Cryptocurrency Analysis

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Trading plan for Bitcoin for May 13, 2021



Technical outlook:
Bitcoin finally dropped below $47,00 levels yesterday before pulling back as bears tighten their grip lower. The crypto asset dropped in-line with what was discussed yesterday and printed an intraday low around $45,000 before pulling back higher again. Traders are advised to lock in partial profits on short positions and move stop loss to breakeven.

Bitcoin is still low away from carving a bottom around the $41,000-43,000 mark. A push above $57,000-5,8000 from here would confirm that a bottom is formed and bulls are back in control. The crypto was seen to be trading around the $51,000 levels at the moment of writing and it is expected to turn lower again towards $41,000 very soon.

The crypto asset might be producing a counter trend corrective drop and find support around the Fibonacci 0.382 retracement of the entire rally. The $41,000 mark acted as previous support as marked on the chart here. Potential for a bullish turn remains higher. Prepare for another drop and lock in profits between the $41,000 and $43,000 zone.


Trading plan:
Remain short, move stop to breakeven. Take profit @ $43,000.

Good luck!




Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of BTC/USD for May 13, 2021

Crypto Industry News:
Tesla CEO Elon Musk said the company will no longer accept bitcoin as payment for its cars, citing concerns over energy consumption levels associated with cryptocurrency mining.

Musk wrote: "We are concerned about the sharp increase in the use of fossil fuels for bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel."

Tesla began accepting BTC as payment in February after it bought $ 1.5 billion worth of digital assets. Tesla buy-in news shifted the market - from $ 39,000 at the time of the February 8 announcement to $ 53,000 a week later.

It also led to opposition from environmentally conscious consumers. Many of them said Tesla's purchase of bitcoins ran counter to its pro-environmental image. Some Tesla shareholders did not like the move as well. It began to be seen as drawing attention to the company that has nothing to do with its actual activities.


Technical Market Outlook:
The BTC/USD pair had crashed below the level of $50,000 again and made a new low at the level of $46,615. There is a massive Pin Bar candlestick made just above the level of $47,077, which is the swing low from April 26th. The nearest technical resistance is seen at the level of $51,229, but now there are more levels for bulls waiting at $52,620, $52,921 and $53,799 and $54,719. However, the bulls managed to retrace 38% of the last wave down and the market is test the level of $50,944. Any failure to break out higher would reverse the recent gains and most likely continue the wave down.

Weekly Pivot Points:
WR3 - $67,229
WR2 - $63,211
WR1 - $60,975

Weekly Pivot - $56,852
WS1 - $54,336
WS2 - $50,318
WS3 - $48,012


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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SEC warns that Bitcoin is highly speculative and could cause investor loss

With the growing interest in bitcoin and other cryptocurrency assets, the US Securities and Exchange Commission issued a warning to investors who own Bitcoin futures: Beware of risks.

They reminded that even though the cryptocurrency is becoming more and more popular, it is "highly speculative" and volatile, not to mention traded in a lightly-regulated market. Therefore, investors should be cautious in their transactions, more carefully weighing the risks Bitcoin investments pose.



The warning came just weeks after Gary Gensler took over as chairman of the SEC. His comments threw off many investors, especially those who expected that ETFs would be approved under his leadership.

Earlier this week, the SEC said it will consider the creation of the first cryptocurrency ETF fund. They will examine whether the Bitcoin futures market is "appropriate" for creating investment ETF funds, and if these funds are able to liquidate their cryptocurrency derivatives if necessary.

On a different note, MoneyGram announced that it formed a partnership with Coinme. Under the agreement, more Bitcoin service will be available starting May, which will help US customers, especially new users, on BTC transactions. This move is expected to add fuel to the bull market that has been observed this year.

But at the time of writing, Bitcoin is at a risky level. A lot will depend on $ 55,400, as a break below it will quickly push the quote towards $ 52,000, and then $ 47,500. Growth will occur only if traders manage to push Bitcoin to $ 60,000. Such will result in a larger jump towards $ 62,300 and $ 64,700.



Another interesting news is the plans of the Hungarian government to reduce income tax in cryptocurrency next year. They believe it would encourage investors to declare income from trading digital tokens. The government said it would cut the rate from 30.5% to 15% starting in 2022. The driver seems to be officials' fears that investors are hiding profits from cryptocurrency trading.

