Cryptocurrency Analysis

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Ichimoku cloud indicator analysis of ETH/USD

ETH/USD according to the Ichimoku cloud indicator remains in a bullish trend. We use the Ichimoku cloud indicator in order to identify key support levels that if broken could signal more weakness and a possible pull back to come, taking into account the bearish divergence we noted in our previous analysis.



In the 4 hour chart trend remains bullish. Not strong bullish but bullish. Price is above the Kumo (cloud). Support by the cloud is at $1,310-$1,263. Breaking below the Kumo will be a bearish sign that would imply more downside. The downside target will be seen in the Daily chart below. In the 4 hour chart the tenkan-sen (red line indicator) has crossed below the kijun-sen (yellow line indicator) and this is not a good sign. Bulls want to see the tenkan-sen cross above the kijun-sen again in order to get a bullish signal.



In the Daily chart price is trading below the tenkan-sen. This is an initial weakness sign. Where can this lead to? If in the 4 hour chart we see the cloud break, then in the Daily chart we will expect price to challenge the kijun-sen at $1,200. If $1,200 fails to hold then we should expect price to test the Kumo around $1,000. Until then there are lots of support levels that need to be broken. But we need to keep an eye on the bigger picture if support levels start breaking. On the other hand if price breaks above $1,390 we should not be surprised if we see a new all time high towards $1,500.



Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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BTC analysis for February 01,.2021 - First downside target at tthe price of $33.130 reached. Second target set at $29.220

Futher Development



Analyzing the current trading chart of BTC, I found that BTC tested my first downside target from Friday at the price of $33,113 and that is heading towards second target at $29,220.



Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

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Ethereum Attractive For Buyers!

ETH/USD accumulates around 1,337 level maintaining a bullish bias despite some temporary drops. Last week I've told you that Ethereum is still expected to resume its major uptrend after the current accumulation.

Bitcoin has registered an amazing rally on Friday, BTC/USD's further growth could force ETH/USD to increase as well. ETH/USD stands right under some critical upside obstacles, breaking above these levels signals more gains ahead.

ETHEREUM TARGETING NEW HIGHS!



ETH/USD is traded within an upside channel. Its failure to approach and retest the red uptrend line, the channel's downside line, represents a bullish signal.

The price failed to retest the broken 150% Fibonacci line and now it tries to get back above the Pivot Point (1,332) level again. An upside breakout above the first warning line (WL1) of the descending pitchfork could really activate a new bullish momentum.

As I've said on Thursday's analysis, the bullish scenario could be invalidated only by a downside breakout through the channel's support and below the S1 (1,188).


ETH/USD BUYING SCENARIO!

Jumping, closing, and stabilizing above the first warning line (WL1), somewhere beyond 1,400 represents a buying signal. The short-term major upside target remains at the channel's upside line, around the R2 (1,600) level.



Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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Technical analysis BTC/USD for February 01, 2021



Trading Cryptocurrency BTC/USD (Bitcoin)

Bitcoin price prediction
What's the Bitcoin Future? Cryptocurrencies are the new money! so, Bitcoin is really a great fortune. Hence, our target $ 40,000 in the next few days.

Bitcoin price is facing a major support near $ 32,000 and $ 31,500.

Today, BTC/USD is trading around the weekly pivot point $ 33, 931. Because BTC/USD broke resistance which turned to strong support at the price of $ 32,0000 last week. The price of $ 32,0000 is expected to act as major support today.

Also, it should be noted that : As long as there is no daily close below $ 32,000 or/and $ 31,500, there are no chances of a fresh decrease below $ 31,000 (Support 2).

But, after a significant rally to $ 38,638 (top), Bitcoin price failed to retain gains. Therefore, BTC/USD has dropped from the last bullish wave of $ 38,638 to set around the area of $ 32,000 - $ 33,931.

