Cryptocurrency Analysis

[IFX_Selena]

Elon Musk continues to excite the cryptocurrency markets.



Everyone knows the phrase "What do you think, Elon Musk?". It is usually used in comical situations to emphasize the weakness or wretchedness of an event or action. However, in the last couple of weeks, it seems that it is Musk who is asking the whole world: "How do you like this?". Yesterday, Elon Musk was asked what the name of his own cryptocurrency would be called. There were even two possible answers: Eloncoin and Marscoin. Mask liked the second option that he did not forget to mention. Interestingly, there is already a cryptocurrency called Marscoin in the world which immediately began to rise in price as soon as it learned that the owner of Tesla liked its name. The price for a few hours soared from $ 0.1 per coin to $ 2.5. And now we deal with what happened, laugh and draw conclusions. That is, the Marscoin cryptocurrency has risen in price simply because Elon Musk would call his own cryptocurrency "Marscoin". He is not going to invest in an unknown Marscoin, but just a word from Musk leads to the fact that the markets begin to buy the digital asset in bags and wagons, if it could be put in a bag or in a wagon.

It is worth recalling that this is not the first time that Elon Musk's comments and tweets lead to a strong movement in the cryptocurrency market. He has even been accused of deliberately manipulating the markets and his individual cryptocurrencies. But whose fault is it if the market (that is, the totality of a huge number of traders and investors who make their own decisions) tracks Musk's tweets and comments from morning to night, considering them as an ideal signal to enter the market for a particular digital asset? Imagine the following situation: Bill Gates declares that his company is not going to make payments in the European currency and the euro immediately falls twice against the dollar. Fantastic? Yes it is, but not in the cryptocurrency market. Thus, Musk has put his hand to the growth of at least three cryptocurrencies, each of which should say "thank you very much" to him. It remains to be seen how much longer the market will react to the statements of the owner of Tesla and SpaceX? But while reacting, it seems that it is Elon Musk who will play the role of the central bank for the cryptocurrency market. It is his comments that will play a significant role for bitcoin and its "brothers". It is his word that will reward or kill this or that cryptocurrency. Meanwhile, bitcoin reached $ 52,000 per coin, ether - $ 1,900, and litecoin - $ 240 per coin.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin continues to grow. Next target is $55,000

Bitcoin continued to grow again yesterday, which led to an exit beyond the local accumulation zone. Now, the path to the price of $55,000 per coin is open. Reaching this mark becomes a matter of time. It is important to identify possible correction zones. The nearest area where bitcoin has received support is the range of 46930-48200. A drop to this area will allow you to get the best deal possible and break-even prices for the purchase. This same zone will be decisive for the next two months.



The upward movement is a strong impulse, ergo, there is no need to talk about sales. The probability of updating the monthly maximum in this and next months is 75%. This should be taken into account and attempts to find the end of the bullish trend should be abandoned. It is much more profitable to wait for pullback movements and buy the instrument again until a reversal pattern is formed at least below the weekly level.




Samanta Kruder
Analytical expert
InstaForex Group © 2007-2021

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Not everyone is ready to follow the example of Elon Musk: Microsoft refused to buy bitcoins.



The bitcoin exchange rate has exceeded to $ 50,000 per coin! And he did it freely and naturally. However, as always the strongest upward movement continues and it is not yet clear what can stop it. Of course, sooner or later the traders and investors will start closing long positions, since bitcoin is an absolute investment tool. It is bought to earn money and not to make calculations in it or to store it. Thus, a serious wave of sales is imminent and the "bubble" itself can be properly deflated if it does not burst at all. But while this is not the case, you need to continue to trade for an increase since on a strong uptrend, everyone trades for an increase. However, it should be noted that the upward movement has weakened in recent weeks. After Musk's tweets and information about Tesla's purchase of 1.5 billion bitcoins, the price soared to $ 10,000 within a week. Now, the growth is frankly weak and only a few thousand dollars per week. Based on this, we conclude that the "cue ball" still needs a new recharge. In the near future, we should expect new comments from world-famous officials and economists?

