Cryptocurrency Analysis

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Consolidation before new impulse. Cryptocurrency market review for March 17, 2021

Cryptocurrencies continue to consolidate, with no prospects for further significant growth. Most of the sideways ranges and key levels remain relevant. Against this background, some forecasts point to a correction.

Bitcoin broke through the 100% Fibonacci extension level again, this time from bottom to top. A pullback to this level may end with the confirmation of the pair's horizontal movement and its further growth to the previous historical highs - the resistance of 58,340.66 marked with a dotted line. If there is no confirmation, the quotes will continue to trade along the 100% Fibonacci horizontal line between yesterday's highs and lows.



Bitcoin Cash is trading in a sluggish mode in the middle of the 508.94 - 538.35 range. Therefore, it will be possible to determine the further direction of BCHUSD only after the pair breaks through one of its borders. If the price consolidates above the resistance level of 551.56 marked with a red dotted line, Bitcoin Cash is likely to continue rising towards the 611.50 level. And if the price gets out of the sideways range downwards, breaking through the level of 508.94, the quotes are expected to slip to the support level of 465.48.



Ripple failed to break through the upper border of the range between the support level of 0.4071 (red line) and the resistance level of 0.4539 (blue horizontal line). The price continues its consolidation in a narrow range below the level of 0.4539. The cryptocurrency is still expected to decline to the support level of 0.4071. This is the most likely scenario.



Ethereum continues to trade sideways between the support zone of 1697.27 - 1789.44 (marked with red dotted lines) and the local mirror resistance level of 1813.92 (marked with blue dotted line). Since the price remains below this horizontal line, ETHUSD is likely to continue moving down towards the area of 1697.27 - 1789.44.






Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of BTC/USD for March 17, 2021

Crypto Industry News:

Bitcoin last week was over $ 60,000 a coin - and has become worth more than the world's three largest banks combined.

According to publicly available data, the largest cryptocurrency has outperformed the world's three highest-valued banking giants in terms of market capitalization. At a record high of $ 61,700, Bitcoin's market capitalization was around $ 1.15 trillion. The total market capitalization of JPMorgan Chase, Bank of America and Industrial and Commercial Bank of China is $ 1.08 trillion.

The track record doesn't stop there: Visa and Mastercard, the largest payment networks, have a combined market capitalization of $ 871 billion, now also much less than Bitcoin. BTC/USD market has seen a slight decline since then, lowering its market capitalization to $ 1.03 trillion while still holding a significant trillion dollar asset title.

This level was previously cited by analysts as a likely consolidation zone, which still remains after Monday's decline that pushed Bitcoin back below its previous all-time record set in late February.

Others noted that its growth was impressive - the value of the Bitcoin network grew from zero to $ 1 trillion 3.6 times faster than Microsoft, for example.


Technical Market Outlook:

The BTC/USD bounce from the level of $54,012 was very shallow so far, so if there is no bullish pressure, then the market is about to test the technical support located at the level of $52,466 - $52,039. If this level is violated, then the corrective cycle might expand towards the next technical support seen at $49,422. The nearest intraday technical resistance is seen at the level of $55,091. Please notice the market keep making higher highs on the daily time frame despite the bearish divergence building since the level of $41,917.

Weekly Pivot Points:
WR3 - $77,718
WR2 - $70,065
WR1 - $65,682

Weekly Pivot - $57,463
WS1 - $53,537
WS2 - $45,060
WS3 - $41,147


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 $70,000. 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 on the e daily time frame chart.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for March 17, 2021

Crypto Industry News:

A software update released by Nvidia inadvertently bypassed the Ethereum mining lock that the company placed on its own GeForce RTX 3060 graphics card.

An Nvidia spokesman confirmed that the latest driver update 470.05 was mistakenly released with code intended for use only by Nvidia's developers, which allowed the limiter to be removed.

"The driver inadvertently contained code used for internal programming that removes the limiter on the RTX 3060 in some configurations," said an Nvidia spokesman

In February, Nvidia decided to deliberately limit the Ethereum mining efficiency of its RTX 3060 series graphics cards to prevent a demand-driven shortage caused by cryptocurrency miners. The triple handshake between the computer's hardware, software and firmware was to ensure that the card would recognize when it is being used to mine Ethereum and cut its processing power in half, from 50 to 25 MH / s.

However, the back door that allowed the card limiter to be bypassed came from the software side and was released by Nvidia itself. This update has already been phased out by a software company, but versions have already hit the web.


Technical Market Outlook:

The ETH/USD pair has been seen consolidating inside of a narrow zone located between the levels of $1,720 - $1,816 for more than two days now. Moreover, the consolidation zone is very close to the lower channel line that was recently violated and now bulls are not quite able to come back up inside the channel. The market participants await for the breakout towards the level of $1,834 and $1,873 (bullish breakout) or $1,694 and $1,648 (bearish breakout). The momentum remains neutral, so the odds for the breakout are equal now.