On the upside, an initial resistance is near the $ 33,931 (top) and $ 34,000 levels. The main hurdle is near USD 35,000, above which the price could rise steadily towards the $ 35,000 resistance.

From this point, we expect BTC/USD to continue moving in a bullish trend from the support levels of $ 33,000 and $ 33,931.

Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in the bullish trending market.

Consequently, the first support is set at the level of 1.4257 (horizontal blue line). Consequently, the market is likely to show signs of a bullish trend around the spot of $ 33,000 and $ 33,931.

Stochastic (34,5,3) is seeing major support above 60% where we expect further upside movement from.

Bitcoin has shown a high level of stability. The dominant currency has not experienced such high volatility for months in recent history, even in the wake of the 2015 correction.

Since three months and PTC/USD has traded in range between $ 1,000 and $ 5,000 daily. - Thus, be careful at trading deals.


Forecast
Amid the previous events, the pair is still in a downtrend, because BTC/ USD is trading in a bullish trend from the new support line of $ 33,000 towards the first support level at $35,000 in order to test it.

If the pair succeeds to pass through the level of 35,000, the market will indicate a bullish opportunity above the level of 35,000. New objectives $ 36,500, then return to the last bullish wave of $ 38,638. Our target $ 40k.

The market is indicating a bullish opportunity above the above-mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside.

However, if a breakout happens at the support level of $31,000, then this scenario may be invalidated.

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Crypto industry news (Ethereum News - (Source : cryptonews - coindesk))

1) Bitcoin Falls Back to $32K as Elon Musk's Bio Change Fades Into Memory.

2) After GME, Dogecoin and Bitcoin, Chinese Traders Are Betting What Will Pump Next. Rallies in GameStock (NYSE: GME) shares as well as dogecoin (DOGE) and bitcoin (BTC) are piquing the betting interest of traders in China as much as they are in the United States. On Weibo, the popular social media platform in China, the highly active crypto community is speculating on which cryptocurrency will be next to get a major pump after dogecoin and bitcoin jumped in recent days.

3) Visa May Add Cryptocurrencies to Its Payments Network, Says CEO. The card giant works with wallets and exchanges to enable crypto purchases, and could eventually use digital currencies over blockchain in the same way it processes traditional money.




Mourad El Keddani
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for 01 January 2021

Crypto Industry News:
The price of ethereum is not only close to a record high. In the context of virtually the entire month, ETH maintains a high of over $ 1,000. On January 4, Ethereum's price closed at $ 1,042. On January 29, at $ 1,380. In the meantime, it never hit less than $ 1,000. As Ethereum researcher Evan Van Ness (using Messari data) noted, these 26 consecutive days are something of a milestone:

"$ETH just closed above $ 1000 for the 26th consecutive day. Until this year, $ ETH had closed above $ 1000 on only 25 non-consecutive days in 2018".

As for 2018, the ETH exchange rate was above $ 1,000 between January 6 and 21. It again exceeded this level in the period from January 24, 2018 to February 1. By December this year, however, the price had dropped to double-digit values.

This time around, the valuation of the cryptocurrency appears to be based on more than just price speculation. It is worth considering the increasingly common applications used in the Ethereum blockchain - DeFi applications.

This can be considered taking into account many factors, and one of the fundamental is certainly volume. During the boom in January 2018, the volume of trading online ranged from $ 1 billion to $ 4 billion. Today's volume is around $ 11.7 billion.


Technical Market Outlook:
The ETH/USD pair is currently trading around the level of $1,313, so there was no major breakout during the weekend. Please notice, the market might be making a triangle price pattern, that had been marked on chart using the golden trend lines. The upper boundary of the potential triangle pattern is seen at the level of $1,438 and the lower boundary - around the level of $1,274. Any clear breakout above or below any of the mentioned levels will result with an increased volatility and bigger market move. The intraday technical resistance is seen at the level of $1,376 and the intraday technical support at $1,274.

