Konstantin Anissimov, Executive Director at CEX.IO
BTC/USD opened the trading session of 9th February at 46,550 and had slipped to 43,833 by 03:00 UTC. At 03:00 UTC, the trading pair began rising and had reached 48,200 by 07:00 UTC as per the CEX.IO exchange rate. Being challenged by the 4.236 Fibonacci retracement level, the price was driven down. From 48,200, a corrective downswing began and took BTC/USD to 45,403 at 13:00 UTC. Starting from 13:00 UTC, the trading pair began rising again and had reached 47,110 by 19:00 UTC.
After taking the decisive breakthrough above 42,000 on the news of Tesla’s investment in Bitcoin, BTC/USD has decreased its rising momentum and turned sideways. The sideways dynamics indicate a drop in the buying volumes, which is an early sign of a corrective downswing. Considering the extraordinarily high pace of the rising move against the backdrop of Tesla’s Bitcoin buy-in, a corrective move is only reasonable. Therefore, we expect the downswing to take place before the end of the week of 8th February with the target level of 43,000.
At 43,000, the selling volumes are expected to drop gradually as traders will be locking the profits on their short orders and opening countertrade buying orders. This should first lead BTC/USD to a consolidation above 43,000 and then to the start of another bullish wave.
ETH/USD started off the trading session of 9th February at 1,751.9. A slight correction between 00:00 and 03:00 UTC first took the pair to 1,710 – 1,720. After that the pair began mounting gradually and had risen to 1,810 by 09:00 UTC as per the CEX.IO exchange rate. The pair then bounced down between 09:00 and 12:00 UTC to 1,725 and then turned sideways, trending between 1,720 and 1,760 until 19:00 UTC. A slight upside move between 19:00 and 21:00 UTC then took ETH/USD to 1,721.2.
The buying sentiment in clearly dominating ETH/USD and will likely continue doing so until the end of the week of 8th February. The pair has reached another all-time high, having for the first time risen above 1,800 on the recent news of Tesla’s Bitcoin buy-in. However, another fundamental stimulus driving ETH/USD higher is the massive growth of the DeFi market, whose total value locked has risen from $15.5 billion since 1st January 2021 to $36.9 billion on 9th February 2021, according to DeFi Pulse.
The only intraday resistance has formed at 1,810 and may put some selling pressure on the pair. But considering the fundamental background, we expect the bullish price action in ETH/USD to continue this week, with the target level set at 1,900.1.
Executive Director at CEX.IO