Well, while in contrast, the statement was made by the president of Microsoft Corporation Brad Smith. He said that the third-largest company in the world by capitalization has no plans to buy bitcoins. "I haven't heard any new talk about bitcoin. If we change our investment policy on digital assets, then you will be the first to know about it, or at least the second, " Smith said on CNN. Thus, as we can see, not everyone experiences a nervous tremor and trepidation when they hear the word "bitcoin". Many companies do not really want to get involved with cryptocurrencies, as they understand their lack of security and banal complexity in using them in calculations. However, some payment systems and banks have announced the start of working with them to please the spirit of the times. They say that the 21st century has come, now it is absolutely normal, when a piece of code is paid for $ 50,000 and it goes instead of money, so why not give your customers the opportunity to store and pay with bitcoin through their products? This is the logic of Visa, Paypal and some banks that have recently announced their desire to work with digital assets. Now, in many ways, the popularity of the "cue ball" will depend on who else to join Tesla and Microstrategy. Because these two companies are still the major institutional investors of bitcoin. There were no further statements that anyone wanted to support them.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for Ripple XRP/USD for February 18 - 19, 2021



Ripple Labs, Inc, owner of the cryptocurrency XRP and the United States Securities and Exchange Commission (SEC), ruled out reaching a previous agreement before the start of the trial that is scheduled for February 22, 2021.

On December 22, 2020, the SEC filed legal action against the company Ripple and its co-founders, Cristian Larsen and Bradley Garlinghouse.

They are accused of selling XRP to finance company activities. The SEC considers that asset to be unregistered security, while Ripple, for its part, maintains that it is a virtual currency.

The SEC complaint filed against Ripple, on December 22, 2020, initially had a negative impact on XRP. It dropped from $0.466 to $0.195.

On a technical level, on the 4H chart, we notice that the Ripple cryptocurrency is trading above the 21 SMA and above the 200-day EMA, showing bullish strength.

We can also see the formation of a technical pattern of a bullish wedge, which could be a sign of a bullish move in the short term.

The eagle indicator is on neutral ground as Ripple is now in the eye of the SEC. It is likely to continue to consolidating at this level until after February 22.

Our recommendation is to buy above the 21 SMA with targets at 0.6335



Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Cryptocurrency: Results of the day 02/17/21

Bitcoin has reached the level of 161.8 on Fibo Expansion. Ethereum and Litecoin updated their technical benchmarks. The rest of the coins are still in the sideways, keeping the traders in a state of uncertainty. Nevertheless, the forecasts for them have not lost their relevance.

Bitcoin, formed by the mark of 161.8 after consolidating above the local support of 49,690. 70 and rising above to $ 50,000 per coin and moved to consolidation under the resistance level of 51,870.71,

Based on the four-hour chart, a flag is formed causing to leave the prerequisites for continued growth. However, a downward correction to the support of 49690.70 is more likely before the main cryptocurrency returns to growth.



Bitcoin Cash confirmed the 701.47 horizontal as support and moved to consolidate above it. The next target for the growth of BCH USD is the level of 750.13. An alternative scenario is the return of the pair to the corridor of 667.95 to 701.47, if the growth of the main cryptocurrency slows down and altcoins go down.



Ripple is growing very slowly. After the transition of XRP USD to the sideways 0.4769 to 0.5345, the price broke through its resistance level, but so far there is no clarity as to whether it will be true or false. In case of further growth, the targets remain to the level of 0.5564 (blue horizontal) and 0.5957 (green horizontal).



Ethereum broke through the inclined resistance level of 1874.20 to 1851.95 and during the strengthening reached the horizontal resistance level of 1823.44 (marked with a red dotted line). Now, there is a consolidation under it. If it can be broken from the bottom up then ETH USD can go to the level of 161.8 on Fibo Expansion. An alternative scenario would be a decline in the sideways range of 1761.85 to 1823.44, bounded by two red dotted lines.



Litecoin rose rapidly, gaining a foothold above the local level of 219.47. The next target for LTC USD at 228.90 was also achieved. Now this level is being tested for strength, but conclusions about the probability of a true breakdown will still be premature. An alternative scenario, if consolidation above 228.90 fails, is to move south and return to the intermediate horizontal of 219.47.






Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for Bitcoin Cash - BCH/USD for February 17 - 18, 2021: Buy above $690.00



The US Securities and Exchange Commission (SEC) should keep an eye on Tesla CEO Elon Musk for manipulating the cryptocurrency market. In an interview with CoinDesk TV, Roubini warns that Bitcoin could crash before the end of the year.

Musk has been tweeting about Bitcoin and Dogecoin in recent weeks, which has been able to sway some investors. Since then, Bitcoin has gone into an upward spiral to break through its highs.

On the other hand, Bitcoin Cash BCH / USD has remained stable above the SMA of 21 in the 1 hour chart, with a bullish bias, you can also observe the technical pattern of the bullish triangle, the objective is in the short term the 750.00 zone there is located 8/8 of Murray.

Also, if it breaks the key 8/8 Murray level, the next target is +1/8 Murray at $ 812.50.

Our recommendation is to buy the Bitcoin Cash, above the 21 SMA around $ 692.00, as the bullish force continues to prevail in the market.

