Cryptocurrency Analysis

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Trading Signal for Bitcoin BTC/USD for March 03 - 04, 2021: Kel level $50,000



This news is undoubtedly one more sign that cryptocurrencies are breaking ground and there could be a strong demand in the coming months.

On a technical level, we note that Bitcoin is trading above the 21 SMA and above the 200 EMA on 4-hour charts, showing strong bullish signal, also the eagle indicator is supporting the bullish signal.

A bounce in the 8/8 zone of murray, located at $ 50,000 would be a good point to buy the Bitcoin with targets at the +1/8 of murray around $ 56,250.

Conversely, a break below $ 48,950 would be a good selling point with targets at the 200 EMA located at $ 45,115.


Support And Resistance Levels For March 03 - 04, 2021

Resistance (1) $51,244
Resistance (2) $52,362
Resistance (3) $54,129

Support (1) $49,336
Support (2) $48,217
Support (3) $46,319




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

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BTC analysis for March 03,.2021 - Completion of the abc in progress and potential for downside movement towards $47.280

Further Development



Analyzing the current trading chart of BTC, I found that there is completion of the upside correction ABC and potetnial for the downside wave.

My advice is to still watch for selling opportunities on the rallies using the intraday time-frames.

Downside targets are set at $47,280 and $43,300

Stochastic is in overbought condition and got bearish divergence of the slower line, which is another sign for the further downside movement.


Key Levels:

Resistance: $52,000

Support levels: $47,280 and $43,300





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

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Consolidation. Cryptocurrency market results for March 2, 2021.

According to the charts, during the day, the market situation did not significantly change. The quotes began consolidating near the levels mentioned in the morning. The technical picture of Bitcoin and Litecoin became a bit clearer

Bitcoin consolidated above the level of 48,178.13. It means that the cryptocurrency may reach its next target of the 61.8 Fibo Expansion. However, the alternative scenario is also possible and the price may drop below 48,178.13 or even lower to the previous support level of 45,553.17.



After a rise in the first half of the day, Bitcoin Cash dropped from the horizontal resistance level of 551.56 (a red dotted line) and returned to the area of 465.48-508.94. Now, BCH/USD may slide to 465.48.



The technical picture of Ripple remained the same. The price is still hovering above the broken level of 0.4348. It is likely to climb to the next target of 0.4769 (a blue line). According to the alternative scenario, the price may decline to 0.407.



Ethereum consolidated above the upper limit of the range of 1,519.84-1,572.74. At the moment, we cannot say in which direction the price may break the range. If the resistance level of 1,572.74 will be broken upwardly, ETH/USD is likely to jump to the next target of 1,697.27 (a red dotted line). According to the alternative scenario, the price may fix below 1.519,84-1,572.74 and return to the level of 1,436.48.



After a surge within the range of 171.25-186.48, Litecoin dropped after hitting the resistance level. Thus, the LTC/USD pair may return to the support level of the sideways channel. Otherwise, the pair will break the level of 186.48 and consolidate above it to reach 195.06 (a red dotted line).






Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin Resumes Its Major Uptrend As Expected!

Bitcoin is now trading at $51,501 level after ignoring the $50,000 psychological level. The cryptocurrency was expected to resume its growth after the price action has signaled that the temporary drop is over.

If you remember from my analysis Bitcoin Buyers Attack $50,000 posted yesterday, you should already know that BTC/USD should increase if it passes and stabilizes above the $50,000 upside obstacle. Moreover, the upside breakout from a minor Falling Wedge pattern signals further growth.


BTC/USD TOWARDS NEW HIGHS!



Bitcoin has increased aggressively today and most likely it will close the current H4 bullish candle above $50,250 former high confirming more gains and offering a great long opportunity.

The price failed to stabilize under the Pivot Point ($48,599) level signaling that the buyers will take full control in the short term. The immediate upside target is seen at the R1 ($54,217) level.


BITCOIN TIPS & FORECAST!

Closing the current H4 candle far above $50,250 former high represents a buying signal. The $54,217 and the $58, 367 could be used as targets. A larger growth could be confirmed by a valid breakout through the second warning line (WL2) and above $58,367 all-time high.

