Forecast and trading signals for Bitcoin for February 7-8. Recommendations for Sunday-Monday.

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#Bitcoin 1H.

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On the hourly timeframe of February 7, the Bitcoin exchange rate continued its downward correction after an unsuccessful attempt to update its absolute highs. However, this time the cryptocurrency exchange rate reached its high of almost $ 2,000 and began a rather strong fall. At least, just over the weekend, the bitcoin exchange rate fell by 3.5 thousand dollars. However, as we said in the article on litecoin, such volatility is normal for cryptocurrencies. Also, we have already said that technical factors have the highest priority when analyzing the movement of any cryptocurrency. Bitcoin is no exception. At the moment, the cryptocurrency has fallen to the Kijun-sen line of the Ichimoku indicator and is going to work out an ascending trend line. A rebound from this line may trigger a resumption of the global upward trend. In this case, traders will aim for a new, regular update of the highs of the value. If the price falls below the trend line, then bitcoin can go into a very deep correction. We all remember the fall of the cryptocurrency from $ 20,000 per coin to $ 3,000. Such a fall is also absolutely normal.

#Bitcoin 15M.

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On the 15-minute timeframe, the lower linear regression channel turned down, the Kijun-sen line was overcome (however, there is no closure at the end of the hour, the cryptocurrency spent only 45 minutes below this line at the time of this writing) and the price has reached a level of $ 37,721. A rebound from this level may also trigger a resumption of the upward movement, however, it is likely to be overcome.

In the article on litecoin, we have already said that the President of the European Central Bank, Christine Lagarde, is in favor of strict regulation of the cryptocurrency market. However, it is not alone in advocating such measures. For example, most recently, the US Treasury Secretary and former head of the Federal Reserve, Janet Yellen, also expressed her opinion on cryptocurrencies and their regulation. "Cryptocurrency is a big concern. Many of them are used to finance illegal activities, such as terrorism or various crimes. We need to explore options to limit their use and make sure that these channels are not used for money laundering," Yellen said. As you can see, her rhetoric is not much different from that of Christine Lagarde. The general meaning is the same: the authorities want to be able to control cryptocurrencies in the same way as they control money turnover. Naturally, as long as the cryptocurrency market has a relatively calm and free life, all cryptocurrencies will tend to grow in the long term. So far, there is no reason to panic. However, there is also no doubt that the authorities of all countries of the world will continue to strive to control cryptocurrencies because they are afraid of losing control over monetary resources. Roughly speaking, using cryptocurrencies, various entities do not inform the state what they spend their money on and how they receive it. It is hardly necessary to remind you that any government seeks full control over its population.

Based on all of the above, we have two trading ideas for February 7-8:

1) Buyers let the initiative out of their hands. Thus, we recommend buying the cryptocurrency again in the event of a price rebound from one of the supports – $ 37,721 or an ascending trend line with the targets of the highs of $ 38,636 and $ 39,936. Take Profit in these cases can be up to $ 1,750.

2) The bears are trying to seize the initiative in the market and have taken the first step towards the formation of a downward trend segment. They still need to overcome the ascending trend line, which is already located in the immediate vicinity. If it is overcome, it is recommended to sell bitcoin with the targets of $ 36,161 and $ 34,840. Take Profit, in this case, can be up to 2,100 dollars.

Burning forecast and trading signals for Litecoin.

Explanation of the illustrations:

Price levels of support and resistance (resistance/support) – target levels when opening purchases or sales. You can place Take Profit levels near them.

Kijun-sen and Senkou Span B lines – the lines of the Ichimoku indicator, moved to the hourly timeframe from the 4-hour one.

Support and resistance areas – areas from which the price has repeatedly bounced before.

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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