Cryptocurrency Analysis

[IFX_Selena]

Trading Signal for Ripple, XRP/USD, for August 05 - 06, 2021: Sell below $0.7395



XRP spiked from $ 0.51 on July 21 to $ 0.78, its highest level. This represents an increase of more than 50% in about 12 days. This strong rally indicates a possible change in market sentiment.

The rumor from an anonymous source within Amazon that the company was planning to accept payments in Bitcoin by the end of 2021, gave a boost to BTC. In turn, other cryptocurrencies such as Ripple gained strong bullish momentum.

The short positions were liquidated on July 21 after this news, although it was just a rumor. The market is vulnerable and at the same time it can be manipulated in this way. As a result, XRP jumped as high as highs of $ 0.78.

Although institutional adoption of digital assets is on the rise, some still view cryptocurrencies only as a speculative asset. The volatility, fear, and euphoria inherent in this market is very attractive to traders who want to win quickly and take profits.

The bullish sentiment that currently dominates the market is likely to prevail. Therefore, we should wait for a correction to support levels around the 200 EMA for a new bullish wave.

According to the 4-hour chart, XRP is trading below the 21 SMA and below the strong 4/8 Murray resistance located at $ 0.7812. This is a signs that the crypto is overbought with a probability of a correction in the short term.

The key point is to wait for a good buying opportunity in the $ 0.63 area. The 200 EMA and the 2/8 Murray support are located at $ 0.5859.

Both levels could give us an idea to buy with targets at the $ 0.70 and $ 0.78 resistance zone. The eagle indicator is showing a bearish signal for the next few days.


Support and Resistance Levels for August 05 - 06, 2021
Resistance (3) 0.7905
Resistance (2) 0.7630
Resistance (1) 0.7481

Support (1) 0.7057
Support (2) 0.6782
Support (3) 0.6465




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

India may ban Bitcoin and other altcoins

Attachment 8163

Not only are China and Turkey united. It seems that bitcoin may have a black streak again, which will not allow the cryptocurrency to settle at the level of $42,000 and go into a bullish trend. Another country is considering a complete ban on bitcoin and other altos, the work of cryptocurrency exchanges. India is thinking very carefully about banning bitcoin and other crypto assets.

Indian Finance Minister Pankaj Choudhary said that no final decision has yet been made on how cryptocurrencies will be regulated in the near future on the territory of India and whether bitcoin and all other cryptocurrencies will be banned in the future. So far, a special high-ranking government committee on this issue has not yet been established.

If you look into the past, two years ago, an interdepartmental committee proposed to introduce a ban on bitcoin and other altcoins in India, which entails criminal liability for trading, hoarding and mining in India.

The world-famous Reuters news agency has notified that India will be ready to adopt a law regarding the fate of bitcoin and other cryptocurrencies in the very near future. Also, Indian Finance Minister Nirmala Sitharaman mentioned that so far it is still just talk, since India wants to move with the times and a complete ban on bitcoin is not at all the path that a highly developed country wants to move along.

In June, the Indian newspaper The New Indian Express wrote in the headlines of its news that the Indian government had softened its attitude with regard to crypto assets, and the Reserve Bank of India also decided that in June, the central bank had great concerns about the adaptation of cryptocurrencies in India and the gradual replacement of fiat.

India, like China, does not want to have a currency in its country that cannot be controlled. It is creating its own digital national currency, similar to the digital yuan in China, which will use blockchain technology. Therefore, we can assume that bitcoin is unprofitable for the country and they will also want to get rid of it in the very near future.




Attachment 8164
Vitaly Kolesnikov
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Short-term technical analysis on Bitcoin.

Bitcoin got rejected at the key resistance area of $41,000-$42,000 and pulled back towards $37,400 where we find the first important Fibonacci retracement.



Red lines - resistance trend lines

Blue lines - Fibonacci retracements

Bitcoin has reached the 38% Fibonacci retracement and is bouncing off this support level. This price level is now confirmed support and a break below it will push price towards the 61.8% Fibonacci level at $34,200. If bulls manage to hold above the 38% Fibonacci level, then we should expect another push and try to break above the key resistance of $41,000-$42,000.




Alexandros Yfantis
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin Buyers Attack!

Bitcoin rallied in the last hours and now it stands at 39,298 far above 37,481 today's low. The cryptocurrency was into a corrective phase in the short term after an amazing swing higher. The retreat was natural and now it seems ready to come back higher.

It has increased by more than 5% from today's low and it continues to pressure immediate resistance levels. Taking out these obstacles and stabilizing in the buyer's territory may announce further growth. I've told you in my previous analysis that we cannot exclude a temporary retreat on Bitcoin after reaching a resistance area and after its strong rally.


