Forecast and trading signals for Bitcoin on February 9


Bitcoin, H1 time frame:


Bitcoin immediately completed the correction and continued to strongly rise in the H1 chart. In just a day, it managed to grow by almost $ 10,000. This is the only noteworthy specific movement that traders need to know. As a result of this movement, quotes have consolidated above the resistance level of $ 45879. Thus, the direction to the resistance level of $ 50,834, which is also a psychological level ($ 50,000), is now theoretically open. In such conditions, it is recommended to trade only on a rise. Bitcoin can start to decline strongly at any time, but it is impossible to guess with the current moment. Therefore, it is recommended to start selling only when there are specific and clear sell signals. For example, a consolidation below the trend line. In a previous review, we recommended opening new purchases if the price rebounds from the trend line, but no such signal was generated yesterday. All this time, the buy signal for a rebound from the support level of $ 37721, which was recommended to support, persists. Thus, on this signal, traders could surely earn several thousand dollars, given the current cryptocurrency exchange rate is $ 46509.

Bitcoin, M15 time frame:


Both linear regression channels in the M15 chart are inclined upwards, which is not surprising due to Bitcoin's strongest growth. The level of $ 45879 was successfully broken, and it is clearly seen that a "false breakout" may occur if it tries to move below, but the price failed to stay below this level for 30 minutes. Thus, Bitcoin will most likely continue rising.

Many officials still believe that there is no future for cryptocurrencies, despite its high and growing popularity. It was mentioned previously that BoE's head, Andrew Bailey, believes that cryptocurrencies cannot be used as a means of payment due to their completely volatile value. He said that people need to be sure that the price of an asset does not change along the way from sender to receiver. Lloyd Blankfein, former president of Goldman Sachs, also said that it is impossible to accumulate and save money in cryptocurrency, since the rate can rise or fall by several tens of percent per day, and it is easy to lose access to your wallet. As for bitcoin specifically, many predict its value to drop due to the fact that most of the coins have already been mined (19 out of 21 million). However, this judgment has pros and cons. Anyhow, what may Bitcoin's trading strategy be, traders should always remember that the rate may fall down not by several thousand dollars, but by tens of thousands of dollars per day, which happened yesterday.

A new round of "speculative" growth is clearly in progress. There are no fundamental factors for the price growth of the "cue ball" and never existed. They could not be, since the cryptocurrency reacts with a growth of $ 5,000 to Elon Musk's tweet. What kind of stability can we even talk about? Bitcoin is the most technical tool, so when trading it, it is necessary to put the technical picture and signals in the first place.

In any case, there are two trading ideas for February 9:

1) Buyers took the lead again and continue to set records for Bitcoin's value. Thus, it is suggested to buy it again if the price holds above the level of $ 45,879, with a target set at the resistance level of $ 50,834 ($ 50,000). In such cases, Take Profit can be up to $ 3500. A buy trade from the level of $ 37721 can be closed with a profit for those who have not yet done so.

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. It is necessary to wait until the upward trend is over and clear sell signals are observed.

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 are the 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 -