Cryptocurrency Analysis

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Will cryptocurrency be legalized as a means of payment?



Former US President Donald Trump considers Bitcoin a fraud. On Monday, he said that Bitcoin is competing with the status of the US dollar. He does not like it, and he always wanted the US dollar to eventually become a world currency.

Trump added that he is currently trying to stay away from both bitcoins and the stock market since he considers it too overbought.

It is worth noting that the former American President voiced his views on the main cryptocurrency just after news broke that El Salvador wanted to legalized bitcoin as a means of payment.

Nayib Bukele, a very young and already popular President of El Salvador, made the announcement in a recorded message that was played at the Bitcoin 202 conference in Miami.

The report said he would send a bill to Congress next week that would help put El Salvador on the map as the first sovereign nation to accept bitcoin as legal tender. He also hopes that such a solution will help create jobs and provide access to financial services for thousands of people outside the formal economy. In addition, he believes that their decision will push humanity in the right direction.

In addition to Trump's comments on Bitcoin, a Goldman Sachs study conducted by the Investment Directors of Investment (CIO) also put pressure on said cryptocurrency.

The survey found Bitcoin is the least favorite investment of CIOs, which could mean institutional adoption will take longer than anticipated.

Previously, meetings of directors of investment technologies were held, and 25 IT directors from various hedge funds took part in it. Their most favorite style is the growth style, but the least favorite for Bitcoin. This was written in a message to clients by Goldman Sachs strategist Timothy Mo.

But despite all the versatile pressure on Bitcoin, the cryptocurrency continues to struggle and withstand the competition.



On another note, South Korea has developed a bill on cryptography. The deputies of the Democratic Party presented draft laws on virtual assets, and the development of the virtual asset industry, as well as on the protection of investors in May 2021.

This country plans to tax foreign crypto-assets starting in 2022.

Currently, the Korean government does not recognize Bitcoin or other cryptocurrencies as financial assets. However, the government announced that it will start collecting taxes on income from cryptocurrencies as early as 2022.





Irina Yanina
Analytical expert
InstaForex Group © 2007-2021

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BTC analysis for June 08,.2021 - First target reached at the price of $33.400 but potential for bigger drop towards $28.800

Technical analysis:



BTC has been trading downwards today as I expected. The price reached my first downside objective at the price of $33.390 but there is still potential for further drop towards $31.330.


Trading recommendation:
Watch for potential selling opportunities on the rallies using the intraday time-frames like 15/30 minutes.

Downside targets are set at the price of 31.000 and $28.800..

I see no reversal patterns and to evidence of bigger demand, which is sign that selling can continue...






Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for June 8, 2021

Crypto Industry News:
US authorities have considered the prospect of blocking cryptocurrencies as a solution to ransomware attacks. We saw their intensity last month when American institutions were attacked. However, opinions on this subject are not clear-cut.

The largest fuel pipeline in America was brought to a halt in early May when hackers infected the Colonial Pipeline's computer networks. JBS, a food packaging company, was treated with a similar attack. Colonial Pipeline paid a ransom of $ 4.4 million.

US Senator Mark Warner referred to the matter in a TV interview and disagreed that crypto should be completely blocked:

"I have a lot of questions about cryptocurrencies. Some good things have come out of the distributed ledger technology, but now we see some dark sides (...) and therefore I'm more focused on transparency," he said.

Warner stated that some cryptocurrency "systems" can be "compromised: by authorities if they so wish." However, he said stopping the technology would simply redirect criminals to other technologies.

"The truth is there are ways we can break through some of these systems, but (...) if there is no transparency on this payment, fraudsters will just find another way to hide it" - Warner said.


Technical Market Outlook:
The ETH/USD bounce had broken out from the Triangle pattern and made a new local low at the level of $2,427. 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 - $3,628
WR2 - $3,236
WR1 - $2,995

Weekly Pivot - $2,426
WS1 - $2,383
WS2 - $2,000
WS3 - $1,765


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 8, 2021

Crypto Industry News:
Elon Musk is a character who, in the eyes of BTC fans, first became a hero to eventually turn into a super-villain. Now Tesla's boss has been attacked by Anonymous Internet activists.

Anonymous is an international, decentralized group of Internet activists that opposes the restriction of civil liberties, corruption, consumerism, censorship, the influence of the Catholic Church on public life and violations of animal rights. In 2012, Time magazine ranked the group among the "100 Most Influential People in the World". Now she has targeted the CEO of Tesla.

Musk was mainly hit for his comments on cryptocurrencies. Anonymous described him as "the narcissistic rich man seeking attention." In their opinion, he also disregards the fate of ordinary people.

