Cryptocurrency Analysis

[IFX_Selena]

Gradual growth or jumps in value: what happens to the main cryptocurrencies

After a weekly correction and low indicators, the cryptocurrency market is starting to gradually recover. However, digital coins are still jumping in value. Bitcoin is leading the resistance to the market, which meets the spring with indicators of $46,500. Over the past day, the cryptocurrency has risen by $3,000 and continues to grow steadily, approaching the indicators of $48,500.



It is worth noting that all digital assets show excellent progress, but do not forget that their current quotes are far from record indicators. For example, Ethereum achieved the $2,000 mark a few weeks ago, and now it is quoted at $1,535. The coin is gaining momentum and goes almost without recessions from the $1,320 mark.



The XRP token is also gaining momentum and rising from $0.396. The general market sentiment and news about the development of new digital coins with the central banks worldwide show investors a powerful margin of safety for the cryptocurrency, even despite the claim from the SEC. Now the Ripple token is quoted at $0.432 and is not going to stop.



Litecoin has not yet come to its senses, but it still shows good growth. The coin began its ascent at $155 and, overcoming the correction, rose to the level of $172. The total capitalization of the cryptocurrency market again reached $1.4 trillion, having increased by 4% per day.



The cryptocurrency market meets spring in a cheerful mood and shows the growth of indicators of main assets against the background of positive economic indicators. The quotes were also influenced by new investments in altcoins from Dubai-based company D7, which reinvested $750 million in somewhat unpopular coins.

General market growth, economic growth, and a positive information agenda predict even greater growth in the quotes of major cryptocurrencies. At the same time, one should not count on a protracted growth of coins, since the main digital assets are now in safe positions and have not come close to record indicators. Major crypto assets will likely continue to rise, with little fluctuations. Difficulties may begin a few days later as cryptocurrencies approach their highs.

Even though the price correction swept the market even earlier than expected, with the growth of quotes, the market resistance will also increase. Difficulties will begin if digital assets cannot overcome the "turbulence zone". For BTC, a difficult period will begin at around $50,000, ETH may not hold its position, breaking the $1,800 mark, and the XRP token may begin to decline around $0.650.

If the coins can gain a foothold in the safe zone, overcoming dangerous areas and correction, then the market can start growing much earlier. The next few days will show whether the main cryptocurrencies are ready for new prolonged growth or the price correction may last until the end of the week.





Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin uses the same amount of energy as the Netherlands



There are a lot of stories saying that people became millionaires because of Bitcoin. One example is Elon Musk, who, through his electric car company, Tesla, has made over $ 900 million (£ 646 million), after purchasing a $ 1.5 billion (£ 1 billion) worth of cryptocurrency. In fact, Musk's support in Bitcoin helped push its price above $ 58,000.

But according to US Treasury Secretary Janet Yellen, using the cryptocurrency is "a completely inefficient method of conducting transactions." She said it requires too energy-intensive processes.

Although it is unclear exactly how much energy Bitcoin uses, cryptocurrencies itself are difficult to track. But everyone agrees that Bitcoin mining is a very energy-intensive business.

In fact, Bitcoin uses the same amount of energy as the Netherlands.

In a study conducted by the Cambridge Centre for Alternative Finance (CCAF), it was found out that on a yearly basis, Bitcoin's total energy consumption is between 40 and 445 terawatt-hours (TWh). Its central estimate, meanwhile, is around 130 terawatt-hours.

Bitcoin needs this enormous amount of energy because of the computing power required to develop a blockchain that underlies the cryptocurrency.

In short, mining relies on a vast, decentralized network of computers. These "miners" allow the creation of new bitcoins, and also independently verify and record every transaction made in the currency.

Bitcoins are the reward that miners receive for accurately maintaining this record.

"It's like a lottery that happens every 10 minutes," explains Gina Peters, a professor of economics at the University of Chicago and a research fellow at CCAF.