Meanwhile, other countries have taken an aggressive approach. Canada, for instance, is on the path of tightening the turnover of cryptocurrencies and tokens.




Jakub Novak
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin collapsed to $ 47,000 amid Tesla's refusal to accept Bitcoin payments for electric cars.



In recent weeks, we have been talking every day about the correction scenario and the fact that bitcoin can fall to $ 47,000 per coin at any time. It was evidenced by many factors, including the weak fundamental background, the flow of capital from bitcoin to altcoins, and the unattractive price of bitcoin for new investors. In the end, what was supposed to happen happened. Last night, the quotes of "bitcoin" fell by $ 7,500 and worked out the level we talked about many times ($47,000). So far, we can say that there was a rebound from this level, but an unambiguous conclusion on this issue can be made only after today. At the moment, I would like to say that, most likely, the correction will continue over time and below $ 47,000 per coin. The upward trend has been drying up for a long time, so it is not surprising that it will end sooner or later.

And, of course, this fall of "bitcoin" was not without Elon Musk. Yesterday, Tesla announced that it is suspending the sale of electric cars for bitcoins, which may have played a cruel joke with the rate of the first cryptocurrency. Recall that earlier bitcoin has repeatedly grown just on the statements of Elon Musk that Tesla invests in bitcoin, or that the company will allow its customers to buy electric cars for bitcoin. Recall that earlier, Tesla sold about 10% of its bitcoin coins, according to the company's official statement, "for the sake of studying the liquidity of the token." We then questioned this explanation since there is no need to check the liquidity of bitcoin. It all looked like a bargain sale ahead of the upcoming financial report for the quarter. Then Tesla sold 10% of bitcoins but could sell much more coins in the second quarter. Investors will learn about this only from the second-quarter reports, which will not be available for a long time. And now Tesla refuses to accept payments in bitcoins. All this is very similar because both Tesla and Elon Musk are trying to move away from the first cryptocurrency, realizing that it will not be possible to play with it for a long time. On Twitter, Musk wrote: "Tesla has suspended sales of vehicles using bitcoin. We are concerned about the rapidly increasing use of fossil fuels, especially coal, which has the worst rates of harmful emissions, for bitcoin mining and transactions." And this statement again raises questions. And before Tesla and Elon Musk did not know that most of the coins are extracted with the help of "green" electricity? It seems to be not secret information, and many scientists of the world have repeatedly drawn attention to the non-ecological nature of mining any cryptocurrency. In general, we repeat, all this is very similar to the attempt of Tesla and Elon Musk personally to abandon bitcoin and get out of all operations to buy it with maximum profit. Naturally, the markets feel a similar background and also try to get rid of "bitcoin."



In technical terms, "bitcoin" crashed down, once again working out the support level of $ 50,772 and the previous local low near the level of $ 47,000. Now you need to at least wait for the end of the day to understand where it ends. And based on this point, build a different strategy for bitcoin. We believe that bitcoin may well overcome the level of $ 47,000 and continue to move down. Any upward trend ends sooner or later.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Cryptocurrency market cap hits $ 2.5 trillion

The total market value of all cryptocurrencies has reached $ 2.5 trillion. Tokens have hit record levels, and some of them, Ethereum for instance, has shown gigantic leaps. But this unprecedented scenario is alarming for many analysts as they believe it could deal destructive effects on the market.

In fact, the ongoing crypto rally may even give birth to an entirely new asset class.

But traders should remember that cryptocurrencies are prone to manipulation, and Dogecoin is a prime example of this. DOGE, which started as a joke in 2013, now has a market value of approximately $ 65 billion, thanks to Tesla CEO Elon Musk.

Musk has recently been talking about the cryptocurrency, pushing its value up in the market. His latest statement is an inquiry of whether Tesla should accept DOGE as a means of payment.

Meanwhile, leading cryptocurrencies Bitcoin and Ether also have a lot of upside potential. Analysts are even likening BTC to gold, although the issue is still controversial. Bitcoin's market value is expected to reach parity with gold in just five years.



Meanwhile, Ethereum, which takes second place, climbed to a new all-time high - $ 4,300. It grew by more than 2000% over the past year, pushing its market value to $ 500 billion.

