Cryptocurrency Analysis

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Ethereum Tries To Validate Breakout!

Ethereum climbed as much as 2,719.47 today registering a new all-time high. Now it is trading lower at 2,615 level as the price has slipped lower to retest the broken levels.

Technically and fundamentally, ETH/USD is strongly bullish, so it could resume its upwards movement if it stabilizes above the former historical high of 2,645. It has escaped once again from an up channel signaling strong buyers.

Bitcoin has increased in the short term and it seems that its correction is over. ETH/USD should resume its growth if the price of Bitcoin jumps higher.


ETH/USD ANOTHER FALSE BREAKOUT?


ETH/USD jumped again above the upside line and beyond the weekly R1 (2,626.42). It has retested the channel's upside line and now is struggling to get back above the R1. Stabilizing above it could signal more gains.

A minor consolidation above the broken levels could bring a long signal as ETH/USD could extend its rally. The current upside breakout was imminent after the price's failure to confirm a deeper decline.


ETHEREUM FORECAST!

Stabilizing above the R1 (2,626.42) could signal a further growth towards the R2 (2,930.82).




Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of BTC/USD for April 28, 2021

Crypto Industry News:
Since the beginning of the year, the Nigerian Bitcoin community has been stressed. And we are talking here about the largest cryptocurrency market in Africa. On February 7, the Nigerian Central Bank (CBN) scared traders that accounts related to cryptocurrency trading would be closed by banks operating in Nigeria, according to their guidelines. Today, after that time, we may be tempted to conclude that the community in Nigeria has not bowed down and the authorities will not stop citizens from engaging in cryptocurrencies. P2P networks helped.

It is worth noting at the beginning that we are talking about a really large market - suffice it to say that the Nigerian market takes 2nd place in terms of the volume of transactions on the top P2P trading platform, second only to the United States.

Despite the restrictive regulatory acts regulating cryptocurrency trading in Nigeria, it has not diminished. Well, it increased by 27%! Nigerians are resorting to peer-to-peer trading after Nigeria's Central Bank banned regulated institutions from interacting with bitcoin in February. The largest P2P trading platform in Africa, Paxful, has shown that Nigeria has traded around $ 567 million in transaction volume over the past 5 years - a higher figure only in the US. It can be said that CBN did not lose in this clash, but was won by Satoshi's idea - the idea of decentralized, free money, free from the manipulation of power, which for short-term benefits is able to deprive its citizens of savings and, without stuttering, reduce the purchasing power of their money. We keep our fingers crossed that in countries such as Nigeria or Turkey, the authorities finally give up obstructing cryptocurrency trading.


Technical Market Outlook:
The BTC/USD pair has been capped at the level of $55,501 and the market is reversing the recent bounce. Any violation of the level of $52,620 (technical support for bulls) will be an indication of a local top in place. Any breakout below $51, 239 would likely accelerate the drop towards the swing low seen at the level of $47,707. The momentum is currently neutral and any breakout into the positive territory might extend the bounce to the level of $57,330.

Weekly Pivot Points:
WR3 - $62,642
WR2 - $60,057
WR1 - $52,987

Weekly Pivot - $50,187
WS1 - $42,706
WS2 - $40,371
WS3 - $33,169


Trading Recommendations:
Event despite the recent correction from $64,789 to $47,060 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 $50,000 is clearly broken on the daily time frame chart (daily candle close below $50k).







Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for April 28, 2021

Crypto Industry News:
When it comes to Friday's $ 930 million ethereum option expiration, the bulls have an edge of $ 115 million. This is a signal that ETH may be on track to reach new price records.

In the past few weeks, the price of ethereum has hovered between $ 2,000 and a record $ 2,650. The 20% drop on April 17 eliminated $ 1 billion from long positions in futures markets and drastically reduced investors' risk appetite.

A 28% increase in the past few days has brought the number of open positions on ETH futures to $ 8.2 billion, just 5% below the April 15 record. A similar situation occurred in the options markets, which have increased by 45% since the expiry on March 25.

Options are similar to futures in that derivative contracts give investors a right, but not an obligation, to sell or buy an asset for a predetermined price.

The recent rebound in prices was attributed to a statement by the Paypal boss that said demand for cryptocurrencies was many times higher than expected. What's more, the net value locked in Ethereum's smart contracts hit a record high of over $ 54 billion, led by Uniswap, Compound and Maker.


