Cryptocurrency Analysis

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Nigeria to launch its own digital currency "eNaira"

The Bitcoin exchange rate confidently marks time in one place around the 200-day moving average, thereby playing on investors' nerves. However, allowing them to count on a further bull market, the central bank of Nigeria said that it is preparing to issue its digital currency by the end of the year.

For this purpose, Bitt Inc was chosen as the operator and technical partner. A financial technology company registered in Barbados will help the regulatory authority launch a new currency called eNaira. Such a message was published yesterday on the website of the Central Bank. According to the bank's head, Godwin Emefiele, the company mentioned above was chosen for its "technological competence, efficiency, platform security, interoperability, and work experience." It is expected that the new digital currency, which will complement the banknotes in circulation, will stimulate international trade and financial accessibility, making transactions more efficient and improving the country's monetary policy.

Let me remind you that four months ago, the authorities of Africa's largest economy announced the introduction of a ban on transactions with cryptocurrency, as they pose a threat to the financial system. Given that the demand for digital currencies was quite serious, most likely, the decision was made by the Central Bank of Nigeria to launch its digital currency this year.

Solana surprises


Before we talk about the technical picture of bitcoin and ether, I would like to highlight the next leader of growth in the cryptocurrency market. The Solana token crossed the $ 100 mark yesterday during trading, reaching a three-digit number for the first time. Currently, the cryptocurrency occupies an eighth place by market capitalization, ahead of Polkadot and the USDC stablecoin, and is trading for $ 121. The value of SOL has more than doubled in the last two weeks, mainly due to the boom in decentralized finance (DeFi) and non-interchangeable tokens (NFT). According to data provided by Defi Llama, the total amount of blocked funds in Solana-based DeFi applications has reached a record level and exceeded $ 3 billion, which means an increase of 400% over the past 30 days.

And since we hooked Polkadot, we can not say that Parallel Finance raised $22 million in the Series A round as financing for Polkadot, which is now estimated at $150 million. Parallel noted that it expects Polkadot to actively grow as an alternative to DeFi Ethereum, the market leader, despite the low processing speed and high commissions. And although Polkadot is only gaining momentum in this direction, many predict a relatively large future for it in the world of DeFi.

As for the technical picture of bitcoin, it has not changed much over the weekend. Its return to the area of $ 45,900 will have a key role in the further short-term direction of the trading instrument. There is a 200-day moving average, which has a great impact on institutional investors. A break in this range will push BTC to a minimum of $ 42,500, and then it will be close to $ 37,300. It will be possible to talk about a new upward wave of bitcoin after a real exit beyond the resistance of $ 50,400, followed by an update of $ 54,400 and $ 58,000.



As for the technical picture of the ether, judging by the chart, the bulls are still aimed at breaking through a large resistance in the area of $ 3,300. Only such a scenario will send ETH to the highs - $3,600 and $3,890. It will be possible to discuss the formation of pressure on the ether only after overcoming the intermediate support of $ 3,040. Its breakdown will collapse the trading instrument to the lows of $ 2,700 and $ 2,440.




Jakub Novak
Analytical expert of InstaForex
© 2007-2021

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SEC may approve Bitcoin futures ETF



Bloomberg analysts believe that by October of this year, the US Securities and Exchange Commission (SEC) can approve Bitcoin futures ETF.

The investment company Valkyrie Investments thinks that it will be the first in line for SEC approval of the first bitcoin ETF in the United States, writes Bloomberg. This is due to a feature that allows smaller companies to confidentially submit applications for new offers. Two months ago, Valkyrie was one of the first companies to request regulatory approval for a futures fund.

In addition, Bloomberg reported that billionaire Simon Nixon is going to increase his investments in cryptocurrency, joining more super-rich people in the world who use digital currencies.



PayPal aims to expand cryptocurrency services in the UK.

According to Bloomberg, PayPal has announced a new cryptocurrency service in the UK that allows customers to buy, store and sell digital assets. The company's statement notes that the service will be deployed this week, which will be the first international expansion of the crypto service outside the US.

Earlier this month, the Senate approved measures aimed at promoting regulation of the cryptocurrency industry through a bipartisan infrastructure bill. However, some representatives of the industry and the national security service warn that this proposal could inadvertently push illegal cryptographic transactions to markets inaccessible to the US government, writes Dow Jones. This worsens the threat to American companies, government agencies, and individuals.





Irina Yanina
Analytical expert of InstaForex
© 2007-2021

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John Paulson slams cryptocurrencies



Billionaire John Paulson recently criticized cryptocurrencies. In an interview, he called them a bubble that will prove to be "worthless", but at the same time admitted that he has no plans to short it.

