Cryptocurrency Analysis

[IFX_Selena]

Bitcoin Towards $60,000 Again!

Bitcoin is strongly bullish at the time of writing and it could approach and reach the 60,000 psychological level soon.

The price has taken out a new upside obstacle, so the bias is bullish. Actually, BTC/USD was expected to increase again after failing to stabilize under $48,000 psychological level. The aggressive breakout above the $50,000 signaled a new leg higher.

Bitcoin's further growth should push the altcoins higher as well in the coming period. Technically and fundamentally, BTC/USD is bullish and it could extend its major and long-term uptrend.


BTC/USD EDGES HIGHER!


It's traded at $58,800 at the time of writing above $58,550 former high signaling strong buyers. It has confirmed the breakout above $56,873 and through the upside 50% Fibonacci line by retesting these levels.

Closing above the former high signal a further growth at least until $60,000 psychological level. Actually, the next upside target is seen at the $60,100 level. The R1 ($60,501) and the upper median line (uml) could attract the price.


OUTLOOK!

Closing above $58,550 validates a further growth towards the R1 ($60,501). The rate could approach and reach the red uptrend line in the coming days which is seen as a strong upside target.

The bias remains bullish as long as it stays above $56,873 static support.





Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin is still tending to grow and is again approaching all-time highs



On Sunday, the first cryptocurrency moved slightly away from the 61.8% Fibonacci level - $58,000. But on Monday, it returned to the level again and is currently trying to overcome it. Thus, there was no good rebound from this level, which means that the chances of further growth in bitcoin quotes are increasing. Even though the quotes have overcome both the 50.0% Fibonacci level and the critical Kijun-sen line, the whole picture still looks as if the correction is about to resume.

This is supported by several factors: First, the upward trend was clearly slowing down recently, which means that it needed a new impetus to not just resume, but also to resume with renewed vigor. In order to do this, we need an influx of new investors or investments. Secondly, the fundamental background of recent weeks was clearly not in favor of bitcoin. In fact, the only positive news is the activity of MicroStrategy, which continues to invest in bitcoin instead of developing software. Third, bitcoin has been growing for more than a year and has grown from $4,000 to $63,000 during this time. It is true that it can grow theoretically as long as there is a demand for it, but there is still a limit to everything. However, it should also be noted that the global factor of pumping the American economy with money also works in the cryptocurrency market. And if in the foreign exchange market it plays against the dollar, then in the crypto market it plays in favor of bitcoin and any other cryptocurrencies.

The logic is banal and simple – there is more and more money in the economy, which means that the dollar will depreciate over time. But in any case, this money is already there and, therefore, one must spend it somewhere. It is the inflated money supply that explains the records of the last year on the stock market, as well as the crazy growth of the cryptocurrency market. Thus, since the US government and the Fed continue to pump the economy with hundreds of billions and trillions of dollars, this money may continue to settle on the cryptocurrency and stock markets. This means that bitcoin can continue to grow in the long term, which is much more important. Thus, we recommend that you continue to rely on technical analyses when making trading decisions, which most quickly respond to any changes in the market sentiment. It should also be noted that bitcoin is becoming less popular among investors. For example, Ethereum regularly grows and updates its own highs in the last month or two, unlike bitcoin. The bitcoin dominance index continues to decline.



In technical terms, bitcoin has grown to the 61.8% Fibonacci level and is lingering around it for the third day. So far, the further growth of "digital gold" is still not obvious, given the lack of a supporting fundamental background and the technical exit of quotes beyond the ascending channel. At the moment, even if we consider the growth of bitcoin in recent days by 11.5 thousand dollars, we still believe that there is a greater probability of a fall. Nevertheless, it should be recognized that the chances of resuming the correction are still decreasing every day.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Mike McGlone: The minimum price for bitcoin is $ 100,000.