Weekly Pivot Points:
WR3 - $2,266
WR2 - $2,113
WR1 - $1,975

Weekly Pivot - $1,820
WS1 - $1,716
WS2 - $1,552
WS3 - $1,423


Trading Recommendations:

The longer term up trend on the Ethereum continues despite the local counter-trend corrections. 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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Bitcoin - technical analysis of the current situation



The main role in the completion of the previous downward correction was played by the support of the daily Ichimoku cross, it helped to keep afloat the interests of the players on the rise, which as a result regained the advantage, restored the upward trend and marked a new high of 61633.80. At the moment, we are again seeing a corrective decline. The daytime cross of the Ichimoku has once again entered the work. Its support can now be combined in the area of 55471.80 - 54560.69 (Tenkan + Fibo Kijun 1) - 52375.80 (Kijun) - 50190.91 (Fibo Kijun 2). Overcoming these supports will affect the current balance of power, it will open the way for a decline to the daily Ichimoku cloud and the implementation of a weekly downward correction to the short-term trend of 45282.80. If the current corrective decline is completed.



In the lower halves, bitcoin went down under the key levels, which means that the advantage is on the side of the players of the decline. As of this moment, they tested the first support level of the classic Pivot levels (53984.66), then the downward benchmarks within the day are 51225.53 (S2) and 47884.70 (S3). If bitcoin regains the key levels of 57325.49 (the central Pivot level) - 57890.59 (the weekly long-term trend), then the question of restoring bullish advantages and sentiment will again arise. The resistance levels of the classic Pivot levels, which are located at 60084.62 - 63425.45 - 66184.58, now serve as the upward reference points within the day.

***

In the technical analysis of the situation, the following methods are used:

higher time frames - Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels

H1-Pivot Points (classic) + Moving Average 120 (weekly long-term trend)




Evangelos Poulakis
Analytical expert
InstaForex Group © 2007-2021

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XRP/USD strength fades away

A strong upward move in XRP/USD at the beginning of the day brought price above $0.52 giving hopes to bulls that it was finally the time for XRP/USD to start its long awaited rally. With most cryptocurrencies having provided huge gains over the past year, XRP/USD was left behind. However initial strength has faded and price is back towards $0.4550.



Blue lines - triangle pattern

XRP/USD is still trapped inside the long-term triangle pattern. With resistance by the upper triangle boundary at $0.5330 and support at $0.36 there is no break out yet. Even if price breaks above the upper triangle limit, the double top resistance around $0.75 is the major resistance. As we explained in previous posts, as long as price is below $0.75 XRP/USD will be vulnerable to a move lower. Only a break above $0.75 could ignite a strong rally. In the short-term, today's price action is not very promising for bulls as price has failed to stay above $0.50. Critical support is at $0.42 and as long as price is above this level, there are hopes for an upward break out.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Trading Signal for BITCOIN for March 16 - 17, 2021: Shoulder, Head, Shoulder



The Bitcoin, in 4-hour charts, is under downward pressure, and it is very likely that the correction will continue, since it is now trading below the +1/8 of murray, it is a zone of strong resistance.

On the Bitcoin chart, we have drawn a technical reversal pattern called shoulder, head, shoulder, this is a trend reversal pattern, and it is likely that in the medium term there will be a downward movement to levels of the 200 EMA.

On the contrary, a pullback towards the SMA of 21, there the right shoulder of the technical pattern will be located, it will give us a selling opportunity at the levels of $ 58.217 with targets at 55k and 50K in the short term.

Our recommendation is to sell below +1/8 of a murray and below the 21 SMA with targets at $ 51250.


Support And Resistance Levels For March 16 - 17, 2021

Resistance (1) $56,985
Resistance (2) $58,226
Resistance (3) $60,084

Support (1) $53,984
Support (2) $52,336
Support (3) $51,225




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

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Altcoin Alice skyrocketed by 60,000% in one minute

While the main cryptocurrencies are floundering around historical highs, other altcoins continue to develop and explore new territories. A real sensation was made by the Alice coin, whose quotes soared into space after passing the listing on the Binance crypto exchange.

Before being added to the cryptocurrency exchange, the token cost $0.1. After listing, altcoin quotes climbed 60,000% in just one minute, to $60. This jump was due to the instant demand that resulted from the addition of the asset to the Binance crypto exchange. At the same time, now the Alice token is quoted at $39 and shows an increase of 39,000%.



It is worth noting that altcoin began to rise sharply in price at the very moment when bitcoin fell to the level of $57,000. Such jumps in the price of altcoins are purely technical phenomena caused by certain factors. This is evidenced by the absolute indifference of the token to a slight decline in bitcoin, as well as the subsequent decrease in the price to the level of $39.