Data centers around the world strive to compose and send transaction records in a way that is acceptable to the system. They also have to guess a random number.

The first to submit the entry and the correct number will receive a prize, which becomes the next block in the block chain. And as soon as one lottery ends, a new number is generated, starting over the whole process. According to Professor Peters, the higher is the price, the more miners want to participate in the game.

Another factor that drives Bitcoin's energy consumption is the fact that the software ensures it always takes 10 minutes to solve the puzzle. So if the number of miners increases, the puzzle gets harder, thereby raising the computing power needed to be invested in it.

The idea is that the more computers compete to support the blockchain, the safer it becomes, because anyone who might try to undermine the currency has to control and use as much computing power as the rest of the miners put together.

This means that as Bitcoin becomes more and more valuable, the computational effort expended in creating and maintaining it (and therefore the energy consumed) will inevitably increase. The tremendous effort it takes to do this also makes it difficult for Bitcoin to scale.

So if Bitcoin were to be accepted as a reserve currency, its price will likely reach millions, and these miners would have more money than the entire US federal budget.

And if this happens, world energy production will have to be doubled.

This view is supported by many figures in finance and economics.

But according to Ken Rogoff, a professor of economics at Harvard University and former chief economist at the International Monetary Fund, the two main characteristics of a successful currency are: it is an efficient form of exchange and has a stable store of value. However, Bitcoin is neither. Accordingly, this means that Bitcoin has no long-term future, and that it exists solely as a vehicle for speculation.





Andrey Shevchenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum Further Decline Invalidated By Bullish Engulfing!

Ethereum edges higher after registering only a false breakdown through the 1,300 psychological level. The price was traded around a strong support area, so a bounce-back was in cards again.

I've told you my previous analysis Ethereum Near Critical Support! on Friday that ETH/USD could turn to the upside if it registers only a false breakdown or if the rate prints a major bullish engulfing.


ETH/USD UPSIDE MOMENTUM!



ETH/USD registered only a false breakdown through 1,352 former low, failing to reach the third warning line (WL3). The bullish engulfing printed yesterday signals that the retreat is over and that the bulls will lead the rate higher again.

Now is almost to reach the Pivot Point (1,550) which represents an immediate upside target. Breaking above the Pivot Point and through the fourth warning line (WL4) signals that the price will continue to increase in the upcoming period.

Escaping from the down channel between WL3 and WL4 could bring a long opportunity as well. I believe that the upside scenario will be safe as long as ETH/USD stands above 1,400 - 1,352 area.


ETHEREUM TIPS & FORECAST!

Buying could be signaled by a breakout and stabilization above 1,600 level. So, you could go long from above 1,600 using 2,040 all-time high as a target, while the Stop Loss could be hidden below 1,293 former low.





Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BCHUSD forecast for March 1, 2021 - BUY SELL. February gains +10.93%

1. Analysis of BCHUSDT volume on the Binance exchange.

In this analysis, we will use the data on horizontal trading volume from the Binance exchange on daily charts. The analysis is based on the footprint-profile theory. According to it, the movement of the level with the highest traded volume during the day can indicate a possible direction of the trend. The level with the highest traded volume is the level where the maximum number of transactions has been made. This is the level of a major market player. Accordingly, if the maximum volume level moves higher, this indicates an uptrend. A downward movement of this level indicates a downtrend. A chaotic movement signals that the market is trading in a sideways trend.

27.02.21 - The level of the maximum traded volume (POC - Point Of Control) - 489
28.02.21 - The level of the maximum traded volume (POC - Point Of Control) - 465

The POC has moved down, and the price is above the POC level. The market is correcting in a sideways range, so you can open both long and short positions.


2. Long-term trend analysis.

A trend is the trader's friend. Many market participants know this saying but do not know how to use it. The answer is simple: trade only in the direction of the trend. In this case, your trades will have more profit potential with less risk. The classic Dow Theory describes three main trends:

-long-term;
-medium-term;
-short-term.

