Bitcoin Price forecast for the week of February 5, 2018, Technical Analysis

BTC/USD

Bitcoin sold off drastically during the week, reaching as low as 8000 at one point on the Bitfinex exchange. No matter where you have been trading Bitcoin, you been losing money if you’re a buyer. The fact that we broke down below the hammer from the previous week is a very negative sign, and now it’s clear to me that the $8000 level is crucial. If we can break down below there, the market drops to $6000 rather quickly, possibly even 4000 after that. I don’t have any interest in buying this market, at least not yet. I would need to see some type of heavy volume in green candle to start considering going long of this market. If we break down below the 61.8% Fibonacci retracement level, my experience has been that means you wipe out the entire move.

BTC/USD Video 05.02.18

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BTC/JPY

Bitcoin has broken down against the Japanese yen of course, and as you can see the market did bounce from the ¥800,000 level, but obviously a lot of damage has been done. We have fallen so hard that of course we need to bounce, but that bounce is probably going to be a nice selling opportunity going forward. There has been so much in the way of psychological damage to the average retail trader that I think is going to be very difficult to convince them to come back. Dreams of buying Lamborghinis next week are now shattered, and the reality of trading has come to the crypto currency space.

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