These tremendous jumps are very enticing, but traders should remember that cryptocurrencies are speculative in nature, so they have to be cautious when investing.

SoftBank CEO Masayoshi Son even stated that Bitcoin is unlikely to soar very high, and when asked about the growing number of crypto investments from companies such as Tesla, he answered: "There are a lot of talks on whether those are good or bad. To be honest, I do not know."

Recently, many companies have placed investments on cryptocurrencies. Some even started to accept them as forms of payment. And today, a fairly large influx of Bitcoin has been recorded on Bitfinex. According to CryptoQuant, Bitfinex received two large batches - 8,000 BTC and 10,400 BTC.





Jakub Novak
Analytical expert
InstaForex Group © 2007-2021

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Mark Zuckerberg may own important savings in Bitcoin: Facebook plans to create a cryptocurrency project and buy BTC



Mark Zuckerberg posted a photo of his two goats during the other day, with the caption "Max and Bitcoin". The world community regards this photo as a sign that the CEO of Facebook has significant savings in Bitcoin.

Being an avid fan of everything related to technology, Zuckerberg did not hire David Marcus for nothing, since Mark is fully focused on creating a cryptocurrency project on Facebook. Zuckerberg and Facebook can be replenished with a large amount of Bitcoins, no less than MicroStrategy. Therefore, everyone is wondering if Mark Zuckerberg owns personal savings or if Facebook has Bitcoin in its portfolio and plans to make another grand deal.

Zuckerberg hired David Marcus for a reason, as the multi-billionaire has certain far-reaching plans for the leading digital asset. There has long been speculation that the Founder and CEO of Facebook owns Bitcoin and intends to add to his portfolio. It will be a grand event for the whole world if a huge company like Facebook buys Bitcoins, strengthening the demand for the digital asset, thereby raising the market value of BTC at least twice.

Since the beginning of 2021, there have been rumors that Facebook owns billions of dollars worth of BTC. Based on the 1st quarter earnings report in April, there were hints that the firm had purchased an extreme amount of BTC as a reserve cash asset. However, this has not been documented. Zuckerberg has always wanted to invest in the technology of the future, so it could be Bitcoin or Ethereum that is gaining momentum. He also has the option to purchase Bitcoins for his own family, not for Facebook, as it used to be. And although some people think that Zuckerberg likes to mock Bitcoin and its owners in general, Bitcoin does not need him, but the other way around.





Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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XRP/USD still vulnerable to a move towards $1.18-$1.

XRP/USD remains under key resistance levels. Price so far has managed several times to break above $1.60-$1.65 resistance but every time sellers dominated buyers. XRP/USD bears remain in control of the trend as long as price is below $1.55 at least.



Red line - short-term resistance

XRP/USD is making lower highs below the red downward sloping resistance trend line. Price needs to break above $1.56 in order for bulls to hope for a trend change. Since the high of $1.97 trend is bearish as bulls are unable to start a new trend with higher highs and higher lows. Price has made a lower high at $1.76 and as long as price is below that level, bears still have hopes for a move towards $1 and lower. Bulls will make a first step towards reclaiming the trend if they break above $1.56.






Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin's inability to break resistance, brings price lower

Bitcoin got rejected at the major Fibonacci resistance at around $58,000-$59,000. Price also got rejected at the shorter-term 61.8% Fibonacci retracement at $57,250. So far bulls seem unable to break above resistance levels and this has put prices under pressure.



Red rectangle - resistance

Red line - critical support

Blue lines- Fibonacci retracements

Bitcoin is under pressure. Price is about to challenge the important support trend line and if price breaks below it, we should see a sharp move towards $47,000 follow. The trend line support is at $54,000. In all our previous analysis we warned traders that as long as price is below the red rectangle resistance area, price would be vulnerable to a move lower as price has formed a lower high. Maybe time has come for a lower low below $47,000. In order for bulls to regain control of the trend, they will need to break above $58,000.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Ethereum: competition with bitcoin, "alt season" and new targets

The update of the all-time high on Ethereum yesterday raised its capitalization to almost $500 billion. As a result, Ethereum has grown by over 470% since the beginning of the year.

