BTC/USD and BTC/JPY Forecast - 3 January 2018

BTC/USD

Bitcoin initially fell during the trading session on Tuesday, but found enough support at the $13,000 level to rally significantly, gaining almost 13% by the time I record this. The $16,000 level above is resistance, as we continue to go sideways and in a back and forth manner. We are starting to see a bit of support in the market, but it’s not until we break above the 16,000 level that I think that the market is free to go higher for the longer-term move. We have had a significant pullback, so it’s perhaps of value hunting going on, and now the volume has picked up could be a sign of where we are ready to go next. If we were to break down below the $12,000 level, that would be extraordinarily bearish for the Bitcoin market, perhaps sending this down to the $8000 level.

BTCUSD

BTC/JPY

Bitcoin fell initially during the trading session against the Japanese yen but turned around to break above the ¥1.74 million level. I think that we are going to go looking towards the ¥1.9 million level, followed very closely by the ¥2 million level. If we were to break down below the ¥1.5 million level, we could break down significantly, but it appears as if the 38.2% Fibonacci retracement level is holding, and with Japan being 40% of the trading volume in the Bitcoin market, things look good for the crypto currency in the short term. Longer-term, I think we will try to reach the highs again, but we may need to bounce around a bit to build up enough momentum to continue the overall uptrend that we have seen.

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.