Cryptocurrency Analysis

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ETHEREUM Hot Forecast for 6 July



Ethereum price has set up three higher highs and three lower lows since June 23. Connecting these swing points using trend lines reveals a rising wedge formation.

This technical pattern forecasts a 16% downswing to $1,909, determined by measuring the distance between the first swing high and low and adding it to the breakout point at $2,271.

However, the 16% crash could be cut short at the demand zone that ranges from $2,024 to $2,106. Therefore, investors can expect ETH to bounce from this area to shatter the midpoint of the range at $2,320.

If this were to happen, Ethereum price could further rally 25% to tag the range high at $2,912 after slicing through the intermediate barriers at $2,460 and $2,640.

If the selling pressure builds up enough to slice through the demand zone extending from $2,024 to $2,106, ETH will likely head to the intended target at $1,909.

In a highly bearish case, Ethereum price might end up sweeping the range low at $1,728. If the smart contract token fails to climb above $1,728, it will invalidate the bullish thesis.




Jan Novotny
Analytical expert
InstaForex Group © 2007-2021

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BTC analysis for July 06,.2021 - Watch for selling opportuniites on the rallies

Technical Analysis


BTC has been trading downside as I expected. The price is heading towards the first objective at $29.000


Trading recommendation:
Watch for potential selling on the rallies with the downside target at $29.000

Bollinger bands are contracting and this is sign that breakout is about to happen....

Resistance is set at $37.000





Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

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Trading plan for Bitcoin for July 06, 2021



Technical outlook:
Bitcoin has been drifting sideways within a range between $32,500 and $35,500 since last few trading sessions. It might have carved a meaningful bottom around $28,500/600 on June 22, 2021, and might be now looking to resume higher again. The crypto might be targeting $42,000 levels in the near future, which confirms that bulls are back in control.

Bitcoin is seen to be trading around $34,200 levels at this point in writing and might be preparing to break higher through $4,200 and $48,000 levels in the weeks to come. Immediate support is now seen at $28,600, while resistance is seen towards $42,600 levels respectively. A push through $43,000 would further accelerate towards $48,000 as well.

Also note that Bitcoin bulls have managed to hold around its one year old trend line since $3,850 lows in March 2020. It is quite possible that the uptrend is still intact and Bitcoin bulls might be inclined to print above $65,000 going forward. Traders are advised to hold on to long positions for now.


Trading plan:
Remain long, stop @ 28,000, target @ 43,000, @ 48,000.

Good luck!




Oscar Ton
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of BTC/USD for July 6, 2021

Crypto Industry News:
The United States sold about 500 Bitcoins seized in 2018, for about $ 19.2 million. It was reportedly the largest net deal in the history of Ohio's Northern District.

Confiscated BTC was sold for nearly $ 19.23 million, acting prosecutor Bridget M. Brennan said on Thursday. The coins confiscated during the investigation were initially valued at around $ 2.88 million. Authorities did not disclose how or where the coins were sold.

The case concerned a 37-year-old man from Toledo, Mark Alex Simon, who produced false identity papers for residents of Ohio, Michigan and Utah. The documents include driving licenses and ID cards. He was paid for services in Bitcoins.

Simon pleaded guilty to fraud and the transmission of false identity documents in June 2019. He was sentenced to two years in prison. Prior to this case, Simon had already been questioned by the police in 2008 for producing false identity papers, but was not charged at the time.

In 2015, authorities spotted counterfeit cards in a bar near Wittenberg University on a website built by Simon. Court documents show that after months of investigation, police were able to link fake cards to Simon and other associates.

Authorities raided Simon's home in Toledo and the homes of others involved. They have taken over more than 500 Bitcoins.

In such cases, the proceeds are shared between federal agencies and local police departments involved in the investigation, and also used to compensate crime victims. Any remaining money is returned to the US Treasury Department.


