BTC/USD Price Forecast January 17, 2018, Technical Analysis

Bitcoin markets drifted lower during the day and then eventually sold off outright on Tuesday, reaching down towards the $12,000 level. This is an area that has been crucial for some time, as it has been the bottom of the overall consolidation. On the hourly chart, we have rallied a bit, and bounced a couple of times. It is setting up for an interesting area, as the market will probably need to make a decision soon. Currently, I believe that a break above the $12,500 level could send this market closer to the $14,000 level, where I would expect to see more selling pressure. Alternately, if we break down below the $11,500 level, the market is likely to go down to the $10,000 level, the next psychologically important level.

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BTC/USD Video Video 17.01.18

Crypto currency markets have essentially stalled since larger institutional traders have gotten involved, so the regulators have done their job. They have made this less of a casino, and more of a currency market. It is because of this that I think the lack of leverage will probably drive people back into the Forex markets, perhaps causing even less volume. The market breaking down below the $10,000 level could bring in a significant amount of volume at that point though, as it is a large, round, psychologically significant number. If we can break down below there and go looking towards the $80,000 level, I think it will be an interesting place to start buying, because it is the 50% Fibonacci retracement of the overall rally. That is quite far from here, but we all know that when Bitcoin sells off, it can be brutal and quick.

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