Cryptocurrency Analysis

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The largest and oldest bank in Colombia has started working with cryptocurrencies.



How did the weekend end? As a reminder, the cryptocurrency market is open seven days a week, so trading also took place on Saturday and Sunday. Yesterday, the quotes of the market sought to resume the upward movement, but the level of 50.0% on Fibonacci is still holding back the bitcoin from a new rise in price. However, we will talk about the technique below. To begin with, the fundamental news that can just help bitcoin set a new record value. As you may have guessed from the title, we will talk about the largest bank in Colombia, which has started working in a test mode with cryptocurrencies. A limited number of customers will be allowed to buy and sell cryptocurrency for fiat money - the peso. According to analysts, in this way, the bank is going to assess the potential risks from such operations. Thus, in another country of the world, it will now be possible to purchase bitcoin completely legally and store it without any threats and fears. As we said earlier, all this popularizes bitcoin, but the main problem now for this cryptocurrency is a strong drop in the shares of Tesla and Microstrategy, which is associated with the acquisition of bitcoin by both companies. According to experts, very few institutions are ready to contact BTC and large companies, especially joint-stock companies, and even more so. Thus, if the demand is growing, it is still without the participation of large holdings, banks and companies. Roughly speaking, Tesla and Microstrategy have so far shown the world that their investors clearly do not support the idea of redirecting their funds to cryptocurrency assets. Thus, bitcoin is not yet receiving additional support from the foundation. There was no positive news for Bitka last weekend. Thus, a new round of downward correction may follow in the coming days.



As we have repeatedly said, the support level of $ 44,000 remains the key for bitcoin right now. For the first time, the resumption of the upward movement choked around the 61.8% Fibonacci level, now it can choke around the 50.0% Fibonacci level. The illustration clearly shows how the bulls are not yet able to overcome the level of $ 50,650. Thus, it is quite possible that the downward movement may begin again today. We are inclined to this scenario - a fall to $ 43,000 - $ 44,000, where the future fate of digital gold will be decided. It should also be recalled that in total, bitcoin has been rising in price for 6 months. Usually, its upward trend takes just that much time.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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BTCUSD rejected at neckline resistance

In our previous analysis on Bitcoin, we showed the possibility that price was forming a bullish pattern. The inverted head and shoulders pattern was in the process of creating the right hand shoulder. Price reached the neckline resistance this weekend but bulls so far are unable to break above resistance.



Blue lines - inverted head and shoulders pattern

Red line - neckline resistance

In order for the inverted head and shoulders pattern to get activated, price needs to break above the neckline resistance. Today price reached the resistance but is getting rejected. Support and major pivot point is the right hand shoulder low at $46,359. Breaking below this level will cancel the bullish pattern and increase chances of more downside and specially below $43,121. If resistance is broken then the inverted head and shoulders pattern gets activated and our first target is at $60,150.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Tesla may get rid of bitcoin in the near future



If we talk about the purchases of the BTC cryptocurrency by well-known companies, the first ones that come to mind are Tesla and Microstrategy. Both companies have invested more than $ 1 billion in bitcoin. At the same time, the main activity of both companies does not belong to the cryptocurrency segment. Tesla is a manufacturer of electric cars, Microstrategy is a supplier of analytical software. And it seems that this very moment is very upsetting for the investors of these companies. It is one thing when investors deliberately buy shares of companies associated with the cryptocurrency segment. They take into account all the risks associated with cryptocurrencies personally. And it's a completely different thing when investors find out that the company issuing their shares, which is supposed to produce electric cars, suddenly buys $ 1.5 billion worth of bitcoin. The price of Tesla shares fell by 28% in a month and this is a lot. Microstrategy's share price has fallen by 50% over the past month, and that's even more. Thus, other companies could see firsthand what happens when investing in bitcoin begins. After all, there is a big difference between the investments of individuals and legal entities. For example, if Elon Musk announced the purchase of bitcoin with personal funds, it is unlikely that this would lead to a collapse in Tesla shares. In our case, it turns out that Musk bought bitcoins with the money of shareholders. Thus, if you think logically, it turns out that the fall in the shares of these companies is quite normal. Investors are getting rid of the shares of these companies because not everyone wants to deal with bitcoin. Although, on the other hand, a strong drop in Tesla shares can be used by the company itself to buy them back at a cheaper price. However, this consolation is weak. Usually, companies are interested in raising additional funds through the placement of securities, and not vice versa. However, the former top manager of the investment bank Goldman Sachs, Gary Black, believes that the fall in the share price of Tesla would stop if its management announced the sale of bitcoins. "The shareholders would support this decision," Black said. Thus, this example may discourage large companies from investing in bitcoin. Private investors are another matter. In principle, their efforts may also be enough to make bitcoin more expensive for a long period. But companies, especially large ones, especially those that place shares, are unlikely to follow the example of Tesla and Microstrategy now. By the way, at the moment this information does not affect the BTC rate, which on Sunday, despite the status of the weekend, continues to trade with an increase. This means that they continue to buy it.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Few clients of the investment bank Goldman Sachs believe that bitcoin will grow above $ 100,000 in 2021



