Cryptocurrency Analysis

[IFX_Selena]

Altcoins resume growth amid positive news: reasons and analysis

The cryptocurrency market has been actively accumulating the volumes needed to launch a bearish trend in recent days. The first pleasant call of this was the exit of bitcoin to a position in the region of $39,000. After that, there was a short pause, which was interrupted by a loud statement from the authorities of El Salvador about the recognition of BTC as an official means of payment. After that, the cryptocurrency market began to fill with positive news related to the resumption of the process of institutionalization. Today, on June 15, bitcoin reached the $40,000 mark, and this has positively affected the altcoin market. As a result, the total capitalization of cryptocurrencies increased by 3%, reaching $1.7 trillion.

Ethereum indicators have increased by 4% over the past day. The asset shows rapid growth in daily trading volumes, and also demonstrates a confident positive dynamics of changes in quotes (+1% per hour). The main reasons for the growth of ETH indicators were the growth of bitcoin quotes, as well as a positive news background. In addition, there are local reasons for the surge in the altcoin network, which contributed to its growth. Over the past two days, interest in bitcoin has increased many times among the crypto community, which has led to a downward trend in the opening of unique ETH addresses. This has led to a reduction in social activity on the ethereum network. However, at the same time, this significantly reduced the pressure of sellers on the asset and reduced commissions in the ETH network. As of 13:00 UTC, the average commission on the ethereum network is about $3.8. All this contributed to a sharp rise in the price of the cryptocurrency after a positive news impulse. Do not forget that in the near future, there will be an update of London, which is scheduled for mid-July. In the near future, we expect an increase in demand for the main altcoin, but one of the nearest targets is to overcome and consolidate over the order of $2,600.



The Ripple token does not share the general joyous mood in the cryptocurrency market. Investors are wary of XRP, as a result of which, the value of the asset remained practically unchanged and remained at $0.882. At the same time, daily trading volumes are slowly growing, and local dynamics indicate an increase in cryptocurrency indicators. The news that the litigation between the SEC and Ripple could drag on until 2022 was negatively received by the crypto community. First of all, because the uncertainty around the coin can drag on for at least 6 months. This will negatively affect the institutionalization of the cryptocurrency, and in the near future, the growth of the altcoin will be conditioned only by local impulses and victories.



Litecoin feels more confident and is growing in value by 3% over the past day. The cryptocurrency is quoted in the region of $176, where a lot of market support is concentrated. Given the positive sentiment in the market, further upward movement of the altcoin can be expected. This is indicated by the local dynamics of the price movement (+0.5%), as well as the growing volumes of daily trading.



There is growing interest in the altcoin Cardano, which recently announced the second version of the Alonzo Blue base. Recall that the project on the ADA blockchain has now added the ability to deploy smart contracts. Against the background of the launch of the new function, altcoin broke into the top 5 cryptocurrencies in terms of capitalization with a result of $50.7 billion. As of 13:00 UTC, the coin is quoted at around $1.58 with growing daily trading volumes. Probably, the crypto coin has not reached the peak of winning back the favorable news and will continue to increase its volumes.



The growth of quotes of the major altcoins is taking place amid a positive news background that has been formed over the past week. Financial Time reports that hedge funds will continue to invest in cryptocurrency. According to analysts, by 2026 the investments of financial institutions will reach $312 billion. In addition, MicroStrategy announced a billion dollar share issue to buy bitcoin. The company is confident in the long-term benefits of investing in the main cryptocurrency. Investment bank Goldman Sachs also plans to expand its engagement with the crypto asset market. A financial institution wants to launch Ethereum-based futures and options trading. At the same time, disputes about the need to tighten regulation of cryptocurrencies are not abating in Europe and Asia. In Italy, this need was explained by the fight against money laundering and the financing of terrorism. In the Netherlands, for example, they put China and propose to also prohibit the use of bitcoin as payment. The mining company of Yunnan province was ordered to stop all work on the extraction of coins. Despite this, the quotes of the main altcoins continue to rise, and, most likely, the market is approaching a bullish trend, which may be launched in the near future.