The second cryptocurrency is being fueled by growing institutional interest as well as the wider adoption of decentralized finance (DeFi) applications in the Ethereum ecosystem.

In yesterday's review, it was discussed that the growth in the number of active Ethereum addresses is one of the signs of the fundamental strength of the second cryptocurrency. Analysts at Negentropic, co-founders of chain analysis firm Glassnode, also note that Ether coins are leaving exchanges in cold storage. This suggests that buyers are not planning to sell anytime soon.

Other experts point out that the current rally has been triggered by spot buying rather than intense speculation in derivatives. Usually, under such conditions, the market grows steadily without the danger of "overheating". At the same time, open interest in futures on Ethereum remains high, and the demand for ETH options in April surpassed the demand for Bitcoin options for the first time.

Some experts interpret such dynamics and the ratio of interest in Ether and Bitcoin radically. For example, Lex Sokolin, chief economist at ConsenSys, believes that due to the high demand for DeFi and NFT, Ether will gain a use case advantage over BTC.

It is also noted that in the previous bullish cycle of the cryptocurrency, there was a transition of liquidity from bitcoin to other coins, with Ethereum historically being the main beneficiary of this movement. Experts from BlockchainCenter point out that now this "alt season" has also arrived.

Considering all these facts, we can conclude that the likelihood of further interest in Ethereum is high. But a lot will depend on how things go with ETH 2.0.

Opinions on Ethereum targets for 2025 vary, ranging from $20,000 to $100,000.

Locally, consistent technical analysis and the well-proven Fibonacci extension will help us in this process. After the price has consolidated above the 161.8 Fibo Expansion level (near 4211.07), we will look for new targets by stretching a new blue grid.

ETH/USD quotes have already consolidated above the 61.8 blue extension level. The nearest targets are 100 Fibo Expansion ($4,670) and 161.8 ($5,260 per coin).







Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

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Paolo Greco, Analytical expert InstaForex Group © 2007-2021

Over the past few days, the cryptocurrency market has been in a volatile state, accompanied by fluctuations in BTC, XRP, and LTC. After a slight decline in ETH and a negative report by JPMorgan on the real value of ether, there were every prerequisite to assume that the market would go into correction. However, over the past day, the total capitalization of all cryptocurrencies increased by 5%, and the market exceeded the $2.5 trillion mark.

Ethereum became the main driver of the successful period of the entire crypto market. The asset continues to grow its audience and institutionalize. A recent and upcoming update to version ETH 2.0 acts as support in this. After the negative associated with the JPMorgan report, which said that the asset is overvalued by 100% and its real price is $1,000, the cryptocurrency quotes have held on to safe positions. As a result, over the past 24 hours, ether has grown in price by 8%, reaching a new all-time record of $2,346. Over the past week, the asset has risen in price by 32.5% and, judging by the volume of daily trading, has not yet exhausted its safety margin. In the near future, the asset may continue to grow, but in the longer term, it is hardly possible without correction. It became known that already in May, commissions on the ETH network, despite the update, increased by 563% and reached $65. It is this factor that can cause a decrease in demand for the asset and its further correction.



The XRP token remains in the range of $1.40-$1.50, which is actually a positive result. During the day, the asset has risen in price by 1%, which indicates the strong support of the cryptocurrency market. In the near future, the token will not show rapid growth without significant news impulses. In this regard, the asset is similar to LTC, whose indicators managed to overcome the $370 mark. Over the past 24 hours, the cryptocurrency has risen in price by 3%, but by 13:00 UTC it dropped to $365, which indicates that there are no prospects for Litecoin in the near future.





At the same time, a negative background has developed on the cryptocurrency market due to the SEC's statement that bitcoin is a speculative asset with a high share of risk. Investors' significant fears are caused by the rapid growth of unknown altcoins a week ago. Cryptocurrencies rise in price by tens of percent every day, which undermines the stability of the market. Many institutions are anxiously awaiting further developments that could trigger a sharp decline in the entire crypto market. The fact that the total value of all cryptocurrencies exceeded $2.5 trillion, where many leading experts and analysts predicted a correction, does not add optimism. In the next few days, coin quotes will continue to grow and try to overcome psychological boundaries, but in the longer term, the market will face a technical correction.




Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021