While bitcoin is "aiming" for a new round of downward correction, many crypto experts continue to predict new price highs for the "cue ball." Ordinary analysts predict $ 70,000 per coin in the near future, although a week ago, forecasts spoke of a range of $ 30-40 thousand. However, in the world of bitcoin, everything is changing very quickly, so a new batch of forecasts "from $ 100,000 and above" was not long in coming. Bloomberg strategist Mike McGlone gave three reasons why bitcoin will continue to rise in price. McGlone believes that bitcoin is integrated into the activities of Tesla, the issue of ETFs based on it, and the adoption of cryptocurrency by humanity as a worthy replacement for fiat money will continue to push the rate of "digital gold" up. McGlone also called bitcoin "the right asset in a world that is slowly moving to digital technologies." As a goal, McGlone indicated the level of $ 100,000 per coin. Although just at the end of March, he also talked about reaching the $ 400,000 mark this year. However, the forecast does not ask for proof. You can call any numbers and adjust any factors to them.

Meanwhile, the latest financial report of the most famous bitcoin owner in the world, Microstrategy, showed that the company is set up for further investment in the "cue ball" and may well sell the cryptocurrency. Recall that recently Tesla announced the sale of bitcoins for $ 272 million, approximately 10% of its digital assets. Thus, two companies at once, whose names many associates with bitcoin, began to hint at selling or selling bitcoin "under a plausible pretext." From our point of view, this is a "wake-up call." We will not be surprised if the financial statements show a new small decrease in the number of bitcoins on the balance sheet of both companies. After all, you can't sell 91,000 bitcoins at once (that's how much Microstrategy has on its balance sheet). The price may immediately fall. Even during the sale itself, it may begin to fall. And the next day after such a transaction, the quotes may even fall. After all, do not forget that about 19 million coins are mined at the moment, but at the same time, there are more than 4 million in circulation, and maybe much less. All this makes the bitcoin market very "thin," where any serious transaction can seriously affect the current "digital gold" rate.



By the way, on the hourly timeframe, there is a situation in which the upward trend of recent days may be broken in the near future. If a few days ago the quotes of the "cue ball" were fixed above the descending trend line, then today they can be fixed below the ascending trend line, which will increase the probability of resuming the corrective movement on the 24-hour timeframe.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin is unlikely to become the world's single currency.



All Saturday, the first cryptocurrency was pushed around the level of $ 58,000, which corresponds to 61.8% on the Fibonacci grid built on the last round of the downward correction. In other words, the "cue ball" has corrected by 61.8% against the last round of the downward correction. On Sunday, the bears make another attempt to resume the downward movement, which is still a more likely scenario. We remind traders that no asset in the world can grow continuously. If the growth is excessively strong, it already suggests a "bubble," and bitcoin is the most "bubbly bubble" that has ever existed. The main paradox is that if the whole world or a large part of it accepts bitcoin (and other cryptocurrencies) as a means of payment or a means of saving, then a piece of useless code that has no intrinsic value can cost as much as you want and become part of the global financial system for a long time. However, if gold will never be cheap because there is not much of it in the world and you need to spend a lot of effort to get it and overtake it into the usual form of coins or bullion, then bitcoin may well cost $ 0 since it does not cost anything in itself and does not bear any benefit. Also, all those who believe that bitcoin will always be in price are mistaken since there can be no more than 21 million coins in principle. It means that "digital gold" is protected from inflation or additional emissions. But this is not true since bitcoin has already had at least two forks. In simple words, other cryptocurrencies were separated from bitcoin: Bitcoin Cash and Bitcoin Gold. It turns out that a new fork can happen at any time. And how many cryptocurrencies exist in addition to the "cue ball"? Many experts are predicting the role of ethereum as a universal means of payment and not bitcoin. And there are hundreds of cryptocurrencies now. Thus, in parallel with the "cue ball" worldwide, another hundred or two other digital tokens can be used. That is, we will get a situation that exists now: a huge number of currencies. And there will be a huge number of digital currencies. And if central banks also join with their stablecoins, then in 10-20 years, there will be such a mess in the financial system that schools will need to introduce new disciplines about money to study. Thus, we are not set on the fact that bitcoin will become "digital gold."