Investment bank Goldman Sachs shared the results of a survey among its clients about how much they think bitcoin will cost in the near future. About 76% of respondents believe that bitcoin will stay above the $ 40,000 mark in 2021. About 40% of the respondents own digital assets, while the rest are generally considering investing in cryptocurrencies in the near future.

About 60% of the total number of owners expects an increase in the value of BTC in the next 1-2 years. More than half of the respondents believe that bitcoin will trade in the range of $ 40,000 - $ 100,000 in 2021. At the same time, 39% of respondents are not ready to invest in bitcoin or other digital assets in the near future. At the same time, analysts of the cryptocurrency company CrossTower believe that it is institutional investors who will eventually keep bitcoin above the $ 50,000 level. According to the company, the number of wallets that aggregate more than 1000 BTC has grown significantly recently. According to the company's analysts, this indicates an increase in interest in "digital gold" from large investors. Also, according to the company, this indicates that the high price does not deter institutionalists. Interest in bitcoin among investors remains consistently high even at the price of $ 50,000 per coin. "Many large investors in the February fall in the bitcoin exchange rate saw an opportunity to buy bitcoin at a more attractive price," the company said.

Thus, if you try to analyze the mood of large investors, it seems that most of them are inclined to believe that bitcoin will continue to grow over the next 12-24 months. Only the figures that are called a cost forecast differ. We would like to note once again that, judging by history, bitcoin rarely forms long-term upward trend sections. Usually, a strong growth takes 5-6 months, after which the price goes into a strong correction, after which there is a period of stagnation, which can last 1-3 years. Thus, we do not yet believe in the scenario according to which there will be no strong downward correction. We expect that the correction will be at least 50% of the total growth. That's about $ 25,000 down.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of BTC/USD for March 07, 2021



Technical market outlook (BTC/USD - Bitcoin)

Bitcoin price has been highly volatile in the past week. Hence, BTC has known a very high volatility since weeks for that it is still moving between $2,000 and $5,000 daily.

BTC's rally remains strong as the digital savings continues to protect critical support levels of $40 k and $45 k. Major support level has already set at $45,250.

The BTC/USD managed to rise in price last week. The volatility of the speculative crypto-currency market will remain high - so be careful at your future trading.

Warning : Please check out the market volatility before investing, because the sight price may have already been reached and scenarios might have become invalidated.

Bitcoin price has rebounded from a key support level on the daily chart and aims for a full recovery. The past week has been quite volatile for the major cryptocurrency experiencing moves of up to 45% in last five days.

A lot has happened so let's take a look at the most important developments over the past week.


Trading BTC/USD :

Bitcoin Bitcoin holds the $45,250 - $ 50,000 region as near term support for now.

Additionally, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100). This suggests the pair will probably go up in coming hours.

Accordingly, the market is likely to show signs of a bullish trend. In other words, buy orders are recommended above $50 k with the first target at the level of $52,444.

If the trend is be able to break the double top at the level of $52,444, then the market will continue rising towards the weekly resistance 1 at $58,225. Also, it should be noticed that the double top is set at $58,225.


