Cryptocurrency Analysis

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Technical Analysis of ETH/USD for September 7, 2021

Crypto Industry News:
The cryptocurrency mining market in Vietnam is booming, and cryptocurrency entrepreneurs and enthusiasts in Vietnam have witnessed a significant increase in demand for cryptocurrency mining platforms in the country.

Quang Thuan, owner of a chain of stores selling cryptocurrency miners across Ho Chi Minh City, said the company's sales tripled in early September from the previous month. He noted that the mining rigs market in Vietnam fell before Bitcoin rose back above $ 50,000.

Growing demand has caused the prices of cryptocurrency miners to rise significantly. Some devices are currently priced at $ 220 more than in mid-August, according to local cryptocurrency mining enthusiast Ngoc Van. The best-selling AMD or Nvidia GPU-based excavators now reportedly cost between $ 3,500 and $ 4,400, he added.

According to Le Hung, administrator of the local cryptocurrency mining community of nearly 80,000 members, the cryptocurrency mining market in Vietnam has heated up with the resumed cryptocurrency raid and the ongoing COVID-19 pandemic.

The Vietnamese government remained skeptical about the cryptocurrency industry, and the Ministry of Finance warned the public earlier this year that cryptocurrencies are unregulated in the country. Following the 2018 ban on cryptocurrencies as a means of payment, Vietnamese authorities are urging the public to avoid cryptocurrencies.


Technical Market Outlook
The ETH/USD pair has made a new swing high at the level of $4,029 and so far keeps consolidating the recent gains around this level. The next target for bulls is seen at $4,204, but the market conditions remains extremely overbought. The nearest technical support is seen at $3,842, but the intraday support is seen at $3,895. The short-term outlook remains bullish and there is no up trend reversal indication on the higher time frame chart yet.

Weekly Pivot Points:
WR3 - $5,271
WR2 - $4,663
WR1 - $4,404

Weekly Pivot - $3,750
WS1 - $3,518
WS2 - $2,851
WS3 - $2,607


Trading Outlook:
Ethereum have started the next wave up and violated the long-term target at the level of $3,550. The next long-term target for ETH is seen at the level of $4,394. Nevertheless, in order to continue the long-term up trend, the price can not break below the technical support at the level of $2,695. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls.






Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021

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Technical Analysis of BTC/USD for September 7, 2021

Crypto Industry News:
According to reports, the United States National Football League (NFL) has banned all teams and members from sponsoring and advertising related to cryptocurrencies, as well as selling NFT tokens.

According to a press report, the NFL has limited sponsorship sales to cryptocurrency and NFT trading companies until the league establishes a strategy "for digital sports trading cards and art." The new guidelines were made available by an anonymous NFL member familiar with the case:

"Clubs are prohibited from selling or otherwise authorizing club-controlled media to advertise certain cryptocurrencies, ICOs, sale of other cryptocurrencies, or any other category of media in relation to Blockchain, Digital Assets, or Blockchain Company, except as provided in this policy."

Going against the NFT and token sales trends from top football teams such as PSV Eindhoven, Manchester City and Arsenal, as well as the National Basketball Association, the NFL has at least ruled out the creation or sale of team NFTs for the time being.

An NFL official reportedly said teams would be able to discuss sponsorship deals with "investment advice and / or fund management services" related to cryptocurrencies if their advertising sponsorship rights are limited to promoting the company's corporate brands.


Technical Market Outlook
The BTC/USD pair keeps making new higher highs and the last one was made at the level of $52,909. The next target for bulls is seen at $59,506, but the market conditions remains extremely overbought and there is a Doji candlestick pattern at the top of the last wave up. The nearest technical support is seen at $50,456, but the intraday support is seen at $51,457. The short-term outlook remains bullish and there is no up trend reversal indication on the higher time frame chart yet.

Weekly Pivot Points:
WR3 - $59,047
WR2 - $55,505
WR1 - $54,221

Weekly Pivot - $49,999
WS1 - $48,690
WS2 - $44,656
WS3 - $43,452


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 $59,506. 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 of InstaForex
© 2007-2021

[IFX_Selena]

Chinese miners in Texas, Fed's monetary policy, and markets' hope for bright future



The world's leading cryptocurrency continues to rise almost nonstop. Its quotes have grown by almost $ 24,000 over the past month and a half. Moreover, there was not a single sensible correction during this period, and the reasons why bitcoin is getting more expensive are still very difficult to formulate. There is no doubt that one can always say that the markets just started buying bitcoin, so it began to grow again. This will be absolutely true because this is exactly how any market works. However, what were the reasons that the markets suddenly began to buy the main cryptocurrency at the time it was preparing to rise to the level of $24,000? Many experts find it difficult to answer this question. Nevertheless, we have several possible options at our disposal.