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Support And Resistance Levels For February 17 - 18, 2021

Resistance (1) $748.00
Resistance (2) $773.00
Resistance (3) $824.00

Support (1) $650.00
Support (2) $623.00
Support (3) $572.00




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum still riding the bullish channel

Ethereum is trading today at $1,812. Price is very close to monthly and all time highs. Trend remains bullish as price continues making higher highs and higher lows inside the bullish channel. As long as price is above $1,610 trend remains bullish.



Blue lines - bullish channel

ETH/USD short-term support is at recent low at $1,650. Channel support as we said above is crucial and at $1,610. Resistance is at $1,872 the recent all time high. There is potential of a move towards $2,000 as long as price is inside the bullish channel. The RSI is providing bearish divergence warning signals, so traders need to be very cautious and protect their longs.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin smashes through $50,000 again

For the first two weeks of February, bitcoin has gained in value in a relatively stable manner. As a result, the crypto community started to ignore the main disadvantage of the digital asset - its high volatility. Over the past three days, the situation has changed dramatically. The price of bitcoin continued to advance, hitting new all-time highs. However, its rally has been accompanied by sharp declines, resulting in huge losses on the global trading floors.

Crypto exchanges liquidated the positions of 88,000 users over the past day to avoid large financial losses. This happened after bitcoin reached a historical high of $50,600, then fell by almost $3,000, and settled at the level of $47,700. Today, bitcoin has once again broken above the $50,000 threshold.

For many traders, this fall in price has become fatal. One investor lost almost $10 million worth of the cryptocurrency. The total losses of users of exchanges amounted to nearly $573 million. This amount is much less than February 15. However, the intervals between price spikes have decreased significantly.



Although bitcoin continues to extend gains and has already successfully consolidated around the level of $50,000, the situation in regard to the first cryptocurrency remains uncertain. Bitcoin's slump underlines nagging questions over its strength and stability. It can fall sharply in value after a strong run. Over the past three days, traders around the world have lost more than over the entire last week.

Such dynamics suggests that even a constant flow of positive news cannot stop a correction in the market, which is having a destructive effect on bitcoin. There is no doubt that the digital asset will soar more than once in February. However, its subsequent sharp drops are likely to be more frequent and detrimental to investors.

Moreover, bitcoin's instability may have a severe impact on the cryptocurrency market, which is now strongly dependent on the main asset's dynamics. The only currency that showed independence amid market euphoria was Litecoin. However, even this asset is unable to stay firmly against the backdrop of a market downturn. This suggests that not all digital assets gain ground along with bitcoin. However, all of them will most likely suffer in case the main asset tumbles.




Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for February 17,.2021 - BTC is on the extended run and there is potential for the downside rotation

Further Development



Analyzing the current trading chart of BTC, I found thatBTC is trading higher but that is on the extended run, which is sign that buying is risky.


Key Levels:

Resistance: $51,700

Support level: $46,600.




Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

MicroStrategy plans to acquire $600 million in BTC

Bitcoin was volatile in the past several days. It still continues its stellar rally and sets new records. Meanwhile, the news broke that the major bitcoin corporate backer, MicroStrategy, is planning to invest $600 million in bitcoin. Thus, the crypto community should expect the price of BTC to reach another all-time high in the short term.

It would be more correct to say that the company is going to reinvest, as it has gained $2.3 billion from the rise in the value of bitcoin. It announced plans to issue $600 million in convertible notes to fund its bitcoin purchase. Apart from that, MicroStrategy will have an option for repurchasing or redeeming the notes in February 2024.

Bitcoin broke the $50K barrier after the announcement, setting another record. Notably, it was a short-term rally. Then, the price pulled back to $47.7K, consolidated, and resumed its upward movement. Thus, on February 17, bitcoin skyrocketed, settling above $51K despite attempts of the market to push the price down.



The correction has made the market even more unpredictable. Nevertheless, we can clearly see the bullish trend in bitcoin. Large companies continue to build up their bitcoin reserves. This fact has a positive effect on the price of the digital asset and consequently on the entire market. A strong investment flow, as well as the development of software for cryptocurrency transactions, will make the market stable enough so that it can prevent major digital coins from falling below certain positions.

At the same time, bitcoin seems to be in a vulnerable situation. The thing is that the coin is the most independent asset in the market. In addition, it helps other digital cash to rise. Therefore, sharp jumps in the value of bitcoin can have an adverse impact on retail traders, who can incur tremendous losses in a matter of hours. On top of that, BTC's sharp fluctuations can cause market turmoil, which is closely related to the main cryptocurrency at the moment. On February 17, bitcoin is showing steady growth, which positively affects the overall market dynamics. There are no prerequisites for a sharp drop in its price now. However, it does not mean that the price cannot suddenly drop. This is the main problem of the first cryptocurrency.





Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021