In technical terms, the "cue ball" rose to the level of 61.8% by Fibonacci, which theoretically can restrain the further growth of the crypto tool. Thus, so far, the further growth of "digital gold" is still not obvious, given the lack of a supporting fundamental background and the technical exit of quotes beyond the ascending channel. We have already said that the upward trend is weakening and may end. At the moment, even taking into account the growth of the "cue ball" in recent days of $ 11.5 thousand, we still believe that there is a greater probability of a fall.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum is starting to catch up with Bitcoin



As we have said in recent articles, the fundamental background for bitcoin remains quite complex. Simply put, there is no real positive news for cryptocurrency right now. We do not believe that the announcement of future purchases of bitcoin with reserve funds by Microstrategy is really important and positive news. Moreover, the press release also contains information that the company can sell a certain share of bitcoin. It seems that the software developer is just trying to catch up with a new hype so that the cryptocurrency will rise in price even more.



Meanwhile, TV star and investor Kevin O'Leary said that Ethereum will always be one step behind Bitcoin. Recall that recently, while bitcoin is correcting, ethereum is confidently stepping up and updating one maximum after another. At the time of writing, the cryptocurrency is trading at $ 2,845, and unlike bitcoin, there is no weakening of the upward trend in the ether. Moreover, a very similar ascending channel is also present on the Ethereum movement chart. However, the second cryptocurrency after bitcoin did not leave it and showed steady growth in the last week.

Moreover, the ether is traded much more evenly, and each of its subsequent highs is located approximately at the same distance from the previous one. Thus, we believe that ethereum has a better chance of continuing to grow than bitcoin. Recall that the bitcoin dominance index has been falling recently and is already less than 50%. However, Kevin O'Leary believes that "Bitcoin will always be gold, and Ethereum will always be silver." The TV star believes that the world's second-largest cryptocurrency will be used as a "system for tracking and conducting payments." However, to achieve this goal, ethereum is now too expensive, according to O'Leary. However, as long as the ethereum continues to be inside the channel, the upward trend persists.

But experts and analysts at Fundstrat believe that the price of the second-largest cryptocurrency will continue to grow and will be at least $ 10,000 in 2021. According to the study, investors' attention is beginning to shift in favor of Ethereum. Earlier, JPMorgan experts said that Ethereum is becoming more attractive than bitcoin, as the first is more perceived as a means of exchange and payment, and the second – only as a means of saving and investment. We support this view, as the price of bitcoin is already too high. Perhaps this is not a hindrance for large investors and institutions, but small and private traders are unlikely to want to invest several thousand dollars in 0.02 "cue ball." Thus, ethereum attracts investors with a more human value, which provokes a strong growth of the cryptocurrency and a movement in "non-human value."





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin pauses briefly around the $ 58,000 level



The situation with bitcoin is getting more interesting. Yesterday, the quotes of the world's first cryptocurrency rose by $ 3,800 and thus broke the level of $ 55,859, which we called the "last frontier." Therefore, the barrier to further growth of the "cue ball" rate seems to be removed. However, today, on Saturday, the quotes stopped growing around the level of $ 58,000 per coin. It should be noted that this is a 61.8% by Fibonacci from the previous fall. Thus, in theory, the price can now bounce back from this level and resume the correction. We still believe that the correction scenario is more likely, as we do not see any new good reasons for the rise in the price of bitcoin. However, at this time, it should be recognized that there is no technical reason to expect a new fall. The quotes of the "cue ball" were fixed above all the important lines of the Ichimoku indicator, and on the hourly time frame, they were fixed above the descending trend line. Thus, sellers now need to wait for at least a consolidation back below the critical line, which continues to lie at the level of $ 55,859. The illusory hope for a rebound from the $ 58,000 level also remains.