Technical Market Outlook:
The BTC/USD pair has moved back to the consolidation zone as the new local low was made at the level of $33,067. The bulls have manage to bounce from the trend line support and are back above $34,000. The momentum is increasing and it is hovering around the neutral level of fifty points. The next target for bulls is seen at the level of $36,610 (61% Fibonacci retracement again) and $39,413 (technical resistance). Please notice, that any violation of the level of $32,565 will likely push the momentum back into the negative territory towards the key mid-term technical support is still located at $29,187.

Weekly Pivot Points:
WR3 - $41,360
WR2 - $38,888
WR1 - $37,348

Weekly Pivot - $34,961
WS1 - $33,339
WS2 - $30,861
WS3 - $29,475


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 $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).






Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021

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Technical Analysis of ETH/USD for July 6, 2021

Crypto Industry News:
Mass vaccination programs against COVID-19 are becoming an increasing obstacle to many governments' pandemic management strategies. Consequently, blockchain companies are working to propose ways the technology can offer to solve some of the logistical difficulties.

Blockchain StaTwig has already tested its blockchain-based VaccineLedger solution in both India and the United States in 2019. In 2021, the company partnered with the Indian giant IT Tech Mahindra to implement the solution worldwide.

VaccineLedger focuses on improving the transparency of vaccine supply chains at the vial level with the aim of anticipating and preventing problems. These are i.a. Inventory Expiry, Counterfeiting, Quality Control and Availability. Just days after the failed attempt to swap vaccines between Israel and the UK, which resulted in the loss of 1 million Pfizer doses, the need for such a solution is more apparent than ever.

The StaTwig solution supports the integration of smart contracts and IoT technologies to detect expiring products as well as provide temperature control for sensitive units. Working with Tech Mahindra, StaTwig will use its resource scaling and system integration expertise to support your solution rollout worldwide.

In addition, the two companies have jointly developed several security modules for mobile and web applications designed to meet the requirements of manufacturers and governments.


Technical Market Outlook:
The ETH/USD pair has broken through the 61% Fibonacci retracement at the level of $2,228 and made a new local high at the level of $2,394. Recently, the market had bounced from the trend line support seen at the level of $2,170. The momentum is now strong and positive, so the next target for bulls is seen at the level of $2,453. On the other hand, any violation of the level of $2,043 will likely expose the level of $1,941 for a test again.

Weekly Pivot Points:
WR3 - $3,160
WR2 - $2,743
WR1 - $2,603

Weekly Pivot - $2,208
WS1 - $2,064
WS2 - $1,646
WS3 - $1,514


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

[IFX_Selena]

Bitcoin continues to gravitate towards the fall



Over the past two months since Bitcoin first collapsed to the level of $30,000 per coin, the cryptocurrency has tried to continue falling below this level 4 more times, and also tried to resume the upward movement two or three times. But as a result, a very clear and accurate sideways channel was formed, which is limited to the levels of $31,100 and $40,700. It is from the boundaries of this channel that bitcoin quotes have bounced off in the last one and a half to two months. For the last two weeks, Bitcoin has been in a very weak movement, not even approaching the borders of the side channel. Thus, it is now the time to talk about a full-fledged flat. In recent months, it has been repeatedly stated that the corrective scenario remains more likely to be executed.

After negative news began to arrive from China, Turkey, India, and the United States, bitcoin is constantly under pressure from the market. Simply put, those who want to sell bitcoin while it is still afloat are much more than those who want to buy it and keep it on their balance for at least several years. The problem now is that the cryptocurrency market is under the threat of a serious tightening of regulation by a number of countries, in particular China and the United States. Moreover, there has never been any positive news for Bitcoin. Earlier, Elon Musk regularly pushed up quotes, but now he has clearly switched to other cryptocurrencies. The long-standing question is how long will the market follow Elon Musk's manipulations? But let's get back to Bitcoin. After all, it is important for us to understand what to expect from it in the future. According to a recent CNBC poll, the majority of executives surveyed believe Bitcoin will end 2021 below the $30,000 mark, and this option was supported by 44%. Meanwhile, about 25% voted for the $40,000 option, while another 25% chose the $50,000 option. Thus, oddly enough, a fairly large proportion of investment managers believe that Bitcoin may show growth in the second half of 2021.

