Bitcoin and Ethereum price prediction: $7.580 the key level, waiting for US Senate, SEC and CFTC meeting
|- BTC/USD last week's low at $7580 is the key support
- ETH/USD leaving some clues for this week's scenario
Bitcoin has started the week testing again the range between $7580 (recent low) and $9209 (38.2% Fibonacci retracement since the recent highs). As I already mentioned last week, the current price levels are a clear buying opportunity, as the main support matches last week's low. If that support were to be broken, next one would come at $7068.
If we initiate a bullish movement, first target is at $8619, followed by $9232, matching a strong resistance zone in the $9800-$10000 levels.
The trigger for the very much awaited price bounce might be tomorrow's February 6th US Senate meeting with the SEC and CFTC members. Traders expect to get some light about upcoming regulatory measures on the Bitcoin market. Institutional investors might be particularly intrigued by the outcome of the meeting, as the current legal uncertainty prevents them from getting into the market.
BTC/USD 1H chart
On the daily timeframe, Bitcoin price is pointing at the $7507 level as a possible target of the current price action, where the current lower trendline coming from all-time highs is meeting a confluence zone from months ago.
BTC/USD daily chart
MACD is showing an increasing downslope, something to track, as an acceleration of that downtrend would mean more supports being broken down.
Directional Movement Index shows the D- line (sellers level) matching the ADX inferior testing pattern, which statistically should mean a progressive loss of strength in the upcoming sessions.
ETH/BTC keeps giving signals
The Ethereum-Bitcoin cross already gave a very meaningful signal back in December, which triggered the BTC big dip and a much better ETH behavious during the first weeks of 2018. That momentum looks gone now, and it is Ethereum the one losing steam in favor of Bitcoin. There is some room for a bullish move in the ETH/BTC cross, targeting the 0.1075 price area. If that level is reached and matches a bullish price swing in BTC/USD, bulls will be on their way.
ETH/BTC 4H chart
Conclusion
Bitcoin is trading in a very meaningful area for its future price action. A breakout below last week's low would take the main Cryptocurrency quickly back to $7000. If that mark were to be breached, then we would be going back to November 2017 levels. Bitcoin's cross with Ethereum is favorable to BTC bulls. Tomorrow's US Senate meeting might be the one to give better certainty to investors interested in getting to BTC, and that could be the spark that ignites another bull ride in the Bitcoin.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.