Cryptocurrency Analysis

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Bitcoin takes another hit



Bitcoin continues to fall on Tuesday, April 20, against the background of the banal lack of a positive fundamental background that could cause the resumption of growth in quotes. However, from our point of view, everything is going exactly as it should be. As repeatedly pointed, the upward momentum is weakening, so it is becoming difficult for bitcoin to rise in price. Each subsequent price peak was located at a smaller distance from the previous one. Thus, if a new powerful influx of investment in bitcoin does not begin soon, the cryptocurrency may not just correct, it may collapse. Traders lost about $9 billion on the forced closing of longs during Sunday alone when the cryptocurrency collapsed by 15% of its value. The fundamental background of recent days is indeed quite negative.

First, there were serious power outages in one of the largest mining regions in China. Second, according to rumors, the US Treasury Department is preparing several large fines for unnamed financial organizations for money laundering using bitcoin. Third, and this message is the news of the day, as it turned out, almost all the top managers of the recently listed CoinBase have sold their shares. In total, the leaders of the cryptocurrency exchange got rid of shares worth about $4 billion, which immediately caused the anger of the crypto community. For example, one of the most famous critics of bitcoin, Peter Schiff, wrote on Twitter that 5 leading top managers of CoinBase sold 71%, 63%, 86%, 97%, and 100% of their shares. The author of the cult work "Black Swan" Nassim Taleb supported Schiff and wrote on his account: "When the CFO drops the shares, you realize that something is happening." Representatives of the exchange itself immediately rushed to state that, unlike an IPO, a direct listing does not involve the issue of additional shares. That is, the sources of shares on the NASDAQ could only be the shares of the company's executives and investors themselves.

At the same time, the Binance crypto exchange received information that after a 15% drop in value on Sunday, about 20,000 bitcoin coins were withdrawn from it, totaling more than $1 billion. Thus, the fundamental background is now unfavorable for "digital gold", and the opinions of analysts and experts are divided. About half of them believe that bitcoin will now continue the correction, and in the coming months, it may fall to the value of $40,000 per coin. The second half is in favor of the fact that the growth of bitcoin quotes will resume in the near future. We believe that the key level is $50,770. If bitcoin falls below this level, it will be very difficult to avoid a more serious fall.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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BTC analysis for April 20,.2021 - Upside movement is expected towards the $57.800 and $60.150

Further Development


Analyzing the current trading chart of BTC, I found that BTC is in the upside correction and that there is still space for further rally.

My advice is to watch for buying opportunities with the potential upside targets at $57.800 and $60.160.

Additionally, Stochastic got the fresh bull cross, which is another sign for the further upside movement.

Key support level is set at $53.500




Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

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Ethereum Dragged Lower By Bitcoin!

Ethereum is trading lower at 2,079 level versus 2,280 yesterday's high. The crypto dropped again erasing the latest gains. The bias is bearish after failing to take out a strong resistance area.

Technically, Ethereum was somehow expected to decline in the short term after reaching a major obstacle. ETH/USD may drop further and reach new lows as long as Bitcoin will resume its corrective phase.


ETH/USD TRADING IN THE RED!


As you already know, ETH/USD registered a false breakout above the up channel's upside line, so the decline is natural. It has reached also the weekly R1 (2,543) but it has failed to close above it signaling selling pressure.

Now is traded right above 2,040 static support after retesting the weekly pivot. 2,000 psychological level is seen as strong support. Personally, I believe that only a valid breakdown below the weekly S1 (1,946) and a new lower low could really announce a deeper drop towards the red uptrend line, the up channel's support.

ETH/USD is trapped between the WL1 and WL2. A minor down channel is seen as a continuation pattern.


ETHEREUM OUTLOOK!

Dropping and stabilizing below S1 (1,946) signals a deeper decline at least until the uptrend line.

On the other hand, the current decline could be only a temporary one. False breakdown through 2,040 and 2,000 or any reversal pattern printed on these levels could bring a new upside momentum.

Personally, I believe that we'll have a great buying opportunity if the rate registers a valid breakout above the second warning line (WL2).





Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for April 20, 2021

Crypto Industry News:
The last one to join the "Dogecoin fashion" is a manufacturer of chocolate snacks from the well-known Snickers and Milky Way brands. Both brands are owned by the confectionery giant Mars Inc.

