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BTC/USD Price forecast for the week of January 8, 2018, Technical Analysis

Christopher Lewis

Bitcoin markets initially fell during the week, testing the $13,000 level, but have bounced quite drastically to test the $16,000 region. By doing so, it looks very bullish but I am concerned about the lack of volume this week. After all, you can see how much stronger the volume was during the previous 2 candles, both of which were negative. Beyond that, I see more volume in the negative candle’s going back several months now, so I begin to wonder whether we can continue this upward pressure. The market has pulled back a bit, but I think it needs to pull back even further. Longer-term traders will probably be more of the buy-and-hold scenario, so it’s likely that the retail traders will be picking up bits and pieces in this area. I suspect that we will continue to see volatility, but one of the things that is helping Bitcoin currently is the fact that the US dollar has been falling in general.

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BTC/USD Video 08.01.18

BTC/USD weekly chart, January 08, 2018

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The $20,000 level above is a significant resistance barrier, so breaking above there would of course change the outlook of the market but I think what we are going to see going forward is going to be more choppiness from a longer-term perspective, as the opening of the futures markets seems to have put a damper on the buying pressure that we had previously seen. I’d be careful jumping in with both feet right now, but adding slowly as we go higher might be a viable alternative to doing so.

This article was originally posted on FX Empire