (Turkey, India). At the same time, a positive environment has formed among altcoins, which will allow coins to move closer to historical marks. Here it is worth highlighting the ether, which will lead the entire market and can set the next maximum value.







Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

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BTC gained $6,000, but the main obstacle lies ahead: what will determine the further vector of cryptocurrency development

Bitcoin indicators showed wide fluctuations in the region of $49,000-$52,000 over the weekend. The asset tried to break through a difficult psychological line and gain a foothold in a safe position. However, this did not happen, and the BTC/USD quotes sank to a local minimum of $46,000. This was followed by a surge in market activity and bitcoin indicators rose by $6,000. This was a good sign for the market, but there are still not enough reasons to be positive.

Despite the fall in price to the March low, bitcoin has made a sharp jump over the past day and rose by 8.5%. As of 10:00 UTC, the BTC/USD pair confidently maintains its position in the region of $53,400, which instills positive in the future of the asset and the entire market. At the same time, daily trading volumes are falling to $61 billion, which indicates a lack of interest in cryptocurrency in the longer term. The total capitalization of bitcoin has come close to a trillion at $998.5 billion.



Bitcoin continues to struggle with a correction that was triggered and exacerbated by negative factors. First of all, we are talking about reaching a new all-time high in BTC and the lack of further market support. Large companies fixed their profits and did not dare to bet on the continued growth of bitcoin, despite all the prerequisites for bitcoin to burst into the corridor of $70,000-$72,000. Also, the significant tightening of regulation of cryptocurrencies in certain countries where assets were very popular added to the negativity, as well as problems with hash rates in China, which affected commissions and transaction speed. All this significantly strengthened the correction and resulted in a real collapse of BTC quotes. On April 26, US President Joe Biden added negativity by announcing an increase in the capital gains tax, which can significantly limit the investment flow in cryptocurrencies.

However, the first cryptocurrency is beginning to regain its position and has overcome an important milestone of $50,000, which saved bitcoin from falling to $40,000. Taking into account the growing bearish trend in the market, the tests for the asset do not end. Technical analysis of the bitcoin exchange rate chart suggests that the cryptocurrency needs to overcome several more important milestones before breaking free from the shackles of the price correction. Now the cryptocurrency holds safe positions in the region of $53,500, and if bitcoin consolidates on these indicators, then we can expect a change in the downward trend. The current dynamics of changes in the price of the asset indicate a positive outcome, but do not forget about the corrective volatility. Bitcoin has risen by 6% in 24 hours, and this is a breakthrough and not a systematic increase to these indicators. Given the sharp growth of the cryptocurrency, we can expect the same sharp drop.



If the crypto asset fails to hold on to the designated positions, this will aggravate the correction and give a new impetus to continue the bearish trend. Bitcoin indicators will be able to gain a foothold only at the turn of $40,000-$42,000, where powerful market support is concentrated. With this scenario, the future of BTC quotes will entirely depend on the news background. However, given the depressed market sentiment and the bearish trend, the cryptocurrency will need a powerful impetus to start rapid growth. The trends of recent days show that the cryptocurrency market reacts sluggishly to positive but instantly shudders with negative announcements.

Bitcoin became hostage to many factors that exacerbated the correction and knocked over the indicators to local lows. At the same time, the news background remains negative and levels out individual victories of cryptocurrencies. This week, BTC may break the downward trend and determine the beginning of a new growth cycle for the entire market, but at the same time, the asset may sink to $30,000 and drag cryptocurrencies into a prolonged depression.




Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for April 26,.2021 - Extreme overbought condiiton and potential for the downside rotation towards $51.710

Further Development



Analyzing the current trading chart of BTC, I found that there was strong rally this morning and that price tested the level of $53.400.

Anyway, I found that there is the intraday extreme condition and the both RSI readings are into extreme, which is good condition for potential downside.

My advice is to watch for potential selling opportunities with the downside target at $51.712.

Key Levels:

Resistance: $54.230 and $55.000
Support level: $51.712





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

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Trading plan for Bitcoin for April 26, 2021



Technical outlook:
Bitcoin is pulling back after having dropped through $47,000 levels yesterday. Traders might have already booked profits on short positions taken earlier as suggested last week. The crypto might be looking to turn bearish again around $57,000-58,000 levels, going forward. Bears are looking to extend the correction towards $41,000 mark, before Bitcoin could resume higher again.

Bitcoin has soared higher today and is trading close to $53,500 levels at this point in writing. Immediate resistance is fixed at $65,000 mark, while support comes in around $43,000 levels respectively. The crypto might face resistance around $57,000/58,000 levels and turn lower again towards $41,000, which is also fibonacci 0.382 retracement of the entire rally between $3,850 and $64,895 levels respectively.

The uptrend still remains intact and there might be one more high possible in the next several weeks. But the recent correction looks to be incomplete and Bitcoin might print yet another low towards $41,000 at least, before resuming its rally.


Trading plan:
Sell again @ 57,000/58,000, stop @ 65,000, target @ 43,000 and 41,000.