According to data from Google Trends, the number of searches for "Dogeday" has increased significantly and the hashtag is gaining popularity on the social media platform. Social commitment for Dogecoin is currently 931% with social dominance above 536%. The sentiment Dogecoin is now enjoying is beyond all expectations, given that Elon Musk didn't tweet anything about Dogecoin last week.

What sets DOGE apart from other alcoins is that 61% of DOGE HODLers hold this coin for over a year. This is probably not the case with most of the other top altcoins that offer two- and three-digit profits. Most alternative cryptocurrencies have a high, short-term ROI. It's quite interesting that the reverse is true for DOGE.

The most interesting thing is that DOGECOIN is currently not correlated with bitcoin. Still, as bitcoin grows in popularity, DOGE grows with it, alongside the best altcoins.


Technical Market Outlook:
The ETH/USD pair has retraced more then 50% of the last wave down and made a local high at the level of $2,274 during the bounce. This level has been used to test the short-term lower channel line for a test and the higher prices were rejected as the Pin Bar candlestick had been made. The market reversed towards the technical support located at the level of $2,098 and is trading around this level currently. Any violation of this level would lead to another wave down towards the recent low located at the level of $1,941 or below.

Weekly Pivot Points:
WR3 - $3,314
WR2 - $2,2828
WR1 - $2,524

Weekly Pivot - $2,211
WS1 - $1,914
WS2 - $1,617
WS3 - $1,300


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 $2,000, 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 20, 2021

Crypto Industry News:
A recently released Glassnode chart shows that just ten minutes after BTC fell to $ 51,000 on Sunday, Binance was transferring $1.2 billion worth of bitcoins. Let's recall that bitcoin experienced a decline of nearly 20% yesterday from $60,000 to $51,000 in less than an hour.

CIO Moskovski Capital released the above-mentioned chart about the huge decline in BTC. It has been speculated that there was a tweet behind the bitcoin price movement alleging that the U.S. Treasury Department was going to charge several financial institutions with cryptocurrency money laundering charges. Within an hour of this news, bitcoin created a large red candle. As the price of the king of cryptocurrencies fell, the rates of top altcoins fell. $ 288 billion disappeared from the market at that time.

Lex Moskovski, who shared the chart, asked Binance for official comment. At the time of preparing this publication, no representative of the stock exchange responded to his request


Technical Market Outlook:
The BTC/USD bounce from the level of $50,313 had been capped at the level of $57,333, which is just below the 50% Fibonacci retracement of the last wave down seen at the level of $57,717. The market reversed and looks like is about to continue the correction towards the level of $50,313 again. The key short-term technical resistance is located at the level of $58,345 and the nearest technical support is seen at $55,501. The longer time frame chart still shows the up trend is intact.

Weekly Pivot Points:
WR3 - $77,128
WR2 - $70,098
WR1 - $62,765

Weekly Pivot - $56,867
WS1 - $48,657
WS2 - $42,481
WS3 - $34,723


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 $50,000 is clearly broken on the e daily time frame chart.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin's resurrection is still being postponed: the institutions did not pick up all the sold coins



It has already been almost two full days since the fall in BTC quotes on Sunday, and they are still declining. Albeit not too much, they are falling and trying to return to the support level of $50,770, which was worked out as part of the collapse last Sunday. Thus, in the coming days, it is possible to expect the number one cryptocurrency in the world to return to this level. As we have said many times before, a lot for bitcoin will now depend on whether institutional investors want to "pick up" all the bitcoin coins that are being sold. And do they sell the cryptocurrency themselves? The answers to these questions will determine the fate of bitcoin for the coming months, and maybe even years. Keep in mind that all forecasts from the category of "$100,000 per coin" are good and it is quite possible that bitcoin will cost exactly that much one day. However, this does not mean that bitcoin will not fall in value or frankly collapse from time to time. If the institutions get rid of bitcoin themselves instead of buying all the sold coins, the collapse of the cost of 70-80% can not be avoided. In principle, nothing extraordinary has happened for bitcoin so far.

The total correction is currently $15,000. The two previous rounds of correction were from 10 to 14 thousand dollars, but then bitcoin was cheaper. To be more precise, for all the last three corrections, bitcoin lost about 20% of its value, after which the upward trend resumed. Accordingly, the level of $50,770 is now important, below which the correction will be more than 20% and, therefore, it will be possible to talk about a more serious fall in the "digital gold." It should also be noted that the level of $50,770 is the previous local low. And according to technical analysis, the probability of a further drop in quotes will increase greatly if the price manages to overcome the previous low. At this point, a new trend (a downward trend) just begins to emerge, and it becomes much more difficult for the bulls to return the instrument to the upward trend. Thus, we are watching the level of $50,770. It should be highlighted that the upward momentum is weakening, and this can be seen in the illustration below. No trend can last forever, and bitcoin has already been growing in price for a very long time.