Trading recommendations :

The trend is still bullish as long as the price of $ 45,250 k is not broken. Thereupon, it would be wise to buy above the price of at $ 50k with the primary target at $ 52,444. Then, the BTC/USD pair will continue towards the second target at $ 58,258 (a new target is around $ 58,258 later).




Mourad El Keddani
Analytical expert
InstaForex Group © 2007-2021

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JP Morgan: the demand for bitcoin among institutional investors has started to grow



In previous articles, we have already said that the support of $ 44,000 per coin is extremely important for bitcoin. At the moment, we can say that this support has kept the cryptocurrency from falling again, which means that the upward trend continues. At the time of writing, the price of one coin is $ 50,500. Thus, buyers are pushing again, so the probability of new growth to the absolute highs of the value of bitcoin is growing. And the main supplier of interesting fundamental information in recent years is JP Morgan, a large financial holding company. At the same time, the information that comes from the holdings experts often contradicts each other. Previously, there was information that BTC is not very popular among institutional investors. Even earlier, there was information that JP Morgan analysts consider bitcoin a very volatile instrument and do not advise their clients to invest large amounts in cryptocurrency. But at the same time, they allow investments in the amount of 1% of the portfolio. The latest information says that the bank has seen an increase in demand for the "cue ball" among institutional investors. However, it is not reported how high this increase is. However, the head of research, Joyce Chan, believes that institutions are increasing their interest in BTC. However, Chan is very concerned about the fact that the capitalization of the first cryptocurrency has grown by $ 700 billion over the past 5 months, with capital inflows of only about $ 11 billion. Ms. Chan believes that the demand for alternative investment tools will increase, however, she believes that bitcoin is not an effective hedging tool. "Financial technology is becoming mainstream after this pandemic," Chan said. Thus, if we put all the available information together, it turns out that the demand among the institutions is still growing, but rather a little. However, for the long-term growth of the value of bitcoin, this is exactly what is needed. The question is not even how many new investors will come to bitcoin over time. The question is how large investors will treat the "cue ball" itself in the first place. If for them it is the same means of investment as for small traders, then sooner or later bitcoin is waiting for a new collapse. It is large investors who will set the tone for bitcoin trading in the future.



On the daily timeframe, we can see that the price has adjusted by 61.8% in Fibonacci after falling from 58.5 thousand per coin. However, the upward movement on Sunday gives reason to assume that after all, most traders are inclined to new purchases of the "cue ball", and not to its sales. After the rebound from the 61.8% Fibonacci level, the price could not go below the mark of $ 47,000, so a new test of the area of $ 43,000 - $ 44,000 did not occur.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Trading Signal for Bitcoin for March 05 - 08, 2021: Buy above $48,000



A former Goldman Sachs CIO drew a strong response on Twitter after suggesting that Tesla should sell its Bitcoin and buy back shares in the company.

TSLA's stock price has fallen 28%, from $ 863.42 to $ 621.44, since news broke on February 8 that Tesla had made a $ 1.5 billion acquisition of BTC.

This news could influence Bitcoin, and we could see a fall to the levels of $ 30,000, on the other hand those who support Bitcoin are very confident, but the rapid rise of BTC suggests that there is also a fall to levels where that momentum began bullish.

In the 4-hour chart, Bitcoin is under downward pressure, it is trading below the SMA of 21 and 8/8 of Murray, we can also see the formation of a pennant pattern.

If the price of Bitcoin manages to break the zone of $ 49,550, it could be a sign of a bullish move to the level of $ 56,250.

On the contrary, if the SMA of 21 located at $ 49,350 acts as a strong resistance, it will be a good opportunity to sell with targets at the SMA of 200 around $45,900 and $43,750.


