Bitcoin (BTC), Ethereum (ETH) Sluggish At Mid-Week

February has been an epic month for cryptos, led by big gains in Bitcoin and Ethereum. However, today has been slow and the leading coins are trading mixed. For the session, BTC (-2.87%) ETH (+0.45%), Ripple XRP (+5.91%), and Litecoin LTC (+3.08%) have moved largely sideways. For the moment, it looks like the cryptosphere is taking a break from posting monumental gains.

For the majority of the week, cryptocurrency headlines have been dominated by Tesla’s $1.5 billion Bitcoin buy. On Monday, Tesla disclosed its investment to the U.S. Securities and Exchange Commission (SEC) per regulatory guidelines. In the aftermath, BTC prices shot up to nearly $50,000, posting new all-time highs. 

No doubt about it, things are looking up for Bitcoin. Long gone are memories of the crypto-winter ― mainstream adoption of the blockchain appears to be picking up momentum. 1 February comments from Tesla honcho Elon Musk pretty much sum things up:

“I should have bought Bitcoin eight years ago. I do think, at this point, think that Bitcoin is a good thing.” 

It looks like the rest of the institutional crowd agrees with Musk. Given the uncertainty facing the USD amid the COVID-19 contagion, the sky really is the limit for cryptos.

Bitcoin On The Cusp Of $50,000

The chart below is a look at February Bitcoin futures as of yesterday’s close. It’s an obvious point: the trend is up and a bullish bias is warranted.

Bottom Line: Currently, there are no topside resistance levels present for BTC. However, it may be worth taking a shot at shorting the $50,000 psyche level. On the BTC CFD markets, I’ll be looking to sell Bitcoin from $49,550. With an initial stop loss at $50,550, this trade produces a 4% return (take profit at $47,550) on a 1:2 risk vs reward ratio.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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