Usually, smart investors study what they can do and what they can lose in a bearish bet. So when Paulson bet against mortgage bonds, his downside was limited to a few percentage points if the bonds paid off, while his upside potential was essentially 100% in the event of a bond default.

But this is not the case with Bitcoin as the cryptocurrency saw growth from less than $ 12,000 a year ago to nearly $ 50,000 today. Meanwhile, Dogecoin is up by more than 8000% over the past year. All this are big enough steps to tear down any investor in a short position.



In any case, Bitcoin lost approximately 2.2% on Monday morning, and Paulson's comments may be the reason for it.

Also, many crypto investors are currently seeking alternatives to Bitcoin and Ethereum, since the risks in them are lesser, while the potential for growth is far greater.





Andrey Shevchenko
Analytical expert of InstaForex
© 2007-2021

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Technical Analysis of ETH/USD for August 31, 2021

Crypto Industry News:
The government agency MAS selected 15 participants in the Global CBDC Challenge to help create the central bank's internal digital currency.

As announced by MAS, these institutions include six Singapore companies, four from the United States, and one each from Australia, Barbados, Germany, France and Switzerland, of which only three will be selected to implement CBDC in Singapore.

Shortly after Singapore's central bank announced cash prizes for digital currency ideas on June 28, more than 300 fintech companies from over 50 countries participated in the challenge.

Among the finalists are, among others ANZ Banking Group Limited (Australia), Bitt (Barbados), Giesecke + Devrient Advance52 GmbH (Germany), Criteo (France) and Soramitsu (Switzerland).

Locally selected Singaporean consortia include Citibank NA, HSBC Bank Limited and HSBC Holdings plc, IDEMIA, IOG Singapore Pte Ltd., Standard Chartered Bank and Xfers Pte. NS.

US-based companies include cLabs Inc., Consensys, Extolabs LLC, and IBM.

The Retail CBDC Singapore Initiative will be complemented by a cash prize of $ 50,000 Singapore ($ 37,000). As previously announced, the 15 finalists will be supported by MAS and "will have access to the APIX digital currency sandbox for rapid prototyping of digital currency solutions."


Technical Market Outlook
The ETH/USD pair has been trading close to the mont's high seen at the level of $3,385. The momentum remains neutral as long as the market consolidates in a narrow range. The nearest technical resistance is seen at the levels of $3,274 and $3,337. The key short-term technical support is seen at $3,122 and $3052 (last week lows). On the higher time frame chart than H4, the bulls are having problems with the level of $3,354, which is the 61% Fibonacci retracement of the whole move down.

Weekly Pivot Points:
WR3 - $3,712
WR2 - $3,560
WR1 - $3,379

Weekly Pivot - $3,218
WS1 - $3,063
WS2 - $2,891
WS3 - $2,721


Trading Outlook:
Ethereum have started the next wave up and violated the long-term target at the level of $3,550,. The next long-term target for ETH is seen at the level of $4,394. Nevertheless, in order to continue the long-term up trend, the price can not break below the technical support at the level of $2,695. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls.







Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021

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Technical Analysis of BTC/USD for August 31, 2021

Crypto Industry News:
Analyst company Glassnode recently noticed the huge increase in the volume of transactions on the Bitcoin network. Data released by the company shows that the average weekly transaction volume has increased to a new record high of over $ 8 billion. At the time the record was recorded, the figure was in fact more than 50% higher than the previous peak.

It's worth noting, however, that this result most likely doesn't mean that transfers were made between regular users. Other data indicated that the adjusted unit transfer volume in USD did not show the same increase as it did in the context of the aforementioned record number.

Therefore, the most likely explanation is that the spike could have originated in internal transfers, which seemed to be confirmed by the relatively calm mempool.

Glassnode analysts emphasized that after the recent declines, the number of bitcoin holders has increased dramatically.

Retail investors tend to join a rally when the price rises dynamically and back out when it falls. Consequently, the number of wallets with one or less than one BTC fell after the correction in mid-May. Now, however, as the cryptocurrency has once again approached $ 50,000, investors have started to come back.

First, non-zero addresses once again exceed 38 million, the highest level in the last 30 days. This represents an increase of around half a million from the beginning of August.

Those with at least 0.01 BTC hit a three-month high of just over nine million. The last peaks in this area were recorded in April and May at the level of about 9.2 million.


Technical Market Outlook
The BTC/USD pair has been seen consolidating around the level of $46,719. The nearest technical resistance is seen at the levels of $49,316 and $50,456 (last week high). The key short-term technical support is seen at $46,719 and $46,209 (last week lows). On the higher time frame chart than H4, the bulls are having problems with the level of $51,189, which is the 61% Fibonacci retracement of the whole move down.

