Cryptocurrency Analysis

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Trading Signal for BTC/USD (Bitcoin) for May 21 - 24, 2021: Buy above 37,500



In the early American session, Bitcoin (BTC / USD) is trading above the psychological level of $40,000, forming a symmetrical triangle in 1-hour charts, with upside potential in the short term up to the zone of 200 EMA.

According to JP Morgan analysts, they have pointed to the fair price of Bitcoin based on a BTC volatility index, at $35,000. However, it is difficult for BTC to stay at that price, due to the strong demand it has. Besides, more and more companies are including BTC in their corporate investment portfolios. We believe that the fair value could be about the $100,000.

The most popular digital token is very volatile and prone to both panic and euphoria. So, its price has no limits when rising and falling. Hence, we must consider this digital asset with a lot of volatility and operate very carefully.

On the 1-hour chart, Bitcoin is consolidating above the strong 2/8 murray support located at $37,500, as long as BTC remains above this zone it could continue climbing to the 200 EMA located at $45,077.

Conversely, a price below $37,000 could have a bearish move to the $30,000 level and could form a double bottom, thus demonstrating the strong support and rebounding again. Therefore, below 2/8 of a murray we recommend selling up to 1/8 of a murray around $31,250.

The moving average of 21 also adds support to BTC. As we noticed, in recent days it has been bouncing above this area. So, we believe that there is a good opportunity to buy Bitcoin with targets at $45,000. A break above the 200 EMA can open the way to the psychological level of $50,000.

The eagle indicator in 1-hour charts, is showing overbought levels. A retracement of the BTC is likely in the next few hours to the support zone of $37,500, suggesting buy positions.


Support and Resistance Levels for May 21 – 24, 2021
Resistance (3) 47,581
Resistance (2) 46,321
Resistance (1) 43,125

Support (1) 39,467
Support (2) 35,811
Support (3) 33,645





Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for May 24, 2021

Crypto Industry News:
After the cryptocurrency market slump this week, Bitcoin lost around 24% of its value. Meanwhile, the anonymous email service ProtonMail has confirmed its support for the original cryptocurrency.

Despite the enormous volatility that has pushed Bitcoin's price below $ 30,000, ProtonMail said on Twitter that it continues to HODL its BTC to maintain its independence.

"Responsible financial diversification requires the ownership of certain assets outside of the traditional government-controlled banking system. Therefore, Proton will continue to HODL a significant portion of our reserves in Bitcoin to protect our independence."

By posting this message, ProtonMail is following in the footsteps of organizations such as MicroStrategy. Its CEO Michael Saylor said Wednesday that companies under his control have purchased approximately 111,000 Bitcoins, which are now worth $ 4.5 billion. These entities "did not sell a single satoshi, BTC, forever," said Saylor.

ProtonMail introduced Bitcoin as a payment option for ProtonMail membership in August 2017. The goal was to maintain a commitment to individual freedom and privacy. ProtonMail has previously announced that it has never cashed any of the Bitcoins it has accepted as payment. On top of that, the company also allows users to make donations in Bitcoin. There is a total of 2.2 BTC at the current address where users can send donations. It is currently around $ 74,000.


Technical Market Outlook:
The BTC/USD pair has been capped at the level of $41,794, which is just above the 38% Fibonacci retracement seen at $41,096. The market still trades under the trend line resistance and under the zone located between the levels of $43,1459 - $41,794. Bears are still in full control of the price and only a strong breakout above the level of $41,096 (38% Fibonacci retracement of the last wave down) would temporary change the outlook to bullish. The next target for bears is May 19th low seen at the level of $29,701.

Weekly Pivot Points:
WR3 - $58,682
WR2 - $52,643
WR1 - $41,961

Weekly Pivot - $35,513
WS1 - $25,163
WS2 - $18,359
WS3 - $7,655


Trading Recommendations:
Event despite the recent correction 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 $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).







Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for May 24, 2021

Crypto Industry News:
With the recent volatility in the cryptocurrency market and the growing dominance of Ethereum (ETH), the debate on the topic of ETH vs BTC has flared up. Even a few big players joined it. Wall Street banking giant Goldman Sachs recently published its Global Macro Research report. In it, he spared nice words towards the king of smart contracts - Ethereum.

Santeago Santos, general partner of ParaFi Capital, shared some key points and excerpts from the report. We can read in them:

"Ether beats bitcoin as a store of value. The Ethereum ecosystem... provides developers a way to create new apps. Most of DeFi apps are being built on Ethereum. The greater number of transactions in ether vs bitcoin reflects this dominance "- Goldman Sachs Global Macro Research

The banking giant also noted that Ethereum had the advantage of a pioneer. Ethereum has been supporting DeFi and NFT from the beginning. Goldman added that Ether is also "the right platform for the safe and private storage of information that can be monetized with tokens."

Creating a digital profile on Ethereum can help users store personal information, including medical history, asset ownership, intellectual property rights, and more. Goldman refers to the Ethereum platform as the "Information Amazon".


Technical Market Outlook:
The ETH/USD pair has made a new swing low at the level of $1,829 during the weekend after a failure to bounce above The level of $2,861. The bears are in full control of the price and the next target for beats is seen at the level of $1,729, $1,633 and $1,544. Please notice, the market keeps trading out of the main channel, so the down wave might occur any time now. The nearest technical resistance is seen at the level of $2,201 and $2,639.

Weekly Pivot Points:
WR3 - $4,688
WR2 - $4,131
WR1 - $2,922

Weekly Pivot - $2,341
WS1 - $1,141
WS2 - $579
WS3 - $181


Trading Recommendations:
Ethereum has lost more than 50% of the recent gains from the lows of March 2020 and now is currently in the counter-trend corrective cycle. The next long-term target for bears is seen at the level of $1,728 (61% Fibonacci retracement of the last wave up) and $1,420 ( January 2018 swing high). The up trend is resumed when the level of min. $3,000 is clearly violated.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

The cryptocurrency market collapses like a house of cards



Almost every aspect of the cryptocurrency market now resembles the concept of 'house of cards'. The meaning of this expression is that if you draw one card, everything else collapses. And the same thing is now happening in the cryptocurrency market. After Bitcoin started to fall in price, all other cryptocurrencies also began to fall in price, although a couple of weeks ago, the "altcoin season" was being discussed with might and main. But as it turned out, as soon as the sales began, everyone immediately began to sell ether, litecoin, and other alternative tokens. The same goes for investors. As soon as the coins were sold off conditionally by Elon Musk (-10% for bitcoin from Tesla), other companies and institutions immediately began to reduce their investments in digital gold, except for MicroStrategy, which seems to be going to own bitcoin in proud solitude. The same goes for the fundamental background. As soon as the negative news from China began to arrive, they immediately began to provoke the appearance of new equally negative news. For example, this weekend, the Chinese cryptocurrency exchange Huobi announced the suspension and even curtailment of a number of areas of its activities and services for investors. It is not surprising if the Chinese authorities have begun to prohibit financial organizations from providing any services related to bitcoin, and in the near future they may even ban mining. Recall that in China, there are not only a lot of mining farms, but also a huge number of exchanges. It is clear that miners will find a way to mine cryptocurrency outside of China, but exchanges will have a hard time. There are plenty of places where you can place mining equipment on the ground. The problem is that bitcoin reacted to this news with a collapse. And the less it costs, the less profitable it is to mine it. Especially considering the increased prices for mining equipment over the past year. So, the fundamental background is not just bad at the moment, it continues to deteriorate. In the near future, we can expect some more surprises. Of course, it will not be without a new batch of forecasts that bitcoin "is about to rise in price to $100,000". But we are very realistic and do not own hundreds and thousands of bitcoin coins. Therefore, we believe that, at least, a long period of consolidation of the cryptocurrency begins. As a maximum, the collapse of the entire cryptocurrency market will continue.



