Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of ETH/USD for June 18, 2021

Crypto Industry News:
John McAfee is an undoubtedly controversial figure who rarely goes unnoticed. No wonder he sold the rights to document his life story. He also left a significant mark on the cryptocurrency market, the echo of which has recently returned to him with extraordinary force.

More specifically, the situation escalated earlier this year, when the US Department of Justice brought an official indictment against McAfee and his adviser Jimmy Watson Jr. The authorities accused them of several different plots to commit pump & dump scams and money laundering.

The creator of the antivirus program initially referred to the charges against him as "exaggerated". Moreover, he stated that he currently no longer has any money invested in digital assets. As recently as yesterday, he repeated his position, pointing out that all of his cryptocurrency fortune had "melted into the many hands of the McAfee team."

McAfee was arrested at Barcelona airport in early October to board a plane to Istanbul with a British passport. US federal prosecutors released a bill of indictment against him in October on allegations that he had evaded taxes and had intentionally failed to file a declaration in this regard.

This came shortly after the Securities and Exchange Commission revealed that it had brought civil charges against McAfee, claiming to have earned more than $ 23.1 million in undisclosed income from false and misleading cryptocurrency endorsements.


Technical Market Outlook:
The ETH/USD pair has been rejected from the level of $2,639, which is located just above the 61% Fibonacci retracement and since then keep going down. The new local low was made at the level of $2,303 and the bounce from this level is still shallow. The nearest technical resistance is seen at the level of $2,453 and the next target for bears is seen at the level of $2,249 (June 12 low). The weak and negative momentum support the short-term bearish outlook for ETH.

Weekly Pivot Points:
WR3 - $3,393
WR2 - $3,098
WR1 - $2,806

Weekly Pivot - $2,528
WS1 - $2,226
WS2 - $1,922
WS3 - $1,648


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]

XRP/USD challenges major support area.

XRP/USD is trading below $0.80 as expected, since bulls were not strong enough to push price above $0.90-$1.06. XRP/USD is now challenging the support area of $0.65-$0.75 which was previous major resistance. This back test of the break out area is a major event for XRP/USD.



Red rectangle -major horizontal resistance

Green rectangle- major support

Red line -major trend line support

Not long ago, the $0.65-$0.75 area was huge resistance. Back in April of 2021 this resistance was broken and it was big news back then for XRP/USD. Price climbed to $1.97 but is pulling back since then. Price is making lower highs and lower lows. First it was the lower high of $1.76, then $1.70 and recently $1.06. Bulls have not shown any sign of strength but only short-lived bounces. Of course that is not enough for the up trend to resume. Bears remain in control of the trend and if price breaks below $0.60 I would not be surprised to see XRP/USD as low as $0.40 again.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin bulls unable to hold above $40,000.

Despite breaking above the $40,000 price level, Bitcoin bulls were not strong enough to keep prices above that level. Initially breaking above $40,000 was a bullish sign making us expect a move towards $42-45,000 was coming, however bulls were not strong enough. Has price given us a false breakout signal?



Red lines -trading range

Bitcoin since the low at $29,700 is mostly moving sideways between $41,000 and $30,000. The consolidation has lasted almost a month and it is very risky to predict the direction we will see after it exits the trading range. When market price forms such trading ranges I prefer to go long near the lower end of the trading range and go short near the upper boundary of the range. In case I'm wrong and price exits the range, my loss would be minimal as my position would be opened near my stop loss level. Usually when price consolidates like this after a strong downtrend, the break out of the trading range usually is to the downside. That is why I give more chances to the bearish scenario of a downward break out.



Bitcoin has so far retraced 50% of the rise from the 2018 lows. A move lower towards the 61.8% Fibonacci retracement is justified and still not ruled out. A move towards $26,000-$23,000 is very possible in my opinion and traders should be very cautious. Especially as long as price remains below $40,000. Even a move towards the 78.6% retracement at $16,000-$17,000 area is not out of the question either. As long as price is below $40,000-$41,000, bears remain in control of the trend.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Robert Kiyosaki: Bitcoin is facing the biggest crash in world history