In technical terms, bitcoin is fixed below the critical line, as well as below the ascending channel. Thus, according to all the canons of technical analysis and the Ichimoku indicator, a downward correction should now follow. However, we should also pay attention to one important fact: yesterday, BTC quotes fell exactly to the previous local low near the level of $50,770, and bounced off it. Thus, further downward movement is impossible without overcoming this level. Below, traders are waiting for the support of $43,850, but some analysts also consider the support level of $37,500 as a target for a possible fall in bitcoin.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Most Promising Tokens of 2021: Real Airbags during Bitcoin Volatility



The beginning of April was focused on Bitcoin because of its growth, but now all the attention is on tokens. Traders are increasingly interested in new cryptocurrencies and airbags in the event of a BTC crash. We will draw your attention to the top 3 most promising tokens of 2021, which will be included in your personal list of the popular ones.

DOT Token
Polkadot hit the whole world on the spot with its DOT token. So far, if the coins and tokens were linked to the parent blockchain, then now we have the ability to switch between the blockchains. It is not surprising why it is in the spotlight and the top ten most popular cryptocurrencies.


STC Token
The STC token is not just a trivial trading tool. It is a magnet that attracts more and more people to cryptocurrency, helping firms, businessmen, and investors. With the support of STC-based tokens, you can start a revolving finance offer and get the tools you need to open a personal firm, as well as create personal exclusive tokens for businesses or startups.


Energy Web Token
The Energy Web token is one of the most sought-after tokens in the crypto industry. This token is a joint brainchild of developers and various energy companies, which changes our vision of using the blockchain, using it in the energy niche. When storing a certain amount of EWT, you will know how to properly distribute electricity and save on communal payments for it. You have at your fingertips a real magic ball that produces electrical energy, you can either use it to your advantage or sell it.

In the 21st century, tokens will be of more interest than NFT trading and auctions. This is a great investment for the future.




Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin's forecast has coincided, new targets are set

Bitcoin has finished the downward scenario considered last Friday, however, no one expected it to collapse immediately. Time is a factor that is almost impossible to predict in the market. Therefore, it is not surprising.

The reason for Bitcoin's collapse over the weekend was due to completely different factors. There is a rumor that the US Treasury intends to bring charges of money laundering with the help of cryptocurrencies to some financial companies. However, it has not been tested and could hardly be the reason for the decline. Another hypothetical reason could be a drop in the Bitcoin hashing rate, since there was a power outage in China.

But, the point is most likely different. There has been too much gossip about listing Coinbase during the previous week. The excitement and optimism pushed Bitcoin's price up, and the shares themselves began to trade above the established price.

Experts call this situation "foam on the market", but it must settle down sooner or later. The hype subsided and the sale of facts began. At least, the market was ready for this and the correction is now quite natural.

The question is how long it will last and how low the price of Bitcoin will plummet? Here, we will continue to be guided by technical analysis.

On different exchanges, the price of the BTC/USD pair dropped by an average of 14%, falling to $ 50-52 thousand per coin. After that, its quotes managed to return to the 57000 mark. This is the end of the recovery.

Analyzing the H4 time frame, the strength of the 100 level on Fibo Expansion (55760.58) is now a big question. The nearest support levels are located at 53980.47 (blue dotted line) and 51997.32 (61.8 on Fibo Expansion). Around these levels, the price can stop and make an upturn.

Therefore, as long as the price of $ 50,000 per coin is not broken and the price has not settled below this level, Bitcoin has a chance to recover. The next target for a deeper correction will be the price of $ 45,000 per BTC.

Let's take a look at another direct contributor to the recent hype, namely Coinbase Stock (COIN). After the placement, they have not yet dropped below $ 310. Now, their price is consolidating in a narrow range, which may be an indication of the next impulse, but it is not yet a fact that it will be directed upwards.

Meanwhile, HSBC does not allow its customers to buy Coinbase shares. The bank UBS notes that, although some large investors are tempted by cryptocurrencies, investing in them is still a gamble.

