Bitcoin Price Forecast January 25, 2018, Technical Analysis

BTC/USD

Bitcoin markets rallied slightly during the day on Wednesday against the US dollar, but struggled to hang onto gains, and quite frankly have done it with very little in the way of volume. I suspect that the $10,000 level will continue to offer a bit of a floor, and therefore if we break down below that level it’s likely to send this market much lower. I suspect that rallies will continue to be sold, and I don’t trust them until volume picks up, or until we break above the $12,000 level at the very least. It would be even more significant to break above the $13,000 level, but I would be surprised to see that based upon the lack of volume.

BTC/USD Video 25.01.18

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BTC/JPY

Bitcoin markets also rallied against the Japanese yen, but an extraordinarily quiet trading. This has been more of a dress sideways than a rally, and the Japanese yen is one of the most crucial markets to pay attention to when it comes to Bitcoin, as 40% of volume is done in that country. I suspect that the ¥1.5 million level above will be massive resistance, and that the ¥1.0 million level below is massive support. A breakdown below there should send this market much lower and could unwind most of the trade. The ¥1 million level is hovering right around the 50% Fibonacci retracement level of the larger move, so a breakdown below there would be rather significant. Pay attention, the Bitcoin markets may be ready to either fall apart or find themselves going sideways to build up some type of base. The lack of volume makes me think that the “easy money” is now a thing of the past.

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