Weekly Pivot Points:
WR3 - $1,679
WR2 - $1,589
WR1 - $1,419

Weekly Pivot - $1,318
WS1 - $1,150
WS2 - $1,040
WS3 - $882


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $1,500, so any correction or local pull-back should be used to open the buy orders. Please notice, the up trend starting to go vertical, so the volatility will be higher than average. The bullish scenario is valid as long as the level of $830 is broken.





Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of BTC/USD for 01 February 2021

Crypto Industry News:
MicroStrategy entered bitcoin last year amid concerns about the devastating effects of inflation and a weakening dollar. Now he encourages other corporations to do the same.

As the company's CEO Michael Saylor writes on Twitter, MicroStrategy will release a bitcoin "guide" for the corporation. The study will be shared during the "Bitcoin Summit 2021" event that the company is organizing next week, on February 3 to be precise:

"We are going to open source our #Bitcoin Corporate Playbook, an array of documents covering governance, legal, financial, technical & accounting considerations. Get the briefing & early access at our Bitcoin for Corporations conference Feb 3/4".

The release of the guide is part of a larger MicroStrategy event that will be attended by leaders in the cryptocurrency industry. The organizers announced that a number of topics related to bitcoin will be discussed during the conference.

Meanwhile, MicroStrategy does not intend to stop at the current BTC purchases. Saylor said yesterday that as it continues to grow, the company will continue to invest any "excess cash in bitcoin" and acquire even more assets as part of its wider corporate plans.


Technical Market Outlook:
The BTC/USD pair has broken through the short-term trend line resistance and made a local high at the level of $38,638. Nevertheless, the breakout was very short-lived as the Bearish Engulfing pattern was made at the top of the rally. Since then the market has returned to the range zone located between the levels of $32,175 - $34,893. The momentum returned to the neutral level and the price is trading below the long-term trend line resistance. If the bearish pressure intensify more, then the next target is seen at the level of $28,930 - $28.471.

Weekly Pivot Points:
WR3 - $46,671
WR2 - $42,502
WR1 - $37,109

Weekly Pivot - $33,428
WS1 - $27,789
WS2 - $23,603
WS3 - $18,571


Trading Recommendations:
Despite the recent corrective cycle the bulls are still in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $50,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $20,000 is clearly broken.





Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical analysis of ETH/USD for January 28, 2021



Predictions and analysis of Ethereum (Cryptocurrency)
Ethereum is at an all-time high against the dollar around the spot of $ 1,3337 - $ 1,375 - Ethereum is inside in upward channel.

Closing above the major support ($ 1,1272) could assure that ETH/USD will move higher towards cooling new highs.

Ethereum is continuing rising by market cap at 14% in a day, 28% in a week, and 118% in a month, and is trading at $ 1,340 after it reached $ $ 1,1478 earlier.

Ethereum has been set above the strong support at the price of $ 1,1272, which coincides with the 23,6% Fibonacci retracement level.

This support has been rejected three times confirming the veracity of an uptrend.

The market is likely to show signs of a bullish trend around the spot of 1,1272. Buy orders are recommended above the area of $ 1,1478 with the first target at the price of $ 1,1419; and continue towards 0.6766 in order to test the last bullish wave.

On the other hand , if the ETH/USD fails to break through the resistance price of $ 1,375 today, the market will decline further to $ 1,1208.

As we know that :
1 BTC ---> $ 32,000 approximately
1 ETH ---> $ 1,350 approximately
So, 1 ETH ---> 0.0421 BTC.
However, one Ethereum is only worth 0.0421 Bitcoin (January 28, 2021).


Trading recommendations
The trend is still bullish as long as the price of $ 1,208 is not broken. Thereupon, it would be wise to buy above the price of at $ 1,208 with the primary target at $ 1,419. Then, the ETH/USD pair will continue towards the second target at $ 1,478 (a new target is around$ 1,478).

