Cryptocurrency Analysis

[IFX_Selena]

BITCOIN FAILED TO RECOVER QUICKLY. US GOVERNMENT ARE INCREASING PRESSURE ON THE CRYPTOCURRENCY.



Bitcoin collapsed amid being a legal tender in El Salvador. It can be recalled that there was a wave of protests against the decision of the government in this regard since the population does not see much benefit in using this cryptocurrency. Salvadorans fear that their salaries, social benefits, and pensions will be tied to Bitcoin, which is still a very volatile instrument. In addition, many experts said that the government did not bother to convey to the population what is the point of introducing bitcoin into the country's financial system and how exactly it should be used. Thus, the BTC rate plunged below the $ 46,600 level, which was an important support level. It should also be noted that its current rate sagged to the next support level of $ 43 852. Thus, a further decline in quotes is more preferable and now, there are specific technical signals for this.

Meanwhile, the Securities and Exchange Commission in the United States has launched an investigation into cryptocurrency exchange Coinbase due to its new Lend service. According to the exchange's CEO, the SEC refuses to explain why it considers loans as unregistered securities. Experts believe that the SEC may finally provide all the regulatory descriptions of the legal use of cryptocurrencies in the near future. It is also reported that the SEC is currently conducting an investigation against the Uniswap Labs exchange. The investigation is only at the initial stage of the investigation: the trading platform and the mechanism for making transactions are being checked. The SEC is also investigating Apple, accusing it of issuing unregistered securities worth $1.3 billion under the guise of XRP tokens.

However, it is absolutely not news that the American government is going to tighten the sphere of cryptocurrencies and digital assets. Rumors about the introduction of taxation on most of the transactions have been going around for quite a long time. Moreover, the US is clearly following in the footsteps of China, which has completely banned mining and the provision of any cryptocurrency services by companies. In the United States, they believe that it does not make sense to completely ban certain types of services, but they are still going to take control of most of the operations and transactions on the cryptocurrency market. In this case, Bitcoin may continue to decline.



Looking at the four-hour timeframe, a collapse in quotes is clearly visible, as a result of which the price consolidated below the level of $ 46,600 and below the ascending channel. Therefore, we expect a further decline to the level of $ 43 852 in the near future. As mentioned before, the last round of Bitcoin's growth looks quite groundless, so, at least, a correction of the asset clearly will not hurt.





Paolo Greco
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

ETHEREUM TRADING IN BLACK

Ethereum managed to gain momentum. It seems determined to approach immediate upside obstacles. Bitcoin is struggling to increase in the short term as well. BTC/USD's rise could help ETH/USD grow higher.

ETH/USD is up by 2.32% in the last 24 hours, but it is down by 4.90% in the last 7 days. Technically, the current rebound could be only short-lived. The pressure is still high, so the crypto could come back down to retest the buyers.


ETH/USD FALSE BREAKDOWN!


Ethereum has registered only a false breakdown with great separation through the median line (ML) of the ascending pitchfork. It has failed to stabilize under 3330.08, so the current rebound is natural.

It could come back to test and retest the upper median line (UML) and the pivot point (3707.50) where it could find strong resistance. Personally, I believe that ether could come back down towards the near-term support levels


OUTLOOK!
Ethereum rebounded. However, it is hard to believe that the crypto could reach a high of 4,025 without making a strong consolidation. ETH/USD could register a larger downside movement if it drops and stabilizes under the median line (ML).

A new buying opportunity could appear only if ETH/USD consolidates above the 3,330 level and if the crypto stays above the median line (ML).





Ralph Shedler
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BITCOIN: DO NOT BE BOTHERED BY A "FALSE" DROP

The first day for bitcoin as the national currency of El Salvador was marked by a drop. But this, apparently, does not frighten analysts. And from a technical point of view, everything doesn't seem that terrible yet.

During the collapse, the price returned to the sideways range of 46,299.48 - 50,513.53. The breakdown of its support is still false, although the penetrating shadows are large enough.

If the 46,299.48 level holds, then the price is likely to recover all losses. But it is not yet known how soon this will happen.

Meanwhile, industry experts consider Tuesday's drop in the cryptocurrency market to be "false." And they confirm their forecast for the growth of bitcoin to $100,000 by the end of the year.

In its new report, Standard Chartered indicated that the main cryptocurrency will reach $100,000 "in late 2021 or early 2022," which will be accompanied by a huge jump in Ether prices.

The research team stated that Ether is "structurally" priced at $26,000- $35,000, which is 10 times its current price, but for that to happen, BTC must reach $175,000.

