Cryptocurrency Analysis

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Ichimoku cloud indcator analysis on Ethereum

There is a bullish signal in the making by the price action of Ethereum in the 4 hour chart using the Ichimoku cloud indicator. Price was trading below the Ichimoku cloud from $3,700 to $2,600 where it recently broke again above the cloud. Bulls and bears are battling now around the cloud as there is still no clear indication if price will stay above or re-enter the cloud.



Ethereum is trying to push above the cloud. Price is above both the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). Breaking above the cloud and staying above $2,620 is key for the short-term trend. The tenkan-sen has crossed above the kijun-sen and this is a bullish sign. If price manages to stay above $2,620 we could see a move higher towards $3,200-$3,300 as explained in previous posts. Support at $2,380 is key and breaking below it will be a bearish sign.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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XRP/USD short-term analysis and expectations.

XRP/USD briefly pushed above $1.06 resistance today but bulls seem unable to hold above it. Fake break outs are usually worse than rejections as they lure in many traders with a fake signal. It is too early to call this signal a fake one. Bulls could make another try on $1.06 over the next few hours but the longer it takes to break it, the harder it will get.



Red rectangle - resistance

Red lines - Fibonacci extensions

After the low on May 23rd XRP/USD is making higher highs and higher lows. This is important for bulls and they will need to continue this way. Price has bounced and stopped the decline right at the major support and previous major resistance area. This is also another bullish sign. However in order to hope for a move above $1.97 bulls will need to show more signs of strength. XRP/USD could reach $1.20 and $1.45 over the coming days, but failure to hold above $0.80 could lead to a sell off towards $0.60. So far it seems like bulls are about to retake control of the trend but still there is nothing clear in the short-term. Traders need to be cautious.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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BTC analysis for June 01,.2021 - Completion of the ABC upside correction and potentia lfor downside movement

Technical analysis:



BTC has been trading downwards in last 12 hours and i see potential for the further downside movement.


Trading recommendation:
Watch for potential selling opportunities due to potential completion of the ABC upside correction and downside continuation.

Downside targets are set at the price of $33.850 and $29.120.

Stochastic is showing overbought condition and fresh bear cross, which is another sign and confirmation for the downside rotation.






Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

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Trading plan for Bitcoin for June 01, 2021



Technical outlook:
Bitcoin seems to have completed its sideways triangle consolidation, which lasted for several trading sessions since printing lows at $30,000 levels earlier. The crypto had rallied through $37,900 levels today, potentially terminating the triangle consolidation. If the above structure is correct, Bitcoin is expected to drop below $30,000 levels one last time before turning higher.

Bitcoin is seen to be trading around $36,400 levels at this point in writing looking to prepare to continue lower below $30,000 mark. Immediate support is seen at $28,500, while resistance is seen around $40,500 levels respectively. A break below $28,500 in the near term might trigger a rally back towards $48,000 levels at least.

Bitcoin uptrend remains in tact for now and the crypto might still have another high to be print above $65,000 levels going forward. Traders might be advised to book profits on long positions taken earlier and remain flat for a while. A drop below $30,000 might offer yet another opportunity to initiate fresh long positions.


Trading plan:
Remain short stop @ 41,500, target @ 28,500

Then buy @ 28,500, stop @25,000, target @ 48,000

Good luck!





Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

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Ethereum Exhausted Again!

Ethereum is dropping right now after failing to approach the immediate resistance levels. It could drop to test and retest the immediate support levels before jumping higher again. The selling pressure remains high in the short term despite the most recent bounce.

Bitcoin is under pressure as well, so a further drop registered by BTC/USD could force the altcoins to decline. Technically, a temporary decline could help us to catch a new upwards momentum.

The bias is bullish in the short term, despite the current decline. An upside breakout through the immediate obstacles could bring new opportunities.


ETH/USD TEMPORARY DECLINE?


Ethereum failed to reach the 50% Fibonacci level and the weekly R1 (2,842.67) in the current attempt signaling a potential decline towards the weekly pivot (2,461.20).

The price action develops a triangle pattern. A valid breakout from this pattern may bring us a great trading opportunity. An upside breakout could really announce a bullish reversal, a strong swing higher in the coming period.


ETHEREUM OUTLOOK!
A false breakdown with great separation through the weekly pivot point (2,466.09) or below the uptrend line could bring a new buying opportunity. Also, a major bullish engulfing printed on these levels could signal a bullish momentum.

A great buying opportunity could be signaled by an upside valid breakout from the current triangle, through the R1 (2,842.67), and most importantly, above the 3,000 psychological level.

The upside scenario could be invalidated by a drop and stabilization below the immediate uptrend line.





Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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Max Keiser: Bitcoin will grow to $220,000 per coin



While bitcoin is trading in an ambiguous style around the level of $37,000 per coin, and news suggests that many miners are turning off their equipment, and China and the United States are planning to seriously tighten the regulation of the cryptocurrency sphere, some crypto experts, billionaires, and investors continue to piously believe that digital gold will rise in the near future. Earlier, we have repeatedly said that it is clearly not worth listening to forecasts that say bitcoin will rise to a certain price. Many investors continue to own bitcoin, which means they are interested in seeing it rise in price again. And this can only be achieved by attracting new investments and investors to the market. Therefore, all owners of bitcoin (especially large ones) will tell you that BTC will resume an upward trend tomorrow. This is exactly what the head of Heisenberg Capital Max Keiser does, who is sure that Bitcoin will rise in price to $220,000 in 2021. In his opinion, the American currency now has serious problems due to the very aggressive monetary policy of the Federal Reserve System. In other words, the dollar is facing high inflation and depreciation due to the printing press not shutting down for a minute. This is what we have talked about many times in our articles on the euro/dollar and pound/dollar currency pairs, by the way. Therefore, according to Max Keiser, large corporations and firms are increasingly buying bitcoin to save themselves from inflation. He also believes that MicroStrategy's $1 billion purchase of bitcoin was a watershed moment for the entire market. Keiser himself is waiting for the update of the absolute highs of bitcoin by June 4. Recall that bitcoin is currently trading at $37,000, the absolute highs are located at about $65,000. But no one forbids anyone to make crazy predictions. The only exception, probably, is Elon Musk, thanks to whom the number one cryptocurrency in the world regularly "flies" from side to side. So, probably now, many investors really would not want Musk to comment on "digital gold" again. In general, there are no preconditions for bitcoin to jump upwards.



Technically, bitcoin tried to gain a foothold above the Ichimoku cloud on the 4-hour timeframe, but it just perfectly worked out its upper Senkou Span B line, bounced off it, and began a new round of downward movement. Thus, we still believe that in the next few days the bitcoin quotes may return to the levels of $30,500 and $29,873. If the overcoming of these levels does not occur, the period of consolidation for bitcoin will continue between the levels of $32,000 - $42,000. And if the overcoming happens, the fall of bitcoin will continue.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for June 1, 2021

Crypto Industry News:
During the spring meeting of the International Financial Forum 2021 (IFF), Yao Qian, head of the science and technology oversight office at the China Securities Regulatory Commission (CSRC), said the central bank's digital currency (CBDC) could operate directly on the Ethereum network.

When mentioning the operational architecture of potential infrastructure solutions for CBDC, the official added that, apart from Ethereum, CBDC could be supported, for example, by the Facebook payment system Diem.

"We can imagine that if a central bank's digital currency operates directly on blockchain networks such as Ethereum and Diem, then the central bank could use BaaS services to directly deliver central bank digital currency to users without the use of intermediaries."

Overall, Yao outlined seven aspects that he believes should be taken into account when researching and developing CBDC. It's about its technical path, value attributes, operational architecture, interest charging, distribution, smart contract implementation, and regulatory issues. The official noted that digital currency cannot be a "simple simulation" of physical money, which justifies the creation of "smart money".

However, he also drew attention to the gaps in the security of smart contracts. Technology has to mature, he said.


Technical Market Outlook:
The ETH/USD pair has broken through the upper channel line around the level of $2,505 and tested the local technical resistance seen at $2,638. Nevertheless, as long as the price is still under the level of $2,914, the bears are still in full control of the market and the next target for bears is seen at the level of $1,729, $1,633 and $1,544. The nearest technical support is still seen at the level of $2,201.

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

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Technical Analysis of BTC/USD for June 1, 2021

Crypto Industry News:
Cathie Wood, founder of asset management company ARK Invest, sees the possibility that central banks could start amassing bitcoin and other cryptocurrency assets. Wood found that when consumer demand shifts from commodities deflation, not inflation, will hit global markets.

"We believe deflation is much more likely. I know most people think this is crazy given what is happening, but we are already seeing a very significant drop in the prices of some commodities. We believe that what happened here is that consumers have spent the last year spending money on the only things they could do, which are commodities, durable goods, and non-durable goods.

Firms were behind the curve even before the coronavirus due to the inverted yield curve. They feared a recession ... So businesses were terrified and conservative. Consumers have started to buy goods, and now - being vaccinated - they intend to shift their market basket from goods to services ... So I think what will happen here is that businesses will now see a two-, three- or even fourfold increase in orders [ ...] When the market basket shifts towards services. I think commodity prices will drop significantly next year. "

As companies try to get rid of excess supply, commodity prices are falling. As such, Wood predicts emerging markets will be hit by a huge blow. He adds that the effects of deflation will cascade emerging market fiat currencies, forcing their central banks to take refuge in bitcoin and other cryptocurrencies.