Alternative scenario
The breakdown of $ 1,208 will allow the pair to go further down to the prices of $ 1,125 and $ 1,050.

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Crypto industry news (Ethereum News - (Source : cryptonews))
Ethereum Needs To Clean Its Value Proposition - Coinbase.

ETH outperformed BTC in a month and a year - 107% to BTC's 17%, and 702% to BTC's 274%, respectively - but it has also been more volatile, which can partly be explained by its shorter life and smaller market capitalization compared to bitcoin (USD 152bn vs. USD 599bn), according to Coinbase. At 11:25 UTC Tuesday morning, ETH was trading at USD 1,329, having decreased following yesterday's all-time high. It dropped 5% in a day and 4.6% in a week. Meanwhile, bitcoin dropped 3% in a day and 13% in a week to USD 32,205.

Ethereum (ETH) prices have continued to bump along without any real momentum in either direction, with the market seemingly unmoved by news of social media giant Reddit's latest deal with the Ethereum Foundation.

At the time of writing (09:21 UTC), ETH trades at USD 1,270 and is up by 1% in a day and 1.5% in a week.




Mourad El Keddani
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical analysis of BTC/USD for January 28, 2021



Technical market outlook

Bitcoin price
After finding bids reach to $ 29,223, bitcoin price recovered above $ 30,000 and $ 31,000.

Initial Bitcoin resistance lies near the $ 32,031 level (50% of Fibonacci retracement levels).

A decent breakout and follow-up move above $ 32,031 could open the gate for a push towards the $ 33,604 level. The main resistance remains near the area of $ 33,604 - $ 34,000.

Also it should be noted that Bitcoin and cryptocurrencies unite as the bears lose their momentum.

The market is indicating a bullish opportunity above the above-mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside.


Trading BTC/USD

Uptrend scenario
An uptrend will start as soon, as the market rises above resistance level $ 32,000, which will be followed by moving up to resistance level $ 33,000. Further close above the high end may cause a rally towards $ 33,604. Nonetheless, the weekly resistance level and zone should be considered.

Downtrend scenario
On the downside, the $ 30,000 level represents support. The next major support is located near the $ 30,000, which the price may drift below towards the $ 30,000 support region.


Forecast (BTC/USD)
The volatility is very high for that the BTC/USD is still moving between $ 30,000 and $ 33,604 in coming hours.

Consequently, the market is likely to show signs of a bullish trend again. So, it will be good to buy above the level of $ 31,000 with the first target at $ 32,000 and further to 1,33,604 in order to test the daily resistance. However, if the BTC/USD is able to break out the daily support at $ 29,223, the market will decline further to $ 28,200 to approach support 2 today.


Crypto industry news (Bitcoin News - (Source : cryptonews))

Lawyers Take Aim at Russia's Crypto Legislation.

As many other cryptos and tech stocks soared, bitcoin (BTC) tanked, said Arca, stressing that the reason behind this is leverage, as it exacerbates price action when something organic causes sell pressure - which is what happened last week.


Mining news
In a coded letter today, Bitmain's co-founder Jihan Wu said he has resigned as the CEO and Chairman of Bitmain today. "The disagreement between Micree and myself, the two co-founders of Bitmain, has been finally settled in an amicable and, more importantly, a constructive manner," he said. According to Jihan Wu, Micree Zhan, another co-founder of the company, purchased almost half of the Bitmain shares owned by Bitsource, "which is a code name that represents a group of founding shareholders" including Jihan Wu, for USD 600m. Also, he announced changes in their business structure, claiming that their new "model will be highly streamlined which will make it much easier to go for an [initial public offering]."



Mourad El Keddani
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for 29 January 2021

Crypto Industry News:
According to a recent analysis, the upcoming Chinese New Year holiday on February 12 could have an indirect impact on Bitcoin's price and fuel market sales.

According to a Jan. 28 report by investment firm Stack Funds, continued selling pressure on the BTC price is likely to persist in the short term as Asian miners increasingly unload their funds due to the upcoming holiday season.