You need to analyze these trends before opening any trade. This is what we are going to do in the analysis below.

The long-term trend in this analysis is a daily trend. Trades will be opened on the daily chart and held for several days. The analysis of the daily trend is carried out with the help of the EMA(48) - an exponential moving average with a period of 48. If the daily candlestick closes above the EMA(48), this will mean that the quotes are moving in an uptrend and we should open long positions. If the daily candlestick closes below the EMA(48), this will mean that the quotes are trading downwards and we should go short.



The price is below the EMA(48). The long-term trend is downward. In this situation, you can open short positions.


3. Medium-term trend analysis.

In this analysis, the medium-term trend is a trend on the four-hour chart (H4). The EMA(48), an exponential moving average with a period of 48, will also be used in analysis. If the candlestick closes above the EMA(48) on H4, this means that the quotes are moving in an uptrend and we should buy. If the candlestick closes below the EMA(48) on H4, this means that we have a downtrend and we should sell.



The price is below the EMA(48). The medium-term trend is downward. Therefore, it is possible to open sell orders.


4. Short-term trend analysis.

The short-term trend in this analysis is a trend on the H1 chart. It can show a point where we can enter the market. Here, we will again use the EMA(48) - an exponential moving average with a period of 48. If the candlestick closes above the EMA(48) on H1, this means that the quotes are trading upwards and we should buy. If the candlestick closes below the EMA(48) on H1, this indicates that the trend is downward and we should go short.



The price is above the EMA(48). The short-term trend is upward. The long-term, medium-term, and short-term trends do not coincide. Therefore, traders can go long.


5. Japanese candlestick analysis.

The classic Japanese candlestick analysis is applied to the daily trading chart. In this analysis, we will also analyze the daily candlestick.



The daily candlestick closed downwards, the candlestick is black. The low is below the low of the previous candlestick. The candlestick pattern is a hammer directed upwards. An upward movement is highly likely.


6. Conclusions.

Volume analysis - BUY SELL.
Long-term trend - SELL.
Medium-term trend - SELL.
Short-term trend - BUY.
Japanese candlestick analysis - BUY.

Conclusion: On March 1, you can open both long and short positions.

7. Statistics.

To analyze how effective this approach is, the data on completed transactions is tracked. The forecast is made for four instruments: Bitcoin, Ethereum, Litecoin, and BCHUSD. Trading account monitoring:



In February 2021, gains amounted to 10.93%.


Statement:

At the moment, we keep the position open:

26.02.21 BCHUSD SELL: 465.86; SL: 568; Risk: 1% of a $10,000 deposit with a trading volume of 0.96 lot.

Stop-loss orders for new trades can be placed beyond the daily extreme point. We do not set take-profit orders, as we will continue to move SL beyond the extreme points of the future sessions.

Since trading is carried out on the daily charts, this recommendation remains relevant throughout the day.

Trade along the trend and you will make a profit!




Maxim Petrov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Forecast for Litecoin on March 1, 2021 – BUY SELL. February gain +10.93%

1. LTCUSDT volume analysis on the Binance Exchange.

In this analysis, we will use the data on horizontal trading volumes from the Binance Exchange on the daily charts. The analysis is based on the footprint-profile theory. According to it, the direction of the level with the highest traded volume during the day can indicate the possible direction of the trend. The level with the highest traded volume is the level where the maximum number of transactions was made. This is the level of major market players. Accordingly, if the maximum volume level moves higher, this indicates an uptrend. A downward movement of this level indicates a downtrend. Chaotic movement signals that the market is trading flat.

27.02.21 – The level of the maximum traded volume (POC – PointOfControl) – 175
28.02.21 – The level of the maximum traded volume (POC – PointOfControl) – 160

POC has moved lower, the price is located above the POC level. The market has entered a sideways correction, so you can open long and short positions.