And regarding the collapse, Nick Spanos, co-founder of Zap Protocol, noted: "Large financial organizations and the media say that this is because there was a difficult introduction of bitcoin in El Salvador. I'm in El Salvador right now, and everything looks amazing. So, we have a president who opens up new opportunities, as a chief executive officer, introducing innovations. He believes in it: he bought the fall, as everyone should."

In the midst of the fall of bitcoin on Tuesday, the president of El Salvador wrote that he was buying the bottom, acquiring the bitcoins necessary for the country.

For the bitcoin futures market, the fall turned into a mass liquidation of longs. About 92% of all long positions on the cryptocurrency were liquidated on Tuesday after the price fell to $43,000. In parallel, more than 376,000 trading accounts were liquidated.

At the same time, Alameda Research Co-CEO Sam Trabucco noted that it happened almost like a clockwork. Similar data for futures premiums and open interest preceded the previous cryptocurrency crash.

According to experts, in total, more than 376,000 individual trading accounts suffered from the "bloodbath", forced closures were observed on many exchanges - from Binance to FTX and Bitfinex. A move of this intensity was previously seen in early 2021 when Bitcoin and other cryptocurrencies reached their all-time highs, which came as an unexpected shock to some.

What's next? We are monitoring the level of 46,299. 48. If it holds, it is possible to recover to the level of 50,513.53. It will not stand – it is possible that a fall to a strong mirror support of 41,980. 24 will follow. But as long as the price is above it, the prospect of growth to the historical maximum does not lose relevance.






Ekaterina Kiseleva
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

TRADING SIGNAL FOR BITCOIN FOR SEPTEMBER 08 - 09, 2021: SELL BELOW $ 47,200 (EMA 200)

When Bitcoin reached the 52,000 level it was touching the 61.8% Fibonacci line. In our technical analysis, we pointed out the imminent fall below this level, we invite you to read this article and find out some tips on this strategy.



On Tuesday during the American session, we saw a strong correction of Bitcoin from the high at 52,400 to the 6/8 support of murray around 43,750, almost a 20% loss in one day. Over a few hours, BTC was bouncing above 43,750 that is going on until now.

The 200 EMA located at 47,365 has now become its top for BTC, since July 25 Bitcoin had consolidated above the 200 EMA, now it is below it, which represents a bearish signal, and there could be a decline to the 5/8 Murray support which is also the psychological 40,000 level.

Our outlook will remain bearish as BTC trades below the 21 SMA (50,000) on a 4-hour chart, targeting 43,750 and up to the 5/8 murray line around 40,650. The eagle indicator is showing a sign of a technical rebound.

The cryptocurrency market is now more cautious. Apparently, there is some fear in small investors, because if the BTC does not manage to recover the 20% loss, some will take profits or liquidate their positions, which could add the bearish pressure to BTC price and other cryptocurrencies.


Support and Resistance Levels for September 08 - 09, 2021
Resistance (3) 49,878
Resistance (2) 48,125
Resistance (1) 47,566

Support (1) 44,668
Support (2) 42,914
Support (3) 39,268


Trading tip for BTC for September 08 - 09, 2021
Sell below 47,200 (EMA 200), with take profit at 43,750 (6/8), and 40,625 (5/8), stop loss above 48,200.




Dimitrios Zappas
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

THE GOOD OLD BITCOIN HAS RETURNED



For a month and a half, the main cryptocurrency grew almost recoilless. However, there were no good fundamental reasons for this. Also, many experts drew attention to the fact that the volatility of BTC has sharply decreased. If earlier bitcoin could easily and overcome the distance of 5-10 thousand dollars per day, then in the last month and a half, it was held in a quiet and calm mode - 1.5-2.5 thousand dollars. Such an uncharacteristic movement raised many questions, as well as the fact that when the quotes were located at around $ 30,000, many experts expected it to fall further. But instead, the quotes of the main cryptocurrency soared up to $ 53,000. They have risen in price by 80%. From our point of view, it all looked very strange. But finally, yesterday, the good old bitcoin returned, which can pass up to 25% of its value in a day. The quotes of the "bitcoin" collapsed yesterday after El Salvador officially recognized bitcoin as a national means of payment.

