BTC/USD and BTC/JPY Forecast - 27 February 2018

BTC/USD

Bitcoin markets rallied during Monday’s trading session, reaching above the $10,000 level again. Ultimately, the market settled near the $10,200 handle, meaning that the market continues to dance around the previous consolidation area. I believe that the $12,000 level above is significant resistance, as we had formed a shooting star that level. However, I think that most of the action right now is corrective in nature, not necessarily a meltdown. I think that the market will continue to bounce around in this general vicinity, with plenty of support underneath. I think that if we make a fresh, new low, the market could continue to reach towards the $8000 level. Ultimately, I think that this market will decide to go higher, but it’s not until we break above the $12,000 level that it’s essentially “free” to go much higher. Overall, this is a market that continues to be noisy and therefore difficult to hang onto.

BTCUSD

BTC/JPY

The Bitcoin market going sideways isn’t much of a surprise if you understand that the large portion of Bitcoin trading comes out of Japan, and the BTC/JPY pair is showing signs of sideways trading. I believe that the ¥1 million level underneath is massive support, just as the ¥1.2 million level above is significant resistance, extending to the ¥1.3 million level. I believe that the market is more than likely than not to rally and try to break out, but certainly we are in the clear yet. At this point, I think that if you are a longer-term investor, you could start building a position, adding slightly as we go along and that the market continues to go in our favor. If we were to break down below the ¥1 million level, I think at that point the market would probably go down to the ¥800,000 level. However, at this point I believe that there are more buyers than sellers looking at this market.

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.