Bitcoin Price Forecast February 6, 2018, Technical Analysis

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Updated: Feb 6, 2018, 05:25 UTC

It astonishes me that I still see people out there trying to convince people that we are getting ready for a massive bounce. With a don’t understand, and typically these people have not been trading very long if it all, is that when the market breaks down like this there are certainly opportunities, but it’s not buying the asset, it’s selling it.

BTC/USD

Bitcoin collapsed yet again during the trading session on Monday, and as I write this we have lost over 11%. We are testing the $7275 level, and there’s nothing in sight that suggests we can’t go much lower. Because of this, I believe that every time we rally, it’s time to sell in some type of levers position if you can get that opportunity. At this point, you cannot pick this asset up as it is essentially “catching a falling knife.” This is without a doubt one of the easiest ways to lose money, trying to pick the bottom.

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BTC/USD Video 06.02.18

BTC/USD daily chart, February 06, 2018

BTC/JPY

Bitcoin also fell apart against the Japanese yen, and has made a fresh, new low as we have sliced through the ¥800,000 level. At this point, there’s not much to keep the market from falling down to ¥750,000, and possibly even lower than that. I believe that every time this market rallies, it is an opportunity to start selling as the Japanese yen should continue to strengthen against the crypto currencies. One thing that does concern me about the future of Bitcoin is the lack of interest from Japan. After all, Japan is 40% of Bitcoin trading worldwide, and if they aren’t interested in buying Bitcoin, nobody will be interested in buying Bitcoin. This is a sell the rallies type of situation, and very likely to continue from what I see. There will eventually be a massive rally as short covering happens, but that should only load up to be an excellent opportunity to go short again.

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BTC/JPY daily chart, February 06, 2018

About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.