First, as mentioned several times, new tax legislation may be enacted in the United States soon, and due to this, many transactions with cryptocurrencies and digital assets will be processed by the US Internal Revenue Service. In other words, buying/selling bitcoin will be taxable. Therefore, many investors want to get enough of buying now, while there is still no taxation.

Second, the Fed continues to pump the US economy with hundreds of billions of dollars and this money must settle somewhere. We see that the stock market continues to grow and inflate like a soap bubble. Bitcoin's price has also been growing for most of the last year and a half. Therefore, it is possible that Bitcoin is showing growth, while the Fed is still pouring huge amounts into the US economy. However, the Fed can pour money into its own economy for a very long time, since Jerome Powell has not yet given any signals about the end of QE.

Third, the miners who were repressed from China have already found their "new homes". Accordingly, their equipment is already connected and brings them profit again. Most of the Chinese miners have moved to the state of Texas, which is becoming the new world capital of cryptocurrency. Obviously, there is no point in denying that market participants themselves are actively buying Bitcoin, since a lot of traders became active again after the growth to $ 40,000 per coin.

In this case, Bitcoin can really grow at such a pace toward its absolute highs this year. We would like to draw your attention to the fact that the current growth is very calm and stable. That is, Bitcoin is growing little by little, but every day. The next target for the upward movement is the level of $ 56,500 and there are no signals for a possible downward reversal at this time. Therefore, it is suggested to continue buying bitcoin now. From our point of view, a correction is still likely, but it will require specific technical signals so that it can be worked out.





Paolo Greco
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Ripple Grows As Expected

Ripple increased and now it has registered a new higher high indicating strong buyers. Technically, XRP/USD was expected to increase after escaping from the triangle pattern. It has increased as much as 1.4000 psychological level today. Now is traded at 1.3916 level and it stands within a resistance zone.

Ripple is up by 6.47% in the last 24 hours and by 21.48% in the last 7 days. Bitcoin's growth helped the altcoin to increase as well. The outlook is bullish, but only a temporary consolidation of a retreat could help us to catch new long opportunities.


XRP/USD FRESH HIGHER HIGH!


Ripple resumed its growth after closing above 1.3232 high. Now it has jumped far above 1.3499 former high. XRP/USD is pressuring the weekly R1 (1.3893) static resistance. The 61.8% is seen as an upside target as well, so the crypto needs to make a valid breakout to be able to resume its growth.

Personally, I would like to see a temporary consolidation above the R1, 61.8%, and above 1.4 psychological level which could validate further growth.


OUTLOOK!
Its breakout through 1.3499 former high activated an upside continuation. Jumping and closing above the 1.4079 level could represent a new long opportunity with potential targets at 1.45 and 1.50 levels.





Ralph Shedler
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bloomberg chief strategist Michael McGlone is more confident than ever in the renewal of historical highs by Bitcoin and Ethereum



Bloomberg senior commodity strategist Michael Mcglone released a September report the other day, in which he shared his views on cryptocurrencies and their regulation.

McGlone looks very positively at the two main mastodons of the crypto market, namely bitcoin and ethereum. The report mentions that the growth of the main crypto assets is associated not just with some artificial speculation and artificial hype, but it was preceded by a revolution in finance and digital money, which can now be observed.

Michael McGlone said: "Bitcoin is the main accumulative tool for saving your savings, and ethereum is the main building block of Defi."

However, it can be observed that the chief strategist of Bloomberg is more sympathetic to ethereum than to bitcoin. He complains that an important proof-of-stake update will be released soon, which will contribute to the accelerated growth of ethereum, as well as demand from institutions.

McGlone could not miss Defi, he mentions the defi revolution and that this sensitive issue was not mentioned in the recent US bill on infrastructure that is directly related to cryptocurrencies.

