Cryptocurrency Analysis

[IFX_Selena]

Bitcoin and the "Musk factor": where to catch the main cryptocurrency?

Today's sponsor in the cryptocurrency market is Elon Musk. Only a lazy person would not write about how his statement collapsed bitcoin today. But the event is significant, and it is not a sin to repeat itself.

On Wednesday, Tesla CEO Elon Musk said that the company is temporarily not ready to accept payment in bitcoins, since its mining is very energy-intensive and leads to a huge amount of non-environmental emissions. In response to this news, bitcoin started up at almost $45,000, which eventually rose to $50,000 per coin and is still holding above this mark.

The question that interests everyone: what will happen next? Will the market crash, will institutional investors flee digital assets after realizing the dire reality of environmental pollution?

It should be admitted that Elon Musk and his rhetoric over the past year have contributed a lot to the growth of bitcoin. Dogecoin took off too, but let's not talk about it, it's very controversial. Most likely, the demand from retail investors grew on the "Musk factor". And the institutionalists, who now mostly hold the market, were unlikely to be very worried about yesterday's statement and today's pursuit criticism.

The fact that bitcoin was bought back to $50,000 after the fall, is perhaps one of the confirmation of this assumption.

As for the non-ecological mining of bitcoin, emissions and pollution, at a time when everyone is fighting for decarbonization, not everyone agrees with Musk.

For example, yesterday and today, many experts expressed their opinion on this matter. Their statements, in my opinion, are sound and deserve attention.

Stephen Kelso, Head of Markets and Cryptocurrency Expert at ITI Capital, noted:

"Elon Musk once again had a significant impact on bitcoin, but this time by provoking its fall. This will inevitably lead to some short-term composure on the part of retail investors, who were inclined to accept Bitcoin in the first place at the direction of Elon Musk, who originally valued the cryptocurrency. However, institutional investors better understand the relevance of time frames by looking at correlations and covariance in portfolios with multiple assets. "

London-based fintech investor and VP Capital founder Viktor Prokopenya said: "Cryptocurrencies now have emissions, but in the future, they may become zero. A hundred years ago, people made the first car. These cars had a very high carbon footprint. But we have not stopped making cars - we have improved the technology. Society has created a zero-emission vehicle. "

Simon Peters from eToro offered a more forward-looking view. "Bitcoin, Ethereum, and other crypto assets are now entering a correction zone, in most cases falling more than 20% from their peak. After refreshing all-time highs, there will naturally be some gains in place, while we are also seeing a general sell-off among risky assets such as technology stocks. However, for many crypto assets such as Bitcoin and Ethereum, the long-term history has not changed. This new class is revolutionizing many aspects of financial services. And while nothing rises in a straight line, the long-term underpinnings of crypto assets remain as solid as they've been. "

Well, Elon Musk's statements most likely triggered the correction. If bitcoin holds above $48,000-$50,000 per coin, then it may well regain all the lost positions. If not, it may fall to the support level at 41,980.24.






Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin breaks support and falls to new lows below $47,000.

Current price action in Bitcoin suggests bulls remain weak and price vulnerable to a bigger correction. Price has broken the short-term support trend line we mentioned yesterday and price is falling according to plan. The fall below $50,000 was our first target and then below $47,000. Price has since then bounced and is consolidating around $50,000.



Bitcoin remains vulnerable to a move lower. Our next target is at the 38% Fibonacci retracement around $42,000 price level. There we also find the 100% Fibonacci extension of the current decline with respect to the first leg down. Bitcoin remains vulnerable and we continue to expect that prices will continue lower over the coming days.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Dogecoin price action confirms our bearish expectations

In our wave analysis on Dogecoin we warned bulls that price action suggested that another sell off was expected with a target below $0.41. Price has fallen all the way towards the 50% Fibonacci retracement of the entire upward move in Dogecoin. Price remains in bearish short-term trend as it continues making lower lows and lower highs.



Dogecoin so far made a low around $0.35 according to plan. Price has so far retraced 50% of the entire rise and there are still increased chances of a move lower towards the 61.8% Fibonacci retracement. So far there is no sign of a trend reversal and a confirmed low. A move above $0.54 will be the first reversal sign and the first step in confirming a major low. Until then bears are in control.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

On the verge of depression: crypto market fell by 12.5% due to BTC collapse

The cryptocurrency market reached $2.5 trillion in total capitalization on Wednesday, May 12. Ethereum became the main driver of the previous week, while the rest of the assets were in narrow corridors and could not overcome psychological boundaries to continue to grow. The lack of progress in most major cryptocurrencies has alerted the market, and huge leaps in coins like Dogecoin and Shiba Inu have only made matters worse. The wait-and-see position of the market was cut off on Thursday when the BTC/USD quotes fell by 15% per day and dragged the entire market with them. As a result, the total cryptocurrency market capitalization fell by 12.5% to $2.2 trillion.