As soon as this happened, problems immediately began. Mass protests of Salvadorans have begun, who do not want cryptocurrency to be an official means of payment, as well as wages, pensions, and social benefits to be tied to it. A country with huge economic and financial problems cannot afford to experiment with cryptocurrencies, exposing its citizens to even greater risk. Nayib Bukele (President of El Salvador) also said that the country has already purchased its first 200 bitcoins and promised to buy more. Nevertheless, Bukele's initiative has faced massive criticism from the opposition. Although Nayib Bukele claims that the country will be able to save up to $ 400 million a year, which is spent on cross-border transfers made by citizens of El Salvador, the opposition accuses him of not even explaining to the population of the country how the new system should work. However, McDonald's and Starbucks have already started accepting payments in bitcoins, and each Salvadoran received a $ 30 bonus in bitcoins. But economists believe that the country's government should not have passed a law according to which all businesses must accept bitcoins as payment.

Thus, as they say, "the experiment is unsuccessful." At least, so far, it looks like it. The quotes of the "bitcoin" fell by $ 10,000 yesterday. However, today, they have recovered by $ 4,000. However, this collapse may serve as a signal for new sales of the main cryptocurrency. Recall that many bankers and economists are perplexed about the reasons for the growth of BTC in recent months and warn their clients about the overbought "digital gold." We, in turn, remind you that if the majority of market participants buy bitcoin, it will become more expensive. But, fortunately, in most cases, there are still specific reasons for this. Now there are no reasons for the new growth of the "bitcoin." If the quotes at the end of today manage to stay below the level of $ 46,600, the fall may continue with the goals of $ 43,852 and $ 40,746.





Paolo Greco
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BTC ANALYSIS FOR SEPTEMBER 08,.2021 - BIG DROP IN THE BACKGROUND AND POTENTIAL FOR SELL ON RALLIES

BTC has been trading downside as I expected. The price reached both downside objectives from previous day.

Trading recommendation:


Watch for the rally to complete and then for downside opportunities with the downside objectives at $43,345 and $38,300

Stochastic is not showing fresh bear cross but there is no bull cross, which is sign that selling power is big.

The main cause for the drop was lack of buying power on the top.....





Petar Jacimovic
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BUBBLE BURSTS: CHANGES IN CRYPTO MARKET AFTER SLUMP

During the previous days, sentiment in the crypto market was really positive and all the charts pointed to the beginning of a bullish trend. Bitcoin broke the final line of the bearish trend, Ethereum stopped near a new all-time high, whereas other altcoins were gaining in value. Only experts at JPMorgan said that such a rise could not be healthy and warned about a bubble. Several days later, the crypto market collapsed by 16%, leading to significant losses and pushing coins to the nearest strong support levels.

Notably, experts at JPMorgan doubted the fundamental nature of altcoins' bullish trend. Analysts suppose that a surge in altcoins was caused by the abnormally high interest from retail traders and was of speculative nature. As a result, a bubble appeared. It burst on September 7 and led to a local collapse of the market.

A lot of positions worth more than $3.5 billion were closed at the largest cryptocurrency exchanges in just a few hours. The largest loss per order was logged in the pair with Bitcoin and totaled $43.7 million. Those who traded Ethereum lost more than $715 million, whereas traders of XRP lost $148 million. The biggest trading platforms faced disruptions due to the rapid fall in the price of assets, which provoked even greater panic and accelerated the market decline.



In the last 24 hours, Bitcoin depreciated by 14% and declined to $45 thousand. Yesterday, the asset reached the local peak of $52.5 thousand. At 12:00 (Moscow time), the asset was trading at the reading of $45.5, where the support level was formed. As a result, buyers began pushing the price higher. The daily trading volumes of the coin remain high, around $65 billion. Although bulls are regaining control over the market, daily technical indicators still point to a downtrend. That is why the decline in Bitcoin is likely to stop near the area of $42-44 thousand, where new market players will enter the market. However, the massive sell-off will continue in the short term.



In the last two days, Ethereum made a breakthrough and stopped near $4 thousand. The coin did not have enough time to consolidate at this level due to the market collapse. As a result, in the last 24 hours, the asset slumped by 16%. At 12:00 (Moscow time), it was trading at $3.2 thousand. The crypto asset broke several important support levels and stopped falling near the key level of $3.3 thousand. On the one-hour chart, the quote began recovering. However, on the daily chart, the downward dynamic is obvious. However, there are signs of the trend reversal.



Meanwhile, Ripple was trading at the level of $1.4 and was expected to show a jump. However, just in one day, the asset nosedived by 22.8% and reached the key support level. After the slump, the coin started recovering. On the one-hour chart, we can see the beginning of the consolidation period. However, on the daily chart, the price is not moving that actively. Stochastic, RSI, and MACD completed the downward movement and started to signal a rise in buyers' activity.



