Cryptocurrency Analysis

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Technical Analysis of ETH/USD for June 15, 2021

Crypto Industry News:
MicroStrategy announced yesterday that it would use $ 488 million in private sales revenues to purchase bitcoin. On the same day, it also announced that it could sell its $ 1 billion shares to the same end.

In Monday's S-3 filing with the US Securities and Exchange Commission, MicroStrategy announced that it intends to launch a securities offering that will allow it to sell up to $ 1 billion of its class A common stock over time. It intends to use the offers "for general corporate purposes, including the acquisition of bitcoin."

MicroStrategy announced yesterday that it would use $ 488 million in private sales revenues to purchase bitcoin. On the same day, it also announced that it could sell its $ 1 billion shares to the same end.

In Monday's S-3 filing with the US Securities and Exchange Commission, MicroStrategy announced that it intends to launch a securities offering that will allow it to sell up to $ 1 billion of its class A common stock over time. it intends to use the offers "for general corporate purposes, including the acquisition of bitcoin."


Technical Market Outlook:
The ETH/USD pair has been seen approaching the level of $2,639 after a new marginal lower low was made at the level of $2,256. The move up looks strong as the momentum is now above the level of fifty. The next target for bulls is seen at the level of $2,861. The nearest technical support is seen at the level of $2,550 and $2,452.

Weekly Pivot Points:
WR3 - $3,393
WR2 - $3,098
WR1 - $2,806

Weekly Pivot - $2,528
WS1 - $2,226
WS2 - $1,922
WS3 - $1,648


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

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JPMorgan: Institutional investor interest may return when bitcoin drops below $30,000



Bitcoin has climbed to the top, where it has not been since May 26. But from our point of view, it is still too early to celebrate this event. The fact is that now bitcoin has just hit the level that previously threw the quotes down. We are talking about the level of $40,746, which is the maximum from May 26. Thus, there is a high probability that a rebound from this level will occur with a new fall by 7-8 thousand dollars. We made the same conclusion when analyzing the daily timeframe. Elon Musk's statement gave a little positivity to the markets, but how much can bitcoin go up in price on this one message? Also, there is no other positive news. Moreover, many experts continue to believe that bitcoin may still fall in value below its latest local lows around the $30,000 level. For example, JPMorgan chief strategist Nikolaos Panigirtzoglou believes that institutional investor interest in bitcoin is still low after the cryptocurrency plummeted by $36,000. He believes that if institutions are going to return to the market, they will wait for the lowest possible price values in order to resume buying "digital gold". Panigirtzoglou also said that at this time, he does not observe a special desire from various funds to invest in bitcoin. The strategist also believes that the "bearish" trend persists and will remain so for at least several months. Earlier, JPMorgan analysts have already concluded that the trend for bitcoin is changing to a downward one. Thus, for now, bitcoin continues to be at risk. Only MicroStrategy continues to buy bitcoins in batches. And this is not only about purchases with their own money, but also about purchases with attracted capital. recall that the company recently placed nearly $500 million worth of bonds maturing in 2028 with the aim of investing these funds in the purchase of the first cryptocurrency. The profitability of this instrument for investors is estimated at 6.125%. Moreover, there were so many people willing to buy the bonds that the company lowered the rate from 6.5% and increased the amount of bonds being placed from $400 million. However, only the company's assets, bitcoins and other cryptocurrencies, which will be purchased during or after the placement of bonds, will act as collateral for the placed bonds. This means that if bitcoin drops, for example, to $10,000, then there will be nothing to compensate investors for the loss.



Technically, bitcoin quotes rose to $40,746 on the 4-hour timeframe. Thus, the fate of bitcoin for the next few days may be decided in the next few hours. If this level is overcome, the growth may continue with the targets of $43,852 and $47,070. If not, a new round of the downward movement will begin up to the level of $30,500.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin Extends Its Rally!

BTC/USD has managed to come back above the 40,000 psychological level and it could resume its growth. Technically, the price of Bitcoin seems strong enough to approach and reach new highs after invalidating a deeper drop.

Also, fundamentally, BTC/USD was somehow expected to increase after its last major corrective phase. Bitcoin remains very attractive for buyers after losing half of its value.


BTC/USD UPSIDE JOURNEY!



BTC/USD moves somehow sideways trying to accumulate more bullish energy before coming back higher. It has managed to escape from the descending pitchfork's body after breakout above the downtrend line.

The current breakout above the 39,489.82 level signaled strong buyers and a potential further growth towards 41,986 - 43,016 resistance. The price could move sideways in the short term trying to consolidate above the 39,489 broken resistance.


