Cryptocurrency Analysis

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Technical Analysis of BTC/USD for May 1, 2021

Crypto Industry News:
After several years of painstaking work, the long-awaited Taproot update is ready to go. The community will now decide whether or not to agree to its implementation.

Taproot is a soft fork of the Bitcoin network that integrates Schnorr signatures, an alternative signature method to ECDSA - a method currently implemented on the network. This update, very simply, allows you to create some kind of master key to summarize the signature set into one. In this way, multi-signature multi-entry (UTXI) transactions on Bitcoin become more efficient, cheaper and easier.

This implementation opens the door to various methods of identity obfuscation by hiding the number of participants involved in a Bitcoin transaction.

Another advantage of Taproot is that it reduces the network load by reducing the transaction space by at least 20% (much more if the transactions are multisignature), which will increase the transaction processing efficiency per second and significantly reduce the fees for each transaction.

It is expected that the implementation of Taproot will enable possible development towards smart contracts, which would lead to even greater use of the network.


Technical Market Outlook:
The BTC/USD pair has been trading under the level of $60k for some time now and the recent high was made at the level of $58,884. Since then, the market pulled-back towards the level of $55,501, which is the technical support for the bulls, but a new local low was made at the level of $54,719. Despite the new low, the pull-back is still not bigger than the last one (olive rectangles area on chart), so the bulls still have the chance to bounce higher and suspend the momentum. The key short-term technical support is $52,620 and $51,239.

Weekly Pivot Points:
WR3 - $73,274
WR2 - $65,664
WR1 - $62,211

Weekly Pivot - $54,445
WS1 - $50,865
WS2 - $43,394
WS3 - $39,732


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 Ethereum for May 4, 2021



Way back in February we showed that Ethereum broke out of a 3 year Cup with Handle formation at 1,384.78 which called for a rally to 2,674 or maybe even closer to 3,474 if the extended Cup with Handle target came into play. This is exactly what has happened and we have now seen a test of the extended Cup with Handle target at 3,474 and we should now expect a violent correction in the weeks to come. This correction will likely hit 2,174 and possibly even the 50% correction target at 1,773 before turning higher.

That said, the alternate corrective outcome is a triangle consolidation. In this case we shouldn't expect a correction deeper than 2,674 but instead use up time in a sideways consolidation.


Trading recommendation:

It's time to sell the position from 1,385





Torben Melsted
Analytical expert
InstaForex Group © 2007-2021

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Binance CEO: Bitcoin is not more volatile than Tesla or Apple shares



This weekend, Bitcoin quotes were trading strictly under the 61.8% Fibonacci level, which is approximately $58,000. Recall that the grid of Fibonacci levels is based on the last drop of $15,000. That is, bitcoin quotes recovered by 61.8% after the fall. And the level of 61.8% is an important correction, along with 50.0% and 38.2%. If the price crosses it, the chances of continuing the upward movement increases. However, trading on Monday showed that our hypothesis regarding the continuing correction scenario is still correct. After several attempts to overcome the level of 61.8%, the quotes still went down and began a new round of downward movement. Currently, the quotes went down by only $2500, which is not so much. However, the longer-term target is located near the previous local low, which is about $47,000. Moreover, the target of $43,852 per coin looks quite real, since the second round of correction is usually deeper than the first. In general, the level of $58,000 continues to be critical for bitcoin. Above it, we will consider the option of resuming the upward trend.

Meanwhile, there are still no changes in the fundamental background. Traders are receiving more and more news indicating that the growth of bitcoin's popularity has begun to slow down. Not all people and investors in the world believe that bitcoin is the cryptocurrency of the future and are ready to invest their last money in it. Moreover, several altcoins have recently started to step on the heels of bitcoin. In terms of capitalization, bitcoin is far ahead, but the popularity of Ethereum is growing very quickly and, unlike bitcoin, it is just called a digital currency, which is used for settlement and payments, and not for investment and savings.

In an interview with Bloomberg, Binance cryptocurrency exchange head and co-founder Changpeng Zhao said that bitcoin is actually no more volatile than the shares of companies such as Apple or Tesla. He noted that strong movements occur not only in the cryptocurrency, but also in the stock market. According to Zhao, "profit hunters" are to blame for the excessive volatility of bitcoin, who do not analyze the market and its tools at all, but simply buy this or that asset on positive news. Thus, Zhao almost openly stated that it is the "herd instinct" that is the reason for the excessive volatility of not only bitcoin, but also any other instrument. We believe that with these words, Zhao tried to calm the markets and instill confidence in them that bitcoin is the same investment tool as the shares of leading tech companies. But the shares are backed by specific assets, and bitcoin is just a piece of useless code.