Musk has been manipulating the cryptocurrency market for some time. This year he revealed himself as a BTC supporter. He admitted that Tesla is starting to invest in cryptocurrencies and accepting BTC in exchange for its products. As a result, the BTC rate began to rise sharply.

Except that Tesla's CEO suddenly changed his mind. He announced that his company would no longer accept BTC in exchange for its cars. Effect? The cryptocurrency rate has started a deep correction.

However, these are not all Musk's sins. With his tweets, he raised the valuation of the DogeCoin cryptocurrency, which, however, is commonly considered a meme-currency, and not a serious project, such as Ethereum.


Technical Market Outlook:
The BTC/USD 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 and the first attempt to test this level had been made as the bears had pushed the price below the $33,000 towards the technical support at $32,156 (May 23rd low).

Weekly Pivot Points:
WR3 - $43,458
WR2 - $41,521
WR1 - $38,273

Weekly Pivot - $36,222
WS1 - $33,131
WS2 - $30,800
WS3 - $27,577


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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Donald Trump criticized Bitcoin



The fundamental background for bitcoin remains very negative. And there is a whole group of news and messages that first led to the collapse of quotes from $65,000, then to the second wave of sales, and now, it seems, the third "wave" begins. Recall that it all started due to power outages in some areas of China, where a large number of mining facilities were located. As a result, the hash rate of the network fell, and with it the bitcoin rate. Then, the Chinese authorities announced that the country's financial institutions would be prohibited from providing any services related to bitcoin and other cryptocurrencies. Also, Elon Musk began to comment on bitcoin in a completely unusual way, and Tesla began to sell its coins under a plausible pretext (which it had previously bought for $1.5 billion), and then refused to accept payment for electric cars in bitcoins (although only a month ago it allowed it do to their customers), referring to the high environmental friendliness of the first cryptocurrency. As if this was not known before. Such confusing behavior from Tesla and Elon Musk brought panic to the cryptocurrency market and bitcoin was already getting cheaper at every opportunity. In addition, it became known that in China, mining may be completely banned, and in the United States, tax legislation regarding the 1.5 trillion cryptocurrency market may be toughened. Joe Biden himself even talked about this. As a result, over the past few months, Bitcoin has been squeezed from all sides, so what's so surprising about the fact that it is falling?

In the end, even former US President Donald Trump joined the general criticism and pressure on Bitcoin. He stated that Bitcoin is a scam. "I don't like it because it's another currency that competes with the dollar... I want the dollar to be the currency of the world, that's what I always said, " Trump stated in an interview with Fox News. He called on the US authorities to regulate the circulation of cryptocurrencies as strictly as possible. Trump has never been a fan of digital assets and during his presidency repeatedly wanted to put an end to them, at least in the United States.



Technically, what we talked about and what we were waiting for happened on the 4-hour timeframe. The quotes still broke out of the triangle, in which they had been for several weeks. The overcoming of the lower trendline happened, thus, immediately after this event, the quotes immediately collapsed downward without any delay. At the moment, after breaking the trend line, Bitcoin has lost $3.5 thousand in 12 hours. Thus, we are waiting for it around the levels of $30,500 and $29,873, around which the further fate of the world's number one cryptocurrency will be decided.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Short-term analysis of XRP/USD for June 8, 2021

XRP/USD has formed a short-term bearish channel that is currently in. Price got recently rejected again at $1.06 and as we warned traders, such a rejection makes price vulnerable to a deeper pull back.



Red rectangle - major resistance

Green rectangle - major support

Red lines- bearish channel

XRP/USD is still trading above the major support of $0.65-$0.75 but also below the key resistance of $1.06. Price is now trading very close to the lower channel boundary and this is where we can find short-term support. From $0.83 price could bounce towards $0.92. Short-term trend is bearish as price is making lower lows and lower highs. Bulls need to break above $0.97 in order to change short-term trend, but most importantly they will need to break above $1.06. Until some signs of strength are given, price is vulnerable to a pull back towards the green rectangle support area.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin fell down again