Artem Petrenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for XRP/USD (Ripple), for June 15 - 16, 2021: Buy above $0.8540



In the early American session, the cryptocurrency XRP (Ripple) is trading trapped within a symmetrical triangle since May 20, approaching a potential break towards the 200 EMA zone located at $ 1.0280.

The SMA of 21 is below the current price, which means that a bullish bias would be brewing to break sharply the sloping line of the symmetric triangle pattern.

A breakout and consolidation of $ 0.91 will be a signal that Ripple could advance up to the resistance zone at around 1.0280 (200 EMA). Above this resistance level, it will reveal the first sign of strength. It will indicate that traders and investors have resumed their purchases.

That could drive the Ripple price up to the strong 2/8 murray resistance located at $ 1.1719. However, the bullish outlook for the cryptocurrency market is not in the cards yet as many investors have liquidated their long positions, waiting for some bullish signs of the crypto market.

Our recommendation is to buy above 21 SMA. Another option, if XRP makes a technical bounce off the 0.8540 support, it will be a good opportunity to buy with targets at 1.0280 in the short term.


Support and Resistance Levels for June 15 – 16, 2021
Resistance (3) 0.9843
Resistance (2) 0.9551
Resistance (1) 0.9190

Support (1) 0.8538
Support (2) 0.7861
Support (3) 0.6993




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin price analysis for 15 June

BTC traded sideways overnight.
Further upside is still rejected.
BTC likely to retrace to $37,000



Bitcoin analysis is bearish for today as further upside was rejected overnight and the market moved sideways to prepare a base from which to push lower overnight. Therefore, we expect BTC/USD to retrace over the next 24 hours and set another higher low around $37,000.

BTC/USD traded in a range of $39,072 – $40,978, indicating a moderate amount of volatility. Trading volume has increased by 7.46 percent and totals $46 billion. Meanwhile, the total market cap trades around $749 billion, resulting in a market dominance of 43 percent.

If BTC/USD retraces to $37,000 mark and sets another local swing higher low, we can expect another movie higher later this week. The $42,000 mark would now serve as a resistance, meaning that once it is broken, the overall Bitcoin price action would turn even more bullish.





Jan Novotny
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Many large managers consider Bitcoin to be a "bubble". Outflows from digital funds have slowed - a sign of market bottom

Bitcoin hovered around $40,000, prompting discussions about whether the market is a bubble and whether it has any fundamental basis. From the latest report from Bank of America Corp. and the experts interviewed, it is clear that opinions about bitcoin and whether it is a speculative tool that makes a bubble has changed significantly. Even after bitcoin's 35% drop last month, most respondents are confident that it is a bubble.



About 80% of fund managers surveyed by Bank of America Corp. called the bitcoin market a bubble (up from 75% in May). The survey, which reflects the views of 207 investors with $645 billion in assets, found that "long bitcoin" is the second largest transaction after commodities, where the market is also very much subject to volatility.

The survey shows high skepticism among some professional portfolio managers about whether cryptocurrency is a viable asset class, given its extreme volatility and regulatory uncertainty. Concerns about bubbles are nothing new for cryptocurrencies, and many investors have expressed doubts about the feasibility of using an asset that does not have a fundamental basis.

Even though prices have fallen, investment banks are still adding this new asset class to their portfolios. Goldman Sachs Group Inc. said it plans to offer Ethereum-linked derivatives to customers, while Cowen Inc. plans to offer "institutional-level" cryptocurrency storage services.



The growth of bitcoin at the beginning of this week was directly related to a number of events.

Another message on Twitter from Elon Musk that Tesla Inc. will start accepting bitcoin as payment for cars, led to the growth of the world's first cryptocurrency. Prices also rose following statements by hedge fund manager Paul Tudor Jones, who reiterated his view that bitcoin is a good hedge against inflation. The president of Tanzania called on the country's Central Bank to start actively studying cryptocurrencies and everything related to them and also stated that the digital era of cryptocurrency and blockchain has arrived.