Ethereum, which has recently become more expensive and easily passed local corrections, retreated from the historical record. As of May 13, the asset is quoted at $3,760 and fell by 11.7% per day. At the same time, the process of reducing quotes is accompanied by sharply increased daily trading volumes, which amount to $96.5 billion. In addition to the impending correction and the sudden fall of bitcoin, ethereum was already getting close to the dangerous mark, where the market resistance began. In addition, a 530% increase in commissions in the crowded ETH network, as well as a disappointing report from JPMorgan experts, also caused a drop in interest in the cryptocurrency. At the same time, such a sharp drop in quotes goes beyond the predicted situation, which indicates its spontaneity and lightning speed. Most likely, ethereum will return to growth, strengthened by new market participants who entered the asset, hoping for its further growth.



Ripple token showed a more significant decline in comparison with BTC and ETH. The asset confidently held within safe positions in the area of $1.40, however, a sharp drop in the entire market led to a decrease in XRP/USD quotes by 11.7%. As of 12:00 UTC, the cryptocurrency is quoted at $1.30 and shows extremely negative statistics of price changes over the past few hours (-5%). Shortly, the asset will be able to return to its usual positions, as positive signals are gradually returning to the cryptocurrency market.



A similar situation is observed with Litecoin, which tried to break out of the $370 limit, but constantly failed. The sharp decline in the crypto market led to a 16% decline in asset quotes. Of all the major cryptocurrencies, LTC fell the hardest. As of 12:00 UTC, Litecoin is quoted at $316, and the coin needs to gain a foothold above the challenging $330 mark soon, where strong market resistance is concentrated. The dynamics of price changes over the past hours also remain negative (-3.4%), which indicates a continuation of the correction to the nearest support level.



The current market drop is caused by a sudden factor in the face of Elon Musk, who announced Tesla's refusal to accept bitcoin as payment for its services. The SEC representatives added negativity, who stated about the risks associated with bitcoin futures. Another circumstance that strengthened the correction was the achievement of the $2.5 trillion mark in the cryptocurrency market in total capitalization. The combination of circumstances, as well as the shaken reputation of the entire market, which resulted in distrust and caution of major market players, caused the market to collapse by 12.5%. Given the current situation, there are no good reasons for the start of a protracted correction and a bearish trend, but the market needs a push to return to its usual positions. This impulse may well be a statement from the American online platform eBay, which allowed users to trade NTF's.





Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for Ethereum (ETH/USD) for May 13 - 14, 2021: Buy above $3,750



Yesterday, Ethereum fell from its highs in the zone of +2/8 of murray of 4,375 to the low of $3,580. The asset showed more than a 19% fall in a single day. For several days, we were commenting that the ETH/USD pair was in the overbought zone and this downward correction was imminent.

Also yesterday, BTC fell sharply from a high of $58,000 to a low of $46,100.

However, on Thursday, ether recovered after it found support in the 3,600 area. It is consolidating above the 200 EMA on the 4-hour chart.

Despite the decline, the eagle indicator is showing a bullish rebound towards the 21 EMA zone located at the psychological level of 4,000.

Conversely, fixation below 3,750 may cause more significant downward pressure on Ethereum. The target is located at 3,437, the 7/8 murray zone. There is a possibility of a long-term trend reversal.

If the asset consolidates above the psychological level of 4,000, it will advance to its maximum of 4,375. Otherwise, we recommend continuing to sell within the bearish channel.


Support and Resistance Levels for May 13 - 14, 2021
Resistance (3) 4,133
Resistance (2) 3,988
Resistance (1) 3,896


Support (1) 3,697
Support (2) 3,601
Support (3) 3,460



Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for May 13,.2021 - Big drop and second target reached at $47.950

Technical analysis:



BTChas been trading downside as I expected. The second downside target has been reached at the price of $47.950. I still see potential for another downside movement..


Trading recommendation:
Watch for selling opportunities on the rallies with the downside targets at $47.95 and $42.920.

Stochastic oscillator is showing new bear cross, which is another good sign and confirmation for the downside movement.





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin collapses after Tesla suspends transactions over climate concerns



Bitcoin collapsed by as much as 15% yesterday, after Tesla CEO Elon Musk announced that they are suspending Bitcoin purchases.

In a Twitter post, Musk said they are concerned about the massive use of fossil fuel Bitcoin mining and transactions consume. But he noted that Tesla could accept other cryptocurrencies provided that they are much less energy intensive. They are also not selling the Bitcoins it owns.

BTC fell to $ 46,000, but then pulled up slightly. And this morning, it is trading at $ 51,210.

Other tokens, such as Ethereum and Dogecoin, also dropped. The rush to sell briefly caused disruptions on some cryptocurrency exchanges.



Earlier in February, Tesla announced it invested $ 1.5 billion in Bitcoin. They also said they plan to accept the cryptocurrency as a form of payment.