The other day, there was a debate in the US Congress, where very important factors were not discussed, namely, the financial digital revolution, crypto assets that storm entire countries and contribute to improving the well-being of people. McGlone believes that bitcoin is technically lagging behind ethereum, however, according to him, digital gold can become a global reserve asset after the dollar for every country on this planet.

It cannot be destroyed, it cannot be manipulated, and it certainly will have to be reckoned with by any power in this world. Also in the report, you can see notes that there will be a restructuring soon, in which the dollar will work directly with bitcoin.





Vitaly Kolesnikov
Analytical expert of InstaForex
© 2007-2021

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Bitcoin's unconventionally bullish September and key levels towards a historic high

September is considered a bearish month in the cryptocurrency market. But, September started very well this year. The main cryptocurrency has consolidated above $ 50,000 per coin, which leaves a chance for continued growth.

The Sunday afternoon candle broke through the upper limit of the side range of 46299.48 - 50513.53 and reached the next resistance zone of 52000.18 - 52929.55 today, which has not yet been broken through.

Santiment's analysts note that one of the triggers of this price impulse could be an increase in interest in altcoins. Over the weekend, Ethereum rose to $ 4,000, while Litecoin soared to $ 230.

If we compare the first and second cryptocurrencies, Bitcoin has added about 121% since the beginning of the year, while Ethereum has grown by 312%.

The second reason for the continued growth of bitcoin is probably the decrease in the activity of short positions of crypto-whales. According to CryptoQuant, cryptocurrency whales on the Bitfinex exchange currently do not open a large number of short positions. The growth of shorts was observed during the period when bitcoin grew from $ 33,000 to $ 40,000. But now, when the main cryptocurrency has risen above $ 51,000, the number of downside transactions has remained small.

Meanwhile, Mike McGlone, senior commodities strategist at Bloomberg, released a September cryptocurrency outlook report. He stated that crypto companies are managing to keep the market under control. At the same time, he sees the target for Bitcoin as $ 100,000 and revised the target for the second cryptocurrency from $ 4,000 to $ 5,000.

McGlone believes that the cryptocurrency has already passed the period of hype and speculation. Now the market is growing because of the " revolution in money and finance, which occurs in the first days of the opening of prices."

Assessing the prospects of the first and second cryptocurrencies, McGlone calls Bitcoin a "store of value" and Ethereum "the building block of DeFi."

The strategist calls Bitcoin lagging behind Ethereum, so the main cryptocurrency is likely to be used as a global reserve asset. In his opinion, it is "no one's responsibility or a project", which probably means that it cannot be manipulated or destroyed due to the widespread use of the network.

Therefore, McGlone predicts that Bitcoin, along with the US dollar, can become the world's reserve digital asset.

In turn, Ethereum has a different perspective. The Bloomberg analyst refers to the recent network update, which helps to reduce the supply, thereby supporting the growth of the second cryptocurrency. Also, the growing popularity of NFC, which mainly uses the Ethereum blockchain, and DeFi will play into the hands of Ethereum.

As we can see, the future looks optimistic. In this case, the local targets will be as follows:

-The breakdown of the resistance zone 52000.18 - 529.55 and consolidation above it will allow BTC/USD to continue to the historical high.
-The nearest stop could happen at $ 55,000 per coin. There, the level of 60,000 is within reach.







Ekaterina Kiseleva
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin's capitalization to equal gold



Bitcoin reached the $52,153 mark during Monday's trading. Thus, we can say with confidence that the next milestone has been taken, and the upward trend continues. In previous articles, we have already talked about the fact that bitcoin continues to grow, and there are already few who can now name the reasons for this growth.

Bitcoin grows simply because it is being bought. Thus, it seems that despite all the expectations of many experts about a long correction and consolidation, bitcoin may well resume its upward trend and update its all-time highs this year. At least at this time, everything is going exactly to this. We still believe that bitcoin is growing because new tax legislation may be enacted in the United States soon, which will greatly reduce the attractiveness of bitcoin as an investment asset. However, this may have been the initial reason why bitcoin started to rise from the $30,000 level. Now it can continue to grow because the "hamsters" have returned to the cryptocurrency market, who again felt profit and easy money and joined the trend "buy bitcoin because it is growing."

