Cryptocurrency Analysis

[IFX_Selena]

Forecast and trading signals for Bitcoin on February 15

Bitcoin, H1 time frame:


Bitcoin began its downward correction in the H1 chart. And if Ethereum was corrected by $ 200, which is more than 10% of its value, then Bitcoin was corrected by $ 2000, which is less than 5% of its value. Thus, we have the right to expect a deep correction and even a downward trend in Ethereum, but on the "cue ball", a small pullback can only be seen after the next update of the absolute highs. The technical picture indicates that traders are currently preventing Bitcoin to move even below the critical Kijun-sen line, which is located in the nearest area of the price. Thus, a rebound from this line can provoke the continuation of the upward movement. It should also be noted that the price has fallen to the level of $ 46,300 several times recently, and the two previous attempts ended with rebounds and upward reversals. Therefore, it is very possible that the leading cryptocurrency will move up. During the previous review, it was recommended to buy it if it breaks through the level of $ 48233. However, the cryptocurrency did not grow for long after this signal was formed and so, it consolidated back below this level, which could bring small losses to traders. In turn, it was recommended to sell Bitcoin if it consolidates below the level of $ 45879, but it did not happen.


Bitcoin, M15 time frame:


Only the lower linear regression channel turned down in the M15 chart. Thus, Bitcoin's price is unlikely to further decline. In addition, this time frame shows that the price spent more than an hour below the Kijun-Sen line, so either it was a false breakdown, or the price will slightly move down.

There were discussions that large companies will also make new large purchases after Tesla bought out $ 1.5 billion of Bitcoin. And although there were no official announcements about new large transactions for the purchase of "cue ball", there are reports from time to time that this or that company or bank may start investing in cryptocurrencies soon. For example, it became known yesterday that one of the world's largest investment banks, Morgan Stanley, is considering investing in Bitcoin in the amount of about $ 150 billion. This was announced not by an independent expert in social networks, but by the Bloomberg news agency, citing its own sources. To make a transaction of this volume, the bank will need the permission of the relevant authorities, however, if such a transaction takes place, then the main digital coin may surge extremely. If the cryptocurrency rose by at least $ 5K on the news of Tesla buying 1.5 billion bitcoins, then what will happen to the price if Morgan Stanley invests 150 billion?

This kind of news is necessary to provoke the continuation of further growth of the cryptocurrency. If the demand for Bitcoin continues to grow, then its price will further rise despite all the statements of "cryptocurrency experts" like Nouriel Roubini, Elvira Nabiullina and other critics. What's more interesting is in which direction and with what force the quotes will move, and not how much Bitcoin will cost in a year or two. Most likely, it will collapse by 80% within a few months, as it has already been. But it is too early to discuss this. So far, there is an upward trend that needs to be worked out.

In any case, there are two trading ideas for February 15:

1) Buyers are still controlling the cryptocurrency market and are ready to push Bitcoin to new highs. Since the cue ball remains above the Kijun-sen line ($ 46756), it is recommended to buy Bitcoin, with the targets at the extremum levels of $ 482334 and $ 49600. In this case, the total profit-taking can be up to $ 2300 per lot. However, the quotes have consolidated below the critical line in the M15 chart, which makes it confusing. Thus, one should not rush to make new purchases.

2) Bears are still resting and are waiting for the bulls to leave the market. If the price consolidates below the Kijun-sen line ($ 46756), then it is possible to open short positions, with the target of the trend line. This can bring a profit of up to $ 3500 per lot. However, it is necessary to carefully monitor any news of the cryptocurrency market, since it can be recalled that one tweet from Musk led to a price growth of $ 5,000.


Explanations for illustrations:

Price levels of support and resistance (resistance/support) – levels that are targets when opening purchases or sales. It is possible to place Take Profit levels near these levels.

The Kijun-sen and Senkou Span B lines – Ichimoku indicator lines transferred to the H1 and H4 time frame.

Support and resistance areas – areas where the price has repeatedly rebounded.

Yellow lines – trend lines, trend channels and any other technical patterns.




Paolo Greco
Analytical expert
InstaForex Group © 2007-2021