As a result, BTC jumped 16%, the biggest one-day gain observed since the start of the COVID-19 crisis.

Then, it rose even higher when Mastercard, BNY Mellon and other firms have taken steps to make it easier for customers to use or invest in cryptocurrencies. Bitcoin soared from $ 29,000 to almost $ 65,000 in April.

In fact, Tesla CFO Zach Kirkhorn said: "Tesla believes in the long-term value of Bitcoin and plans to hoard tokens from customer transactions."

But Musk's tweet on Wednesday set off a collapse in Bitcoin. It continues to fall even today.





Andrey Shevchenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin Sell-Off Stopped! Another Leg Higher?

Bitcoin dropped as much as the 46,000 level today resuming yesterday's sell-off. Technically, the cryptocurrency was somehow expected to drop after falling below the immediate uptrend line.

The USD's strength after the US inflation data release helped the sellers to take full control in the short term. BTC/USD showed exhaustion signs, so the downside movement was imminent.

Bitcoin trade at 51,164.20 at the time of writing, trying to come back higher and to recover after the last massive drop. The pressure remains high despite the current rebound.


BTC/USD BOUNCED BACK!



BTC/USD found support below the descending pitchfork's median line (ml) again. This time, it failed to reach the downside 50% Fibonacci line.

It registered a false breakdown with great separation through S3 (47,653.98) and below the 47,464.65 static support, signaling bullish momentum. It managed to stabilize above the median line (ml) and beyond the S2 (50,299) on the H4 chart.

Bitcoin could come back higher to approach and reach the upside 50% Fibonacci line before dropping again. Technically, BTC/USD could move sideways between 47,464 and 59,499 in the upcoming period before choosing a new long-term direction.


BITCOIN FORECAST!
A new drop and fixation below the descending pitchfork's median line (ml) should announce a larger decline. The level of 47,464 is seen as a critical support area, a valid breakdown below it signals more declines.

Consolidating above the median line (ml) and beyond the 50,000 psychological level could bring a new buying opportunity in the short term with an immediate target at the S1 (54,308).

The major upside target remains at the upper median line (uml) of the descending pitchfork.




Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Dogecoin loses 50%

Hello, dear traders! Here is my trading idea for Dogecoin



Yesterday, Dogecoin lost 50%.

The fall in the value of the digital coin became the culmination of the 4-day downward trend that ended with a major crash yesterday.



Notably, Dogecoin was not the only cryptocurrency to plunge yesterday.

Bitcoin lost $10,000 for a day, marking one of its record falls. The price collapsed after Elon Musk's announcement that Tesla halts purchases of its electric vehicles with BTC due to rapidly increasing use of fossil fuels for bitcoin mining.



Our task is to make money. In this case, we should buy the instrument that tumbled the most, and this is Dogecoin. The token currently costs some 50% of its value. Entering long positions in the 0.4 zone with a 0.1% risk, a Take Profit can be set at 0.8, which is 100% of the investment (see the chart above).

Have a nice trading day!




Andrey Shevchenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for May 13, 2021

Crypto Industry News:

During the first 7 days from the introduction of Ethereum Futures to the market by CME, the value of concluded contracts exceeded USD 23 million. According to a recent OKEx Insights report, "partial data for the week ending April 25 shows weekly volumes hit an all-time high of $ 353 million - over 166% more than the previous week's $ 132.57 million."

Moreover, the number of contracts opened in the CME Ether Futures market also increased at a similar pace. The aforementioned report showed in this respect that:

"During the first month of trading, ETH Futures had an average Open Interest of $ 61.17 million. March data showed a significant spike in activity with average Open Interest peaked at $ 101.67 million.

In fact, since April 21, OI figures have risen to $ 205.6 million, reflecting the size of institutional measures that hit the Ethereum market in the last few months.

According to OKEx Insights, one of the main factors behind this was the normalization of mainstream cryptocurrency investing. The authors of the report argue that it was a byproduct of MicroStrategy, MassMutual and Tesla's entry into the cryptocurrency space, and each of these companies' actions legitimized a sector that had long struggled for Wall Street's attention.


Technical Market Outlook:
The ETH/USD pair has tested the key short-term technical support located at the level of $3,596 and bounced more than 50% already. The next local target for bulls is the 61% Fibonacci retracement located at the level of $4,074. If this retracement level is clearly violated, then bulls will likely test the ATH again (located at $4,369). The momentum is strong and positive, so it supports the bullish outlook for ETH.

Weekly Pivot Points:
WR3 - $4,545
WR2 - $4,714
WR1 - $4,394

Weekly Pivot - $3,656
WS1 - $3,369
WS2 - $2,577
WS3 - $2,290


Trading Recommendations:
The longer term up trend on the Ethereum continues despite the local counter-trend corrections. The next long term target for ETH/USD is seen at the level of $5,000. The key long term technical support is seen at the level of $3,881, so only a weekly candle close below this level will invalidate the bullish scenario.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021