Technically, Bitcoin fell to two important support levels on the 4-hour timeframe. The upward movement was very short-lived and now we recommend traders to monitor the behavior of bitcoin around the level of $30,500 and $29,873. If the price breaks these levels, then Bitcoin may continue its collapse.






Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for May 24,.2021 - Inside days formation and potential for the breakout

Technical analysis:


BTC has been trading sideways at the price of $37.000 but I see potential for the breakout.


Trading recommendation:
My advice is to watch for the breakout of the inside formation to confirm further direction.

Resistance is set at $43.000
Support is set at $29.000

Downside breakout of the support at $29.000 can lead BTC towards the $22.000

Upside breakout of the resistance at $43.000 can lead BTC towards the $.48.000





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Short-term reversal signs in Bitcoin.

Bitcoin made another pull back towards $30,000 but price did not break recent low. Instead price is now bouncing higher towards $40,000 and so far price has broken the short-term resistance trend line at $37,000.



Red rectangle- major resistance

Red line - short-term resistance

Blue lines- Fibonacci retracements

Bitcoin has been in a bearish short-term trend since early April and the reversal from the $58,000 level. Bitcoin has so far retraced more than 50% of the entire rise from the 2018 lows. The RSI has already provided a bullish divergence in the 4 hour chart and price is now breaking above the red resistance trend line. Bitcoin could continue higher towards the red rectangle horizontal resistance where we expect to see the most important test for bulls. So a bounce towards $47,000 is justified and not out of the question. However even if price moves towards that level, it will not mean that a major low is in. Yes support is important around $30,000, but for now we can not talk about a major low.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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XRP back tests major broken resistance area.

So far the worst possible scenario for XRP has been confirmed. Price broke below the key support levels of $1,2 and $0.83 and has tested the major support, previous resistance area of $0.65-$0.75. Price today bounced off this break out area and so far we have a bullish back test of broken resistance.



Green rectangle - major support

Red line - support trend line

XRP/USD is now trading above $0.85 again. It was only a one and a half month ago when prices were challenging the green rectangle area and were breaking out. Now price is back testing the support around this level. Bulls need to respect both the upward sloping red support trend line and the horizontal support. Bouncing off the support level is a bullish sign but it is still too early to call a major low in.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum New Swing Higher!

ETH/USD is bullish again after failing to close below a support area. Technically, a rebound is natural after the amazing sell-off. It has found strong support and now it has taken out a dynamic resistance.

It's trading at 2,422.06 versus 1,730 yesterday's low. Now is located right below a static resistance. Registering a valid breakout could signal broader growth. Ethereum dropped by more than 60% since May 12, 2021, but now, the rate seems poised to come back higher.


ETH/USD TURNED TO THE UPSIDE!


I've told you in my previous analyses that the bias remains bearish as long as the price stays below the first warning line (wl1) of the descending pitchfork. ETH/USD has found support on the $1,930 level registering only a false breakdown through 1,800 psychological level and below the upper median line (uml).

Taking out the weekly pivot of 2,472.27 should indicate a potential growth towards 2,800 and 3,000 levels. Being rejected by the weekly pivot or registering only a false breakout could signal that ETH/USD may drop a little towards the 2,200 - 2,000 area.


ETHEREUM FORECAST!

The aggressive breakout through the warning line (wl1) signaled that the downside movement could be over. Still, we cannot exclude a temporary decline from the weekly pivot.

Actually, a temporary decline could help us to catch a new upwards momentum. Personally, I would like to see consolidation and other false breakdowns below the immediate support levels before really developing a new swing higher.





Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Cryptocurrency market analysis on May 24. Bitcoin prepares to rise to $42,000



The wave counting on the 4-hour chart of bitcoin is absolutely clear on the higher scale. At this time, we see a classic three-wave correction structure a-b-c. If the current wave counting is correct, then at least three upward waves should follow. Two of these three waves have already been built, therefore, we can count on the construction of wave c soon. Targets for this wave can be located near the 50.0% Fibonacci level, which equates to $46,800, or at least around the 61.8% Fibonacci level, which corresponds to $42,500. But let me remind you that bitcoin is very vulnerable to the news background. If tomorrow, for example, new important information arrives on the market, this may well once again collapse the bitcoin quotes. But the wave counting now speaks of a very likely increase in the quotes of the main cryptocurrency. I am not considering alternative wave counting options now, as there are no grounds for this.

The mood in the cryptocurrency market remains depressing. Along with bitcoin, many other cryptocurrencies are also falling in price. Investors are not buying bitcoin now, despite its rather low cost. This means that at this time, there is no faith in a new upward trend section. In addition, even without taking into account the possible actions of Elon Musk or his new statements, which have a strong impact on the entire market, the news background is now full of other important messages that could affect bitcoin in the worst possible way. As previously mentioned, the United States is planning to introduce new tax legislation, which will require all transactions over $10,000 to be submitted to the IRS for review. Thus, many investors can opt out of cryptocurrency transactions, since they will no longer be anonymous in the literal sense of the word.

The US government, led by Joe Biden, believes that many investors are using cryptocurrencies for tax evasion, so they are going to pass new legislation. Of course, it may take more than one month before this law is signed by the president and comes into force. After all, this requires that the US Congress also approve it. Nevertheless, the outlook is rather bleak. The prospects for bitcoin in China are even worse, where they are going to ban any mining of cryptocurrencies altogether. Here, too, everything is at the level of rumors and conversations. But, as they say, there is no smoke without fire. Thus, I can conclude that there is no new reason for investors to buy bitcoin so far. If these bills fail eventually, then the news background for bitcoin will dramatically improve. In the meantime, I really do not see any prospects for the main cryptocurrency above $42,000. And I am considering this option only because the wave counting speaks in its favor.

Based on the analysis, I believe that the three-wave downward structure is complete. However, the movements of recent days have been so fast and strong that it will take some time for the market to clear up. The current wave counting indicates a possible increase, so I recommend small purchases of bitcoin for each MACD signal "up" with targets located around $42,500. A failed attempt to break through the 61.8% Fibonacci level could lead to another strong decline in bitcoin.





Chin Zhao
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN for May 24 - 25, 2021: Buy above $37,500



In the early hours of the American session, Bitcoin BTC/USD is trading at the 2/8 murray level, a key area. If the BTC remains above this level, there could be a new upward momentum to the zone $43,750.

The crackdown on crypto miners in China - who account for around 70% of the world's supply - is the latest episode in a series of actions that Beijing is taking against the digital currency sector. Some investors and analysts in the digital currency market have claimed that fears about China's regulatory measures could persist.

During the weekend we saw that BTC fell to the 1/8 murray zone, key support, and demonstrating the strength of this level that coincides with the psychological level of $ 30,000. BTC / USD has set a floor for now, and as long as it remains above $30,000, there is a probability that it will hit the psychological level of $50,000.

On the 4-hour BTC chart, you can see a trend line drawn from the beginning of the BTC decline, to the low of $31,000. That line has been broken. If BTC consolidates above that channel bearish, it could be released from the downward pressure and there could be a further bullish momentum to $45,000 and the zone of $50,000 in the short term.

We can also observe the double bottom, which represents a good zone to buy if the price again makes a correction towards this zone.

Our recommendation is to buy the BTC at the current levels above $37,500 with targets at $43,750 and $50,000 zone of the 200 EMA.


Support and Resistance Levels for May 24 – 25, 2021
Resistance (3) 43,676
Resistance (2) 41,595
Resistance (1) 38,465

Support (1) 36,112
Support (2) 34,146
Support (3) 30,397




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021