Cryptocurrency Analysis

[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

[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]

Trading plan for Bitcoin for May 24, 2021



Technical outlook:
Bitcoin had dropped through $30,000 levels over the last week before reversing sharply and regaining $40,000 handle. The rally from $30,000 lows seems to be corrective yet, and there could be further decline to complete the structure. Traders might remain long or prepare to initiate fresh long positions going forward.

Bitcoin is seen to be trading around $36,500/600 levels at this point in writing and might find support again soon. Immediate price support is at $30,000, while resistance stays at $40,500, followed by $60,000 and higher respectively. A temporary bounce towards $48,000 remains possible before Bitcoin finds resistance again.

Bitcoin has still got its trend line support since prices bounced again from its one year old trend line support around $30,000 levels. A rally from current levels remains possible but we need to see a clear break above $60,000 levels to confirm a trend reversal. This rally could be the last one to push above $65,000 levels, before a major bearish reversal.


Trading plan:
Remain long from @ 36,400/500, stop @ 28,000, target @ 65,000 at least.

Good luck!





Oscar Ton
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]

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]

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]

Bitcoin has crashed down again



Bitcoin recovered after falling to $29,000 to $42,000 per coin and almost immediately fell back down again. This time, the quotes dropped to $31,137 per coin and just barely reached the support level of $30,500. Thus, the corrective scenario of the development of events, which we talked about recently, continues to work. We said that there are very few reasons for the growth of bitcoin, for its new upward trend. That is, theoretically, the cryptocurrency can start to rise in price even from the current positions and to any values. And in order to do this, you just need to start buying it again, not sell it. One post on Twitter from Elon Musk, for example, may be enough. However, in fundamental terms, there is simply nothing positive for Bitcoin right now. Moreover, the negative fundamental background, which a month ago began to put pressure on bitcoin over time, only gets worse. In the States, Joe Biden proposes to introduce strict tax control over all cryptocurrency transactions over $10,000. In China, at first, financial institutions are prohibited from providing any services in bitcoins, and according to the latest information, they may completely ban mining. And this is the country where the largest number of mining capacities in the world is concentrated! How else should bitcoin react to these events? Naturally, more and more investors are simply getting rid of it. And no institutional investors or large players in the cryptocurrency market will save bitcoin from a new collapse. Recently, it has been widely believed that large players can afford to keep bitcoin on their balance even until the second coming, which will ultimately preserve bitcoin's "bullish" trend. But, as real life has shown, the sales of small investors are quite enough to bring down Bitcoin by $36,000. Moreover, institutions are in no hurry to save bitcoin even now, when, it would seem, the price is nowhere more attractive. Bitcoin is trading again at about $35,000, which is almost half of what it was a month ago. But still no one is in a hurry to buy bitcoin. And together with bitcoin, the entire cryptocurrency market is collapsing like a house of cards. Ether has crashed in recent days to $2,000 per coin, which is more than 50% of the loss. Litecoin has dropped in price by almost three times. Thus, it seems that the "bubble" has begun to burst, but this is not a fast business and the entire cryptocurrency market may continue to depreciate in the near future.



In technical terms, bitcoin resumed its fall to the support level of $30,500 and today it can work out for the second time. We believe that if bitcoin quotes consolidate below, then it will be possible to count on the continuation of the depreciation of the first cryptocurrency in the world. The problem is that the market is currently experiencing an avalanche-like fall. That is, at the time when bitcoin consolidates below $30,500 (at the end of the trading day), it can be traded for about $25,000 per coin. Therefore, perhaps it is now necessary to closely monitor the lower timeframes, where any changes can be tracked more quickly.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

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]

Long-term technical analysis for XRP/USD

XRP/USD was not unaffected by the sell of in cryptocurrencies this week. With a high this year close to $2, price so far had already made a strong pull back towards $0.88. With the sell off in cryptocurrencies this past week, XRP/USD made a new lower low at $0.83, but the stay below $1 was short lived.



Green rectangle - major horizontal support

XRP so far remains above our key support area of $0.65-$0.75 which was once a major resistance. Staying above this support area is key for the bullish trend we believe started this year. Taking a closer look we observe a possible triangle pattern being formed in XRP/USD.



Red lines- triangle pattern

In both pull backs, the price was supported below $1 and the stay below this price was very short. This is promising and confirms that important support by the lower triangle boundary. Price on the other hand got rejected at $1.70 area and this also confirms the importance of resistance. Breaking above the upper triangle boundary is key for the continuation of the up trend. Will a SEC settlement be spark that ignites the next upward move? Or will failure to bring a close to this case will make price continue to trade sideways for a few more months?






Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading idea for Filecoin



Filecoin (FIL) is a decentralized system for storing data. Its initial placement (ICO) in 2017 raised $ 205 million, but the launch in mid-2019 did not take place as previously planned.

It has an open protocol that is supported by a blockchain that records the commitments participants take on transactions that are made using FIL.

FIL is the blockchain's own currency, which is immediately based on the proof of repetition and on the proof of space-time.

The founder of Filecoin is Juan Benet, an American computer scientist who also created the Interplanetary File System (IPFS).

The idea behind Filecoin is to store data in a decentralized way, a distinctive feature that sets it apart from other companies like Amazon Web Services and Cloudflare, which have cloud storage. FIL's decentralized nature protects the integrity of the data location, making it easier for users to retrieve files, all while complicating surveillance.

To be more specific, Filecoin allows users to act as custodians of their own data. It also makes participants work honestly, not to mention stores significantly more data.

In total, Filecoin (FIL) has 2 billion tokens issued as block rewards over the next decades. Its market cap has reached the 23rd place, exceeding more than $ 6 billion. It continues to grow quite actively, and currently costs $ 85.



Considering this, investors can work for a further price increase, especially since Filecoin has not yet reached a new all-time high. At the time of writing, it is 2.6 times cheaper from its highest value ($ 238).



So, based on the three-wave pattern that was formed on the chart, investors can open short positions in the market, aiming for a 23.6% retracement from the current level ($87.600). Place stop loss at $19.960, and then take profit as soon as the quote hits $238 and $285.

Good luck and have a nice trading day!





Andrey Shevchenko
Analytical expert
InstaForex Group © 2007-2021