Good luck!





Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

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Thodex suspends operations over allegations of fraud



A cryptocurrency exchange in Turkey suspended operations last week over allegations of fraud. According to reports, its founder left the country, taking $ 2 billion worth of investor's funds with him.

Local news agency Demiroren said that on Friday morning, Turkish authorities ransacked Thodex offices in Istanbul and arrested more than 60 people.



However, the company's founder, Faruk Fatih Ozer, was missing and is reported to have left Turkey for Albania on Tuesday.

According to Oguz Evren Kilic, an Ankara-based lawyer representing Thodex investors, the cryptocurrency firm has about 400,000 active users, whose accounts are nominally worth around $ 2 billion in total. If their money disappears, the losses will add another element of instability to Turkey's already shaky economy.

Living standards in the country are plagued by double-digit inflation and volatile currency. While cryptocurrencies are inherently risky, many Turks have turned to them as a way to protect their savings, as the Turkish lira has lost more than a quarter of its value against the dollar over the past year.



Just last week, Turkey's central bank banned the use of cryptocurrencies, pointing out its significant risks.

However, the subsidence of the lira led to an increase in the cost of imported goods and inflation, which led to a steady decline in living standards. According to official figures, inflation rate hit 16% last March, which many economists believe underestimates the true rate.

Kilic said this bad economic situation made people want to turn to cryptocurrencies to reduce the loss of the value of the assets they own.

Ozer denied the allegations and insisted that he left the country only to consult with foreign investors. He added that Thodex does not follow anyone, and that only about 30,000 accounts are in a suspicious situation.

But Kilic said none of Thodex customers can access their accounts.





Andrey Shevchenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin expected to continue its bounce towards $57,000.

After an important decline from $64,728 to $47,090 Bitcoin is now bouncing back above $50,000. There are increased chances that this upward move is just a counter trend bounce because the correction phase has started for Bitcoin and we should expect more downside over the coming weeks. However in the short-term we expect Bitcoin to reach $57,000 again.



Blue lines -Fibonacci retracements

Red rectangle - bounce target

Bitcoin has most probable made a short-term low at $47,090 area earlier today. Price is reversing strongly to the upside and is approaching the 38% Fibonacci retracement resistance. I expect price to bounce all the way to the 61.8% Fibonacci level and maybe higher over the coming days. If bulls manage to hold above $50,000-$47,000 then we could see more upside to new all time highs. However my most probable scenario is for Bitcoin to make a lower high around $57,000 and reverse to the downside to break below $47,000 and move even lower towards $40,000-$30,000.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

XRP/USD price behavior shows reversal signs

XRP/USD made another dive below $1 earlier today and fell as low as $0.94. Price did not break below recent low of $0.88 and is now pushing above the short-term resistance trend line and is trading above $1.15. This price action is bullish and justifies at least bounce towards $1.50 if not new highs above $1.97. A major low could be in place already.



Red rectangle - major support and previous break out area

Black line -resistance

So far price was trading below the black resistance trend line and each time it approached it, we saw a rejection. Price today made a higher low and is now breaking above this resistance trend line. This is a bullish signal. We haven't seen one for some time and none after the top at $1.97. This bullish signal could unfold into a big reversal signal if the recent low at $0.88 is not violated again. This could mean that the entire correction we are in since $1.97 is over and we should now expect the next upward wave.



Two targets for the next upward move, considering that the low is in. First target is at $2.28 and next target at $3.15. It is important to see price now starting making higher highs and higher lows as it did from $0.55 to $1.97. Short-term resistance is now found at $1.40, $1.52 and $1.70. Bulls need to recapture these levels and defend today's low at $0.94.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum Another Breakout Attempt!

Ethereum rebounded after a new temporary decline. It's trading at 2,458.7 level and it seems determined to approach the 2,645 all-time high soon if the price of Bitcoin resumes its growth.

As you already know from my analyses, Ethereum is bullish and it could resume its major uptrend after ending the current consolidation. The downside seems limited after the price's failure to approach the immediate critical support levels.


ETH/USD UPSIDE MOMENTUM!


ETH/USD failed to approach and reach 2,040 static support signaling strong buyers. It moves somehow sideways in the short term around the up channel's resistance. An upside valid breakout is imminent if the price stays near the upside line and close to the weekly R1.

Personally, I believe that a minor consolidation above the weekly pivot (2,340) could signal a could bring a long opportunity. The upside line and the R1 (2,627) are seen as strong resistance levels.

A valid breakout should signal a larger growth in the upcoming period. On the other hand, a new false breakout above the upside line could bring a new sell-off.


ETHEREUM FORECAST!

ETH/USD failure to stabilize under the second warning line (WL2) or to approach 2,040 support indicates a potential growth towards fresh historical highs. Consolidating above the weekly pivot (2,340), test and retest, could bring us a good long opportunity.

Also, a valid breakout above the upside line and through the R1 (2,627), a new higher high, could really confirm more gains.





Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021