This news was enough for the bitcoin exchange rate to return to the area of major resistance, above which it is not possible to get out after the May collapse.



All this news has a positive impact on bitcoin, which has seriously gained weight, getting close to a major resistance of $41,100. Just above this level, the 200-day moving average passes, which can create a lot of problems for buyers. Therefore, only a break in this range with the subsequent exit of the pair beyond $41,100 will open a direct path to the world's first cryptocurrency in the area of $46,700 and $52,000. However, such a sharp jump can only be expected after a real consolidation above $41,100. If there is no active growth above this range immediately, this may lead to a repeated return of the pair under this level and another decline in the area of the middle of the side channel ($36,300). It will also be necessary to carefully assess the activity of buyers, as it is quite possible to attempt to build a new upward trend from this level in the future.

While investors buy bitcoin, another outflow of funds is recorded. However, it is worth noting that the withdrawal of money from investment funds slowed down somewhat last week. In addition to the withdrawal of funds invested in bitcoin, investors are clearly worried about the fate of the ether, reducing positions on it.

According to the CoinShares report for the week, ended June 11, digital asset funds received a net outflow of $21 million, compared to $94 million withdrawn from funds in the previous week. This may also indicate that the bearish mood has reached a peak, so you need to pay more attention to these indicators.



As for the technical picture of the ether, everything is also calm. The volatility from the low of $1,748 to the large resistance of $2,900 is gradually decreasing. The middle of the channel and, accordingly, the support is the large level of $2,260, which the bears have repeatedly fought, but it is not yet possible to overcome. If there is a breakdown, I think we will see an instant decline in the ether to the support area of $1,748. In the meantime, the bulls are aiming for a break of the $2,900 resistance, which will open a direct road to a high of $3,558.





Jakub Novak
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for June 15,.2021 - Exhaustion from buyers and potential for drop towards $37.500

Technical analysis:

BTC has been trading upwards but I found that there is exhaustion and potential for the drop.


Trading recommendation:

Watch for selling if you see the breakout of the mini upside channel.

Downside targets will be set at $37.500 and $35.000.

Stochastic is showing overbought condition and fresh bear cross, which is sign for the downside movement.





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading plan for Bitcoin for June 15, 2021



Technical outlook:
Bitcoin has risen through $41,000 levels as expected and discussed earlier. After having bounced at the one-year trend line support around $31,000 levels earlier, the crypto has rallied sharply indicating bulls are back in control. It might be good to buy on dips towards $34,000, with risk below $31,000 as bulls prepare to push through $65,000 mark, going forward.

Bitcoin is seen to be trading around $40,000 levels at this point in writing and might correct lower, before resuming its rally. The triangle consolidation might be complete around $31,000 levels and if it holds well, bulls would remain in control from here. Immediate support is seen at $30,000/31,000, while resistance is seen around $42,600 levels respectively.

A push above $42,600 would be optimistic for further bullish sentiment and Bitcoin might target $49,000 in the near term. Either ways, a corrective decline might be underway soon, before bulls could resume higher again. Only a break below $31,000 would change the structure to bearish.


Trading plan:

Aggressive: Sell now @ 40,000, stop @ 43,000, target @ 31,000

Conservative: Remain flat for now. Buy again @ 34,000, stop @ 25,000, target @ 65,000


Good luck!




Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin reacted to Musk's tweets



Bitcoin surged above the $ 40,000 mark yesterday after another price swings on the weekend. This is amid the tweets of Tesla's CEO Elon Musk, who defended himself from criticism over its market impact and said Tesla had sold Bitcoin but could resume transactions using it.



Like on Monday, Bitcoin reacted to Musk's decisions. It can be recalled that Tesla announced a $ 1.5 billion purchase of Bitcoin in February and said it would accept cryptocurrency as payment. However, Musk revoked his words and said that he would not accept bitcoins due to concerns that mining the currency is energy-intensive and contributing to climate change.