Weekly Pivot Points:
WR3 - $54,910
WR2 - $52,718
WR1 - $50,895

Weekly Pivot - $48,630
WS1 - $46,765
WS2 - $43,987
WS3 - $42,007


Trading Outlook:
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. The next mid-term target is seen at the level of $51,189, which is the 61% Fibonacci retracement of the whole move down. 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 of InstaForex
© 2007-2021

[IFX_Selena]

John Paulson: Bitcoin is a bubble, and it will definitely devalue



A few days ago, Bitcoin broke the upward trend line on the four-hour time frame, and from then on, the probability of a new further decline has increased. Now, the quotes of this cryptocurrency have dropped below the Ichimoku cloud, but this is the same uncertain consolidation as a few days ago. Thus, even considering the breakdown of the trend line, the further fall in bitcoin quotes is not obvious at all. From our point of view, the quotes' decline has been in preparation for a long time, so we still expect a fall to the level of $ 29,700 or so. However, the bulls are currently holding the market, so Bitcoin is very reluctant to decline. A descending trend line may already be formed in the near future, which will support the bears, which are very weak at the moment. So far, only one conclusion can be made: the growth has stopped.

Meanwhile, billionaire John Paulson, who once predicted the collapse of the mortgage bond market in 2007, called bitcoin a "bubble" and said that it would devalue in any case.

"I do not recommend investing in cryptocurrencies to anyone. Cryptocurrencies are a limited investment product. There is no value in them except that the issue is limited," Paulson said.

The billionaire also noted that cryptocurrencies have too high volatility, which can lead to losses and bankruptcy of everyone who operates with them. "I could short the cryptocurrencies and be right in the long run, but I will lose everything in the short term because of volatility," He said.

It can be recalled that this is not the first time that well-known investors and billionaires criticize Bitcoin and advise against buying it. Nevertheless, it cannot be denied that Bitcoin is becoming more expensive in the long term, which means it remains a very attractive investment tool. The fundamental background for it remains extremely controversial at this time and is more negative than positive. In China, the repression of miners continues, and in the United States, new tax legislation should be issued anytime soon, which will greatly reduce the attractiveness of Bitcoin as an investment tool for many Americans.



Technically, the main digital asset continues to be in an upward trend on the four-hour time frame, but a consolidation below the upward trend line opens up bearish prospects. Now, Bitcoin needs to securely consolidate below the Ichimoku cloud and the level of $ 47,500. In this case, the bears will seize the initiative, and it will only depend on them whether the cryptocurrency continues to decline From a technical point of view, Bitcoin already has a great chance of falling towards the support level of $ 43,852.





Paolo Greco
Analytical expert of InstaForex
© 2007-2021

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John Paulson calls cryptocurrencies "useless"

Although the crypto market continued to show impressive profitability, Billionaire John Paulson said he does not recommend anyone to invest in it. He explained that tokens are "bubbles" so no matter where they trade today, they will all end up being useless in the end.



Paulson said the trend will end when everyone is done playing, which will result in a very strong crash. But when asked why he does not short the market, he said prices are "too volatile" to do so effectively. This is surprising because all traders know that the more volatile the market is, the more intensive and rapid are the earnings on it. Perhaps, Paulson is not as skeptical about the total collapse of the crypto industry as he wants to show.

On a different note, Cuba is reportedly trying to legalize and regulate the growing demand for cryptocurrencies on its island. Its central bank is said to be working to authorize the use of digital currencies in commercial transactions, as well as preparing licensing for providers of such services. Bitcoin, Ethereum, Litecoin and Tether are the most commonly used digital currencies on the island.

Those who hold cryptocurrencies say that this allows them to avoid the high risks associated with the level of capital control by the state. But the central bank, on the contrary, points to the alleged insecurity and risks contributing to fraud and money laundering in the country.

As for El Salvador, they are expected to adopt Bitcoin as legal tender alongside the dollar as early as next month. Meanwhile, Venezuela and Argentina are still in the process of gaining traction. It is not surprising that in these countries, where there is heavy government pressure on capital controls, cryptocurrencies that are becoming so widespread.



Bitcoin has not changed much over the weekend, but a return to $ 45,900 today will play a key role in a further decline in the market. Obviously, the 200 MA has a big impact on market sentiment, so a break through this range will push BTC to $ 42,500, and then to $ 37,300. But if the token moves to $ 50,400 instead, price will hit $ 54,400 and $ 58,000.