On Monday, the world's first cryptocurrency lost about $1,600, and another $1,400 during the night. Thus, at the moment, Bitcoin is trading at $33,000 per coin and is approaching the support level of $30,500. Yesterday, we continued to insist that the likelihood of a new fall in bitcoin is much higher than the likelihood of even a corrective rise. Actually, in practice, this is how it happens. Bitcoin is now fully consistent with itself during 2013 and 2017. We have repeatedly said that the upward trend is drying up, and if Bitcoin starts to fall, it will not end very soon, because after each upward trend, Bitcoin has consolidated and corrected for several years. Why is that? Because bitcoin was, is, and will always be an exclusively investment instrument. People buy it when a new wave of hype is forming. This is why the cryptocurrency grows and breaks all records of its own value. But sooner or later, everything comes to an end. Investors understand that the trend is not eternal, and bitcoin is a short-term earning tool. If you need to invest money for a long time and not be afraid of their depreciation, there are always stocks or gold or real estate. But "digital gold" can hardly be said that it will not depreciate. And naturally, all investors in the world understand this. As we already said, large institutional investors can keep Bitcoin on their balance for years and wait until it grows to $100,000 or $1 million. But small and retail investors do not want to wait 10 years for bitcoin to be consistently worth more than it is now. Therefore, at the first danger, most of the players in the cryptocurrency market begin to sell Bitcoin. In recent weeks, there has been an opinion that institutions can save bitcoin from a new fall by 80-90%, as it was before. They say that back in 2013 and 2017, there were almost no institutional traders in bitcoin, but now there are plenty. But in just a month and a half, the cryptocurrency plummeted by $35,000, and over the next few weeks it did not even manage to build a normal upward correction. Therefore, the question of whether institutionalists will or will not keep the upward trend can be considered closed. Thus, in the coming days, bitcoin may drop to the level of $30,500 and its further prospects will depend on whether sellers will be able to push through this level. Keep in mind that the fundamental background for Bitcoin remains, in principle, unchanged and at the same time very negative. Investors and miners continue to fear that mining will be completely banned in China, tax legislation will be tightened in the United States, and the Internal Revenue Service will know about all operations with bitcoin over $10,000. Therefore, the popularity of bitcoin is declining, and with it its rate.



In technical terms, bitcoin resumed its downward movement and is now again striving for the $30,500 level, which it already worked out during the previous fall. A rebound from this level can provoke a new round of growth of the first cryptocurrency. And overcoming this level can provoke a new collapse of BTC. As part of the correction after the second round of decline, the price failed to recover even to the Kijun-sen line. Thus, the corrective scenario remains a priority for traders. In case of overcoming the level of $30,500, the target will be the level of $24,349.






Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Triangle pattern breakdown in Bitcoin


In our recent posts we showed the triangle pattern Bitcoin was trading in. We also mentioned that the most probable scenario was for Bitcoin to break the pattern to the downside and continue its downward trend. However we also mentioned that we believe this downward move will most probable the final one before a big bounce.



Red lines - triangle pattern

Yellow rectangle -possible target area

Black line- trend line

Bitcoin has broken the triangle to the downside and we now expect a decline to follow. Our minimum target for this decline is to see price break below the May 19th lows. I expect price to form a major bottom around $25,000 and $15,000. Trend remains bearish as long as price is below $39,000





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Trading Signal for ETH/USD (Ethereum) for June 07 - 08, 2021: Buy above $2,590



In the early American session, Ethereum ETH / USD, is trading with a bullish bias, above the key level of 2,500, within the symmetrical triangle. A breakout of this pattern above $ 2,900 with a further upward movement to the 3,437 zone could occur.

On the other hand, the market sentiment is still negative for the cryptocurrency market, so some investors are expecting a new bullish momentum to liquidate their buy positions.

In addition, any negative news, albeit insignificant, causes the price to fall, since traders make panic sales. Thus, we must be careful. If the ETH / USD trades below the 2,500 fence, it could result in a downward movement to the 2,000 psychological level.

On the contrary, a bounce in the area of the 21 SMA around 2500, we recommend buying with targets at 2,900 and 3,437. With a break of the symmetrical triangle pattern, we can buy as well.

The eagle indicator in daily charts is showing a bullish signal, therefore, it is likely that in the medium term ETH / USD will reach levels of $ 3,500.


Support and Resistance Levels for June 07 – 08, 2021

Resistance (3) 2,969
Resistance (2) 2,852
Resistance (1) 2,778

Support (1) 2,662
Support (2) 2,473
Support (3) 2,353





Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

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Ichimoku cloud analysis on XRP/USD

XRP/USD is in a bearish trend. As we explained in several past posts, a break above the key short-term resistance will open the way for a sharp move higher towards $1.20 and $1.45. Even if price breaks above the short-term resistance and reaches this two targets, price would still be under or inside the cloud, but not above it. This means that for the ichimoku cloud indicator to turn bullish in XRP/USD, price must push above the cloud resistance at $1.45.



Price in the Daily chart is below the Kumo (cloud). This is bearish. Price is above the tenkan-sen (Red line indicator) and this gives hopes to bulls for a bounce at least towards thekijun-sen (yellow line indicator) at $1.1750. At $1.1750-$1.20 we also find the lower cloud boundary resistance. Breaking inside the cloud would be a step closer in changing the Daily trend according to the Ichimoku indicator. Failure to hold above $0.94-$0.93 will be a bearish sign and could lead to new lows towards $0.65.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021