Passing above the historical high could signal a further growth towards the R2 ($63,194) level approaching the third warning line (WL3).





Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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New goals for growth. Morning review of the cryptocurrency market for 03/03/21

Some of the growth targets noted yesterday have already been achieved despite a short-term downward pullback. It's time to set the next goals for the top cryptocurrencies and update the technical guidelines.

Bitcoin has increased despite a false breakout at the level of 48178.13. Now the price of BTC USD is approaching the resistance level of 61.8 on Fibo Expansion (near the level of 52068.06). The further direction of the main cryptocurrency will depend on whether it will be possible to break through this level and gain a foothold above it. If so, the next target to the upward trend will be at Fibo Expansion level 100. Otherwise, the quotes may return to the downward direction to the support level of 48178.13.



As expected in yesterday's evening review, Bitcoin Cash declined within the range of 465.48 to 508.94, after which it worked out losses and again returned to the horizontal resistance level of 551.56 marked with a red dotted line. Now, BCH USD quotes can continue to grow at the level of 611.50, if it is possible to break through the horizontal 551.56 and gain a foothold above it. Otherwise, the pair will follow the path of yesterday's decline in the sideways range of 465.48 to 508.94.



After a short decline, Ripple rose again above the level of 0.4348 from where it can continue to rise to the resistance level of 0.4769 (blue segment). It is worth noting that a pattern resembling an inverted substantially formed in the four-hour timeframe, even though the downward trend before can hardly be called prolonged. If this is really a reversal signal, XRP USD quotes can overcome the horizontal 0.4769 and continue to grow to the level of 0.556.



Ethereum breaks the upper limit at the area of 1519.84 to 1572.74 today. If the pair manages to gain a foothold above it, then the path for growth to the next target of 1697.27 (red dotted line) will be opened for ETH USD.



Litecoin managed to fall and recover within the range of 171.25 to 186.48 in the evening, and broke at the level of 186.48 and reached the resistance level of 195.06 marked with a red dotted line. If it can be overcome, the quotes will open the way for growth to the next level of 205.25. An alternative scenario for LTC USD is a rebound of the price from 195.06 down and a return to the support of 186.48.






Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

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What awaits the cryptocurrency in the bright future?



As more authorities around the world embrace the new world of virtual currencies, the support from tycoons and their comparison to gold and even cash has increased the appeal of Bitcoin as an investment asset. Many people already perceive cryptocurrency as a hedging tool, turning a blind eye to the good old gold. At the same time, skeptics doubt its existence and the prospect of replacing real money with digital currencies.

Some even claim that crypto assets such as Bitcoin, Dogecoin, Ethereum, and Litecoin are similar to digital gold and can be regulated in the same way as the yellow metal. Cryptocurrencies make new headlines every day. But what does the future hold for virtual currencies?

Since there are only 21 million bitcoins in total, the circulation of the market currency decreases as the reward decreases. And as more people become aware of the asset's scarcity, the demand increases that is leading to a higher price. Bitcoin occupies more than half of the market capitalization, a change in the price of bitcoin can affect other currencies.

Cryptocurrency is becoming more accessible to the public, more and more retail investors want to get a share in the asset class and are willing to pay more.

If the price increase in the cryptocurrency market has made you think that it is too late to invest in cryptocurrencies, understand that this is just the beginning. As more countries seek to regulate the market, cryptocurrencies will become mainstream.




Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Is it worth it to invest in altcoins?



Altcoins were created after Bitcoin and often represent an alternative to the leading cryptocurrency. They occupy almost 40% of the entire cryptocurrency market.

However, altcoins are an incredibly risky investment. Cryptocurrencies have a certain attractiveness as an investment. Altcoins offer good opportunities as they have much greater growth potential in terms of percentage gains. On the other hand, they also have a much higher risk.

It is worth taking a look at Dogecoin as an example. The cryptocurrency skyrocketed in value at the end of January 2021, apparently only because people started buying it, causing the altcoin to go viral. It's better to invest in what you believe in in the long run, because you risk losing a lot when a pullback inevitably occurs.

