Cryptocurrency Analysis

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XRP renews three-year high, crypto market capitalization reaches $2 trillion: reasons and forecasts

The cryptocurrency market started quite vigorously in the second quarter of 2021 and continues to grow steadily in price. Over the past day, the total cryptocurrency market capitalization has increased by 4% and reached $2 trillion for the first time in history. The main sensation in April is the altcoins, which are gaining positions in the market from bitcoin. The local hero of the past days was the Ripple token, which updated the three-year record of value and continues to push the market up.

If you look at the situation in general, it becomes clear that the cryptocurrency market is growing and developing recently precisely due to altcoins, whose share in the total capitalization is gradually growing. Over the weekend, the main catalyst for market growth was ether, which set a new record ($2,146) and continues to occupy safe positions above the $2,000 mark. After a spurt to a new high, the Ethereum quotes dipped slightly, stopping at $2,093.



At the same time, over the past 24 hours, the value of the asset has increased by 4% and the current growth in trading volume ($241 billion) suggests that soon the indicators of the ETH/USD pair will storm new peaks. This is facilitated by the positive information background and the emerging independent growth dynamics, tied solely to the increased interest of large investors.

However, a few days later, on March 6, it was the XRP token that became the catalyst that allowed the cryptocurrency market to reach a value of $2 trillion. Over the past day, the Ripple coin has rapidly burst into the top 5 crypto assets in terms of total capitalization and updated a three-year record. Over the past 24 hours, the XRP/USD pair has risen 38%, and over the past hour, the asset has shown a crazy 10% growth. It is also worth noting the daily trading volume, which almost doubled and on March 6 is $45 billion.



The reason for the optimism of market participants was the news that Grayscale has documented its intention to transform its bitcoin trust into an exchange-traded fund (ETF), which will significantly increase the interest of institutional investors. Also, the circulation of rumors about XRP listing on the Coinbase platform has added happiness points to major market players. In general, at the current stage, the litigation between Ripple and the SEC has a positive effect on the position of the XRP/USD pair and contributes to its further growth to the level of $1.1.

Another altcoin is aiming for a historic milestone and hoping to rewrite it. Litecoin has grown by 11.5% over the past 24 hours, reaching $225. Judging by the current dynamics, the LTC/USD quotes may well swing at the psychological level of $230. If the asset manages to gain a foothold in this position, then reaching a new maximum value will be a matter of time.



Suddenly, the first cryptocurrency appears again at the end of the review, which is stuck in the region of $57,000-$60,000. The asset is in uncertainty, as can be seen from the growth dynamics: over the past day, bitcoin has risen in price by 2% but has not overcome the difficult milestone of $60,000. The growth of cryptocurrency over the past 7 days was only 1.5%. Even the next investment from MicroStrategy amounting to $15 million could not save the situation.



The main reason for the lack of bitcoin growth was the stabilization of the cryptocurrency market. Over the past few months, altcoins have significantly increased their market presence and become independent from the main crypto asset. In two weeks, the dominance of BTC in the market fell by 4%, which indicates a certain decline in interest specifically in bitcoin. This is because large companies are studying the market in which new profitable crypto projects continue to appear. Even though bitcoin indicators are kept at the level of $58,000, the asset has no visible prerequisites for overcoming the milestone of $60,000 and for setting new historical records.





Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

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Technical analysis of Ripple for April 6, 2021



Ripple has rallied nicely through resistance at 0.60 and more importantly through resistance at 0.7644 calling for much more upside pressure in the weeks to come towards the 1.40 target and possibly alot higher, but for now the main attraction is the 1.40 target.

Before pushing higher towards 1.40 a back-test of the former key-resistance at 0.7644 could be seen, but is not a must.


Trading recommendation:

Buy near 0.7644 is possible for a strong rally higher towards 1.40




Torben Melsted
Analytical expert
InstaForex Group © 2007-2021

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Technical analysis of Litecoin/USD for April 6, 2021



Our preferred view remains that Litecoins are locked inside a triangle consolidations and ideally should stay below 226.33 for a final dip close to 195 but could move all the way lower to 184 before taking off for real and shoot through resistance at 226.33 for a rally towards 324 and possibly even higher in the coming months.

