Cryptocurrency Analysis

[IFX_Selena]

Bitcoin Forecast for 3rd June, 2021

Bitcoin price prediction highlights BTC's consolidation extension while it remains pivotal at the $38,000 price range.

Bitcoin has formed a bearish pennant suggesting the crypto might drop towards the $28,000 price region soon.

Despite its misfortunes, preparations for Bitcoin's 2021 Convection are still underway, with over 21,000 participants confirmed.



The crypto market has started the day on the green today, June 3, with Bitcoin prices currently hovering around the $38,800 price region. At present, Bitcoin dominance in the market stands at about $42 percent, a decline of about 0.5 percent over the day.

Since the start of June, Bitcoin's price movement has registered a bullish start, with the crypto coin surging by about 9 percent since June 1. If Bitcoin continues with such a similar bullish trend, the number one crypto coin could rally past the $46,500 price region or record a 20 percent upsurge from its current $38,800 price tag.

However, for Bitcoin to realize this milestone, it has to break above two crucial resistance levels. The first resistance level investors need to consider is the first supply barrier at around $41,900, which also happens to be the axis of the right shoulder and the supply zone. The supply zone extends from $43,000 to about $46,630.

While it is unlikely for Bitcoin to close the day above the 12-hour candlestick around the $46,630 price region, the king crypto could register a significant price rally. On the other hand, if the number one cryptocurrency fails to close the day above the $34,049 region decisively, all the bullish prospects will go down the drain.

On looking at Bitcoin's 4-hour chart, it is evident that the Moving Average Convergence Divergence (MACD) indicator shows Bitcoin is currently in favor of the bulls. This comes from Bitcoin's gradual price movement that saw it move from May's 34,389 low to levels above the 0.00 mean line. Therefore, it is worth noting that the MACD technical indicator currently paints a bullish picture favoring the bulls. If Bitcoin maintains the current trend, the number one crypto asset could gradually resume its price rally as the bulls retest the $40,000 price region.





Jan Novotny
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum Challenges Crucial Resistance!

Ethereum increased in the short term, but now it has reached a resistance area. It remains to see how the rate could react before taking action. Taking out the resistance area could signal that the crypto may resume its growth.

Bitcoin has increased in the short term as well. So, further growth could signal that the altcoins could increase as well. You can use this positive correlation between BTC and the other major cryptocurrencies in trading.


ETH/USD IMMINENT BREAKOUT!


ETH/USD moved sideways lately inside of a triangle. Now is pressuring the pattern's resistance, the 50% retracement level, and the R1 (2841.67). Closing above these obstacles and above 2890.60 today's high could confirm further growth.

Still, you should keep in mind that only a valid breakout above 3,000 psychological level could really validate a broader upwards movement. Escaping from this range could attract more buyers which could lead the rate towards the historical high.


FORECAST!

Jumping and stabilizing above 3,000 should offer us a good long opportunity. The upside scenario could be invalidated if the price stays below the current resistance levels or if it makes only a false breakout above 3,000.






Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum remains on track for our $3,200 target

Ethereum continues making higher highs and higher lows after bottoming on May 30th at $2,170. Price formed a higher low and if this upward move is at least as big as the first bounce from the May 23rd low, then our expectation would be at $3,184.



Red rectangle - target

Blue lines - Fibonacci retracements

Black line - expected size of bounce

Ethereum is moving higher after reversing at the 61.8% Fibonacci retracement. Price is making higher highs and higher lows. Support is at $2,500 and as long as price is above this level reaching the red rectangle area is the most probable scenario. Major Fibonacci resistance is found at $3,300 and breaking above it will be a bullish sign.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Second failure to break above $1.06 for XRP/USD

XRP/USD made another attempt to day to break above the key short-term resistance of $1.06. Price has made a high today at $1.075 but bulls so far are unable to stay above the resistance. Bulls need to recapture $1.06 in order to continue higher towards $1.20.



Red rectangle - resistance

XRP/USD is showing rejection signs at the red rectangle resistance area. A rejection here will open the way for a move lower towards at least $0.90. A daily close above $1.06 will be an important bullish sign that will give us $1.20 and $1.45 as the next upside targets. Support is at $0.97 in the near term, breaking below it will push price towards $0.90.






Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

The era of digital currencies has arrived

ECB warns that countries who refuse to introduce digital versions of their national currencies may face serious problems in their financial systems and monetary autonomy.



This is because consumers and companies in these countries will have to depend on a small number of payment service providers, including foreign tech giants. Accordingly, this will affect the central bank's ability to fulfill its mandate and act as lender of last resort.

Aside from that, cryptocurrencies are gaining much attention, and even though governments are trying to take control of the industry, only a small part of it will be regulated. The easier option is to develop digital currencies and introduce them into the economy. Such will help to partially reduce the burden on the financial system, not to mention make it more flexible.