Technical Market Outlook:
The ETH/USD pair has made another all time high at the level of $2,714. There is a Bearish Engulfing candlestick pattern made at the top of the rally, so it is a time for a local pull-back, but any further rally will lead to another wave up towards the round level of $3,000. The immediate technical support is located at $2,543. The momentum remains strong and positive, so the odds for another wave up are high.

Weekly Pivot Points:
WR3 - $3,085
WR2 - $2,863
WR1 - $2,509

Weekly Pivot - $2,289
WS1 - $1,926
WS2 - $1,691
WS3 - $1,326


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 $3,000. The key long term technical support is seen at the level of $2,000, 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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Bitcoin: the final frontier is the level of $55,859



The last two trading days ended with the first cryptocurrency in the world rising by $8,600. Thus, the quotes won back exactly 50% of the fall over the previous 10 days. We still believe that the correction is not yet complete and may develop into a full-fledged downward trend. However, it should be recognized that the upward movement of the cryptocurrency in the last couple of days is really strong and may lead to the resumption of the upward trend. But we also believe that the strong growth on Monday and Tuesday indicates not just the desire of most market players to continue investing in bitcoin, but the attempt of several players (probably large ones) to maintain the upward trend. Those who already own bitcoin will try their best to convince as many new investors as possible that bitcoin will continue to grow and grow to at least $1,000,000, since everything works here approximately as in a financial pyramid. The more new investors come to the market, the more the bitcoin exchange rate will grow – the more profit will be received by those investors who bought earlier. Thus, we still remain in our opinion: the correction will continue.

At the moment, the quotes of bitcoin have worked out 50% on Fibonacci and this level can provoke a new downward movement. The quotes also worked out the Kijun-sen line, and a rebound from it can also provoke a round of downward movement. If this line and level are overcome, the resumption of the upward trend is probable.

As for the fundamental background, it remains not the most favorable for bitcoin. We have repeatedly mentioned the reasons why it supposedly fell by $15,000, it is only worth noting that nothing has changed since then. That is, there was no positive news for bitcoin. Moreover, it became known the other day that Tesla sold about 10% of its BTC reserves and this act of Elon Musk's company can be interpreted in different ways. Elon Musk himself said that the sale is not related to market factors, and the transaction itself is just a "liquidity check". However, we all understand that this may not be true. Bitcoin has significantly fallen in price in the last two weeks. And when an asset becomes very cheap, investors suffer a loss. Also, no one knows for sure and can not know how much Tesla actually sold bitcoins.



In technical terms, bitcoin has returned to the critical line and may bounce off it, which will be a strong enough signal for the resumption of the downward trend. The 50.0% Fibonacci level passes at about the same level. Thus, $55,859 is now a key level for bitcoin and its prospects. We are inclined to the option with rebounds and the resumption of the fall. In this case, the target is $47,000 per coin, and the next target is the $43,852 support level.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Bitcon is back on the spotlight and may grow without hindrance: Tesla and Musk strongly believe in Bitcoin



The price of the number one cryptocurrency began to rise again on Monday, and the growth continued on Tuesday, all thanks to Tesla and Elon Musk. The value of Bitcoin is recovering from last week's crash and is now trading at 54 900- 55 000 dollars.

After a two-week boom when bitcoin lost a record price of $65,000, its price sharply began to dive down to $47,000. However, thanks to the genius of Tesla CEO Elon Musk and the car company's interest in him, the price went up again yesterday, and the growth continued.

The car company Tesla has published its first reported results for 2021. The seventh consecutive quarter was profitable. Earlier, the company announced that it was selling 10% of the captain's BTC for $100 million, which at first was a wake-up call for investors and the global crypto arena. But soon, Elon Musk said via Twitter that he was not actually selling BTC from his personal portfolio, and clarified that the sale was just a test of the "liquidity" of digital gold. Tesla believes very much in bitcoin and considers it the currency of the future.

However, it is unclear how much BTC Musk has in his portfolio. Two years ago, he said that he actually had 0.25 bitcoin. He has long been considered a strong supporter of the cryptocurrency, helping to increase the value of Dogecoin with the support of publications in state media earlier this year, but he has never disclosed whether he has increased his personal assets. Despite the unpredictable decline of bitcoin last week, it is now predicting its growth again after Tesla and Musk had their hand in it. The price of BTC is still almost twice as high as at the beginning of the year, and its value has increased by more than 600 percent compared to the same period last year.

If the sharp rise continues this week, it may push Bitcoin back to historical highs, and if not, then the necessary momentum will be lost.




Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Short-term technical analysis on XRP/USD for April 27, 2021

In our last XRP/USD analysis we mentioned the increased chances of a major low in place and the bullish signal that was given as price was breaking above the key short-term downward sloping resistance trend line at $1.15.



Red rectangle- major resistance

Green rectangle - major support

Blue lines - Fibonacci retracement levels

Black line - resistance trend line (broken)

XRP/USD has made an impressive 25% run higher towards $1.46 since our bullish signal analysis. Price has so far reached the 50% Fibonacci retracement and short-term trend is bullish as price is making higher highs and higher lows. Support is now found at $1.15-$1.10 area and next at $0.94. A break below $0.94 will open the way for a move towards $0.75. Key resistance is found now at the 61.8% Fibonacci retracement. Bulls need to break above this level in order to have hopes for a move to new highs above $1.97.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Ripple wins another victory, ETH is approaching all-time high: altcoins continue to recover positions

The new week marked the end of the local correction, which, due to a combination of negative factors, collapsed the market by 15%. By Tuesday, April 27, the indicators of the main cryptocurrencies are approaching historical levels. The capitalization of the crypto market also continues to grow and increased by 5.3% in 24 hours, primarily due to XRP.

It was the Ripple token that took over the baton from ether and bitcoin, pulling the cryptocurrency market to another capitalization record. As of 12:00 UTC, the asset's indicators reached $1.42, and the asset rose in price by 15% during the day. Daily trading volumes also continue to grow and already amount to $15.5 billion. At the weekend, XRP reached a local low at $1.1. The price correction could worsen to $0.800 if the asset failed to stay within $1. However, everything turned out in favor of the cryptocurrency due to the strong support of the market. After the pressure eased over the weekend, the coin began to show a slight increase, which was compounded after the publication of news about another local victory of Ripple over the SEC.

It became known that the US Securities and Exchange Commission failed to obtain information and reports on Ripple's financial transactions. Thanks to this positive news, XRP/USD quotes soared by 20%, strengthened by the firm position of investors who received information confirming the confident position of the token. In addition, the local correction, which reduced the price of the asset, allowed new participants to enter the market in favorable conditions and hope for an early profit. Such a strong growth of the coin allowed it to reach the price of $1,422 and is not going to stop. Soon, the cryptocurrency will be able to overcome the $1,550 mark and try its luck at the $1.60 mark. However, the XRP token remains an unreliable coin due to the lack of confidence in the crypto asset in the longer term.



Ether, unlike XRP, has not received such a significant momentum but continues to grow in price. Over the past day, the asset has risen by 2.5% with questionable daily trading volumes, which amount to only $36.5 billion. The cryptocurrency has reached a previously set local high of $2,560 and can count on conquering a new historical record. This is evidenced by the influx of institutional audience, which entered the market after a lightning drop in fees in the ETH network by 80%. In addition, the startup Bender Labs has introduced a new Wrap protocol that allows you to establish a bridge between the Ethereum and Tezos blockchains. This solution also allows you to increase the speed of transactions without losing the main elements of the token, as well as reduce commissions. Given all the positivity around the cryptocurrency, we can expect that in the near future, the ether will continue to grow and will be able to swing to the mark of $2,700.



Other altcoins, succumbing to the impulse of more powerful representatives of the market, also began to grow rapidly. For example, LTC for the day rose by 4.6%, gaining a foothold at $250. Given the strong resistance of the market on the approaches to the boundary of $265-$270, it is expected that the cryptocurrency will continue to fluctuate within these limits. The new generation altcoins ADA (+5.8%) and DOT (+4%) also resumed their upward movement. However, the situation with these cryptocurrencies is similar to that of Litecoin, which reacts to market impulses. After the ETH update, altcoins of the new generation of the Internet are not able to expand their audience, as it happened with all other things being equal. In this situation, assets have to adjust to the overall growth cycles.








Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin entrenched above $50,000 mark: prospects for cryptocurrency

The previous week and weekend quite tested the bitcoin. The asset's quotes sank to record lows and could continue to fall, which promised a depression in the market. This was facilitated by negative factors, which were aggravated by the price correction. However, the dynamics of changes in the price of bitcoin in recent days suggest that a deep crisis has been overcome.