Technical Market Outlook:
The BTC/USD pair volatility has decreased significantly, but the bulls are climbing higher step by step. The momentum is still hovering around the neutral level of 50, but is not dropping lower. The market still trades under the supply zone located between the levels of $43,1459 - $41,794, so bears are still in full control of the market 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:
Even 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

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Miners reduce bitcoin mining volumes



Over the past day, bitcoin has shown a desire to rise in price, but it ended the day with a minimal gain of only $500. For Bitcoin, a movement of $500 in any direction is the same as a cryptocurrency standing still. Thus, at the moment the quotes have failed to correct against the last round of the fall, even by 38.2%. From our point of view, this indicates a very weak interest in bitcoin at this time among all market participants. That is, despite the fact that many crypto experts talk about the attractive price values of bitcoin, no one is in a hurry to buy it again. Therefore, the trades continue to take place around the levels of $36-37 thousand per coin.

Meanwhile, it became known that the hash rate of the Bitcoin network continues to fall. This means that the computing power spent on mining coins is reduced. Simply put, there are fewer active mining equipment that are currently working on bitcoin mining. This was last seen in China's Xinjiang province, when there were several accidents in coal mines, which resulted in power outages, due to which many mining farms did not work. But now, there are no problems with electricity in the largest mining areas, and the hash rate all falls equally. This suggests that a certain part of the miners have stopped mining bitcoin at this time (perhaps switched to other cryptocurrencies). As of May 30, the hash rate dropped to 124 EH/s, and on May 13 it was 171 EH/s. Experts note that miners incur various kinds of costs, including electricity costs, room rent, equipment cooling and maintenance. Thus, if bitcoin drops in price greatly, it becomes unprofitable to mine it. Therefore, some miners can really switch to other digital assets or simply turn off their equipment until better times. It should also be noted that due to the desire of the Chinese authorities to ban mining and seriously tighten the rules for regulating the cryptocurrency sector, many miners and financial platforms began to leave China. Naturally, they will need some time to transport equipment to another country, to connect everything, configure and start up again. Thus, the drop in the hash rate of the bitcoin network is partly due to innovations in China, which forced the miners to "close the shop". In theory, Bitcoin can resume growth when most of the miners leave China and settle in other countries. But the point is also that the mining of miners by itself does not greatly affect the bitcoin rate. The question is, after all, what part of the production the miners sell, and what they keep for themselves, in anticipation of a more attractive rate.



In technical terms, bitcoin made an attempt to quickly and abruptly resume its upward movement after a strong fall, but now it is already clear that there are much fewer buyers on the market than sellers, and the notorious institutions are in no hurry to invest in "digital gold". Moreover, there is now an outflow of miners from the bitcoin network. Thus, we still believe that bitcoin has a much better chance of a new fall than a resumption of growth. If bitcoin quotes manage to gain a foothold above the 38.2% Fibonacci level - $41,000, then this will slightly increase the likelihood of further growth in digital gold, but traders still need to get to this level.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for XRP/USD-(Ripple), for May 31, 2021: Buy above $0.9185



At the beginning of the American session, XRP is trading at $ 1.0081 with a recovery of more than 15% which represents a daily rise. This is the largest percentage increase in one day since May 24.

Ripple has scored another significant victory against the United States Securities and Exchange Commission (SEC), after access was denied by the SEC to the company's legal advice documents.

According to the decision published on May 30, Magistrate Judge Sarah Netburn denied the SEC's motion to obtain access to any legal advice Ripple has requested or received regarding the regulatory status of XRP.

XRP is one of the most popular cryptocurrencies due to its structure and processing speed. In the medium term, we expect Ripple to remain above the key level of $ 1.00, thus there could be a strong appreciation up to levels of $ 2.35 and up to its all-time highs of $ 3.10.

In the chart, we can see that Ripple has broken a downward pressure line with a decisive candle and consolidating above the 21 SMA, with a strong bullish momentum to the 1.29 area in the short term.

However, the eagle indicator is showing an overbought signal. A technical bounce is likely to happen in the 0.9185 area in the coming few hours. A key level to watch for a new bullish momentum is an area where you can buy.

Below this zone, XRP has strong support of 0/8 of murray at the level of 0.7812. This will now be its immediate floor. Any price action in this zone will give it momentum and may be attractive to institutional buyers because of the expected climb up to the 1.30 zone in the medium term.


Support and Resistance Levels for May 31, 2021
Resistance (3) 1.1001
Resistance (2) 1.0786
Resistance (1) 1.0145

Support (1) 0.9026
Support (2) 0.8792
Support (3) 0.8295




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021