BTC/USD CORRECTION IS OVER!


Bitcoin has found support on the 38.2% retracement level and now is pressuring the weekly pivot point (39,238) after closing above the third warning line. It has also reached the 23.6% level again.

Closing and consolidation above 23.6% and above 39,483.15 today's high could signal further growth. Ending its correction at the 38.2% level could indicate a potential comeback towards the 43,000 psychological level.


OUTLOOK!
The bias is bullish in the short term. The bullish scenario could be invalidated only by a new lower low, by a drop below 36,386.19. Jumping and closing above the 40,000 psychological level may announce more gains.

A larger upwards movement may be activated by a valid breakout above the 43,000 level.





Ralph Shedler
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN for August 04 - 05, 2021: Buy above $ 37,500



BTC / USD has reached the key level of $37,500 which is a strong support. A technical bounce above this level could give momentum to the resistance zone located at $39,280.

Having reached the resistance level of $42,187 and having formed a double-top pattern at this level, BTC made a technical correction. Now, we believe that it will be a good time to buy.

The bottom line is to watch that the price of Bitcoin stays above $37,500. You will be able to buy above these levels with targets of $40,625 and $42,187.

The technical reading of the eagle indicator is showing a bullish signal which confirms our bullish outlook.


Support and Resistance Levels for August 04 - 05, 2021
Resistance (3) 41,451
Resistance (2) 40,569
Resistance (1) 39,294

Support (1) 37,086
Support (2) 36,219
Support (3) 34,904




Dimitrios Zappas
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

BTC analysis for August 04,.2021 - Breakout of the falling wedge

Technical analysis:


BTC has been trading upside and there is the breakout of the falling wedge. More upside potential is in play....


Trading recommendation:
Watch for buying opportunities on the pullbacksdue to the breakout of the falling wedge.

Potential for the upside targets at $39,700 and $40,500




Petar Jacimovic
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Crypto industry faces huge problem amid new US infrastructure bill



Newly appointed SEC chief Gary Gensler has begun to detail his priorities for regulating cryptocurrency.

In an interview, Gensler said the SEC should better control crypto exchanges in order to protect investors from fraud. The main issues that they need to address are: initial coin offerings, marketplaces, lending platforms, decentralized financing, stable value coins, storage, ETFs and other coin funds.

Gensler has spoken several times about cryptocurrency regulation, but has yet to address some of the industry's biggest concerns, such as the SEC approval on Bitcoin-traded funds.



Gensler's stance may be clearer after his speech at the security forum in Aspen.

But in the short term, the industry is facing a bigger challenge as the Congress is currently looking for ways to pay the infrastructure bill that will bolster the country's bridges, tunnels and rail system. Closing the loopholes that allow crypto holders to avoid taxes is one way to raise money. Authorities have been complaining that lax reporting standards make it easier to evade taxes on cryptocurrency transactions.

A provision in the Senate bill aims to collect $ 28 billion in taxes by forcing more companies in the industry to collect tax information. IRS officials said that getting additional tax information would help them track cryptocurrency profits, but the crypto community is concerned about this account. The regulation originally included language defining a cryptocurrency "broker", which industry lobbyists warned could include groups such as cryptocurrency miners who are reluctant to collect financial information.

The lobbyists changed some of the wordings, but some industry supporters believe the change has not gone far enough and could still trap software companies that make products like crypto wallets that allow people to store their assets.

Senator Pat Toomey said he plans to amend the law to make it clearer. Meanwhile, Coin Center executive director Jerry Brito tweeted that there is still a lot to be done: "Yes, there have been concessions, but the latter language can still be interpreted by the Treasury to cover miners, Lightning nodes, etc. If it's not the intention of Congress, they can make simple decisions. There is still time for that. "





Andrey Shevchenko
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Bitcoin is ready to collapse by $8,000!



On the daily timeframe, bitcoin worked with a margin at the level of $40,700, which acts as the upper limit of the side channel of $29,700 - $40,700, and even rose a little higher. As a result, a new sideways, expanding channel was formed on the daily timeframe. And after working out the verges of the border, we can now expect the quotes to fall below the level of $29,700. In the 4-hour timeframe, the quotes of bitcoin overcame the ascending trend line and entered the Ichimoku cloud. Thus, the fall in quotes should continue to the Senkou Span B line, which lies at $37,000, and continue further down.