OUTLOOK!

Registering a new higher high signal that we may have further growth. An upside breakout through the 41,986 - 43,016 area could really validate a strong leg higher towards 50,000 and 60,000 levels.





Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin continues to rise due to a message from Elon Musk



The first cryptocurrency continued to rise on Monday. Thus, the growth of its quotes continues, and this is all because of an announcement from Elon Musk on Sunday regarding when and under what conditions Tesla will resume accepting bitcoin payments for its cars. And if this is not a simple coincidence and bitcoin really grows due to Elon's comment, it can be assumed that the growth will end today, at most tomorrow. This news is encouraging, but it should be noted once again that Elon Musk is not the creator of bitcoin and not its main investor. Over the past year or two, there has been a trend that almost the CEO of Tesla controls the rate of the cryptocurrency. But this time, Musk said nothing shocking or discouraging. Firstly, it is completely incomprehensible when most miners will switch to renewable energy sources when mining bitcoin. Secondly, it may not happen very soon. Thirdly, Musk may report that Tesla has sold another 10% of its coins, which will lead to a new collapse of the main cryptocurrency. Therefore, we have not yet seen any real positive factor in Musk's statement. Moreover, more and more people openly accuse Musk of manipulating the cryptocurrency market, and the SEC (the US Securities and Exchange Commission) has once again become interested in him, and may start (or has already begun) another investigation against the businessman. For Musk, a $20 million fine is nothing. However, he could again be formally accused of manipulating the course. There is no other positive news for Bitcoin right now. Markets continue to be wary of previously reported information that the US and Chinese authorities may greatly tighten the circulation of cryptocurrencies. Therefore, we still believe that Bitcoin's growth is highly limited in potential. At the moment, bitcoin is trading above the $40,000 mark, that is, after its landslide fall, it managed to recover by $10,000. However, it should be remembered that no one spoke about the immediate fall of bitcoin to 10,000 per coin. On the contrary, you should bear in mind that after each strong trend in Bitcoin, a long period of consolidation and correction began, within which strong movements were also noted both up and down. Thus, now bitcoin can recover even up to $50,000 per coin, but this will not mean that the upward trend has been restored. We still believe that in the next couple of years, bitcoin will be under pressure from the market and strive for the $20,000 mark. Also, a lot will also depend on the fundamental background. If suddenly it sharply becomes more positive, then this can accelerate the growth of quotes of the main cryptocurrency. But the fact remains that the "bullish" trend is now considered complete.



Technically, bitcoin failed to work out the support level of $30,500 once again, but managed to raise it to the level of $40,000. Thus, despite breaking the downward trend line, it is now highly likely that Bitcoin is inside a sideways channel with an upper border just around the $40,000 level. Consequently, there is a high probability of a downward reversal today or tomorrow, with a new fall by 7-8 thousand dollars.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

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Tesla will be ready to accept Bitcoin again as an electric vehicle payment but with one condition



Tesla will be ready to resume accepting Bitcoin as payment for electric cars, but there is one condition. Elon Musk said on Twitter yesterday that Tesla would be ready to resume accepting Bitcoin as payment if clean energy production reaches 50%. This could be an exciting reversal and another driver of Bitcoin's growth. After Musk refused to accept Bitcoin as payment earlier, he, Michael Saylor, and other various crypto enthusiasts began working with miners to improve mining and raise it to a new level in terms of environmental orientation.

After El Salvador's adoption of Bitcoin as a legal means of payment, this could be another major catalyst for the cryptocurrency's dramatic growth and transition to a long bull market.

As soon as Elon Musk comes to a consensus with the miners regarding the production of clean energy at the level of 50% and sees that mining does not harm the environment, Tesla will immediately turn its attention to Bitcoin and immediately add it to the list of payment methods. The whole world knows how Elon Musk can influence cryptocurrencies, and many crypto-enthusiasts and institutionalists constantly scold Musk for his incorrect conduct of politics on Twitter.

It is worth noting that various holders have already spoken unflatteringly about Elon Musk during the Bitcoin 2021 conference in Miami, saying that he has no right to influence the market with his ridiculous tweets. It seems that Elon has heard unflattering reviews from many people and gradually wants to correct his mistake by giving a go signal to Bitcoin again.

So, Elon Musk said that he sold only 10% of bitcoins for the purpose of checking for liquidity, and did not forget to add that he has diamond hands, which means that he will keep the cryptocurrency until the last. There is a high probability that a consensus will be reached this month after a conversation with American miners, which was conducted not without the participation of Saylor and Musk, and the result will be promising. As early as this month, Tesla will be ready to accept Bitcoin with an open arms.





Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin: the drivers have arrived, but look closely at the chart and be careful!

Today's sponsor in the cryptocurrency market is Elon Musk: "Cryptocurrency manipulation is fast, shocking, and guaranteed!" In every joke, there is only a fraction of a joke, no matter how cynical the previous phrase may sound.

But everyone wrote about Elon Musk, who is ready to start accepting bitcoins again as soon as miners start using half of the clean energy. But there was another important catalyst that supported growth.

Legendary macro investor billionaire Paul Tudor Jones II (aka PTJ) said in an interview that he likes bitcoin as a tool for portfolio diversification.

Paul Tudor Jones II is the founder and Chief Investment Officer (CIO) of the asset management firm Tudor Investment Corporation (also known as Tudor). Today he gave his opinion on the main cryptocurrency on CNBC Squawk Box during a conversation with Andrew Ross Sorkin.

PTJ stated: "I like Bitcoin for portfolio diversification. Everyone asks me about what I will do with these cryptocurrencies. The only thing I know for sure is that I want 5% in gold, 5% in bitcoin, 5% in cash, and 5% in merchandise. At this point, I don't know what I want to do with the other 80% until I see what the Fed is going to do. "

PTJ has stated that this is simply a fundamental way for him to look at how to protect his wealth. Over time, this will become a great way to reallocate your portfolio. He looks at bitcoin and cryptocurrency as a history of wealth.

When Sorkin asked PTJ how he felt about the risks associated with holding bitcoins, such as a possible ban by the US government, PTJ replied: "Gold is more expensive in terms of energy than bitcoin. Clearly, I am concerned about its impact on the environment. If I were the king of the world, I would ban bitcoin mining just because of the environmental impact, and then force the ecosystem to find a way to do it without increasing supply at all."

Yes, big names and the goodwill of big investors are driving the cryptocurrency market. But let's take a look at the graph. The momentum after Musk was enough to bring bitcoin out of the consolidation range of 31,082.82 - 38,610.88 between the two red dotted lines. This is already good. But if you look at the daily chart, then two periods of consolidation of the main cryptocurrency are clearly visible.

From early January to February 8, Bitcoin consolidated between the levels of 28,392.99 and 41,980.24. This was followed by an impulse and growth to historical highs.

In the same corridor, BTC/USD has been consolidating since May 19. Now the price is approaching its upper border - a strong mirror level. Therefore, the dynamics of the main cryptocurrency will depend on whether the price breaks through the resistance of 41,980.24. A consolidation above it can be a signal for further growth. But if a reversal occurs, perhaps after some struggle for the level, it will be too early to talk about a new bullish stage.

The key level is close! The criteria for referral are more or less clear. So, let's keep our eyes open! And yes, there is no need to rush. The fastest ones can be taken out during the first retest with a false breakout.








Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

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Altcoin market fluctuates amid growing interest in BTC: forecasts

Bitcoin took an important step towards completing the correction that prevented the coin's quotes from growing. Major altcoins reacted very cautiously to this positive shift. Cryptocurrencies continue to fluctuate in tight ranges, despite the nominal growth of the market. Over the past day, the total capitalization of all cryptocurrencies increased by 7%, to $1.6 trillion. However, we can conclude that this was a win back of a weekly fall.

The indicators of the main altcoin finally said goodbye to the safe mark in the region of $2,500. The coin was actively recovering positions after Friday's fall, but was affected by the local decline in bitcoin. As a result, ETH indicators sank to $2,300, from where the restoration of positions began. On the evening of June 13, ethereum managed to overcome the $2,500 mark, but market pressure knocked the coin's indicators to $2,460. Cryptocurrency has risen in price by 4.5% over the past day. However, daily trading volumes remain extremely low, fueled by increased interest in bitcoin. The local dynamics of changes in quotes also remain negative, which indicates a slight advantage of bears in the area of $2,470 - $2,500. The asset is trying to find the ground under its feet, but negative statistics with historical implications can prevent this. As of June 14, over 23% of all ETH coins ($62 billion) are in smart contracts. A similar thing happened in 2016 when the decentralized autonomous organizations (DAOs) collapsed on the ethereum blockchain. Such an analogy alarms investors at the current stage, and therefore it is not worth counting on the rapid growth of altcoin.