2. Analysis of the long-term trend.

A trend is your friend. Many traders know this saying but do not know how to use it. The answer is simple: trade only in the direction of the trend. This way, your trades will have more profit potential with less risk. The classic Dow Theory describes three main trends:

-long-term;
-medium-term;
-short-term.

You need to analyze these trends before opening any trade. This is what we are going to do in the analysis below.

A long-term trend is a trend on the daily chart. Trades will be opened on the daily time frame and held for several days. The analysis of the daily trend is carried out with the help of the EMA(48), an exponential moving average with a period of 48. If the daily candlestick closes above the EMA (48), then we have an uptrend and we should open buy positions. If the daily candlestick closes below the EMA (48), then there is a downtrend and we should go short.



The price is holding at the EMA(48). The long-term trend is moving sideways, so you can both buy and sell.


3. Analysis of the medium-term trend.

In our analysis, a medium-term trend will be the trend on the 4-hour chart (H4). EMA(48), an exponential moving average with a period of 48, will be also used in this analysis. If the H4 candlestick closes above the EMA(48), then we have an uptrend and we should open buy positions. If the H4 candlestick closes below the EMA(48), then there is a downtrend and we should go short.



The price is located below the EMA(48). The medium-term trend is moving down, so it is recommended to open short positions.


4. Analysis of the short-term trend.

A short-term trend that can also show an entry point into the market is considered a trend on the H1 time frame. Here, we will again use the EMA(48), an exponential moving average with a period of 48. If the H1 candlestick closes above the EMA(48), then there is an uptrend and you should open buy positions. If the H1 candlestick closes below the EMA(48), then there is a downtrend and you should go short.



The price is above the EMA(48). The short-term trend is moving up, so you can open buy positions. The long-term, medium-term, and short-term trends are moving in different directions.


5. Japanese candlestick analysis.

The Japanese candlestick analysis is applied to the daily time frame. In this analysis, we will also analyze the daily candlestick.



The daily candlestick marked with black closed lower. Its low is located below the low of the previous candlestick. The price has formed the hammer candlestick pattern. An uptrend is likely.


6. Conclusion

Volume analysis – BUY SELL.
Long-term trend – BUY SELL.
Medium-term trend –SELL.
Short-term trend – BUY.
Japanese candlestick analysis – BUY.

General conclusion: on March 1, 2021, you can go long and short.


7. Statistics

To analyze the effectiveness of this approach, we will keep the data on completed transactions. We prepare forecasts and open our trades on four major instruments: Bitcoin, Ethereum, Litecoin, and BCH/USD. Please, check other articles regarding this topic.

Monthly gain in February 2021 is +10.93%.


Statement:



We do not open a new trade as the current market situation seems uncertain. When opening new positions, you should place Stop Loss beyond the daily extreme points. Do not place Take Profit, as we will continue to move Stop Loss beyond the extreme points in the future sessions.

Since the trade is carried out on the daily charts, the recommendation remains relevant throughout the day.

Trade with the trend and you will gain profit!




Maxim Petrov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum forecast for March 1, 2021 - BUY SELL. February gains +10.93%

1. Analysis of ETHTUSD volume on the Binance exchange.

In this analysis, we will use the data on horizontal trading volume from the Binance exchange on daily charts. The analysis is based on the footprint-profile theory. According to it, the movement of the level with the highest traded volume during the day can indicate a possible direction of the trend. The level with the highest traded volume is the level where the maximum number of transactions has been made. This is the level of a major market player. Accordingly, if the maximum volume level moves higher, this indicates an uptrend. A downward movement of this level indicates a downtrend. A chaotic movement signals that the market is trading in a sideways trend.

27.02.21 - The level of the maximum traded volume (POC - Point Of Control) - 1490
28.02.21 - The level of the maximum traded volume (POC - Point Of Control) - 1349

The POC has moved down, and the price is above the POC level. The market is correcting in a sideways range, so you can open both long and short positions.


