Cryptocurrency Analysis

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Technical Analysis of BTC/USD for June 9, 2021

Crypto Industry News:
According to a published personal wealth disclosure, technical adviser to US President Joe Biden Tim Wu is a BTC millionaire.

According to the report, Wu holds $ 1 million to $ 5 million in BTC as well as $ 100,001 to $ 250,000 in FIL, a cryptocurrency platform that offers decentralized crypto storage services. Official information also shows that Wu's investment in Bitcoin is the largest holding company in his portfolio.

Currently, Wu serves as assistant to the president of the National Economic Council for Technology and Competition. In March, he took a leave of absence from a professorship of law at Columbia University and joined the White House. He is considered a strong critic of the growing power of big technology corporations.

The professor was not always bitcoin oriented. Questioning its value, Tim Wu called it a "bubble" in 2017:

"Bitcoin is not backed by any sovereign (...)," wrote Wu, while claiming that this "illusory quality" describes most other forms of money. He recognized Bitcoin's potential as a store of value, although he doubted its suitability for daily payments.


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 recent bounce from the level of $31,017 (almost 127% Fibonacci extension level) is heading towards the short-term technical resistance located at the level of $34,834. 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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Technical Analysis of ETH/USD for June 9, 2021

Crypto Industry News:
Solana, an FTX-backed proof-of-stake coin, aims to raise $ 450 million in a funding round, according to the Decrypt report. The facility, citing anonymous sources, says the currency channeled far less money in a smaller round of funding, but found large capital that could potentially bolster the project.

Although there is still no confirmation of how much money Solana has raised, the funds will be used to encourage developers to build and introduce existing projects to the network. It is part of a group of cryptocurrencies called "Ethereum Killers" that seek to mimic the features of this project while improving bandwidth and fees.

Solana claims to be technically superior to Ethereum, offering processing of up to 50,000 transactions per second. The project gained popularity due to very low transaction fees and the use of the token platform by the FTX exchange, which allows deposits and withdrawals from this network.

Last year, FTX CEO Sam Bankman-Fried decided to build a decentralized Serum exchange on top of the Solana blockchain rather than Ethereum.

Solana is one of the most promising networks dedicated to replacing Ethereum. Avalanche, another project launched last year, also climbed to the top of the "Ethereum Killers" claiming to be better, enabling users to create higher-bandwidth subnets.

Cardano, the platform founded by Ethereum's "father" Charles Hoskinson, is putting its platform into practice. Thanks to this, it aroused considerable interest in the cryptocurrency community.

All of these chains are racing to achieve some kind of stable support before Ethereum can fix the scaling issues. Fortunately for them, Ethereum founder Vitalik Buterin announced that scaling through sharding is unlikely to be implemented by the end of 2022.


Technical Market Outlook:
The ETH/USD has made a new local low at the level of $2,308. The immediate technical resistance is seen at the level of $2,549. 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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Bitcoin activity continues to decline



Bitcoin came close to its two supports: the levels of $29,873 and $30,500. Thus, their strength test may happen in the near future, and everything will depend on how successful that test will be. Keep in mind that if one of the trend lines is broken, it will help determine the direction of movement. It is necessary to closely monitor the levels indicated above. If they are overcome, BTC will take a rate of $24,000 per coin. Several factors can contribute to this development of events. We already talked about fundamental and technical analyses in the previous article. Now, you should also pay attention to the actions of the traders and investors themselves. Institutional investors and "whales" are supposedly buying Bitcoin on its fall. But, since the fall continues, it is unlikely that they take all the coins that go to cryptocurrency exchanges. According to Glassnode analysts, the number of active users on the bitcoin network and on-chain value during the past week fell to levels of the end of 2020. The number of active bitcoin wallets has decreased by 18% and now amounts to about 940,000. The total volume of transferred on-chain value has dropped by 65% over the past two weeks, and by 80% over the past three months. The SOPR indicator for traders who have purchased bitcoin in the last 155 days signals the losses they have incurred. Simply put, those who have bought bitcoin in the past five months are at a loss. How can we forget the company MicroStrategy, which is already strongly associated with buying bitcoin, and not with the development of analytical software. It recently announced its intention to raise another $400 million to buy bitcoins. The company is going to place another bond issue with maturity in 2028. So, according to some analytical agencies, on average, MicroStrategy purchased bitcoin at $24,000 per coin. That is, exactly at the cost to which the bitcoin rate can strive in the coming weeks and months.