After the weekend, the first cryptocurrency needed to gain a foothold above $50,000, so as not to fall to $40,000-$42,000. A difficult and defining boundary for bitcoin was the mark of $53,000, where a lot of market pressure is concentrated. If the cryptocurrency did not overcome this barrier, it risked aggravating the correction and reducing to $40,000. However, the situation is more positive for BTC. Over the past two days, the asset, with small drawdowns, showed an increase of 15% and managed to gain a foothold above the psychological mark. As of 10:00 UTC on April 27, the BTC/USD pair is quoted at $54,400, and over the past day, the asset has increased 2% of its value. The total capitalization of the cryptocurrency has again passed the $1 trillion mark, with an average daily trading volume of $54.5 billion.



Bitcoin managed to correct the situation thanks to several factors and a favorable combination of circumstances. First, the situation in the cryptocurrency market has stabilized due to the active growth of ether and other altcoins. This has had a positive effect on the general mood of investors, who have recently been more interested in classic financial instruments. Secondly, BTC showed that, even though the correction was deep and painful, it occurred within the framework of an upward trend and was of a technical nature, albeit aggravated by third-party factors. As a result, the first cryptocurrency managed to make the most of the current situation. The asset held safe positions and updated the institutional part of its audience at the expense of an acceptable price, which allowed it to enter the asset. Having gained a foothold over the difficult mark of $53,000, the cryptocurrency showed the market that it is confidently on its feet and is ready for a new growth cycle.

Positive news from leading asset holders helped boost investor interest and confirm bitcoin's intentions. Tesla Motors has published a report that recorded a profit from the sale of cryptocurrency in the amount of $101 million. Thanks to bitcoin, the carmaker managed to get a record quarterly profit of $438 million. Also, American bank JPMorgan added to the positive after announcing the launch of the first managed bitcoin fund. The new project will be launched this summer and will be available to a limited number of the company's clients.

In the end, the news background played up to bitcoin and helped the asset to maintain a safe position in the region of $55,000. Given the general mood of the market, we can count on the continued growth of BTC quotes, but there are no significant prerequisites for overcoming the threshold of $60,000 for the cryptocurrency. Despite the stabilization of the news background and the preservation of safe positions, the first crypto asset does not have the necessary market support to start long-term growth.




Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

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Trading Signal for Ripple XRP, for April 27 - 28 2021: Buy above $1.1719




In the early hours of the American session, the price of XRP is trading above the 200 EMA and the 21 SMA, and above the 3/8 of Murray.

XRP at the beginning of the week, technically bounced off the 200 EMA around 0.9765, then from that point it gained momentum that now remains at 1.41, with a recovery of more than 40% in a few days. The cryptocurrency currently has a market capitalization of more than $ 53 billion.

XRP is up more than 500% in the last 16 weeks. XRP started this year at a price level of roughly $ 0.23. The goal by the end of the year according to some analysts is for it to reach the key level of .3 dollars.

On the 4-hour chart, we notice a resistance at the 4/8 Murray pivot, around 1.5625, this level is key if it fails to break there could be a retracement to the 1.17 support zone.

On the contrary, a bounce at the 200 EMA located around $ 1.15 will be a good opportunity to buy with targets at 1.40 and 1.56.


Support And Resistance Levels For April 27 - 28, 2021

Resistance (1) 1,4137
Resistance (2) 1,5830
Resistance (3) 1,7912

Support (1) 1,1834
Support (2) 1,0194
Support (3) 0,8240




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

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BITCOIN. Do not forget, correction is our friend

It's been another week since our last article, and then this opportunity turned up to buy off the cryptocurrency on a drawdown and earn 10-20-30% in a few days, I hope you did not miss this moment.

Let's start with the fact that the correction was brewing, and even in the previous review of April 14, I hinted that it is worth partially fixing profits and buying back on drawdowns since this strategy can balance your trading deposit and allow you to increase the asset.

The cause and effect of the correction have quite a lot of factors: local overheating of long positions; speculation against the background of fixing the excess income from investments in Coinbase; Turkish restrictive measures; US President Joe Biden's plans to increase the capital gains tax for the rich almost twice; the accident at the Xinjiang coal mine, which caused power outages in all mines, which led to a decrease in the hash rate of the entire network by about 21.56%.

Such a large amount of information put enough pressure on the market, which led to a full-size correction:

Bitcoin -25%.

Ethereum -18%.

The panic against the background of the "collapse" of the crypto market overcame many traders. Only experienced crypto enthusiasts and large players steadfastly followed the previously set strategy, which made it possible to buy off the cryptocurrency with a very good discount.

Since April 26, the crypto market has completed a series of descending candles, where hungry buyers have returned, collecting trading volumes from the market at the market price.