Meanwhile, the company Microstrategy, which develops analytical software and whose shares are listed on the NASDAQ, continues to buy and announce new purchases of bitcoin. And it already looks very strange. Imagine that Microsoft today announces that it will buy bitcoin for a couple of billion dollars in a couple of months. Why would the company do this if the quotes of the "cue ball" will immediately grow? It's the same with Microstrategy. Why announce your future transactions of such a hype and highly volatile instrument as BTC? From our perspective, this is done only to artificially increase the demand for "digital gold" and create a new hype around cryptocurrency. Earlier, we have already said that it is vital for those investors who already own a large number of coins to maintain a high demand for bitcoin and encourage the influx of new investors and investments. Only in this case, the asset will continue to rise in price, bringing profit to the owners. Thus, we continue to focus the attention of traders on the fact that such news from companies that have invested billions of dollars in cryptocurrency and private investors with the same capital is unlikely to be taken seriously. What would you do if you owned a billion dollars worth of bitcoin and understood that the cryptocurrency would continue to grow if new investors and institutions continued to buy it? Probably the same thing. They would trumpet on all corners that bitcoin will continue to grow, and you are going to buy a couple of hundred or thousands more coins.



The "cue ball" overcame the 50.0% Fibonacci level in technical terms, although it initially rebounded from it. However, the price has already increased to the level of 61.8% in Fibonacci, which theoretically can also restrain the further growth of the crypto tool. Thus, so far, the further growth of "digital gold" is still not obvious, given the lack of a supporting fundamental background and the technical exit of the quote beyond the ascending channel. We have already said that the upward trend is weakening and may end. Now the bulls have attempted to maintain the upward trend, but it is still unclear whether it will be successful.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical analysis of Bitcoin

BITCOIN



The end of the week and month is drawing near. Throughout the week, bitcoin seeks to neutralize all the achievements of the bears of the past week, but the month will most likely remain in history as a time of uncertainty. Despite the new all-time high in April, bulls have failed to hold positions and close with positive results. The attraction is now exerted by the weekly short-term trend (54,808.81) and the psychological level (55,000.00), the daily cloud (56,498.81-52,375.80), and the daily Ichimoku cross are a little more expanding. If the bulls manage to overcome the indicated levels and gain a foothold above 60,000.00, then the question of a new maximum will again arise, for this, it is necessary to update the reached maximum (64,768.80). If the players go down under the indicated supports, and then they will be able to gain a foothold under 50,000.00, then it will be possible to consider new downward guidelines and targets. For example, the weekly level (45,049.58) and, formed by that time, the downward target for the breakdown of the daily Ichimoku cloud.



The key levels of the lower halves (weekly long-term trend and the central pivot level of the day) have joined forces today (around 53,761.73) and are trying to keep the upside advantages of the players. Working above these supports allows us to make plans for further strengthening of bullish sentiments. After testing the final Pivot level (57,462.82), the question of interaction with the resistances of the higher halves will arise. Fixing below 53,761.73 will change the current balance of forces on H1 in favor of the bears.


In the technical analysis of the situation, the following are used:

Higher time frames - Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels

H1 - Pivot Points (classic) + Moving Average 120 (weekly long-term trend)





Evangelos Poulakis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bullish flag pattern in Ripple

XRP/USD is mostly moving sideways for the last couple of sessions. Price is moving inside a trading range between $1.30-$1.43. Price has formed a bullish flag pattern and I expect price to soon provide an upward break out with a target around $1.70. As long as price is inside the trading range we should not rule out another pull back towards $1.30.



