In this video, the Trader Guy looks at the cryptocurrency, bitcoin for the January 18th session.
Bitcoin/USD — As you can see, we have sold off rather drastically. One thing that is interesting though, that is the $10,000 level is essentially the 50% Fibonacci retracement level, and it has offered support to form a hammer. That is a positive sign. If we break above $12,00 0, we could rally a bit. But I think 14 is about as high as it goes at that point. The main reason I say that is the volume. Any volume that matters in this market is almost all red. So, there has been a significant amount of damage done. We are oversold and a bounce would be expected. But I would be very literally leery of buying at this point. About 40$ of all bitcoin trading roughly is coming out of Japan. So, that is why I like to look at the yen.
Bitcoin/JPY — The bitcoin market is falling against the yen. The 1 million yen was tested for the second time during the day. if we can break down below there, then that is it, game is over. If we rally from here, then we could go to 1.5 million level where I would expect to see sellers again.
© Prabhu for Forex Videos, 2018. |
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