The Ripple token also fluctuates within the usual ranges and shows no prerequisites for growth. The cryptocurrency has settled at the February low of $0.86 and has been holding it for more than a week. Considering the horizontal charts of the asset, we can say that strong support has formed at the level of $0.86. When approaching higher rates, the crypto coin begins to roll back. Over the past day, the asset has risen in price by 4%, having restored the usual values, however, the current volumes of daily trading and the local dynamics of price changes indicate that the cryptocurrency is not ready for growth. The market pressure is too great and the demand is low due to the activity of bitcoin.



LTC, which is around $170, demonstrates similar problems. The cryptocurrency showed a steady rise to the $170 mark, but failed to gain a foothold above the safe mark. Litecoin formed the current support level at $166. In the near future, the coin will not be able to get close to the important mark of $190. The current market situation and low demand for cryptocurrency do not leave any visible prospects for it in the near future.



The weekend ADA reading tested an intraday low of $1.36. However, the coin confidently won back the fall, having risen in price by 6.5% in 24 hours. As of 12:00 UTC, the asset is quoted at $1.53, however, the coin was covered by a local wave of market pressure. The main reason for optimism around the altcoin was the ability to launch smart contracts on the Alonzo network on the ADA blockchain. In the long term, this will become a clear advantage of the coin, since the prospects are already visible now. During the test launch of the Alonzo network, the cryptocurrency has risen in price by 30%. The final product launch is expected in July, making ADA one of next month's top assets.



Despite the success of bitcoin, the altcoin market is still in the stage of correction. Coins cannot overcome difficult thresholds due to market pressure and mixed news background. For example, the Indian crypto exchange WazirX was suspected of money laundering, and the negative from New York, where mining was banned for three years, has not yet been played out. At the same time, the large US bank State Street has launched a cryptocurrency division, and the asset management company Victory Capital will create a fund for investments in cryptocurrencies. Important personalities for the industry also spoke positively about cryptocurrencies. For example, the Minister of Finance of the Netherlands opposed a complete ban on cryptocurrencies, and Elon Musk said that with the transition of 50% of mining to renewable energy sources, Tesla will resume selling products for bitcoins. The news background is still ambiguous, however, a new cycle of interest in cryptocurrencies can be clearly traced. The market is gradually accumulating volumes of coins and, soon, a bullish cycle will begin.





Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

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Litecoin Poised To Jump Higher!

Litecoin is trading at 172.87 and is pressuring a dynamic resistance. It seems that the downside movement has ended and now it could approach and reach new highs.

Bitcoin increased as well, so the altcoins could start increasing as well. The crypto market tries to recover after losing significant ground. LTC/USD moves somehow sideways signaling that the downside movement is over.


LTC/USD TURNED TO THE UPSIDE!



You can see that the rate has retested the broken dynamic resistance. Now is back above the weekly pivot point (166.24) and is pressuring the downside 50% retracement level. Closing above it could really signal a potential growth towards the $200 psychological level.

Technically, its failure to come back towards the lower median line (LML) signals strong buyers and a leg higher towards the median line (ML).


OUTLOOK!

Jumping and retesting the weekly pivot point signals strong buyers. Closing above 176.62 today's high could activate a strong upside momentum. The 200.00 psychological level and the descending pitchfork's median line (ML).




Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for June 14,.2021 - Exhastion from buyers and potential for drop towards $36.000

Technical analysis:



BTC has been trading uspide but I see potential for the bigger drop. There is potential for the downside movement towards $36.000


Trading recommendation:
Watch for selling opportunities on the rallies with the next downside target at the price of $36.000.

I found the upside drifting pattern, which is BIG warning for the exhaustion from buyers and potential sell off...

Stochastic is showing overbought condition with potential for the downside rotation.





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

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Litecoin Price Analysis, 14 June 2021



Litecoin action on the 24-hour chart has been oscillating between the bearish and bullish zones since the beginning of the day. Besides, the RSI is shifting instantly from overbought to oversold conditions and back to overbought again. This along with a wide daily range extending from an intraday low of $166 and a high of $173 indicates the presence of high volatility across the market. The bulls have been stuck around the 20-day exponential moving average at $170.

A level it corrected after the bears failed to sustain a downtrend at $157. The bears are suppressing the price movement at resistance and have increased the pullback from $169 to $167. LTC's relative strength index is shifting positions between the overbought region and the neutral zone since the beginning of the day.

The current price level is acting against the active first major resistance level at $171. The first support lies at $166. The bulls need to gather support from the broader market to break out of the $166 level and beat resistance at $171. This will bring the $174 price level into play, which is also the 62$ FIB extension level.





Jan Novotny
Analytical expert
InstaForex Group © 2007-2021