In technical terms, bitcoin rose to the 61.8% Fibonacci level and still bounced off it. So, the further growth of "digital gold" will not be happening for the time being, given the lack of a supporting fundamental background and the technical exit of quotes beyond the ascending channel. The chances of a corrective fall remain high, and the movement of recent days no longer looks like a market growth of bitcoin, but a desperate attempt by the bulls to maintain the upward trend.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Short-term technical analysis on XRP/USD

XRP/USD as expected has reached the major Fibonacci resistance of $1.60-$1.70. Price has made an impressive upward move and now we have some signs that justify a pull back from current levels. This does not put the bullish scenario in danger, but in order for the bullish scenario to be confirmed, bulls will need to recapture $1.80-$1.85 first.



Green rectangle - support

Red rectangle -resistance

XRP/USD is trading just below $1.60. Price has stopped the rise from the $0.88 lows at the area where we find the important Fibonacci resistance of 61.8% retracement. Now XRP/USD has increased chances of falling towards $1.36 or even $1.18 before resuming the uptrend. If XRP/USD breaks above $1.66 and does not pull back from current levels, it should move close to the major resistance of $1.80-$1.85. As long as price is below $1.80-$1.85, XRP/USD is vulnerable to a pull back.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Trading Signal for BTC/USD, Bitcoin for May 03 - 04, 2021: Sell below $59,000



The price of Bitcoin (BTC / USD) is approaching the psychological level of $60,000, ready to challenge its all-time high in the $64,000 zone. At this time of writing, it is trading at $58,872 approaching the 7/8 reversal zone of murray around $59,350.

The technical reading of the eagle indicator shows that Bitcoin is approaching the overbought zone. In view of the fact that it has made a double top at the 95 zone, this is a sign that there could be a downward correction in the coming days.

The outlook for Bitcoin has changed after breaking the $56,250 zone and the 200 EMA in 4-hour charts. This indicates that there could be a very strong movement to the $64,000 level, its previous high, only if it consolidates above $60,000.

On the contrary, a new return below $56,800, where the 200 EMA is located, will be considered a good selling opportunity with targets at $54,250 and $52,256.

The market sentiment for Bitcoin shows more than 89% of traders are buying BTC / USD. This is a sign that we are facing a consolidation phase and if it does not manage to break the psychological level of $60,000, an opposite movement could occur until the support out of $50,000.


Support and Resistance Levels For May 03 - 04, 2021

Resistance (1) $58,784
Resistance (2) $59,720
Resistance (3) $61,143

Support (1) $57,090
Support (2) $56,004
Support (3) $55,068





Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

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BTC analysis for May 03,.2021 - BTC in the rising channel and with potential for test of $62.000

Further Development



Analyzing the current trading chart of BTC, I found that buyers are in control and that there is more space for upside continuation towards $62.000.

My advice is to watch for buying opportunities on the dips wit hthe main upside target at $61.900.

BTC is trading inside of the rising trend-channel, which is another confirmation for the upside trend.

Additionally, there is the no divergence on the Stochastic and the MACD is positive, which is good sign for the upside continuation....





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

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Nexon invests $100 million in Bitcoin



More and more investors have begun hedging positions amid the growing threat of inflation.

In fact, after Tesla announced that it bought more than $ 1 billion worth of Bitcoin last March, the trend for this kind of hedging has gained tremendous interest.

Tesla CEO Elon Musk even said on Twitter that he has sold 10% of his assets and earned a profit of roughly $ 100 million.

This move, in essence, proves that Bitcoin can be an alternative to keeping cash.

With that, other companies followed this step. For example, Nexon Co. announced that it also bought 1,717 bitcoins, which is about $ 100 million.



Nexon President and CEO Owen Mahoney explained that buying the cryptocurrency reflects a disciplined strategy to protect shareholder value and support the purchasing power of their monetary assets. Accordingly, he believes that in the long term, Bitcoin is stable enough to protect funds for future investments.

Nexon is the first publicly traded Japanese company to make such a major leap in the crypto economy. However, CoinPayments data shows that this is unlikely to be the only step. Japanese consumers seem to have fully embraced the crypto economy.

In fact, reports say the total volume of crypto transactions in the Japanese market is more than $ 1.5 billion. This is just in the first three months of 2021. In comparison, the total transaction volume in the North American market was $ 358 million.

And since the first quarter of 2020, the crypto market in Japan has grown by 181%, while in North America it climbed by only 142%.

Obviously, more and more companies are looking at cryptocurrencies as important tools in the global economy. Digital currencies have proven time and time again that they are important forms of payment.

And given the rise in global debt, it seems that individuals and companies are looking for ways to preserve wealth by insuring against inflation. This is why the same trend can be seen in safe haven markets like gold. Cryptocurrencies do not necessarily replace gold as a safe haven or hedge against inflation, but they retain their reputation as a global medium of exchange.