Etherium, on the other hand, will remain in a tight channel, which is a good prerequisite for further growth. Breaking above $ 3,300 will most likely send ETH to $ 3,600 and $ 3,890, while a drop below the level will lead to a drop to $ 3,000, and then to $ 2,700 and $ 2,440.





Jakub Novak
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Prospects for Bitcoin this week

It is perfectly clear to everyone that Bitcoin forms an accumulation zone for the second week, and leaving this zone will indicate further priority. Within it, trading is carried out from its borders.

The borders of the weekly flat are marked. Thus, it is possible to either wait for going beyond their limits and close trading below/above, or trade within this range. The exit pattern is simpler and more promising. Now, let's consider an option with an exit and consolidation in the direction of reducing the price.



This pattern will allow one to earn a profit by selling Bitcoin. The target is the level of $ 44,000. After reaching this level, a short position must be consolidated. One can try to hold part of the position in the expectation to further decline. When the instrument is declining, it is necessary to understand that this will be a movement against the long-term impulse.

Trading within the range is quite simple, but it is difficult to find options for a profitable risk/reward ratio. The width of the range is insignificant, which makes it a good starting point for growth or decline.

The chart for trading in a flat is as follows:







Samanta Kruder
Analytical expert of InstaForex
© 2007-2021

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Bank of America praises El Salvador's acceptance of Bitcoin as a legal tender



Bank of America highly appreciates El Salvador's adoption of bitcoin as a means of payment and is confident that the country will only benefit from this legalization in the future.

Recently, the report said that El Salvador's legalization of bitcoin as a means of payment can simplify the procedure for transferring funds, and it can also be a catalyst for the promotion of financial digitization in the country.

Money transfers in El Salvador account for only 23% of the gross domestic product, and it is also worth noting that the transaction fee is a large percentage of the transfer itself, which makes fiat funds unprofitable in terms of transactions.

In turn, if residents of El Salvador use bitcoins for money transfers, this will entail a reduction in commission costs when transferring money compared to fiat funds. Bitcoin can also be used as a tool for converting personal funds. For example, citizens of El Salvador can convert dollars to bitcoin, and then, if desired, and vice versa.

Bank of America sees a lot of significant advantages in the future for a country that has bitcoin in the list of its official means of payment. Since more than 50% of the country's residents do not have a bank account, bitcoin is the very lifesaver, the most affordable financial instrument that the residents of El Salvador can pay with-this gives a huge freedom of choice for Salvadorans and shows the whole world that El Salvador is keeping up with the times with global financial trends.

Bank of America fundamentally disagrees with the opinion that many companies will have to forcibly allow transactions in bitcoins.

"We fundamentally disagree with the thesis that this is a compulsory procedure for companies to accept bitcoins as payment. The seller, as well as the recipient, can absolutely easily convert dollars using the Chivo electronic wallet, if they are technologically savvy. The development of the digital industry in El Salvador and the use of bitcoin by citizens can attract foreign investment to the country itself, soon it will be possible to observe the influx of miners into the country, bitcoin ATMs, and so on."





Vitaly Kolesnikov
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN for August 30 - 31, 2021: Sell Below $48,335 (SMA 21)



The price of Bitcoin in 4-hour charts was moving below the 21-day SMA (48,335), consolidating below the psychological level of 50,000. The market volume has contacted. This apparent strength could cause a sharp decline or it could boost demand for a new bullish wave to the zone of 56,250 (+2/8).

However, we note that the downward pressure is increasing. BTC is now below the 21-day SMA that could be a negative sign and a drop to the 44,712 support could occur, where the 200 EMA is located.

While the overall trend remains bullish and unchanged, investors should note that a break below 44,712, the key level of the 200 EMA, will put the bulls in a difficult situation, and BTC could start a new bearish wave with targets up to 37,500 (4/8).

On the contrary, in case of a break and consolidation in daily charts above the psychological level of 50,000, BTC is likely to rise to +2/8 of murray located at 56,250. The eagle indicator is showing a low trade volume and a correction could be looming.

The 4-hour chart gives us a signal that BTC could fall to the 200 EMA in the next few hours because the 21 SMA is pressed down. Investors are waiting for new lows to buy BTC again. So, a good chance to buy will be around 44,712 (200 EMA).

The technical reading of the eagle indicator, that measures the strength and volume of the market, is at a point of 10. It means that the market lacks enough volatility to break the high of 50,000 or break the low of 44,000 is in a range-bound market.


Support and Resistance Levels for August 30 - 31, 2021
Resistance (3) 50,567
Resistance (2) 49,698
Resistance (1) 48,480

Support (1) 46,801
Support (2) 45,932
Support (3) 44,712




Dimitrios Zappas
Analytical expert of InstaForex
© 2007-2021