At the same time, the largest British bank Barclays prohibited its clients from transferring funds to the Binance cryptocurrency exchange, which is one of the largest in the world. The bank representatives explained this decision by the fact that they want to help keep their clients their funds. Earlier, the UK Financial Conduct Authority banned Binance from carrying out any activity in the country without prior written approval. At the same time, the Swiss financial holding UBS also began warning its clients about the possibility of losing all their money trading cryptocurrencies. UBS warned that cryptocurrencies are not an investment tool in the truest sense of the word, as the bubble in the cryptocurrency market could collapse at any time. UBS noted the pressure of regulators on the cryptocurrency market, as well as the price volatility of cryptocurrencies. "Regulators have demonstrated they can and will crack down on crypto," said UBS in a statement. "So we suggest investors stay clear, and build their portfolio around less risky assets."

24-hour time frame


Technically, Bitcoin fell to the $31,100 support level five times and bounced off it five times. Formally, the price turned up again and is likely to continue a new round of movement to the upper border of the side channel - the level of $40,700. However, Bitcoin has been aiming to break the $31,100 level for several weeks now, and we believe that this will happen sooner or later. And the consolidation of quotes below the level of $31,100 may signal the readiness of the cryptocurrency for a new fall. Many crypto experts are in favor of the main cryptocurrency continuing to fall in price and may fall to $19,000 - $24,000 per coin. And some even call the figure $10,000.


4-hour time frame


The 4 hours chart also has a great benchmark to help traders in the near future. This reference point is the trend line, which already has three pivot points. In addition, the bitcoin quotes almost ideally bounced off the Senkou Span B line twice. Therefore, the consolidation of quotes below the trend line can provoke a new movement down to the levels of $31,100 and $29,700. In this case, we recommend selling Bitcoin.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Ethereum short-term analysis

Ethereum made a new higher high at $2,390, however price got rejected at the 61.8% Fibonacci retracement resistance. Bulls need to be very cautious now as a decline below $2,000 would a be a reversal signal.



Blue lines - Fibonacci retracements

Ethereum has reached very close to the key Fibonacci resistance at the 61.8% level. Price is turning lower and if the pull back deepens, then we should expect that the bounce from $1,700 might be over and the next leg down is starting. In order for bulls to avoid the danger of new lows, price must overcome at least the 78.6% Fibonacci retracement level.





Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

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Elon Musk has a new crypto hobby: Baby Doge - what is this crypto asset and what are his prospects?



It seems that Elon Musk has a new hobby - this is a new crypto asset, which is actively promoted by the Tech King himself. The Baby Doge coin is now on everyone's lips, it is trending in social networks, thanks to Ilon for everything. The hashtag #babydoge has collected more than 26,000 tweets, after the odious billionaire turned his eyes to the digital asset, using lines from the song Baby Shark on his Twitter.

It is not the first time that Musk has been a catalyst for both the growth and sharp decline of the cryptocurrency, so many investors and institutions hope that tweets and permanent attention will lead to the growth of the digital asset. Already today, the value of the digital asset has increased by more than 80%, and again the Elon Musk effect is in business.

Baby Doge is only about a month old, and this digital asset is already attracting too much attention to itself after the activity of Elon Musk and a galaxy of approving tweets from crypto enthusiasts on Twitter. Unlike its older brother Dogecoin, Baby Doge is deflationary in nature, and a lower supply/high demand dynamics can also lead to a price jump even for an interim period. A priori, the digital asset Baby Doge should become more deflationary and faster, it also carries an interesting and transparent betting system that allows customers to earn coins with their own hands.This should stimulate both existing users and new ones, due to the fact that users receive a five percent cashback from each transaction that occurs in the Baby Doge network. However, many crypto enthusiasts are divided in their opinions. Some people are of the opinion that this is another wiring and the prospects for the asset are zero, while others are very interested in this project and believe that the baby version has a great future and it can easily grow to the value of Dogecoin. Since July 1, Baby Doge has been listed on the Lbank exchange, and trading is already underway on the BABYDOGE/USDT trading pair.




Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

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Bitcoin: Institutional investors are testing the waters

While there is a lull in the cryptocurrency market, statistics are beginning to give the first encouraging hints.

The CoinShares report of July 5 showed that last week, cryptocurrency investment funds recorded an influx of funds for the first time in a month. This suggests that institutional investors are again set to increase the price, despite the large-scale market correction.

In total, the crypto funds received $63 million in fresh capital last week. The largest inflow of $29.1 million was recorded by the Canadian ETF provider Purpose Investments.

$39 million or 61% of the total amount was invested in the main cryptocurrency - Bitcoin. But the major altcoins also saw an influx, not an outflow, for the first time in 9 weeks.

The main inflow among alternative coins was noted in Ethereum, which amounted to $18 million. The second cryptocurrency has surpassed Bitcoin over the past week ahead of the long-awaited and hotly debated EIP-1559 update, which is expected to take place this month.

Polkadot received an inflow of $1.2 million, Ripple received $2.1 million, and Cardano received $0.7 million.

These figures may be encouraging for the bulls after a five-week series of outflows. But this is almost nothing compared to the colossal inflow of $4.5 billion that crypto funds collectively saw in the first quarter of the year.

The modest capital inflows recorded last week may indicate that investors are now testing the waters but are not yet ready for the deep dive seen in early 2021.

Moreover, according to CoinShares, Bitcoin's trading turnover has now reached its lowest level since November 2020, which indicates a decrease in interest.

Meanwhile, nothing has changed significantly on the Bitcoin chart. The price continues unsuccessful attempts to break above the intermediate mirror level at 34,708.27 in the middle of the wide corridor 31,082.82 - 41,980.24.

The volatility of the main cryptocurrency has slowed down, and altcoins are not very dynamic either. All previous forecasts remain relevant, and to enter a trade, you need to wait for the entry point with minimal risk.







Ekaterina Kiseleva
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BTC/USD (Bitcoin) for July 05 - 06, 2021: Sell below $35,450



BTC / USD is trading below the 200 EMA and the 21 SMA showing a bearish sign, having failed to consolidate above $ 36,000. As long as it continues to trade below this level, a decline is expected to the support of $31,250.

The correction that is now taking place leaves Bitcoin firmly within its established trading range between the 6/8 murray zone and the 5/8 murray zone. Traders are aware of the various obstacles it must overcome before it can regain bullish momentum above the psychological level of $ 40,000.

The technical barrier in 4-hour charts is located in the area that ranges from 36,000 to 37,500, a strong top that Bitcoin must overcome and then consolidate and continue its upward path to the level of 43,500, another area of strong resistance.

Below 6/8 of murray, Bitcoin is expected to continue with the downward pressure. Whenever it tries to rise, a panic and uncertainty takes over the market. As a result, the cryptocurrency falls in value and the price makes a technical rebound at the level of 5/8 murray.

This scenario has been repeating since the month of May. It is likely that soon BTC will exit this range zone and there may be a movement towards the 43,500 zone or a fall to the 4/8 murray support at $ 25,000. The key level will be 37,500 above which a sustained increase is expected, but below it will be a prolonged fall.

Our recommendation is to sell below 35,452 with targets at 31,250. If this level is broken, BTC could sold with targets at $30,000 and $25,000 in the medium term.


Support and Resistance Levels for July 05 - 06, 2021
Resistance (3) 36,496
Resistance (2) 35,450
Resistance (1) 34,566

Support (1) 33,169
Support (2) 30,881
Support (3) 29,214




Dimitrios Zappas
Analytical expert
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