But now, Bitcoin surged nearly 10% on Sunday and rose 4.3% on Monday, namely to $ 40,692.27. This is its first attempt to overcome $ 40,000 in more than two weeks. This serves as Bitcoin's reaction to Musk's announcement that Tesla will be able to resume transactions with bitcoins when at least 50% of the confirmation of pure mining appears.

Paul Tudor Jones, Hedge Fund Manager, and Billionaire, also said that Bitcoin is a great way to protect his wealth in the long term and is part of his portfolio, just like gold. This supported the continuation of Bitcoin's growth.

MicroStrategy, a software company and major bitcoin sponsor, also contributed to the rise in prices. Bobby Ong, Co-Founder of crypto-analytics website CoinGecko, raised half a billion dollars to buy Bitcoins.

Bitcoin has surged by about 40% this year, but after the introduction of tough regulatory measures in China and Musk's clearly wavering enthusiasm, it has collapsed from an all-time peak of over $ 60,000. Against this background, Tesla shares have collapsed by about 30% since the company bought bitcoin.



The tweet of Elon Musk was made in response to an article based on remarks by Magda Vezhitskaya, Head of a Cybersecurity firm from South Africa. Last week, she accused Musk of manipulating prices.

Musk, outraged by the remarks of Magda Vezhitskaya, said that Tesla sold only 10% of its assets in order to confirm that there was no market change in Bitcoin's sales.

Earlier in May, Musk wrote that he was not going to sell bitcoins and never did. His tweets were enough to upset markets, still volatile after the May collapse. Thus, investors are eagerly awaiting Tesla's next earnings report next month to learn about the changes in its position.





Irina Yanina
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Kevin O'Leary explains why Tesla has given up on accepting Bitcoin for car purchases



The news that Tesla is refusing to accept bitcoin for electric car purchases sounded like a bolt from the blue a couple of months ago. From a company of this level, no one expected that it would reverse its decision just a couple of months after its adoption. Nevertheless, Tesla has suspended this method of transactions, and the famous Canadian businessman and investor Kevin O'Leary explains why the company did just that. According to O'Leary, Tesla investors are to blame for this, who pressed Musk on this issue. Recall that this is not the first time that Musk has been pressured because of his contradictory and thoughtless actions and statements. Earlier, investors openly expressed dissatisfaction with the uncontrolled Twitter posts of the company's CEO, since, in their opinion, they lead to a drop in the value of Tesla shares and, accordingly, to losses. It is hard to disagree with this opinion, since the last drop in bitcoin quotes also provoked a serious drop in Tesla shares. Thus, the relationship between Tesla shares and Bitcoin is obvious. According to O'Leary, Tesla shareholders don't think accepting Bitcoin as payment for cars is a wise decision. O'Leary himself approves of Tesla's refusal to accept bitcoins for purchases, as he believes that such companies that promote "green" energy should not encourage the emission of tons of carbon dioxide into the atmosphere. Recall that the mining of bitcoin mainly uses energy from burning coal. Thus, the mining of cryptocurrencies (not just bitcoin) is highly polluting.

At the same time, sociological studies show that the majority of Americans who owned or own cryptocurrencies acquired them in order to be able to make transactions. More than 90% of those surveyed intend to use bitcoin in the future to purchase goods and services. The survey was conducted among 8,000 Americans and shows that mostly young men with an average income level own cryptocurrency in the United States. Bitcoin remains the most popular cryptocurrency according to the survey, as 82% of those surveyed said they owned or own "digital gold". The Americans also told in what areas they used or are going to use bitcoin. These are the spheres of travel, real estate, various professional services, the purchase of various equipment or furniture, as well as the sphere of financial services. Thus, according to the survey, we can conclude that ordinary people are beginning to look at bitcoin not only as an investment instrument, but also as a means of calculation. However, the survey, of course, does not fully reflect the real picture of the state of affairs, since its sample is too small. Most studies show that Bitcoin remains primarily an investment vehicle, while Ethereum is much more commonly used for payment.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin soars and nears $ 41,100

Bitcoin skyrockets to $ 40,000, after Tesla announced it will resume accepting BTC as payment once mining is carried out using cleaner energy.



