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Bitcoin Price Forecast January 31, 2018, Technical Analysis
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Bitcoin markets drifted lower again during the session on Tuesday, as crypto currency markets continue to underperform. We did see a bit of volume, but it was on a negative candle. We are approaching significant support underneath, so pay attention.

The BTC/USD pair fell again during the trading session on Monday, as we continue to see selling pressure in this market place. We did get a little bit of volume during the day, but it was all negative. We are approaching the 50% Fibonacci retracement level, and more importantly, the $10,000 level. That is an area that will be massively supportive, and if we break down below it, that could be a very negative turn of events. At that point, the market probably goes down to the $8000 level, which is the next supportive area, in the form of the 61.8% Fibonacci retracement level.

BTC/USD daily chart, January 31, 2018
BTC/USD daily chart, January 31, 2018


Bitcoin markets also fell against the Japanese yen, which has strengthened a bit in the Forex market after initially selling off. That’s a bit concerning though, as Bitcoin couldn’t rally against the Japanese yen when it was selling off earlier in the session, so as it starts to strengthen, that will only add more pressure on the crypto currency. The market has a massive amount of support at the ¥1.1 million level, which I believe extends down to the ¥1.0 million level. If we break down below the ¥1.0 million level, that means the bottom will have fallen out, and we would probably go down to the ¥800,000 level rather quickly. I believe that at this point, it’s easier to sell short-term rallies, as the market continues to favor the downside. The volume seems to pick up on red candles, and that tells me that we are in for a lot of selling.

BTC/JPY daily chart, January 31, 2018
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