The complex of information flow played in favor of the growth of the crypto market:

American financial holding JP Morgan, considered one of the most influential players on Wall Street, will open access to Bitcoin for some clients through the BTC hedge fund they created.

According to rumors, the investment instrument will be launched in the summer of 2021.

In simple words, one of the largest Wall Street players will open up the flow to new institutional investors, which can lead to even greater confidence in the reliability of the new asset, as well as give growth to the entire crypto industry.

The second factor may seem dangerous for the cryptocurrency, but it is not. According to the report for the first quarter, Tesla sold BTC for $272 million. The balance after the sale is still at least $1.33 billion.

"Bitcoin has proven to be a good solution for storing funds that are not immediately required for everyday operations and can bring good profits. We continue to accumulate BTC for the purchase of our cars," the company said.

Selling bitcoin in large quantities for the crypto market is always considered a negative factor, but when one of the largest companies in the world declares that bitcoin is a good solution for storing and using money, it is a success.

Elon Musk wrote on Twitter that he has not sold any of his bitcoin, and Tesla has sold 10% of its assets in BTC to show its liquidity as an alternative to assets in the cache.

The lever for the cryptocurrency is completely due to the information noise.

Now we understand in general terms the corrective course, as well as the turn of the upward course, which is still at the very beginning of its path.

Not only the influx of institutional investors but also the adaptation of cryptocurrency in society can be considered a positive call for the entire crypto industry.

The CEO of the largest debit electronic payment system PayPal said that their company has been studying and waiting for cryptocurrencies to gain more popularity for more than six years. In fact, this was their strategic move, and after PayPal added support for cryptocurrencies for US users in October 2020, the demand for cryptocurrencies was simply overwhelming. The head of PayPal suggests that in the next ten years, the financial system will undergo significant changes, as these structures have lost their effectiveness. In the near future, payments will be dominated by up to ten "super applications", and credit cards will eventually disappear, they will be replaced by mobile phones.

As long as you criticize and deny the impact of the crypto industry on the financial world, the future is changing, we need to keep up with the times.

2012 - BTC at $5 is already very expensive!
2014 - BTC at $600 is already very expensive!
2016 - BTC at $960 is already very expensive!
2018 - BTC at $10,000 is already very expensive!
2020 - BTC at $28,000 is already very expensive!
2021 - BTC at $50,000 is already too expensive?



What is happening in the market?

Bitcoin has gained more than 10% over the past trading day, which may seem like a strong price change, but this is just the beginning of a long journey.

Now many major players are increasing the volume of BTC in their portfolios, soon we will hear loud news that the funds made purchases in the region of $48,000-$58,000, and after that, the hamsters will come to the market, but there will be no discount.

The prospect of price development, as before, has a horizon of $100,000 for 1BTC, but in order not to scare you so much with such large numbers, for the beginning of the crypto train goes towards the values of $60,000–$65,000. These coordinates with a positive information noise can be reached in the period of 1.5-2.0 weeks.

As for Ethereum, please note that it did not weaken so much during the correction, and with the current recovery, only a few percent remained before the ATH update. The prospect for Ethereum, as before, is $3,000 for 1ETH, with a possible extension to $3,500. These expectations have a short-term forecast form.

Bitcoin Longs vs Shorts:

Longs (95.94%): $1,626,360,258

Shorts (4.06%): $68,798,940



General background of the crypto market

Analyzing the total market capitalization of the crypto industry, we see that during the correction period, the market sank by more than $540 billion, but more than half of this reduction has already been won back.

Total Market is currently $2.060 trillion.

The maximum level of the Total Market is $2.275 trillion.

Bitcoin holds the dominant position in the market by 49.5% of the Total Market, which is equivalent to $1,149,135,645,828 in numerical terms.

It is worth noting that the dominant share of BTC is constantly decreasing, which indicates that the alt season is actively underway.



The index of emotions (aka fear and greed) of the crypto market on April 26 dropped to the level of 27 points, this is the area of May 2020. In simple words, panic raged in the market, but there is an assumption that all this was manipulated by the big players. At the moment, the index is 50 points and continues to grow.



Indicator Analysis - BTC

Analyzing different sectors of time frames (TF), it can be seen that the indicators of technical instruments on the hourly period are actively working in the recovery process, signaling a buy, while the daily period has a delayed signal. The weekly period invariably follows an upward trend path, signaling a buy.






Gven Podolsky
Analytical expert
InstaForex Group © 2007-2021