Andrey Shevchenko
Analytical expert
InstaForex Group © 2007-2021

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Trading plan for Bitcoin for May 03, 2021



Technical outlook:
Bitcoin has rallied through $58,000/58,500 levels after having dropped to $50,600 on April 25, 2021. The recent rally should not be seen as a beginning of a new trend as it might be just a corrective pullback. We have shown the fibonacci retracements of the drop between $65,000 and $50,600 levels respectively, and Bitcoin has just tested its 0.618 levels around $58,000/59,000.

The crypto is trading around $58,500/600 levels at this point in writing, which might prove to be a strong resistance zone and produce a bearish bounce. The projected targets are towards $41,200 and $31,200 levels respectively in the next few weeks. Immediate resistance is seen around $65,000 mark, while support is at $56,000 respectively.

Bitcoin remains vulnerable for a corrective drop and find support around $37,000-40,000 zone. A bullish bounce there could resume the uptrend and push prices above $65,000 levels, going forward. Over the next few weeks, bears are expected to remain in control.


Trading plan:

Remain short, stop @ 65,000, target @ 41,000 and 37,000

Good luck!





Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

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Billionaires Warren Buffett and Charlie Munger keep criticizing BTC

Attachment 6213

The world's flagship cryptocurrency is still trying to break the $58K barrier. American billionaires Warren Buffett and Charlie Munger took aim at bitcoin during the Berkshire Hathaway shareholders meeting. Munger said that he hates the cryptocurrency and considers it "disgusting and contrary to the interests of civilization," stressing that it is only "useful to kidnappers and extortionists." Buffett admitted the bitcoin success and that its popularity is gathering pace.

Meanwhile, the April BTC mining data has been released, showing that miners earned $1.7 billion last month. The reading was slightly lower than in March. Transaction fees were at 14.5%, the highest in six months. This means that no matter what prospects the world's most praised coin has, it is still heavily mined. At the same time, demand for ether is growing in the cryptocurrency market. Even more market participants talk about Ethereum, and not bitcoin. Thus, JPMorgan has recently highlighted why ether is better than BTC. The popularity of ether is soaring along with its value owing to its high liquidity in comparison with the world's top coin whose demand is falling among investors. In addition, Ethereum becomes less dependent on bitcoin. When ether used to follow BTC, it now moves more independently. Besides, the cryptocurrency has significantly higher spot turnover and the speed of transaction compared to bitcoin. The Ethereum price went above $2,9K. The bitcoin market has recently been in correction. The premier cryptocurrency's dominance dropped to 46.5%, while ether's rose to 14.7%. As a reminder, Fundstrat experts forecast ether to reach $10K in 2021. The majority of market participants view ether as a form of payment, and not BTC.

Attachment 6214

On the H1 time frame, the ascending trend line is clearly seen. Yesterday, the quotes bounced from this line. The upward trend is expected to extend until the price consolidates below the trend line. Despite the upward movement, bitcoin is unlikely to extend gains.



Attachment 6215
Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Ethereum is outperforming Bitcoin


Bitcoin's new rival, Ethereum (Ether), has set a new record, trading above $ 3,000. This suggests that the dominance of Bitcoin may be ending, and that there is a good chance that other cryptocurrencies will soon take over.



According to CoinGecko, Bitcoin currently accounts for about 46% of the total market value of cryptocurrencies. But Ethereum has been gaining momentum, in which over the past week it grew twice as much as Bitcoin.



Still, Bitcoin remains the largest cryptocurrency. But the sharp growth of other tokens is of increasing interest. Ether, for example, has already jumped above $ 3,000, and it seems that it has every intention of climbing higher.

Cryptocurrency proponents say investors are getting more comfortable with different tokens, while critics argue that the sector is just gripped by incentive-fueled mania.

Edward Moya of Oanda Corp. said, "Ethereum is turning up and it looks like nothing will stop it." He added that other tokens are also showing "renewed interest."

The current distribution of market shares also reflects the unprecedented dip in Bitcoin last April. To date, the cryptocurrency has yet to recover all the positions it lost after falling from $ 64,870.

Last month's listing of Coinbase Global is a sign of how much investors are embracing the crypto sector, despite risks from high volatility and increasing regulatory scrutiny.

And now, Ether is in the spotlight, and the upgrade of its blockchain, as well as its increasing popularity, are some of the drivers of its sharp rally. Rich Ross of Evercore ISI even projects its price to hit $ 3,900 in the coming months.

Other cryptocurrencies, often referred to as "altcoins", also showed impressive growth. According to CoinGecko, Binance coin has risen by 3490% over the past 12 months, while Dogecoin has grown by 15,000% and has a market cap of nearly $ 50 billion.





Andrey Shevchenko
Analytical expert
InstaForex Group © 2007-2021