BTC/USD and BTC/JPY Forecast - 22 February 2018

BTC/USD

The Bitcoin market fell during the trading session on Wednesday, reaching towards the $10,400 level. The shooting star that formed on Tuesday does show signs of exhaustion, so I think now we are getting very close to a significant level in the form of $10,000. If we can break down below there, the market probably breaks down towards the $9000 level, and then eventually the $8000 level. Ultimately, I believe that the market has gotten a bit ahead of itself, and of course we are testing the first significant resistance barrier. I believe that we aren’t necessarily looking at some major breakdown, rather a pullback. If we did somehow break down below the $8000 level, that could make things ugly very quickly. At this point, I suspect that a pullback will offer value that you can take advantage of, but you need to be patient.

BTCUSD

BTC/JPY

The Bitcoin market fell against the Japanese yen as well, slicing back below the ¥1.2 million level. I believe that the market is currently dealing with a consolidation area between the ¥1 million level on the bottom, and the ¥1.2 million level on the top. Ultimately, I think if we can break above the top of the shooting star from the Tuesday session, the market can go higher, perhaps reaching towards the ¥1.5 million level. In general, I believe that this market is the one that you need to pay attention to the most, as 40% of Bitcoin trading is done in Japan. I believe that we are looking for a pullback at this point, I anticipate that the ¥1 million level should be a bit of a “floor”, and if it isn’t that could be a very negative sign. Pay attention for the next couple of days, I think we could be trying to make a longer-term move in one direction or the other.

BTCJPY

Christopher Lewis

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.