Support And Resistance Levels For March 05 - 08, 2021

Resistance (1) $49,052
Resistance (2) $50,561
Resistance (3) $53,225

Support (1) $46,388
Support (2) $44,879
Support (3) $42,215




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of BTC/USD for March 5, 2021

Crypto Industry News:

Goldman Sachs' Gary Black closed his position on TSLA after the company bought BTC for $ 1.5 billion, avoiding a 28% crash. Now he is calling on the company to sell acquired bitcoins to buy back shares. Former CIO Goldman Sachs sparked this suggestion lively discussion on Twitter. '

On February 8, news came out that Tesla had purchased BTC worth $ 1.5 billion. The TSLA share price fell 28% from $ 863.42 to $ 621.44.

Black suggested that TSLA would attract more fund managers with a share buyback program, considering them more valuable to the investor than buying BTC "with excess cash".

Some Twitter users agreed that share buyback appeared to be a more appropriate way to use the funds, while others felt that too much attention was being paid to what Tesla did with 8% of their cash reserves.


Technical Market Outlook:

After the BTC/USD bounce had been capped at the level of $52,506, the price reversed towards the technical support located level of $48,021. This level had been violated as well, so the BTC/USD pair trades close to the next technical support located at $45,710. Due to the weak and negative momentum the bears might intensify the pressure and push the market lower towards the key short-term technical support seen at $43,097.

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 5, 2021

Crypto Industry News:

According to several reports, PayPal wants to go a step further in offering cryptocurrency-based services and purchase (for $ 500 million) a startup specializing in cryptocurrency storage. The company may be in talks to buy a cryptocurrency startup focused on providing security solutions to store cryptocurrencies.

According to various reports, PayPal is interested in taking over Curv, and the talks between the teams of both companies are an open secret on the global technology scene - although it may not be a secret anymore, given how quickly the venture spreads despite the seemingly cautious stance of both companies.

Some sources say the deal would amount to around $ 500 million. This amount would exceed the expectations of the Curv development team, which were hoping to rake in between $ 200 million and $ 300 million from the company's sale.

PayPal's interest in cryptocurrencies has grown as a result of institutional investment, greater regulatory transparency, and, of course, the rise in digital asset prices.

Months after the March 2020 crash, PayPal announced a partnership with Paxos to provide its clients with exposure to Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. The idea was to enable certain cryptocurrency operations in a safe, easy and legal manner. The initiative turned out to be a huge success for PayPal, and the price of bitcoin soared to new all-time highs.


Technical Market Outlook:

After the ETH/USD pair has failed to rally above the technical resistance located at the level of $1,648 and made the Doji candlestick pattern, the market reversed lower towards the trend line support. The test was at the level of $1,455 and so far the bulls managed to bounce, but the bounce is shallow so far. The momentum is still weak and negative, so if the bearish pressure intensify, then the next target for them is seen at the level of $1,274 again.

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

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What are the differences between Bitcoin and Bitcoin Cash?



The philosophical split among the developer community - the one that eventually led to the creation of Bitcoin Cash was the defining difference between Bitcoin and Bitcoin Cash.

Bitcoin is more of a digital gold or a means of saving, and so they didn't do anything to increase the transaction output. The Bitcoin Cash community believes that it should be used more as a medium of exchange. Bitcoin Cash, also called Bcash was created in August 2017 when it split off from Bitcoin and anyone who owned Bitcoin received the same amount of Bitcoin Cash.

Ironically, in the years since then, the conscious efforts of the Bitcoin Cash community to expand the network and facilitate more transactions have not resulted in becoming more widely accepted as a currency than Bitcoin itself.

Whatever limitations bitcoin has as a currency, it hasn't stopped companies like PayPal, Zynga, and Overstock.com to accept it as a form of payment. Even Mastercard is introducing cryptocurrency to its network.

Institutional buyers tend to accept bitcoin more than its additional income. Tesla's recent decision to diversify its balance sheet by buying $ 1.5 billion worth of bitcoin is a testament to its growing acceptance in the investment community.

Bitcoin has become an investment vehicle and the reserve currency of cryptocurrency, making it one of the main asset classes for diversifying institutional portfolios.

After the Bitcoin Cash fork in 2017, the price of Bcash rose from $ 240 to recent highs of over $ 750, and the price of Bitcoin rose from $ 2,700 to recent highs of over $ 50,000 in mid February of this year.




Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021