2. Long-term trend analysis.

A trend is the trader's friend. Many market participants know this saying but do not know how to use it. The answer is simple: trade only in the direction of the trend. In this case, your trades will have more profit potential with less risk. The classic Dow Theory describes three main trends:

-long-term;
-medium-term;
-short-term.

You need to analyze these trends before opening any trade. This is what we are going to do in the analysis below.

The long-term trend in this analysis is a daily trend. Trades will be opened on the daily chart and held for several days. The analysis of the daily trend is carried out with the help of the EMA(48) - an exponential moving average with a period of 48. If the daily candlestick closes above the EMA(48), this will mean that the quotes are moving in an uptrend and we should open long positions. If the daily candlestick closes below the EMA(48), this will mean that the quotes are trading downwards and we should go short.



The price is in line with the EMA(48). The long-term trend is sideways. In this situation, you can open both long and short positions.


3. Medium-term trend analysis.

In this analysis, the medium-term trend is a trend on the four-hour chart (H4). The EMA(48), an exponential moving average with a period of 48, will also be used in analysis. If the candlestick closes above the EMA(48) on H4, this means that the quotes are moving in an uptrend and we should buy. If the candlestick closes below the EMA(48) on H4, this means that we have a downtrend and we should sell.



The price is below the EMA(48). The medium-term trend is downward. Therefore, it is possible to open sell orders.


4. Short-term trend analysis.

The short-term trend in this analysis is a trend on the H1 chart. It can show a point where we can enter the market. Here, we will again use the EMA(48) - an exponential moving average with a period of 48. If the candlestick closes above the EMA(48) on H1, this means that the quotes are trading upwards and we should buy. If the candlestick closes below the EMA(48) on H1, this indicates that the trend is downward and we should go short.



The price is above the EMA(48). The short-term trend is upward. The long-term, medium-term, and short-term trends do not coincide. Therefore, traders can go long.


5. Japanese candlestick analysis.

The classic Japanese candlestick analysis is applied to the daily trading chart. In this analysis, we will also analyze the daily candlestick.



The daily candlestick closed downwards, the candlestick is black. The low is below the low of the previous candlestick. The candlestick pattern is a hammer directed upwards. An upward movement is highly likely.


6. Conclusions.

Volume analysis - BUY SELL.
Long-term trend - BUY SELL.
Medium-term trend - SELL.
Short-term trend - BUY.
Japanese candlestick analysis - BUY.

Conclusion: On March 1, you can open both long and short positions.


7. Statistics.

To analyze how effective this approach is, the data on completed transactions is tracked. The forecast is made for four instruments: Bitcoin, Ethereum, Litecoin, and BCHUSD. Trading account monitoring:



In February 2021, gains amounted to 10.93%.

Statement:

We do not open a new position, as the situation in the market is uncertain. Stop-loss orders for new trades can be placed beyond the daily extreme point. We do not set take-profit orders, as we will continue to move SL beyond the extreme points of the future sessions.

Since trading is carried out on the daily charts, this recommendation remains relevant throughout the day.

Trade along the trend and you will make a profit!





Maxim Petrov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Forecast for Bitcoin on March 1, 2021. Monthly gain +10.93%

1. Volume analysis of bitcoin on the Chicago Mercantile Exchange.

In this analysis, we will use the data on the horizontal trading volumes from the Chicago Mercantile Exchange on the daily charts. The analysis is based on the footprint-profile theory. According to the theory, the direction of the level with the highest traded volume during the day indicates the possible direction of the trend. The level with the highest traded volume is the level where the maximum number of transactions was made. In other words, it is a level of major market players. Thus, if the maximum volume level moves higher, it points to an uptrend. At the same time, a downward movement of this level indicates a downtrend. A chaotic movement signals that the market is trading flat.

25.02.21 – The level of the maximum traded volume (POC – Point Of Control) – 52,770
26.02.21 – The level of the maximum traded volume (POC – Point Of Control) – 46,955

POC moved down and the price is above the POC level. The market entered the sideways correction. It is possible to open both sell and buy positions.