Summing up, we can see that a local bubble was formed in the market. It was caused by the abnormal activity of retail traders. However, most cryptocurrencies have begun to show the first prerequisites of their recovery. The similar dynamic is observed in many altcoins, but only on the hourly chart. This indicates the beginning of the consolidation phase. The current situation should be perceived as shock therapy and an opportunity to enter the market at favorable cryptocurrency quotes. Despite the breakdown of many important levels that cast doubt on the uptrend, bulls are still controlling the market. Therefore, the current phase could be the beginning of an upward movement.





Artem Petrenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

REVERSAL SIGNAL IN BITCOIN.

Bitcoin has fallen from nearly $53,000 to $42,000 in two sessions. Price made a strong reversal and provided a bearish signal. Through our latest analysis we warned traders and specifically bulls that there were worrying signs of a possible reversal. Yesterday's analysis also expect the $47,000 price level to be tested. Not only it was tested, support was broken and price fell towards $42,000.



Blue lines - bearish divergence

Green lines - Fibonacci retracement levels

Bitcoin had been making higher highs but the RSI was not. This bearish divergence in the Daily chart was our first warning. Secondly we said that the 61.8% Fibonacci retracement level is a level that we usually see trend reversals. Price did exactly that. The decline was sharp yesterday. The recent high of $52,873 is an important high. Bulls need to break above this level in order for the uptrend to resume. Otherwise we consider this as an important top and that a new move lower has just started. Breaking below yesterday's low at $43,127 will be a confirmation that bears are in control of the trend. Our bearish scenario for a major reversal and a move back to $29,000 has now increased chances. Bears need to break price below $40,000 in order for the chances of the bearish scenario to increase. As long as price is below $53,000 I remain bearish.





Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

EL SALVADOR ADOPTS BTC AS LEGAL TENDER



Bitcoin became El Salvador's legal tender on September 7, 2021. New regulations allowing people to use the digital asset as a payment option for goods and services entered into force on Tuesday. El Salvador became the first country to adopt bitcoin as legal tender.

Nayib Bukele, the current president of El Salvador, tweeted on Monday that the country now holds 400 BTC and confirmed the purchase of 200 coins ahead of accepting the cryptocurrency as a legal tender. That brings the value of the country's crypto treasury to more than $20 million at current prices.

From now on, El Salvadorans can use BTC to buy land or pay taxes. Notably, tax liabilities are set in US dollars. According to Bukele, this will lower commission costs for billions of dollars sent home from abroad since bitcoin remittances will cost less.

The government will give away $30 in BTC to every citizen who downloads the government's new digital wallet app. This will help them boost the adoption of the volatile asset whose value increased above $64K in April from $10,250 two years ago. In June, lawmakers voted in favor of the move to create a law to adopt bitcoin, with 62 out of 84 possible votes.

"El Salvador will be starting a real-time demonstration of Gresham's law (bad money drives out good). Most people seem to want to hoard dollars and get rid of Bitcoin—Gresham's law in action, Paul Donovan, the Chief Economist of UBS Global Wealth Management, said.





Andrey Shevchenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

TECHNICAL ANALYSIS OF BTC/USD FOR SEPTEMBER 8, 2021

Crypto Industry News:
The Russian government reiterated its negative stance against a scenario in which BTC could be accepted as an official currency.

Dmitry Peskov, the official representative of Russian President Vladimir Putin, argued that Russia has no reason to consider Bitcoin legal tender, a local news agency said.

The Kremlin official argued that the unification of cryptocurrencies such as Bitcoin with traditional monetary instruments would only harm the country's financial and economic system.

"Undoubtedly, Russia is not ready for such moves," said Peskov.

Peskov's recent remarks are in line with the Russian government's long-standing skeptical approach to Bitcoin, recalling a similar statement by Anatoly Aksakov, a member of the State Duma and a key architect of the ban on cryptocurrency payments in Russia. In August last year, Aksakov argued that accepting cryptocurrencies as payments would essentially mean "destroying the financial system."

Russia officially banned cryptocurrency payments in the country under the 'About Digital Financial Assets' cryptocurrency law in January 2021. The law, however, does not prohibit Russians from buying or trading cryptocurrencies such as Bitcoin.


Technical Market Outlook
The BTC/USD pair has made a Doji candlestick pattern at the top of the rally at the level of $52,909 and then the sell-off had begun. The market dropper over 18% to the level of $43,159 briefly, but then bounced towards the level of $47,557. Currently, the bears are in full control of the market as the price is heading towards the level of $45,043, the last technical support before $43,159. The weak and negative momentum supports the short-term bearish outlook.

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