That said a direct break above resistance at 226.33 will indicate the completion of the triangle consolidation already has been seen and the rally towards 324 is unfolding


Trading recommendation:

Buy Litecoin near 195 and even better near 184 if possible or upon a break above resistance at 226.33 for the next strong rally higher to 324.




Torben Melsted
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for April 6, 2021

Crypto Industry News:

According to the official announcement, the Japanese central bank has launched a review of the concept of its digital currency. After initial preparations to test the technical feasibility of CBDC's core functions in early 2021, the Bank of Japan begins testing the CBDC in a first phase today. In it, the bank plans to develop a test environment for the CBDC system and conduct experiments in the basic functions related to payments, issuing, distribution and buyout of CBDC.

As announced, this phase is to be completed by March 2022.

The BoJ originally announced plans to test CBDC in October 2021. The bank stressed that although "there is no plan to issue CBDCs" from the point of view of ensuring stability and efficiency in the overall payment and settlement systems, it is still important to prepare for "circumstantial changes in an appropriate manner".

In line with the original design of the CBDC experiment, the bank expects to start a CBDC pilot program with payment service providers and end users after the second testing phase is completed. In this phase, additional CBDC functions will be implemented in the test environment developed in the first phase, where they will determine their feasibility.


Technical Market Outlook:

The ETH/USD pair has hit the 261% Fibonacci extension located at the level of $2,149 during the early Tuesday trading hours, so the up trend is still in progress. The local low was made at the level of $1,977, so it will now act as a technical support. The momentum is strong and positive and the market conditions are not overbought yet. The next target for bulls is located at the level of $2,200. The nearest technical support is seen at the level of $2,090.

Weekly Pivot Points:
WR3 - $2,774
WR2 - $2,442
WR1 - $2,286

Weekly Pivot - $1,965
WS1 - $1,803
WS2 - $1,504
WS3 - $1,345


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 $2,500. 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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Technical Analysis of BTC/USD for April 6, 2021

Crypto Industry News:

Grayscale Investments appears to be planning to join the race of companies looking to launch an ETF in the United States. Grayscale announced its intention to launch the Bitcoin ETF on April 5, 2021, using the company's blog. Founded in 2013, Grayscale Investments launched the Bitcoin Trust company, and currently GBTC manages assets worth 34 billion dollars. The company also offers a number of other publicly traded crypto products.

"In recent months, there have been more and more questions regarding the possibility of a Bitcoin ETF in the US. We would like to take this opportunity to be sure of what such a development would mean. First of all, we would like to clarify: we are 100% committed to converting the GBTC into an ETF" company announcement.

Grayscale notes that for the GBTC to do so is only a natural step as it was the first Bitcoin fund listed on a US stock exchange. Was able to turn the fund into a SEC reporting company.

"These were breakthroughs that brought greater transparency, regulatory clarity and reporting standards to the investment community."

The company also talked about when it applied for a Bitcoin stock fund in 2016, having multiple talks with the US SEC.

"We eventually retired our app because we felt the regulatory environment for digital assets had not progressed to the point where such a product could be successfully commercialized."

Grayscale said, recalling the experience, adding:

"Today, we are still committed to transforming the GBTC into an ETF. When the GBTC transforms into an ETF, the shareholders of listed GBTC shares will not have to take any action and the management fee will be lowered accordingly."


Technical Market Outlook:

The BTC/USD pair has been consolidating under the level of $60,000 for all of the weekend. The local low was made at the level of $56,492 and the local high was made at $59,383. The momentum is still neutral and the market participants await the breakout above one of the levels. The next target for bulls is the ATH located at the level of $61,632. The nearest technical support is seen at the level of $54.765.

Weekly Pivot Points:
WR3 - $65,565
WR2 - $62,712
WR1 - $60,648

Weekly Pivot - $57,470
WS1 - $55,041
WS2 - $52,150
WS3 - $49,837


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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Cryptocurrency market continues to grow. Its capitalization already surpassed $2 trillion!



