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New Bullish Wave in Sight for BTC/USD and ETH/USD after mid-February Correction

UTC by Konstantin Anissimov · 3 min read
New Bullish Wave in Sight for BTC/USD and ETH/USD after mid-February Correction
Photo: Depositphotos

Konstantin Anissimov, Executive Director at CEX.IO, shares his insights about the Bitcoin (BTC) and Ethereum (ETH) daily price movements.

BTC/USD

BTC/USD started the trading session of 10th February at 46,505. From the start of the trading session until 05:00 UTC, the trading pair was trending down and briefly fell below 46,000 between 04:00 and 05:00 UTC. A local pullback followed the downslide, and the pair reached the local resistance level at 47,341 between 10:00 and 11:00 UTC, but was quickly driven down, closing the hour well below 47,000 in a long-legged doji.

The selling stimulus given by the doji candlestick triggered a full-scale correction that was anticipated by the market. In the five hours between 11:00 and 16:00 UTC, the pair made a substantial downside traversal to 44,000, closing the 4-hour candlestick at 44,379, which was a solid indication of a breakdown below the flat corridor between 47,000 and 46,000. The following upside move between 16:00 and 20:00 UTC was only able to take BTC/USD to 45,281.

The downslide move toward 44,000 was a healthy bit of correction, which was much needed for BTC/USD after such a tumultuous upswing to 48,200 – the all-time high set on 9th February as per the CEX.IO exchange rate – to continue its uptrend with another motive wave.

We expect the correction to take BTC/USD to 43,000 before the end of the week of 9th February, which could then turn sideways and start a sideways stabilisation. The flat price action that we expect to take place between 43,000 and 44,000 would then allow the market to generate the necessary liquidity that would be necessary for the next bullish wave.

ETH/USD

ETH/USD started the trading session of 10th February at 1,775.9 and rose to a new all-time high of 1,824 as per the CEX.IO exchange rate. The trading pair then dipped to 1,773.9 in the next two hours but recovered to 1,803.7 between 05:00 and 06:00 UTC. Between 08:00 and 09:00 UTC, the pair surged once again, reaching another all-time high of 1,844.9 but finished the hour in the red, recording a long-legged doji.

The selling stimulus created by the doji was strong enough to generate enough selling volumes for a definitive breakdown to take place between 09:00 and 13:00 UTC. The long tail of the bearish hourly candlestick between 12:00 and 13:00 UTC went below 1,700, but the body closed at 1,750 as per the CEX.IO exchange rate. The bearish price action continued decisively until 16:00 UTC, with the pair coming down the day’s low at 1,680. The subsequent pullback to 1,745 that happened between 16:00 and 20:00 UTC was only a transient respite before the 20:00 bearish hourly candlestick took ETH/USD to 1,710.

ETH/USD was trading contrastively opposite to BTC/USD between 00:00 and 09:00 UTC of the 10th February trading session, which was a rather demonstrative sign of Ethereum’s growing independence from Bitcoin’s market situation. However, the more decisive downswing in BTC/USD was still able to send ETH/USD down. Still, the corrective downside move in ETH/USD does not look to pose a serious threat to its uptrend. Especially so, since the DeFi market did not see much of a correction on the day and will likely keep on generating bullish momentum for Ether in the near future.

Presently, we expect the corrective move to go no further than 1,689 and another bullish wave to begin mid-February.  We might as well see it start before the end of the week of 8th February, with the closest upside target at 1,813.

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Kseniia Klichova
Author: Konstantin Anissimov

Executive Director at CEX.IO. His area of responsibility includes customer relationships with institutional and VIP-clients, overseeing the creation of the company’s development strategy, new products, markets and partnerships. As a member of the board of directors, Konstantin is also responsible for corporate governance.

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