If you are investing in altcoins in the long term, you should sincerely believe in what you choose as a good investment. Otherwise, it will be an empty idea.

So, how do you determine if an altcoin is a good investment?

When you invest in a security offered on a regulated exchange such as the NYSE and Nasdaq, you have dozens of protections behind you that have been created over more than 100 years of trading. While some initial coin offerings are classified as securities under the jurisdiction of the U.S. Securities and Exchange Commission, many are not. Moreover, even those that are subject to Securities and Exchange Commission regulations may still pose a significant risk of fraud.

In many cases, you may not even know exactly where your money goes when you invest in an altcoin or who is on the other side of the exchange.

No investor can afford to ignore these risks. No one can be an expert in investing in altcoins, since the cryptocurrency is too new, and different versions are constantly appearing. Any investor looking to buy altcoins should definitely do their due diligence.





Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Technical analysis of Litecoin/USD for March 3, 2021



We have seen the expected corrective decline to the S/H/S neckline at 179. Actually the correction slightly broke the neckline and dipped to a low of 165 before tuning higher again. Even though the neckline was broken temporary this doesn't invalidate the bottom-formation. Only a break below the right should bottom at 123 would have invalidated the formation and instead indicated a failed formation.

As no failure has been seen, we continue to look for a rally towards the S/H/S objective at 324 and the possible extension target at 415.

Support is now seen at 123


Trading recommendation:

Buy Litecoin near 179 or upon a break above 204 and place your stop at 155.




Torben Melsted
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of BTC/USD for March 3, 2021

Crypto Industry News:
The price of Bitcoin (BTC) exceeds the current popular S2F model. Stock-to-Flow for Bitcoin predicts the price of the cryptocurrency will eventually hit the $ 200,000 mark.

The S2F model forecasts Bitcoin's long-term price trend. It takes into account two main factors, namely the amount of BTC existing (stock) versus the amount of newly mined coins placed on the market (flow).

According to the S2F, Bitcoin's price should hover around $ 36,851 to keep the S2F model on track. Due to the recent bull cycle and strong momentum, BTC / USD is now well above the S2F estimate.

The accuracy of the S2F model to date suggests that the market recognizes the value of BTC based on its rarity and rising demand. Moreover, it highlights the value proposition of the cryptocurrency against the depreciating US dollar and programmed flow reduction (i.e. Bitcoin halvings).


Technical Market Outlook:
The BTC/USD pair has made a shallow pull-back towards the level of $47,076 and is currently heading towards the recent local high seen at the level of $50,149. The next target for bulls is seen at the level of $52,036, but before this level is hit, 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 and $43,714.

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

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Technical Analysis of ETH/USD for March 3, 2021

Crypto Industry News:

The stock market operator Cboe BZX Exchange submitted to the SEC a declaration of listing and trading shares in the proposed VanEck Bitcoin Trust.

At the end of 2020, the investment firm VanEck applied to the US Securities and Exchange Commission (SEC) to create the VanEck Bitcoin Trust, an exchange-traded fund (ETF).

The Cboe BZX Exchange stock market operator made a proposal to the SEC to list and trade shares of this fund. The submission, it is said, "builds on VanEck's earlier S-1 filing" and "represents the next steps to bring the US's first bitcoin ETF to market."

The proposed rule change would be to "List and trade VanEck Bitcoin Trust shares... in accordance with BZX 14.11 (e) (4), Commodity Trust Shares." According to this rule, the shares would be convertible to Bitcoin.

Cameron and Tyler Winklevoss, founders of the Gemini cryptocurrency exchange, first proposed the Bitcoin ETF in June 2016. The SEC rejected the proposal. Several companies, including VanEck and Cboe, have filed applications with the regulatory agency only to be rejected or withdrawn eventually.


Technical Market Outlook:

The ETH/USD pair is again trying to break above the trend line resistance located at the level of $1,600. Please notice, the last time the price reversed back towards the level of $1,455, which is the intraday technical support for bulls. The next target for bulls is seen at the level of $1,591, 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 barely positive.

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