Bitcoin continues to hover around the psychological level of $60,000, as well as near its all-time high of $61,700. Yesterday, there were hopes that a new round of downward correction would begin, but the bitcoin quotes rose in price again in the second half of the day. Thus, for the seventh day in a row, BTC is trading in a relatively narrow range for itself and makes many traders and investors wonder where the rate will move next. From our point of view, the longer the exchange rate is close to its highs and stands still, the more likely it is that the cryptocurrency will continue to grow. It has been previously noted more than once that it is time for bitcoin to seriously adjust. But the movements of recent weeks clearly show that market participants are not ready to massively sell bitcoin at its current value. However, there is not much inflow of new investors at the moment, so the exchange rate cannot also continue to grow to new highs. In general, the situation is ambiguous. No one is used to the fact that bitcoin is standing still in the midst of an upward trend. By and large, everything depends on whether someone's nerves will not give up. The cryptocurrency market is a very thin market. Selling only 10,000 coins can bring down the bitcoin exchange rate by 1-2%.

According to CoinGecko, the capitalization of the cryptocurrency market has grown above $2 trillion. This time, the main driver of growth was not bitcoin, which has been standing still for a couple of weeks. The driver of the growth of the cryptocurrency market was Ethereum, which recently once again updated its maximum value around the level of $2140. Thus, the popularity of cryptocurrencies in the world continues to grow, but this may no longer play any role for bitcoin. BTC is already the most popular currency in the world. All innovations relate primarily to bitcoin. Thus, to continue the growth of its quotes, specific actions of investors and potential investors are needed. We need strong fundamental information that can convince traders that the number one cryptocurrency in the world will continue to rise in price. After all, the cryptocurrency market is a hype market. Cryptocurrencies are growing at a tremendous rate, which is clearly not expressed by specific fundamental reasons. Simply put, any cryptocurrency is growing absolutely undeservedly (meaning high rates), since it itself is not becoming more scarce or more useful. Moreover, most owners of cryptocurrencies do not even pay with them, since for them "digital assets" are an investment tool, not a means of payment. So, it turns out that Bitcoin, which was originally created as a decentralized monetary system, is now the number one investment vehicle in the world. At least, the most well-known one.



In technical terms, bitcoin was on the verge of breaking the $52,300 level for several days. But in the end, the bulls still held the initiative in their hands and a new round of upward movement began. However, buyers still fail to overcome the level of $60,000. Thus, the number one cryptocurrency in the world now needs an influx of new investors, otherwise most of the market participants may consider that the current value of BTC is this maximum and start getting rid of it. These are the two important supports for bitcoin: $52,300 and $44,000. Overcoming any of them can provoke a strong downward movement.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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MicroStrategy buys $15 million worth of Bitcoins



The world-famous analytical software company MicroStrategy seems to be very enthusiastically fond of bitcoin, adding more and more crypto assets to its portfolio.

MicroStrategy's CEO Michael Saylor announced the company's latest bitcoin purchase, which added 253 BTC to its large bitcoin holding. According to Saylor, the bitcoins were purchased in cash for $15 million, including fees and other expenses. The average purchase price for each bitcoin unit was estimated at $59,339.

Currently, MicroStrategy has accumulated a total of almost 100,000 bitcoins in its portfolio. The company's investment in bitcoin is estimated at about $5.3 billion. Since the first bitcoin purchase in August 2020, MicroStrategy has used every available opportunity to increase bitcoin holdings, including high-level convertible bonds.

The company was the first to use bitcoin as the primary treasury reserve asset, and believes that it can completely revolutionize the existing financial system. MicroStrategy is not only buying more Bitcoin, but is also trying to find other ways to encourage mass adoption of the digital asset. There is currently a bitcoin training program called "Bitcoin for Everybody" that focuses on informing retail investors about the benefits they can get from investing in bitcoin.

Everyone can participate for free in the Bitcoin course available on the author's Saylor Academy platform and learn about several important aspects of the leading cryptocurrency and the benefits they can get.

The company's CEO is also an ardent bitcoin supporter who makes no secret of his belief in the digital currency's potential. Earlier, it was reported that the company has a separate bitcoin store. Saylor also believes that he influenced Tesla's decision to purchase $1.5 billion of Bitcoin when he told the company's CEO, Elon Musk, to convert Tesla's reserve into bitcoin.




Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin loses spotlight but there is still upside potential

Bitcoin has lost its place from the spotlight to Ethereum and XRP, but technical analysis shows us a promising bullish pattern that implies a possible Bitcoin target of $69,000. Bitcoin is forming an inverted head and shoulders pattern with the neckline resistance at $59,900-$60,000.



