BTC/USD and BTC/JPY Forecast - 11 January 2018

Thursday, 11 January 2018 6:24

BTC/USD

The Bitcoin markets fell most of the day on Wednesday, but as you can see on the daily chart, we have tested an uptrend line and bounced enough to form a hammer. By doing so, this is a very bullish daily signal, and if we can break above the top of the candle for the session, extensively the $15,000 level, I would be a buyer at that point and aim for $17,000 above. Alternately, if we break down below the lows of the session, that sends the market looking forward $12,000 which is much more supportive. This means that the next 24 hours will be very important, so certainly if you are patient enough you should get a longer-term trading opportunity in this market, for at least a few thousand dollars.

BTCUSD

BTC/JPY

The Bitcoin market fell a bit against the Japanese yen as we continue to see a lot of volatility in the Bitcoin markets overall. We have tested the 20 SMA on the daily chart, as the market continues to be very noisy. I think that the ¥1.5 million level underneath is the “floor” in the market, and we may see the market drifts a little lower, not necessarily because of Bitcoin itself, but the fact that the Bank of Japan has given a few hints that it might be stepping away from quantitative easing. It’s not set in stone, and it wouldn’t be the first time they’ve bluffed on that point, so I’m not sold yet. However, the Japanese yen has picked up a lot of strength in the Forex markets, so that of course has translated over here. Longer-term, I believe that Bitcoin does rally but we may have a bit of a divergence between these 2 pairs over the next couple of days.

BTCJPY

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

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