The first cryptocurrency in the world continues its next round of decline after it pushed off from the supposed upper limit of the side channel, limited to the levels of $40,700 and $30,500. In principle, bitcoin still tends to fall, not rise. Everything that is happening now in the cryptocurrency market can be divided into two categories. The first category suggests that bitcoin will in any case resume its growth and update the maximum value this year. The second category is represented by more professional market participants who continue to talk about a new drop in bitcoin quotes in the area of $19,000-$24,000. We support the second option. The first category includes investors and market participants whose activities depend not just on bitcoin, but on its value. That is, simply put, this category is simply profitable for bitcoin to cost as much as possible. Thus, crazy forecasts are regularly received from here, which are practically unsupported by anything. The second category includes professional traders, large banks, and experts who are not interested in bitcoin constantly growing. They predict a new collapse of quotes. For example, Robert Kiyosaki, the author of the work "Rich Dad, Poor Dad", said that bitcoin is waiting for the largest collapse in world history, and indicated that its quotes will fall to $24,000. At the same time, Bank of America conducted a survey among managers and found that 81% of respondents believe that bitcoin is still a "bubble" and is too expensive even now. Simply put, most managers believe that bitcoin will continue its decline even though the cryptocurrency has already lost about $30,000 in value. Also, many crypto experts believe that inflation in the United States is one of the important factors that affects the demand for bitcoin and cryptocurrencies in general. Many attribute the strong growth of bitcoin in the past to high fears of investors for their money. Until a couple of months ago, no one knew to what extent the consumer price index would grow, but now everyone already understands that inflation is 5% and, judging by the words of Jerome Powell and Janet Yellen, this indicator is unlikely to continue to grow further. Thus, many investors no longer consider bitcoin as a way to protect their money from inflation. Moreover, when bitcoin was constantly growing, it really saved money from depreciation, but now bitcoin is falling all the time, so the effect is the opposite. Also, it is still not clear that the institutions are rushing back to the market. There is an opinion that institutional and large investors are now buying bitcoin at an attractive price, but these rumors do not have a beneficial effect on the exchange rate. Thus, either this is just a rumor, or the supply of bitcoin in the cryptocurrency market is now higher than demand. And, most likely, it is both.



In technical terms, bitcoin failed to overcome the level of $40,700 and continues to decline. On the 24-hour timeframe, it is clearly visible that the cryptocurrency can be located inside the side channel. Therefore, it is possible that the movement to its lower border will continue in the coming days. There are no reasons to assume a strong growth of bitcoin, neither technical nor fundamental now.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for June 21, 2021

Crypto Industry News:
The eagerly anticipated London Ethereum hard fork now has a fixed block height for the three test networks, a key penultimate step towards fully commissioning the main network.

In a blog post on the Ethereum Foundation website, Ethereum lead developer Tim Beiko wrote that the Ropsten, Goerli, and Rinkeby test networks now have fixed block heights where London will be launched, where Ropsten will be first on block 10 499 401 or around 24th of June. Goerli is due on June 30th and Rinkeby on July 7th.

However, the release schedule for all major network upgrades is still being established.

Hard fork London includes five Ethereum Improvement Proposal (EIP) improvements, but the star of the show is EIP-1559. A review of Ethereum's existing fee structure, EIP-1559, is expected to significantly reduce costs for users. It can also cut miners 'income by more than 50%, which has led to some visions of a "miners' revolt" that have largely come to fruition.

The upgrade is considered to be one of the many positive catalysts on the horizon for Ethereum, of which the Ethereum 2.0 upgrade is no less important. Eth2 will transform the network into a more scalable proof-of-stake consensus mechanism, which will significantly reduce the power consumption of validation blocks.


Technical Market Outlook:
The ETH/USD pair has hit the technical support located at the level of $2,098 and bounced towards the level of $2,256, which is a technical resistance for the price. Nevertheless, the bulls were capped at this level and the market reversed towards the level of $2,000 again. So far the lower low was made at the level of $2,014 (at the moment of writing the article). The next obvious target for bears is $2,000 and $1,941.

Weekly Pivot Points:
WR3 - $3,146
WR2 - $2,878
WR1 - $2,557

Weekly Pivot - $2,297
WS1 - $1,962
WS2 - $1,702
WS3 - $1,348


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 June 21, 2021

Crypto Industry News:
Goldman Sachs, one of the largest investment banks in the world, has expanded its offering with bitcoin futures. For this purpose, the bank has established cooperation with Galaxy Digital (a broker specializing in cryptocurrencies).

In this way, the bank showed that more important (and also more profitable) than following analysts' recommendations is to offer clients the services for which there is the greatest demand at the moment.

Last year, analysts at Goldman Sachs argued that it was not worth investing in BTC. Later, however, they gradually changed their opinions, as we covered in Goldman Sachs and bitcoin earlier this month. A special change in optics or a temporary romance with a trend?

Information about the launch of trading in BTC futures contracts by Goldman Sachs is another news this month confirming that the bank is increasingly interested in the cryptocurrency market. A few days ago we reported that Goldman Sachs would launch contracts and options on ETH.

Some experts predict that Goldman Sachs' gradual opening up to cryptocurrencies will force other banks to do likewise. Interestingly, usually smaller companies and institutions decide to take such unusual and contradictory steps to the traditional narrative of banks, thus gaining investors' interest.


Technical Market Outlook:
The BTC/USD pair did not bounce significantly during the weekend and keeps heading lower. . So far the lower low was made at the level of $32,600 (at the moment of writing the article). The next obvious target for bears is $32,156 and $31,007. There is still a room for another wave down as the market conditions are not oversold yet. The weak and negative momentum supports the short-term bearish outlook for BTC.

Weekly Pivot Points:
WR3 - $47,340
WR2 - $44,234
WR1 - $39,697

Weekly Pivot - $36,451
WS1 - $31,670
WS2 - $28,714
WS3 - $24,054


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