Bitcoin Daily Forecast - 17 January 2019

BTC/USD

Bitcoin tried to rally initially during the trading session on Wednesday, but as we have seen time and time again, sellers came in and push lower. The fact that we cannot hang onto gains should not be much of a surprise, as the 20 day EMA is now starting to turn lower. Beyond that, we have a downtrend line just above that could offer resistance as well, looking at the chart, I believe that there are plenty of reasons to think that we will continue to find resistance above, so therefore I like fading rallies as I have for the entirety of 2018.

The downtrend line is hovering just below the $4000 level, which of course will be a significant round figure that people will be paying attention to. Beyond that, we have the 50 day EMA just above there so I think there are plenty of reasons to suspect that rallies will continue to be sold. Quite frankly, I think that bitcoin is a great short-term trading instrument, assuming that you can get the CFD broker to offer a tight enough spread. Trading bitcoin itself is a short-term endeavor, with most decidedly a bearish attitude.

Just below, I suspect that the $3500 level is support, and most likely the target that short sellers are trying to get to. If we can break that minor support barrier, then I don’t see any reason why we won’t go down to the lows again, which is currently just above the $3000 level. For months now, I have been very bearish of bitcoin, and quite frankly I just don’t see any reason to change my attitude. Granted, we will eventually find some type of bottom, but there doesn’t seem to be any signs of that in the short term.

btc

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.