In a Twitter post, Tesla CEO Elon Musk said he wants miners to use about 50% of clean energy, instead of the current 39%. Many investors perked up on this and it claimed that his statements prove Musk's vision on cryptocurrencies.

Back in May, Bitcoin and altcoins collapsed after Musk criticized the digital currency for the fact that miners spend too much energy on its production and support, not to mention it mainly relies on fossil fuels. Musk denied accusations that he is using his influence on social media to manipulate the price of bitcoin, pointing out that Tesla sold only 10% of its assets.

Meanwhile, recent developments in the cryptocurrency market, for example MicroStrategy's placement of $ 500 million bonds and G7's optimistic assessment on digital innovation, suggest that Bitcoin is making a comeback, thus, in the future, a rally may occur in the market. But investors should not rush to conclusions and enter purchases at high prices, because for the market to get a real boost, several technically important events must happen first.

One example is finding an alternative solution to China's closure of several mining farms, which contributed to the decline of Bitcoin in the past weeks.

El Salvador's decision to accept Bitcoin as legal tender also made Bitcoin on a par with dollar. Aside from that, President Nayib Bukele said they are studying other options for mining, more specifically on the use of volcanic energy.

"Our engineers have informed me that they have dug a new well that will provide approximately 95 MW of clean geothermal energy with zero emissions from our volcanoes," Bukele said.

Similarly, Tanzania President Samia Hassan called on the country's central bank to start studying cryptocurrencies more actively. According to her, the era of cryptocurrency and blockchain has come.

"We have witnessed a new digital journey into the world of blockchain and cryptocurrencies. As such, I appeal to the central bank to start working on the study of this direction, as we must be ready for changes to not be caught off guard, "Hassan said.

Although Tanzania is not a country on which the reputation of bitcoin depends, the fact that many developing countries show such interest in cryptocurrencies prove that there is a need for this technology and its development in the future, as it will help far-apart countries become stronger.



All this news is bullish to Bitcoin, so it was able to shoot above $ 40,000. Now, it is nearing $ 41,100, above which is the 200 MA. Being stuck there can create a lot of problems for buyers, so they have to push the quote above it to see a larger jump towards $ 46,700 and $ 52,000. Accordingly, a decline below $ 41,100 will result in another plunge to $ 36,300.





Jakub Novak
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for June 15, 2021

Crypto Industry News:
Demand for Bitcoin among Canadian investors has not waned amid the recent correction, further evidence that market participants are benefiting from heavily lowered prices.

According to Bybt data, the Bitcoin ETF Purpose, which was launched in February, has now amassed 19,692,149 BTC as of June 13. ETF added 284.51 BTC in the last seven days and almost 2,000 BTC from May 15.

The ETF further increased its holdings during the May 19 crash in which Bitcoin fell below $ 30,000 before recovering quickly.

According to a technician from Byzantine General, the proceeds to the ETF Purpose fund suggest that Canadians don't care about Bitcoin's short-term price action.

In the shorter timescale, Bitcoin's price action has been a source of concern for the bulls. The flagship cryptocurrency fell below $ 40,000 over the past month, and any attempt to regain this level was flatly rejected. A coincidence of technical slumps, weakening sentiment and negative headlines contributed to the bearish price movement.


Technical Market Outlook:
The BTC/USD pair has broken above the level of $40,000 after a successful breakout above the technical resistance seen at $39,413. The next target for bulls is seen at $40,454, $41, 096 (38% Fibonacci retracement) and $41,798 - $43,159 zone. The momentum is strong and positive, so the overall outlook starts to look bullish. The confirmation will come after the $41,798 - $43,159 zone is clearly violated.

Weekly Pivot Points:
WR3 - $51,501
WR2 - $45,102
WR1 - $42,774

Weekly Pivot - $36,903
WS1 - $34, 523
WS2 - $28,705
WS3 - $26,848


Trading Recommendations:
Even despite the recent correction 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 $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021