2. Analysis of the long-term trend.

A trend is your friend. Many traders know this expression but do not know how to apply it to life. The answer is simple: you should trade only in the direction of the trend. This way, your trades will have more profit potential with less risks. The classic Dow Theory describes three main trends:

-long-term;
-medium-term;
-short-term.

You need to analyze these trends before you start trading. This is what we are going to do in the analysis below.

In this analysis, a long-term trend is a daily trend. Trades will be opened on the daily time frame and will be held for several days. The analysis of the daily trend is performed with the help of the EMA(48), an exponential moving average with a period of 48. If the daily candlestick closes above the EMA (48), then we have an uptrend and we should open buy positions. If the daily candlestick closes below the EMA (48), then there is a downtrend and we should go short.



On the chart, we can see an uptrend. The price is above the EMA(48). That is why we recommend opening buy positions.


3. Analysis of the medium-term trend.

In this analysis, a medium-term trend will be the trend on the 4-hour chart (H4). EMA (48), an exponential moving average with a period of 48, will also be used for analysis. If the H4 candlestick closes above the EMA(48), the trend is upward and traders can open buy positions. If the H4 candlestick closes below the EMA(48), the trend is downward and traders should open sell positions.



The price is below the EMA(48). The mid-term trend is downward. Traders can open sell positions.


4. Analysis of the short-term trend.

A short-term trend that can also show an entry point into the market is considered a trend on the H1 time frame. In this analysis, we will again use the EMA(48), an exponential moving average with a period of 48. If the H1 candlestick closes above the EMA(48), there is an uptrend and traders should open buy positions. If the H1 candlestick closes below the EMA(48), the trend is downward and traders should open sell positions.



The price is above the EMA(48). The short-term trend is upwards. Traders can open buy positions. Long-term, mid-term, and short-term trends do not move in one direction.


5. Japanese candlestick analysis.

The classic Japanese candlestick analysis is applied to the daily time frame. In this analysis, we will also use the daily candlestick.



A daily candlestick closed lower. The candlestick is black. Its low is below the low of the previous candlestick. The candlestick pattern is an upward Hammer. An upward movement is possible.


6. Conclusion.

Volume analysis – BUY SELL.
Long-term trend – BUY.
Medium-term trend – SELL.
Short-term trend – BUY.
Japanese candlestick analysis – BUY.

Conclusion: On March 1, 2021, it is recommended to open both buy and sell positions.

To analyze the effectiveness of this approach, we keep data on completed transactions. We prepare forecasts and open trades on four major instruments: Bitcoin, Ethereum, Litecoin, and BCH/USD. You can also read other articles. Data from the trading account:



In February 2021, the gain is +10.93%.


7. Statistics

Do not open new positions, as the market situation is uncertain. . For new positions, Stop Loss is placed beyond the daily extreme. Do not place Take Profit as we will monitor the trade, moving Stop Loss beyond the extreme points in the future sessions.

Since the trade is carried out on the daily charts, the recommendation remains relevant throughout the day.

Follow the trend and you will get profit!




Maxim Petrov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical analysis of Bitcoin/USD for March 1, 2021



Bitcoin peaked at 58,354 in late February. After the downward correction to 43,02, it may resume the underlying uptrend above the former high of 58,354 for a continuation higher towards 63,085 as the next extension target.

Support is now seen at 44,918/43,021 and key support is seen at 42,000. As long as minor resistance at 48,476 is able to cap the upside, we could see renewed downside pressure closer to the key-support at 42,000, but it isnot a necessity.


Trading recommendation:
Buy Bitcoin as close to 42,000 as possible or buy a break above 48,476




Torben Melsted
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for March 1, 2021

Crypto Industry News:

OLB Group (OLB), a New York-based e-commerce service provider, enables businesses to accept cryptocurrency payments.