Red rectangle - major Fibonacci resistance

Black line -resistance trend line (broken)

Green lines - bullish flag pattern

XRP/USD is trading between the 38% and 50% Fibonacci retracement levels. Price is consolidating. After the strong upward move from $1.15 to $1.45, price is now cooling down in a consolidation phase. Usually what follows is another upward move. Breaking above the red rectangle Fibonacci resistance will be an important win for bulls. Failure to stay above $1.30 will be a sign of weakness and could bring XRP/USD back towards $1.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Dogecoin surges 13%



On Wednesday, Dogecoin market capitalization sat at nearly $40 billion. As a result, the cryptocurrency climbed 13% to 30 cents per coin over the past day. "Dogecoin has no apparent commercial or investment use other than as a conduit for speculative mania and the attempt to make a buck. I suspect much of its appeal lies in the fact that it is very, very cheap to buy and sell, as opposed to $60,000 for Bitcoin, making it much more approachable to a retail trader who fancies a flutter," OANDA's Senior Market Analyst for Asia Pacific Jeffrey Halley said.

According to Curtis Ting, a managing director of Europe at Kraken, investors purchase DOGE to make a self-deprecating joke about their own inability to invest.



Dogecoin, as well as bitcoin, is a digital token that costs as much as users are ready to pay or exchange for it. It is not backed by other assets or businesses. It will never bring profits. Apart from that, it lacks BTC's main hallmark valued by the crypto community, which is a supply limit. There's no hard cap on the number of coins that can be minted using the computer code governing Dogecoin. The meme-based coin also has some history. It is relatively old for a cryptocurrency. Tokens with a long track record can benefit from heightened awareness and a gradually expanding set of holders willing to talk it up. Moreover, interest in cryptocurrency and trading has spiked this year. Dogecoin was waiting to be found by retail investors.



Dogecoin also caught the attention of billionaires such as Tesla's Elon Musk and Dallas Mavericks owner Mark Cuban. In fact, Dallas Maverick accepts Dogecoins as payment for tickets and merchandise. Elon Musk posted a Lion King-themed meme and an image of a fictitious magazine Dogue. Reddit and Twitter users helped promote the meme with images like "Papa Elon Will Protect the DogeCoin," or the Shiba Inu getting more muscular. The rally of Dogecoin looks like a pump because of some Internet users' attempts to increase the price by focusing attention on a cheap asset and egging each other on to buy. The trick with a pump is to get out before the meme dies and leave behind the newcomers who took things too seriously or sold too slowly.

It seems that Dogecoin is owned by a relatively small circle of anonymous owners. That is why it may take less time to get the price moving. On top of that, Dogecoin is part of a wider phenomenon where money is pulled into increasingly speculative investments. Some buyers of the cryptocurrency believe that it has a very low barrier of entry. Some popular brokerage applications with zero commission offer users to buy Dogecoin by just clicking a button. Anyway, this is a highly volatile cryptocurrency, which involves certain risks. That is why there is no point in buying large amounts of the token.





Andrey Shevchenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Goldman Sachs dispels idea that Bitcoin is a safe asset



The recent depreciation in Bitcoin has reinforced concerns about the cryptocurrency's position as a safe asset.

Goldman Sachs said it is too early to rely on it as a long-term storage of value, pointing out serious risks, which includes competition from other cryptocurrencies, its massive energy consumption and lack of use cases.

Bitcoin's recent fall from $ 65,000 to below $ 50,000 also suggests that it is more like copper than gold.



Fortunately, Bitcoin has recovered and is back on trading above $ 54,000. But other cryptocurrencies have already surpassed it. For example, Ethereum, which is currently trading at an all-time high.

Accordingly, this contradicts the argument that Bitcoin is the dominant cryptocurrency, and raises concerns about the popular belief that it is digital gold.

Another concern is its environmental impact because according to calculations, Bitcoin's energy consumption exceeds the annual consumption in Argentina.

The lack of use cases also puts pressure on Bitcoin as a long-term storage of value. Real use is very important because real demand can correct fluctuations in investment demand.

In short, since Bitcoin has no use cases, it can drop down to zero.




Andrey Shevchenko
Analytical expert
InstaForex Group © 2007-2021