Bitcoin Weekly Price Forecast – Bitcoin falls but finds signs of supportBitcoin markets fell during the week but found a bit of support in the midst of this negativity. There is a significant amount of support underneath, and it could determine where we go next. Quite frankly, if this does not hold things could get ugly.
Bitcoin fell during the week, reaching down towards the $6000 level before bouncing to form a bit of a hammer. At this point, if we can break above the top of the hammer I would anticipate that the market could try to work its way towards the $8000 level. However, after this type of selloff that we have seen this year, it is not going to be easy to ride the volatility to the upside. You must truly be an investor at that point, and not a speculator. If we break down below the $6000 level, that could spell serious negativity and perhaps a move down to the $4000 level longer term.
Bitcoin has gone back and forth during the week against the Japanese yen, forming a slightly negative candle. We are currently hovering above the ¥700,000 level, an area that has been important all year. If this area were to be broken to the downside, this could open up the door to ¥500,000 rather quickly. However, there is a chance for a bounce here, perhaps sending the market towards the ¥850,000 level over the next couple of weeks. I anticipate that the next weekly candle will dictate where we go for months. It is because of this that the longer-term trader is probably better off waiting for that clear and impulsive candle to put money to work in this pair. There should be a nice trade coming soon but be patient and let the market tell you which direction it is breaking.