Blue line - support trend line

Red line - neckline resistance

Green lines - inverted head and shoulders pattern

Bitcoin has formed a bullish pattern. This pattern gets activated if price breaks above the red neckline resistance and stays above it. Support is at $56,450 and a break below it will cancel this pattern.



Blue lines - bullish channel

Red line- neckline resistance

Pink lines - expected size of upward move if neckline is broken

BTC/USD remains inside the bullish channel. Breaking out of the channel will be a bearish sign and could bring price towards $40,000. Until then trend remains bullish and with the inverted head and shoulders pattern in play, we could even see Bitcoin reach $69,000.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

XRP/USD challenges major long-term resistance

XRP/USD is very close to providing a major bullish break out signal. Price has managed to recapture the $0.70 level and is now trading above $0.75. A weekly close above $0.70 will be a top bullish signal that will imply a move above $1 is coming for XRP/USD.



XRP/USD has started the week very strong to the upside. Bulls need to defend this and hold price above $0.70 if they want to see more upside. Upside potential is huge as price could reach $1.33 as the first break out target. Price is now challenging the double top resistance. Price got rejected and pulled back strongly the first time the last couple of years that reached this area. The second time the pull back was more shallow. Now it is time to break out. If the next couple of days XRP/USD holds $0.70, then it is very possible more buyers will be attracted to it and will push prices much higher towards $1.33 and higher.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

What are catalysts for Bitcoin? What market moving events should be taken into account when analyzing trends in crypto market

Bitcoin declined over the weekend, having failed to overcome the consolidation zone of $58,340.66 - $59,517.79. Now analysts point out another attempt to break through higher. Meanwhile, traders are puzzling out what is going on in technical charts of the most popular cryptocurrency. Let's discuss how to assess information which influences digital currencies.

Conventional assets are pegged to fiat money and have a value backed by reserve currencies. It is common knowledge that even fiat money is often sensitive to verbal interventions of influential figures such as leaders of central banks or members of rate-setting committees.

Unlike conventional assets, Bitcoin and other digital currencies are not backed by fiat money. Therefore, the bullish or bearish trend of Bitcoin depends entirely on changes in the demand/supply balance. What is the factor of major importance to make a digital asset win or lose favor with investors?

Experts polled by the BelnCrypto web forum gave interesting viewpoints.

Director of Alfacash Nikita Soshnikov pointed out great importance of opinions expressed by powerful people. Just a single post on the social media or a public remark is capable of setting the crypto market in motion. A vivid example is that Elon Musk mentioned Bitcoin once in his profile on a social platform that triggered a spike in the number one cryptocurrency.

Social media, in particular Twitter or Reddit forum, have become popular floors for market leaders. From the viewpoint of Soshnikov, it would be a good idea to subscribe to well-known crypto investors, owners of companies or popular traders to get to know sensitive information.

Nevertheless, it doesn't make sense to follow blindly any statement by big names. The crypto market is not regulated, hence no one bears responsibility for such public comments. Therefore, it would be better to make investment decisions resting on technical analysis and one's own market experience.

Holders of cryptocurrencies also can cause moves on market quotes. Director of CryptoTrade Alexander Fjodorov highlighted the importance of rhetoric from market famous people for the new crypto market. Nevertheless, comprehensive analysts could be only that one which combines a variety of data.

When it comes to mass media, it is the reputation of the author that matters, but not a periodical where the opinion was published. Nowadays, the crypto market is vulnerable to financial scams. Besides, due to high volatility and erratic dynamics of the market, even professional traders can make mistakes.

The thing is that mass media work under tough rules covering traditional financial markets. If a periodical published information that entailed losses of a company, this is the case when a lawsuit could be filed against that periodical. The crypto market is decentralized and lacks any regulation. Thus, this market offers big opportunities for market fraud and manipulations, especially verbal interventions.

Last but not least, above-said Nikita Soshnikov stressed that the crypto market is vulnerable to rumors. Investors could respond even to unverified information because driving forces could be sometimes doubts, lack of confidence, and a fear of missed profit.

My opinion is as simple as that. The basics of investment solutions are technical analysis and ongoing price action. This blend works well especially on condition of strong levels are determined right. Meanwhile, Bitcoin is trading in the area of $58,340.66 - $59,517.79. It means that the price could either reverse again leaving that zone as resistance or eventually break this area upwards to hit a new historic high.







Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021