Technically, what we talked about and what we were waiting for happened on the 4-hour timeframe. The bitcoin quotes 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 was losing $5 thousand. 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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Bitcoin continues to fall down



During the second trading day of the week, bitcoin quotes fell another $900, and another $900 last night. Thus, the fall has been going on for the sixth day in a row now. Yesterday, quotes almost reached the level of $30,500, which we call the target. However, there are no signs of an upward reversal today, therefore the decline is likely to continue. Contrary to popular belief that institutional investors will save Bitcoin, the cryptocurrency continues to fall. It is either their efforts are not enough to restore the bullish trend, or in fact, there are not many purchases made by institutions at this time, or there are much more sales. Recall that the other day, former President Donald Trump criticized Bitcoin. And earlier, Elon Musk distinguished himself with another series of posts on Twitter. Also, there was a lot of negative news from China and the United States. Thus, traders and investors now simply have no reason to start buying "digital gold". Moreover, it is already clear to everyone that the "bullish" trend is over, and we can only talk about a new, upward trend. Throughout its history, bitcoin has shown several strong upward trends, and each of them ended once the rate fell by 50%. That is, it is already a kind of trend indicator. After such moments, a long period of consolidation followed, corrections that could drag on for several years. Bitcoin lost up to 80-90% of its value during this period. For example, the current upward trend, when bitcoin was hitting the $65,000 mark, started at the $4,000 level over a year ago. Thus, all factors now speak in favor of the fact that Bitcoin will be in a downward direction for another year or two. It may be strong and there will be no new collapses, but the cryptocurrency still tends to decline. As for the predictions from real crypto experts, they cite the numbers from $19,000 to $24,000 as target levels that Bitcoin may dip to in the coming months. Of course, everything will also depend on the fundamental background. If in China and the States, the authorities introduce restrictions on the cryptocurrency sphere, the interest of investors in bitcoin will decrease even more. If Elon Musk continues to fill his Twitter account with negative comments about bitcoin, and Tesla sells its coins, it will only complicate things for the world's first cryptocurrency. In principle, bitcoin fell down somehow too sharply this time.



Technically, bitcoin has resumed its downward movement and again tends to the $30,500 level. A rebound from this level can trigger a growth spurt in 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 at this time. 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

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Trading Signal for XRP/USD (Ripple), for June 08 - 10, 2021: Key level 0.7126



In the early American session, Ripple XRP is trading at 0.8559, below the SMA of 21 on a daily chart. It suggests that there is strong downward pressure.

If the price falls from the current level to the 200 EMA zone located at 0.7126 or stops earlier at the 0/8 murray zone at 0.7812, there may be a technical bullish bounce, and it would be a good opportunity to buy at these levels.

This negative view will be invalidated if the bulls take the price above 0.9519 where the bearish pressure line is located and the SMA of 21. In case of a break above this level, Ripple XRP could rise to the resistance zone of $ 1.2735.

The level of 0.95 to 1.00 has now become a strong resistance to be taken into account because a break above it will suggest that the downward trend has ended and the price could start a new bullish cycle. So, the price could reach the maximum of $ 1.95 in the medium term.

Our recommendation is to wait for this support levels that we have indicated in the chart to be able to buy XRP. Alternatively, if it consolidates above 0.95, it will be a good opportunity to buy with short-term targets at about $ 1.27.


Support and Resistance Levels for June 08 – 10, 2021
Resistance (3) 0.9489
Resistance (2) 0.9051
Resistance (1) 0.8408

Support (1) 0.7941
Support (2) 0.7476
Support (3) 0.7269





Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin Drop May Resume!

Bitcoin plunged again after failing to validate further growth. Actually, a potential decline was somehow expected as the pressure is high. The price moved sideways in the short term failing to make a new higher high which would have announced a new leg higher.

The price of bitcoin could move down trying to recapture more bullish energy before jumping higher. In the short term, BTC/USD could resume its drop, but I believe that the sell-off could end soon. The altcoins could drop as well if the price of bitcoin resumes its decline.


BTC/USD SELL-OFF!


BTC/USD failed to stabilize above the lower median line (LML) signaling that the pressure is high. It has dropped below the minor uptrend line after retesting the weekly pivot point (36,471.61).

Now is located below the S1 (33,510.36) level indicating that it could drop deeper towards the S2 (31,198). The descending pitchfork's median line (ml) is seen as support as well. Also, the 30,000 could be used as a downside obstacle.