Also, billionaire Elon Musk never ceases to delight his readers. This time, the Tesla founder decided to support the general fashion for NFTs and assimilate it with the Dogecoin cryptocurrency memes. Musk said on his Twitter that he is ready to sell the NFT of the song about non-fungible tokens for 420 million Dogecoin, which is equivalent to almost $24 million.

Despite the increased interest in altcoins, their functionality and prospects are rather vague, and the only token showing progress is the NFT. Also among the promising coins, Ethereum, Polkadot, and Cardano can be noted, which are still being actively researched and do not have a significant margin of safety. The main focus of the market is still tied to bitcoin, which is once again gaining attention.




Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

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BTC analysis for March 16,.2021 - Sellers in control and potential for the downside movement towards $47.250

Further Development



Analyzing the current trading chart of BTC, I found that sellers are in control as I expected yesterday. The selling opportunities are still preferable under this condition.


Key Levels:

Resistance: $61,000

Support levels: $52,240 and $47,265





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin Correction Imminent

Bitcoin is trading at $55,466 level at the time of writing, higher versus $53,221 today's low. Unfortunately, the current rebound could be only a temporary one before the price drops deeper in the short-term.

BTC/USD failed to stabilize above the $60,000 psychological level and now is into a corrective phase. The decline may continue if it stabilizes under $56,000. The price could come down to reach and retest the near-term uptrend line.

The corrective phase, retreat, is natural after the most recent swing higher. BTC/USD increased as much as $61,788 level setting a new all-time high. It is normal that some traders and investors wanted to step out pushing the rate down.


BTC/USD FIGHTS TO STAY HIGHER!



The outlook is bullish as BTC/USD is trading within an up channel. It has failed to stabilize above $58,367 and now is trading back below the Pivot Point ($56,704). The immediate critical support is seen at the uptrend line and around the S1 ($51,585).

The price could approach and reach these downside obstacles and only a false breakdown, bullish engulfing, or any other reversal pattern on these support levels could signal that the correction is over.

BTC/USD's further growth will be validated by a valid breakout above the minor red descending pitchfork. Selling right now is risky as long as the price is located above the uptrend line.


BITCOIN FORECAST!

Buy a false breakdown with great separation below the S1 ($51,585) and through the uptrend line or a major bullish engulfing.

Sell a valid breakdown through the uptrend line or a false breakout with a huge separation above the descending pitchfork's upper median line (uml).




Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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Regularity or anomaly: the reason for the three-day decline in bitcoin

The protracted price correction of the crypto-asset market ended about a week ago, and since then, major coins have accumulated resources for further growth. And by the end of the week, digital assets were able to overcome psychological barriers and set new historical records. However, this did not go smoothly at all.

A few days ago, bitcoin finally broke through the $61,000 mark, but after that, it began to rapidly fall in price. Over the past three days, cryptocurrency quotes have dipped by 14%, and now the main digital asset is holding positions in the area of a local minimum of $53,200. On March 15, amid the fall in the value of bitcoin, traders lost more than $2 billion. The largest user loss was $19 million. Crypto exchange users suffered significant losses due to the fact that they were betting on the further growth of bitcoin quotes.

First of all, the sharp decline in the price of bitcoin is associated with the news that the Indian authorities are preparing to ban the use of cryptocurrencies and introduce criminal liability for its storage and production. The negative information background aggravated the rate of decline in the quotes of the main crypto-asset. Also, the cryptocurrency market has not shown steady growth in the last week, sagging in indicators, which also affected investor sentiment.



Having reached the $61,000 mark, bitcoin did not have enough interest from large investors and a margin of safety to stay at the psychological boundary of $60,000. This scenario is quite justified because the current growth and conditions of bitcoin show that the asset is not ready to continue its active growth. This reduces its investment attractiveness, which affects the cryptocurrency quotes. Negative news about the ban on cryptocurrencies only worsened the situation and brought down the Bitcoin indicators even more. Despite this, as of 10:00 UTC, bitcoin's margin of safety allows the asset to stably hold positions at $55,000, which may indicate further growth.

However, to continue more confident growth, the main crypto asset will have to fall below $50,000 to attract more attention from institutional investors. With this development of events, the investment component of the growth of quotes for bitcoin will allow the asset to reach the mark of $60,000. It is at this point that the main crypto asset needs to gain a foothold to continue its growth and set a new record.

The fall in bitcoin quotes after reaching another record was expected, but sudden negative news significantly exacerbated the situation. With the current development of events, without the intervention of force majeure, the price of the main crypto asset may drop even lower to increase investment interest from large companies. After that, Bitcoin will try to stay in safe positions around $60,000 to create a springboard for further growth.





Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021