We believe that optimism has left traders and investors at this time, because by and large, nothing extraordinary and super-positive has happened for bitcoin in recent weeks. Many experts say that the levels of $29-31 thousand per coin were used by investors for purchases. And we believe that the levels of $40-41 thousand per coin were used for sales. Because now there is no reason for bitcoin to grow even to the highs of the year, let alone something more. The fundamental background is getting worse day by day. China and the United States continue to "tighten the screws" on the cryptocurrency segment, and are going to promote their own tokens – the digital yuan and the digital dollar. They don't need competitors. In America, however, bitcoin will most likely be allowed to live, but its owners will be taxed, and up to 90% of all transactions will be monitored to exclude the possibility of tax evasion by rich and non-Americans. In general, the prospects for bitcoin are not rosy, so at this time all forecasts over $100,000 look just ridiculous. Nevertheless, it should be recognized that bitcoin is still a rather unusual investment tool, so it can also raise a surprise.



Technically, on the 4-hour timeframe, bitcoin quotes began to fall and they can now drop to $37,000. The ascending trend line has been overcome, and there were not so many fundamental reasons for such a strong strengthening of bitcoin. Thus, we believe that bitcoin has exceeded the plan and is now ready to return to those levels that are more fair, and that is – $29,700 per coin and below.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for August 4, 2021

Crypto Industry News:
Marathon Digital announced the purchase of additional Bitcoin mining hardware from Bitmain. According to the published announcement, the American mining giant has finalized the purchase of 30,000 Antminers S19j Pro for $ 120.7 million.

This news signifies a continued increase in Marathon's Bitcoin mining hardware, where Bitmain is expected to complete the delivery of new platforms by June 2022.

Together with 30,000 platforms, the company's total Bitcoin miners will exceed 133,000, providing an estimated hash rate of 13.3 exahashes per second (EH / s). At 13.3 EH / s per second, Marathon will effectively control over 12% of the current Bitcoin mining hash rate.


Technical Market Outlook:
The BTC/USD pair rally above the $40,000 had been terminated at the level of $42,404 and the bears had managed to push the price out of the ascending channel towards the technical support seen at the level of $38, 261. This level had been broken as well, the new local low was made at the level of $37,541 (at the time of writing the article). The next target for bears is seen at the level of $36,552. This level is very close to the 50% Fibonacci retracement seen at $35,798, so a market reaction is expected at this level.

Weekly Pivot Points:
WR3 - $53,201
WR2 - $47,804
WR1 - $45,105

Weekly Pivot - $39,794
WS1 - $37,184
WS2 - $31,598
WS3 - $29,174


Trading Outlook:
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. The next mid-term target is seen at the level of $47,000. 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

[IFX_Selena]

Technical Analysis of ETH/USD for August 4, 2021

Crypto Industry News:
South Korea's chief financial regulator, the Financial Services Commission (FSC), is reportedly planning to shut down a dozen local cryptocurrency exchanges amid allegations of fraud.

FSC will suspend the operation of at least 11 medium-sized crypto exchanges in South Korea due to alleged illegal activities and fraudulent omnibus accounts, a local news agency said. The publication cited anonymous industry sources claiming that the names of the exchanges had not yet been disclosed.

Sources have argued that these crypto exchanges will not be able to obtain FSC approval to operate. The report also noted that the authority plans to tighten rules on smaller crypto exchanges in South Korea.

The news of the alleged closings came at a time when several smaller South Korean crypto exchanges recently suspended operations.

South Korean crypto exchanges have recently come under tighter regulatory scrutiny as authorities require local digital asset service providers to register their businesses by September and create real-name trading accounts. In particular, smaller and medium-sized crypto exchanges have had trouble getting licenses from the relevant authorities, unlike major crypto exchanges such as Upbit, Bithumb, Coinone, and Korbit.


Technical Market Outlook:
The ETH/USD pair rally above the $2,500 had been terminated at the level of $2,695 after the Bearish Engulfing candlestick pattern was made. The market dropped towards the lower channel line around the level of $2,453 and this level is a technical support for bulls as well. Please keep an eye on the market reaction around the key technical resistance located at the level of $2,850, because once violated, will act as the technical support zone on the bulls way towards the next target seen at $3,000.

Weekly Pivot Points:
WR3 - $3,455
WR2 - $3,077
WR1 - $2,935

Weekly Pivot - $2,529
WS1 - $2,363
WS2 - $1,988
WS3 - $1,819


Trading Outlook:
Ethereum might have started the next wave up as the next long-term target for bulls is seen at the level of $3,000. Nevertheless, in order to resume the long-term up trend, bulls have to break through the last swing high seen at the level of $2,880. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key support for bulls.







Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021