Forecast and trading signals for Bitcoin on February 12

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Bitcoin, H1 time frame:

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Yesterday, Bitcoin went up again in the H1 chart and updated its absolute highs, which were set a few days ago. Now, the absolute maximum of the cue ball is $ 48885 per coin. However, it should also be noted that traders failed to break through the level of $ 48233 (last local high). Thus, there are now two unsuccessful attempts to break through it, which will most likely lead to the beginning of a correction. As part of this correction, the quotes of this cryptocurrency is expected to decline to the Kijun-sen line. However, we still have a very strong upward trend. Thus, one should be careful of short positions. In the previous review, it was recommended to buy the cryptocurrency either when rebounding from the Kijun-sen line, or when breaking through the level of $ 45,879. As a result, the second signal was formed and traders could earn about $ 2000 per lot from it, which is not bad. In turn, selling the cryptocurrency can be considered when it is consolidated below the Kijun-sen, but such signals did not occur.

Bitcoin, M15 time frame:

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Both linear regression channels are inclined upwards in the M15 chart. This is not surprising, since Bitcoin has updated its highs again. However, the continuation of growth will be unlikely until there is a breakout of the level of $ 48233. It can be seen in the chart that the price formed a false breakout twice. But at the same time, it did not manage to stay above this level for an hour or more. Thus, there was no clear fixation in the hourly time frame.

In the previous articles, it was repeatedly mentioned to traders that the debate in relation to cryptocurrencies, between governments and central banks, on the one hand, and private traders and companies, on the other, continues. The authorities of any country, which include central banks, want to completely control all cash flows within the country, as well as clearly understand who has how much money, so that they can then collect taxes. In the case of cryptocurrencies, it is extremely difficult to track who owns how many cryptocurrencies, and who has transferred how many coins to whom. Moreover, it is still very hard to understand and track the movement of digital money even though some countries have introduced taxes on income from cryptocurrency trading. If miners can still be tracked by the huge amount of electricity consumed, then traders can not be tracked. At the same time, some large investors and businessmen believe that it's just a matter of time when wages will be paid with bitcoins or other cryptocurrencies, and in stores, it will be possible to pay for goods with them. All of this makes life difficult for central banks and governments around the world, as people increasingly use cryptocurrencies that they do not control.

Therefore, their representatives continue to create a negative mood around cryptocurrencies, trying to discourage as many people as possible from it. Many people say that cryptocurrencies do not perform the function of money, it is extremely problematic to store their savings in them, and their rate can change significantly even during the period of transfer of coins from one person to another. In this situation, ECB President Christine Lagarde, said yesterday that central banks are unlikely to invest in cryptocurrencies and use cryptocurrencies as a reserve currency. In addition, top officials of central banks and governments believe that Bitcoin and other cryptocurrencies are illegal due to the fact that they are often used for money laundering, terrorist financing and other criminal operations. However, traders and investors continue to buy it while governments and the Central Bank criticize it. In fact, only few people care that it is extremely problematic to store their savings in Bitcoin, since it can cost $ 50,000 today, and tomorrow, by $ 5,000. Everyone wants to earn profit from it, and they will sell it as soon as the buying wave ends.

In any case, there are two trading ideas for February 12:

1) Buyers still control the cryptocurrency market, but are having difficulty breaking through the level of $ 48,233. Thus, it is recommended to buy Bitcoin again if the price consolidates above the level of $ 48,233, with a target set at the resistance level of $ 50,834. In this case, profit-taking can be up to $ 2,000 per lot. It is also possible to buy it if the price clearly and accurately rebounds from the Kijun-sen line ($ 43412) with targets at the level of $ 45879 and $ 48233.

2) Bears are resting again and are waiting for buyers to start fixing profits on long positions. Thus, it is not suggested to sell Bitcoin at least today or in the near future, since it is very risky on such a strong upward trend. It is necessary to wait until the upward trend is over and clear sell signals are observed. Selling can only be considered until the price consolidates below the Kijun-sen line ($ 43412).

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.

The material has been provided by InstaForex Company - www.instaforex.com

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