In turn, Morgan Stanley and Goldman Sachs are optimistic about the future of the cryptocurrency. They are ready to provide clients with the opportunity to invest in digital assets, realizing that big changes are coming in the way money flows globally.






Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

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Trading Signal for Bitcoin BTC/USD, for April 19 - 20, 2021: Sell below 56,250



The Bitcoin, the leading cryptocurrency, fell as much as 16.5%, over the weekend, due to a strong technical correction, after having peaked at $ 64,768.

The triggers for this fall, according to our point of view, may be for purely technical reasons, others speculate that the catalyst may have been speculation about an imminent crackdown on money laundering by the US authorities; others attributed it to a power outage in Xinjiang, where much of the world's bitcoin mining takes place.

However, on the 4-hour chart, we note that Bitcoin is below the 200 EMA and the 21 SMA, which keeps BTC under downward pressure, in addition to the strong resistance of 56,250, it also acts as a strong roof.

Given that the market is under downward pressure, we recommend waiting for a rebound below the 200 EMA located at 57,900, in order to sell with targets of 50,000 in the medium term.

Also a pullback towards Murray's 6/8 will be a good selling opportunity, with targets at 51,500. The eagle indicator is in the oversold zone, therefore, we must wait for a rebound to sell the BTC again.


Support And Resistance Levels For April 19 - 20, 2021
Resistance (1) $57,170
Resistance (2) $61,060
Resistance (3) $63,674

Support (1) $55,128
Support (2) $50,878
Support (3) $48,623




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

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Weakened but not broken: ETH, XRP, LTC, and other altcoins starts to pick up momentum

Major cryptocurrencies were expected to rise significantly over the weekend. Asset indicators, investor sentiment, and the news background contributed to the establishment of new all-time highs by altcoins. However, a combination of factors turned the situation in the opposite direction, and the main cryptocurrencies have declined significantly over the past two days. At the same time, altcoins start the new week cheerfully and are again approaching historical marks.

The main altcoin ETH began to fluctuate at the end of last week when there was a failure during the Berlin update. Subsequently, the situation was aggravated by the listing of Coinbase shares and a 10 percent drop in BTC quotes. On Monday, as of 13:00 UTC, the asset began to recover its positions and has already reached the level of $2,211. Over the past day, the cryptocurrency has risen in price by 4% and significantly increased the volume of daily trading, which reached $43 billion. It is worth noting that the ether will continue to grow in price and only occasionally adjusted by the market. This is due to the increased stability of the asset, as well as a new wave of demand for the main altcoin. The Berlin update has hit the cryptocurrency quotes locally due to an error, but in the broader perspective, this is the way to change the proportion of ETH network users in favor of institutions. Therefore, the ETH/USD pair is quite capable of getting close to the $2,500 mark by the end of this week.



XRP also underwent a local correction over the weekend, which, however, lasted much less than the rest of the assets. As a result, the cryptocurrency is already approaching the designated local maximum and has risen in price by 5.3% in 24 hours. At the same time, interest in the asset fell slightly, and as evidence of this, a modest daily trading volume of $17 billion. Despite this, interest in cryptocurrency continues to grow due to the stable situation in the confrontation between the SEC and Ripple. In the coming days, XRP will continue to grow actively and will again climb to the historical level in the region of $1.7-$1.8.



LTC indicators indicate that the asset will soon leave the top 10 cryptocurrencies in terms of capitalization. The symbolic price increase of 1% per day is a clear confirmation of this. Daily trading volumes of just $11 billion also indicate weak interest in the coin. Litecoin will continue to grow if it receives the necessary impetus from the market, but one should not expect independence from altcoin.



Polkadot is experiencing a minor crisis. Altcoin declined by 1.3% in 24 hours, and the dynamics of price changes over the week (-10.6%) indicate a significant decrease in interest in the cryptocurrency. A similar situation is observed with Cardano, which has shown good growth over the past day by +2.4%, but in a wider range, the asset has the same problems as the DOT/USD pair. Both assets are losing their audience, as evidenced by a significant decrease in daily trading volumes. This is primarily due to the success of its main competitor, Ethereum, which has released an update and is showing more confident growth. In the bottom line, we can say that the market is in a positive mood, as evidenced by the increase in total capitalization by 4.8% over the past day. Cryptocurrencies will continue to grow and will soon get close to historical marks.








Artem Petrenko
Analytical expert
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