- Bitcoin pulling back after weekend sell-off.
- Ethereum volatile as futures launch.
Bitcoin (BTC/USD) continues its move higher and looks likely to re-test the January 8 record high at just under $42,000. The 20- and 50-day simple moving averages have been dictating price action recently with the late-January drop below the 20-day sma halted by the 50-day sma. Last week’s break back above the shorter-dated moving average saw Bitcoin add nearly $7,000 before consolidating over the weekend. The short-term series of higher lows and higher highs remain in place and there is little in the way of resistance before the $42,000 level. Support from a cluster of recent lows all the way down to the 20-day sma, currently at $34,740.
Popular Moving Averages and How to Use Them
BITCOIN DAILY PRICE CHART (JULY 2020 – FEBRUARY 8, 2021)
Retail trader data show 80.48% of traders are net-long with the ratio of traders long to short at 4.12 to 1.We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Bitcoin prices may continue to fall.Positioning is more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed Bitcoin trading bias.
Ethereum continues to make new higher highs and higher lows and while Sunday’s sell-off was quite sharp, these remain in place for now. To continue this series, ETH/USD will need to print a fresh high above $1,764 which will then open up the big-figure resistance level at $2,000. Ethereum’s pattern of fresh high, sell-off, pull-back then another fresh high has repeated itself three times in the last month and is set to do the same again. Support seen between $1,475 and $1,507, while back above $1,700 sets-up an attempt at a new ATH. The driver for ETH/USD in the short-term is likely to be today’s launch of Ethereum futures on the CME. The second-largest cryptocurrency will join Bitcoin on the CME and will have a reference rate and real-time index available.
ETHEREUM DAILY PRICE CHART (JULY 2020 – FEBRUARY 8, 2021)
Traders of all levels and abilities will find something to help them make more informed decisions in the new and improved RangeForex Trading Education Centre
What are your views on Bitcoin (BTC) and Ethereum (ETH) – bullish or bearish?? You can let us know via the form at the end of this piece.