BITCOIN FORECAST!
Dropping below the uptrend line and stabilizing under the S1 signals a further decline. The current decline could help us to catch a new upside movement from around the immediate support levels.





Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin Hot Forecast for 8 June 2021

Colonial Pipeline hack behind Bitcoin price dip
How authorities recovered Bitcoin ransom from hackers



Although Bitcoin price has been trading lower over the past week, it has not faced any severe plunge recently like it did in the past 12 hours. The recent plunge in Bitcoin price results from fears that US authorities' hacked' the Bitcoin network.

Despite acknowledging that these are hard times for Bitcoin and other cryptocurrencies, the number one crypto shed another eight percent from its value after news emerged that the FBI and DOJ recovered a portion of hacked funds in the Colonial Pipeline hack. From these funds denominated in Bitcoin, the authorities recovered a sizable amount which Colonial Pipeline Co paid in ransom to hacker.

However, reports that the hacker's Bitcoin wallet was hacked are false. Instead, an FBI affidavit reveals that authorities were able to trace the ransomed Bitcoin using a block explorer to a specific address containing 63.7 digital tokens. They then seized control of the private key linked to this address, thus accessing the ransomed Bitcoin. However, Bitcoin price has taken the hit and dropped from its near $40,000 level to $33,000. It is currently trading at $32,000 which coincides with 100% fibonacci extension level. If it fail to support the price, Bitcoin may revisit 19 May low around $29,700.





Jan Novotny
Analytical expert
InstaForex Group © 2007-2021

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Trading plan for Ripple for June 08, 2021



Technical outlook:
Ripple seems to be oscillating within a potential triangle consolidation after having print lows around $0.65 levels on May 23, 2021. Potential still remains for a drop below $0.65 mark before the crypto finds support. The fibonacci 0.786 retracement of entire rally between $0.00 and $1.96 is seen passing through $0.55 levels and bulls might remain poised to resume higher from there.

Ripple is seen to be trading around $0.85 levels at this point in writing and is expected to continue drifting lower towards $0.55 levels in the near term. Immediate price resistance is seen towards $1.1, while support comes around $0.65 levels respectively. Most traders might hold short positions with risk around $1.1 levels going forward.

Ripple wave structure continues to remain bearish in the short term with potential towards $0.55 levels. Only a break above $1.1 would brings back bulls under control.


Trading plan:
Remain short, stop @ 1.1, target @ 0.55.

Good luck!






Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

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Trading plan for Ethereum for June 08, 2021



Technical outlook:
Ethereum rallied through $2,850 levels yesterday before finding resistance and reversed sharply lower. The crypto is still lagging behind its counterparts Bitcoin, Dogecoin and more, as it is still trading away from its recent swing lows around $1,728 levels. If the triangle consolidation is complete, potential remains for a drop towards $1,700 and lower.

Ethereum is seen to be trading around $2,500 levels at this point in writing and is expected to continue drifting towards $1,700 levels going forward. Immediate resistance is strong around $2,800/2,900 while support comes in at $1,700 levels respectively. A break below $2,250 would accelerate lower towards $1,700 at least.

Also note that trend line support for the past one year is passing through $1,500/1,600 levels and a bounce there would bring back bulls in control. Potential remains for a drop towards $1,500 mark before Ethereum bulls can manage to resume its rally.


Trading plan:
Remain short, stop @ 2,900, target @ 1,700 at least

Good luck!





Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

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Trading plan for Bitcoin for June 08, 2021



Technical outlook:
Bitcoin rallied through $39,500 levels over the last week, which was potential last wave within the triangle consolidation. We discussed this scenario last Thursday and that the bears could be back in control. The crypto has dropped in line with expectations and printed $33,000 lows today before pulling back. It is looking to break below $30,000 in the near term.

Bitcoin is seen to be trading at around $32,800 levels at this point in writing and is expected to continue drifting lower towards $28,000 levels before resuming its rally. Immediate price support is also seen at $28,500, while resistance comes in around $39,500 levels respectively. Also note that fibonacci 0.618 retracement of entire rally between $3,950 and $65,000 is seen passing through sub $27,000 levels.

Bitcoin bulls might remain poised to take control back if prices drop through $27,000/28,5000 levels. If successful, we can expect the rally to push higher towards $65,000 and beyond in the next few weeks.


Trading plan:
Book profits in short positions @ 32,700-800.

Buy again @ 28,500, stop @ 25,000 target is open.

Good luck!






Oscar Ton
Analytical expert
InstaForex Group © 2007-2021