BTC/USD and BTC/JPY Forecast - 26 February 2018

BTC/USD

The Bitcoin markets have gone back and forth during the trading session on Friday, as we continue to dance around the $10,000 level. This will be an interesting couple of days, because we are facing what I think is the first major test of the previous bounce. You can make a strong argument for a downtrend line coming involved as well, so I think the next impulsive move that could decide where this market goes for the next 6 months. Quite frankly, if we were to break down below the $8000 level it would be catastrophic at this point. If we do turn around and break above the shooting star and clear the $12,000 level, that could be very bullish, but I do recognize that there’s still work to do with the $13,000 level.

BTCUSD

BTC/JPY

The Bitcoin market going back and forth against the Japanese yen also has been a factor in the market. The ¥1 million level underneath is supportive, and I think that if we break down below that level this market could roll over rather significantly. That matters, because Japan is 40% of the Bitcoin volume traded every day. If we roll over in Japan, we roll over everywhere. Alternately, if we can break above the ¥1.3 million level, the market could go much higher. In fact, it needs to happen so that the buyers can continue to build up momentum. A lot of psychological damage has been done to the retail market recently, and I think those effects will ripple going forward. The markets continue to be very noisy and skittish, so I think that we are probably going to go back and forth between the ¥1 million level and the ¥1.2 million level on the top.

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.