With more than 60% of the global Bitcoin mining pools in China, Stack Funds head of research Lennard Neo has suggested that a lot of sales pressure comes from Chinese miners. The researcher found that the miner's position index, or MPI, had recently seen a massive increase, indicating a subsequent decline in Bitcoin's price. MPI reached its highest level since 2019 in mid-January 2021.

Neo concluded that the ongoing sale coincides with the coming holidays, suggesting that the reserve price has yet to be known:

"With the upcoming Chinese New Year holidays, we expect the selling pressure to persist in the short term, providing participants with good entry opportunities [...] We also expect this volatility to continue in the weeks ahead, adding to pressure for further price corrections. BTC ".

Chinese New Year, also known as Lunar New Year or Spring Festival, is one of the country's biggest holidays and is usually associated with increased spending. As previously reported by industry media, the cryptocurrency community has long speculated that the Chinese New Year celebrations in the past contributed to the decline in the price of Bitcoin.


Technical Market Outlook:
The BTC/USD pair rally has been capped at the level of $34,123 after a false breakout was made above the short-term trend line resistance. The market has made a Bearish Engulfing candlestick pattern and reversed lower. The intraday technical support is located at the level of $31,144. Please notice, that if the level of $28,930 - $28,471 is clearly violated, then the market might extend the slide down towards the level of $27,000. On the other hand, the bulls must break through $35,000 in order to resume the up trend.

Weekly Pivot Points:
WR3 - $45,492
WR2 - $41,554
WR1 - $36,330

Weekly Pivot - $32,457
WS1 - $27,332
WS2 - $23,540
WS3 - $18,286


Trading Recommendations:
Despite the recent corrective cycle the bulls are still in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $50,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $20,000 is clearly broken.





Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for 29 January 2021

Crypto Industry News:
The popular social media Reddit, with over 1.7 billion visits per month, is deepening its ties with the Ethereum Foundation as part of what has been described as the first-ever blockchain partnership.

As announced by Reddit, the partnership's goal will be to increase the site's commitment to blockchain, accelerate scaling and resources for the Ethereum ecosystem, and provide the value and independence of blockchain technology to millions of redditors.

In 2020, Reddit has already initiated two major Ethereum-focused projects. The first, an application called Community Points, was a rewards system that awarded redditors with ERC-20 tokens for contributing engaging content to the platform. Reddit then continued The Great Reddit Scaling BakeOff contest of submitting Ethereum scaling technology solutions that could help some applications move to the main network and eventually scale to all 400 million network users per month.

The next step in a more formalized collaboration with the Ethereum Foundation will focus on developing a scaling technology that can support large-scale applications such as community points on the Ethereum blockchain. The project will be led by Reddit's in-house crypto team, and the announcement makes an appeal to all engineers who are interested in scaling and would be interested in joining the Reddit cryptocurrency team to help with the work of developing a more decentralized internet. All the scaling technology developed under the new partnership will be publicly available.


Technical Market Outlook:
The ETH/USD pair had retraced 61% of the last wave down as it hit the level of $1,371. Nevertheless, the bounce was capped at this level as the Pin Bar candle was done, so the market reversed towards $1,284. The next technical support is seen at the level of $1,274, $1,233 and $1,208. The momentum is pointing down around the neutral level, so the sentiment might be flipping to negative in the short-term. The nearest technical resistance is located at the level of $1,376. The higher time frame trend remains up.

Weekly Pivot Points:
WR3 - $1,927
WR2 - $1,665
WR1 - $1,545

Weekly Pivot - $1,286
WS1 - $1,156
WS2 - $897
WS3 - $767


Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $1,500, so any correction or local pull-back should be used to open the buy orders. Please notice, the up trend starting to go vertical, so the volatility will be higher than average. The bullish scenario is valid as long as the level of $830 is broken.





Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021