At the same time, billionaire Bill Miller's foundation published a report, which says that bitcoin is only in the initial stages of human adoption and implementation in all spheres of human life. Bitcoin will soon have to catch up with gold in terms of capitalization. The report said that bitcoin remains quite volatile, but its risk-reward ratio remains attractive to many investors. Also, the Miller Opportunity Trust believes that the bitcoin capitalization will grow to $11 trillion (this is how much all gold on Earth is estimated at this time). Earlier, Bill Miller stated that bitcoin is not a "bubble", but its high volatility is a payment for the benefits it gives to its owners.

The head of Miller Opportunity Trust also noted that the supply of bitcoin is increasing by 2% per year, and the demand is growing much faster. which means a further increase in the value of bitcoin. Thus, in the long term, the growth of bitcoin is likely to continue, but in the short term, a new round of decline in value is absolutely possible. As a reminder, JP Morgan analysts warn their clients that bitcoin may fall soon. Note that to identify the beginning of the fall, you should wait for specific and clear technical signals. So far, there are none, so there is no point in trying to sell bitcoin when it is at local highs.





Paolo Greco
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Trading Signal for BITCOIN for September 06 - 07, 2021: Sell below $ 51,800 (61.8%)



Bitcoin in daily charts is trading around 61.8% Fibonacci, a key level that could mean the beginning of a reversal and change in trend in the medium term. For this, the price should consolidate below this level.

BTC has reached around 52,000 after having found strong support around the 200 EMA located at 45,900. It has twice tested this support and finally made a good technical bounce that brought it to these current trading levels.

Bitcoin price started its uptrend after falling below the $ 30,000 barrier on July 20. Since then, BTC has risen approximately 78%. Now it is above the psychological level of $50,000. If it continues with the uptrend, it could reach the +2/8 level of murray located at 56,250 in the next few days.

While the general trend remains bullish and unchanged, investors should take into account that BTC is entering an overbought level, as the murray indicator has indicated 53,125 and 56,250 as extreme overbought levels with an imminent technical correction.

Because BTC is at the 61.8% Fibonacci level and above this level there is strong resistance, we believe we have a good selling opportunity below this level with targets at 47,150 (50.0%) and 43,500 (38.2%).

Our outlook will be bearish as long as BTC trades below 52,000, all the way to the 6/8 murray level located at 43,750, as the current price could be a bubble and a sharp drop could occur, just like what happened on May 19 So, we must be very careful. The eagle indicator on daily charts is about to reach the overbought zone.


Support and Resistance Levels for September 06 - 07, 2021
Resistance (3) 54,591
Resistance (2) 53,335
Resistance (1) 52,346

Support (1) 49,878
Support (2) 48,621
Support (3) 47,856


Trading tip for BTC for September 06 - 07, 2021
Sell below 51,800 (61.8%), with take profit at 47,830 and 43,750 (6/8), stop loss above 53,000




Dimitrios Zappas
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Is Bitcoin preparing a major reversal?

Calling a move in Bitcoin that will eventually push price below $29,000 is a very bald call. But how probable is it? So far Bitcoin remains in a bullish up trend after a double bottom around $29,000 price level. Technically there is no reversal signal yet. However there are some signs that traders should not ignore.



Green lines - Fibonacci retracement levels

Blue lines - bearish divergence

As expected from our last Bitcoin analysis, price is moving closer towards the $52,000 price level. The RSI is not following price to new highs. The RSI has provided another bearish divergence. This is a warning that the up trend is weakening. Price is also trading around the 61.8% Fibonacci retracement of the entire decline. In Elliott wave terms there are increased chances of this upward move from $29,000 is a wave C of wave 2, in other words, the final part of a counter trend move and a new impulsive move down should start soon, that will eventually bring price below $29,000. This scenario should not be ignored as there are more than 30% chances of this happening. For now bulls remain in control of the trend. If price starts to turn around, we will have more information on how probable the bearish scenario will be.





Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BTC analysis for September 06,.2021 - Agressive sellers and breakout of the consolidation to the downside

Technical analysis:



BTC has been trading downside. There is the breakout of the contraction with aggressive sellers in the background.


Trading recommendation:
Watch for selling opportunities due to the breakout of the consolidation.

Downside targets are set at the price of $4,670 and $48,500

Stochastic oscillator is showing bearish divergence and overbought condition, which is sign that downside movement is very possible....





Petar Jacimovic
Analytical expert of InstaForex
© 2007-2021