Over 8,500 OLB sellers can now accept Bitcoin, Ethereum, USDC, and DAI at the point of sale through the company's OmniSoft business management platform. Customers looking to pay with cryptocurrency in-store or by mobile can simply choose to do so using cryptocurrency wallets. All payments are processed through SecurePay, the payment gateway that authenticates the transaction, converts the cryptocurrency into US dollars, and approves the final sale.

The decision to integrate cryptocurrency payments was partly driven by the surge in contactless and online orders during the Covid-19 pandemic. As the OmniSoft platform already provides merchants with several payment facilitation options, cryptocurrencies were the next logical step.

Ronny Yakov, CEO of the OLB Group, says the payment gateway and point-of-sale architecture is "familiar territory for merchants," making it easier to integrate cryptocurrencies through such channels.

When it comes to cryptocurrency payments - a promising but untapped use case in the industry - Yakow believes we're still in a very early stage of implementation.

"It is very early on in adopting cryptocurrencies as payments, but we see growing interest from merchants exploring this payment option as a way to meet customers wherever and whenever they want," says Yakov.

As scaling and sidechain development is still ongoing, it remains to be seen whether cryptocurrencies will ever function effectively as payment systems.


Technical Market Outlook:

The ETH/USD pair has bounced from the low seen at the level of $1,295 and is currently trying to break higher above the level of $1,348. The next target for bulls is seen at the level of $1,478, but even if this level is hit, then the next most important target for bulls is the overbalance level located at $1,619. As long as the market trades below the overbalance level, the correction might develop. Please keep an eye on the RSI indicator as it clearly shows the momentum is still negative.

Weekly Pivot Points:
WR3 - $2,368
WR2 - $2,149
WR1 - $1,728

Weekly Pivot - $1,511
WS1 - $1,076
WS2 - $857
WS3 - $438


Trading Recommendations:

During the recent corrective cycle Ethereum has lost almost 50% of its value , but the longer term up trend on the Ethereum continues. When the correction is terminated, the next long term target for ETH/USD is seen at the level of $2,100. The key long term technical support is seen at the level of $1,412, so only a weekly candle close below this level will invalidate the bullish scenario.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for March 1, 2021

Crypto Industry News:

At the time of writing this text, the price of Bitcoin is close to USD 46,000. Since its peak 7 days ago, the most popular cryptocurrency has already slipped by 25%.

However, some market analysts say the current situation is very favorable in the long term. Ki Young Ju claims that the cryptocurrency market is ruled by 3 large groups: institutional investors, whales and miners. So far, the latter seem to be winning the battle.

Glassnode noted that Bitcoin's Daily Spending Out Profit Rate (SOPR) saw a "full reset." It therefore offers a chance for potential increases.

The SOPR basically shows whether individual Bitcoins are making a profit or a loss at the time of the transaction. This key indicator turned negative for the first time since September 2020. In other words, investors are now moving BTC on average with a slight loss, suggesting that according to Glassnode the level of profit taking has declined.

Meanwhile, the popular trader Philip Swift, co-founder of the Decentrader trading platform and creator of the Golden Ratio method, also drew attention to the SOPR crash. He sees this as a potentially bullish BTC return coupled with last week's derivative funding rate reset as such events coincided earlier with the start of new uptrend.


Technical Market Outlook:

The BTC/USD pair has bounced from the low seen at the level of $43,121 and is currently trying to break higher above the level of $47,000. The next target for bulls is seen at the level of $48,021 - $48,335, but even if this level is hit, then the next most important target for bulls is the overbalance level located at $50,265. As long as the market trades below the overbalance level, the correction might develop. The intraday technical support is located at $45,710.

Weekly Pivot Points:
WR3 - $66,669
WR2 - $61,820
WR1 - $52,326

Weekly Pivot - $47,444
WS1 - $38,017
WS2 - $33,139
WS3 - $23,184


Trading Recommendations:
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 $60,000. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $41,125 is clearly broken.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021