Hence, many countries, including the US, are taking such measures. In July this year, the Federal Reserve and the Massachusetts Institute of Technology are set to publish their research on this topic and the first results of their work.

Other countries have not seen major breakthroughs yet, but in 2020, Bahamas launched a digital currency called the "sand dollar", which is more of a money for a narrow circle of people. Brazil, which has been working on digitizing real (BRL) for a long time, plans to launch it in 2022. Canada is also working on digitizing loonie, but there are no plans to launch it yet. As for China, a pilot digital yuan will be launched in 2022.

Japan is still considering the idea of digital currencies, just like the Euro area. But ECB President Christine Lagarde said in an interview that a digital euro could emerge within the next four years if officials approve the project. The ECB believes it could help increase the international reach of euro, especially if it is designed with an emphasis on security, low transaction costs and interoperability with other services. But Lagarde emphasized that such is not the main motivation for the release of a digital asset.



Going back to cryptocurrencies, a lot depends on the range $ 31,000 - $ 41,000 because as long as Bitcoin remains there, the market will remain bullish. And if the quote goes above $4 1,100, BTC will have a chance to hit $ 46,700 and $ 52,000. But if the quote drops below $ 30,900, Bitcoin will collapse to $ 25,000 and $ 21,700.






Jakub Novak
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading plan for Bitcoin for June 03, 2021



Technical outlook:
Bitcoin has raised through $39,500 levels today and might be quickly approaching resistance zone. The crypto has been consolidating within a triangle since printing lows around $30,000 on May 19, 2021. The recent rally could be seen as last leg within the consolidation structure and bears might come back into control, if $43,000 stays intact.

Bitcoin is seen to be trading close to $39,200/300 levels at this point in writing and might face intraday resistance here. High probability remains for a bearish turn towards $30,000 levels again, before pulling back higher. Immediate resistance is seen at $43,000, followed by $49,000 and higher, while support is around $30000; followed by $28,500 levels respectively.

Bitcoin has been in an uptrend since printing $4,000 lows in March 2020. The crypto has also bounced right at the trend line support around $30,000 levels recently. It might re-test $30,000 levels to complete the corrective structure and resume higher again. Meanwhile, a break above $43,000 would confirm that bulls are back in control.


Trading plan:
Aggressive: Remain short, stop @ 43,500, target @ 28,500

Conservative: Remain flat, buy @ 30,000, stop @ 25,000, target is open.

Good luck!





Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

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BTC analysis for June 03,.2021 - Watch for the breakout of the upside channel

Technical Analysis



BTC has been trading upwards at the price of $38.750 but I still no strong momentum, which can be a first warning for the downside rotation.


Trading recommendation:
Due to overbought condition and very controlled rally, I expect further downside rotation.

The breakout of the upside channel will confirm downside movement towards $33.455 and $28.950.

Stochastic oscillator is showing overbought condition, which is another of the potential weakness...





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

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Peter Brandt: Bitcoin may fall to $21,000 per coin, but a quick recovery should not be expected



Bitcoin has not just been trading sluggishly over the past few days, the most eloquent picture is now taking shape on the 4-hour timeframe (illustration below). The bitcoin quotes are between two trend lines and as they narrow, the volatility of the cryptocurrency also decreases. By and large, BTC is now moving sideways, which is also clearly seen in the illustration. Thus, we believe that today or tomorrow, Bitcoin will try to get out of this triangle, which may lead to a stronger movement than what we have seen in recent days. Thus, it remains only to find out which of the trend lines will overcome the "digital gold".

At the same time, the world-renowned trader Peter Brandt almost completely repeated our conclusions on bitcoin and its prospects. First, Brandt called for investing in bitcoin only the money that investors are willing to lose. Secondly, he named the worst-case scenario for Bitcoin, in which the cryptocurrency could fall to $21,000 per coin. Peter also said that during the last drop in Bitcoin, he reduced the number of his coins by 70%, but is still in long positions. Nevertheless, it seems that the trader himself is inclined to believe that Bitcoin will continue to fall. He asked all those hoping for a quick recovery in the bullish trend, when was the last time Bitcoin hit its high after falling 50%? Brandt also drew attention to the fact that whenever bitcoin began a deep correction, it subsequently amounted to at least 70% of its value. Plus, the fundamental background remains sharply negative for bitcoin low. Thus, not all investors are shouting at all angles that Bitcoin is about to start again to the level of $100,000. There are also those who soberly assess the situation. We have the opportunity to work out not only the growth of bitcoin, but also its fall. Therefore, when the corresponding signals appear, we recommend selling the cryptocurrency.



Technically, bitcoin on the 4-hour timeframe went into a kind of flat. The quotes are still between the two trend lines. Thus, in the near future, the "spring" may straighten and the market will move with renewed vigor in one direction. The only question is, which one? If there is a breakdown of the lower trend line, then the chances of a further fall will increase, at least to the level of $30,500. If the upper trendline is crossed, bitcoin will try to recover to the level of $43,852. These signals can be used to open corresponding positions.






Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Warren Buffett's 3 Principles for Working with Bitcoin



Over the past day, Bitcoin again showed no desire to trade actively. The quotes of bitcoin again all day stood around the levels of $36,000-$37,000 and only increased a little last night. Formally, bitcoin is growing, but hardly anyone can call this movement "the growth of bitcoin." From our point of view, the cryptocurrency simply continues to consolidate after the strongest fall and a corrective scenario (that is, a continuation of the fall) is still a more likely scenario. Thus, we absolutely do not expect Bitcoin to be above $42,000 per coin anytime soon. Keep in mind that after the upward trend in Bitcoin ends, the cryptocurrency usually loses up to 90% of its own value and goes into sideways movement for several years, into correction, into consolidation. From our point of view, the "bullish" trend is over, so in the next couple of years, Bitcoin is unlikely to be aimed at its highs. It should also be noted that the fundamental background for the world's first cryptocurrency has not changed at all lately. Thus, why should one expect that the demand for bitcoin will sharply increase? Investors and traders of various stripes and categories are waiting for specific data from the United States and China, where they may introduce a number of legislative initiatives that will significantly complicate the functioning of the entire cryptocurrency market in the near future, and make all cryptocurrencies much less attractive to investors.

Meanwhile, Warren Buffett, arguably the most famous investor in the world, continues to refuse any investment in Bitcoin and other cryptocurrencies. There are several reasons for this, and probably everyone should learn the principles of Warren Buffett. First, Buffett believes that bitcoin has no intrinsic value. That is, if the shares of any company reflect a certain amount of real assets and products, then any cryptocurrency is just a piece of code. In theory, its value could drop to zero. The price of bitcoin depends only on the strength of the market's belief at a given time that the cryptocurrency will continue to be bought. More from nothing. Secondly, by all indications, bitcoin is not money, since it does not perform the basic functions of money. It is, of course, possible to accumulate funds in bitcoins, but it does not save value, as it is too volatile. Also, few people use Bitcoin to settle accounts with other entities. That is, bitcoin does not function as a currency of account. Warren Buffett's third principle is not to invest in what you don't understand. The world-famous investor does not hide the fact that he does not understand the essence of bitcoin, and therefore does not buy it. At least some of Warren's principles should be heeded by many investors.



Technically, bitcoin's fuse continues to fade, and the cryptocurrency itself is trading very sluggishly. At this time, investors are in no hurry to buy bitcoins again, and miners get rid of the mined coins. The fundamental background remains unfavorable, so we believe that digital gold has more chances to return to the level of $30,500 than to rise. If bitcoin quotes manage to gain a foothold above the 38.2% Fibonacci level - $41,000, then this will slightly increase the likelihood of further growth in digital gold, but traders still need to get to this level.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for June 3, 2021

Crypto Industry News:
The new Nvidia 3070 Ti and 3080 Ti graphics cards will be launched with built-in Ethereum hash rate limiters when they go on sale later this month. Nvidia announced the pending release of new cards during the Computex 2021 live stream, where it revealed the specs and release dates for both models.

Of particular interest to cryptocurrency enthusiasts is Nvidia's decision to market cards with built-in limiters designed to limit their usefulness for Ethereum mining.

The company previously committed to creating a cryptographic card designed to mine Ethereum and other GPU-compatible cryptocurrencies. The move was intended to divert demand from potential cryptocurrency miners, however Nvidia's insistence on releasing all of the latest crypto-cryptographic GPUs suggests that this plan may not be as final as initially expected.

Nvidia recently stated in its Q1 earnings report that it is unable to accurately estimate the demand coming from cryptocurrency miners. This is despite the fact that 3000 Series cards sell up to 300% more than retail cards, amassing millions of dollars in estimated aftermarket sales.


Technical Market Outlook:
Since the ETH/USD pair had broken through the upper channel line around the level of $2,505, the bulls keep pushing the prices towards the key short-term technical resistance seen at the level of $2,914. The new local high during this move up was made at the level of $2,799. Nevertheless, as long as the price is still under the level of $2,914, the bears are still in full control of the market and the next target for bears is seen at the level of $1,729, $1,633 and $1,544. The nearest technical support is still seen at the level of $2,201.

Weekly Pivot Points:
WR3 - $4,688
WR2 - $4,131
WR1 - $2,922

Weekly Pivot - $2,341
WS1 - $1,141
WS2 - $579
WS3 - $181


Trading Recommendations:
Ethereum has lost more than 50% of the recent gains from the lows of March 2020 and now is currently in the counter-trend corrective cycle. The next long-term target for bears is seen at the level of $1,728 (61% Fibonacci retracement of the last wave up) and $1,420 ( January 2018 swing high). The up trend is resumed when the level of min. $3,000 is clearly violated.






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021