08.02.202109:17 Forex Analysis & Reviews: Forecast and trading signals for Bitcoin on February 8

Bitcoin, H1 chart

Bitcoin continues to trade upwards in the H1 chart, however, it is unlikely that the quotes will manage to break above the current high. But even though the cryptocurrency is far from overcoming the uptrend line, a rebound from it will definitely trigger a continued bullish movement. At the moment though, quotes have gone below the critical line, which somewhat increases the chance that Bitcoin will begin trading downwards soon. To add to that, the cryptocurrency is near its all-time highs, so the market will need new reasons to update them. Hence, the uptrend line is the most important right now, as overcoming it will enable players to pull BTC down, which is ideal since the cryptocurrency has been rising in price for quite a long time already.

In an earlier article, it was mentioned that short positions should be opened once the trendline is broken. But since this scenario did not happen, it was not necessary to trade shorts over the past day. Instead, traders continued to trade long positions in BTC, as a result of which price bounced off of 37721. Now, players can look forward to further increases towards 39936.

Bitcoin, M15 chart

Both linear regression channels moved downwards in the M15 chart. But in the H1 time frame, there is a signal to buy, which means that there is still a chance that Bitcoin will resume trading upwards in the next two days.

In another note, news emerged that many central banks view cryptocurrencies as a threat to the stability of the financial system. They believe that the cryptocurrency market should be tightly controlled and regulated, arguing that it is mostly used to carry out illegal activities. However, in one of the studies conducted at the very beginning of the cryptocurrency boom, experts found out that most illegal transactions use the US dollar more than with all cryptocurrencies combined. Thus, most likely, the heads of the central banks, Ministries of Finance, as well as governments, simply want to control what is beyond their control. They continue to constantly criticize cryptocurrencies in order to reduce demand for them. For example, Andrew Bailey, the head of the Bank of England, has recently joined a cohort of critics, who said that a truly stable and strong cryptocurrency has not yet been created. Bailey believes that as long as cryptocurrencies are not regulated by anything or anyone, they cannot be considered a stable means of payment and full-fledged currencies. Aside from that, he claims that cryptocurrencies were not created to facilitate and reduce the cost of transfers and payments. Yes, they will certainly develop, but only those that will later be tied to fiat money, such as digital currencies like the euro or pound. In any case, demand for cryptocurrencies will continue anyway, and since governments and central banks have not yet found a way to control its circulation, there is a high chance that price will continue to soar in the future. It must not be forgotten though that all cryptocurrencies are very volatile, and its rate is entirely dependent on traders who do not need fundamental information to trade in the market.

Anyhow, there are two trading ideas for February 8:

1) Although bulls have lost control of the market, the upward trend continues. Therefore, it is best to continue opening long positions in BTC/USD, especially after a rebound from the uptrend line. Its targets will be $ 39936 and $ 41,286, while the take profit level is $ 2900. Longs may also be set up after a rebound from $ 37721.

2) Bears are trying to seize the initiative in the market, however, they still lack the strength to move past the trend line. But if it is overcome, then it is ideal to sell to $ 36534, a break below which will bring BTC/USD to $ 34840 and $ 33398. In such a case, take profit as soon as the quote reaches $ 2,400.

Explanations for illustrations:

Support and Resistance Levels - targets when opening long or short positions. Take Profit levels can be placed near them.

Kijun-sen and Senkou Span B lines - lines in the Ichimoku indicator that are transferred from the H4 time frame to the H1 time frame.

Support and resistance areas - areas from which the price has repeatedly bounced off.

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