Forex Signals US Session Brief, January 17 – Bitcoin Jumps Off the $10,000 Level But Returns for the Big Break
Skerdian Meta • 3 min read
Cryptocurrencies had the worst day yesterday since the beginning of this market. Bitcoin touched the $10,000 level and jumped. But today, cryptocurrencies continue the bearish trend and the $10,000 was finally broken for a moment. Is the run in cryptocurrencies over?
The tumble in Cryptocurrencies continues
Cryptocurrencies Continue the Bearish Trend
Yesterday was definitely the worst day in history for the crypto market. Most of the major digital currencies ended the day 20% lower more or less. You can see that the daily bearish candlesticks in December 22nd are bigger if we take into account the shadows/wicks. But all cryptos reclaimed more than half of that day’s losses, while yesterday, the price closed near the lows. So, yesterday was the worst day.
Different countries are trying to bring the cryptocurency market under regulation while others such as South Korea and China are banning them altogether. I don’t think you can completely ban a digital currency which has no central institution, but the regulation will definitely increase in my opinion. The reason is money laundering, which at the moment is not that difficult to do with these new currencies.
Yesterday, a Bundesbank official called for a unified global effort on regulating this market. It seems as the cryptocurrency traders don’t like the regulation, so the downside is continuing further today.
Yesterday, Bitcoin broke below $10,000 and reached $9,850 according to my broker’s platform. Although, the price didn’t stay there long and it quickly jumped to $11,380.
That gave us some hope that the downtrend was finally over, after the sellers reached the $10,000 level. But today the decline is stretching further down and Bitcoin has broken the big support level at last.
Our long term buy forex signal in Bitcoin doesn’t look that good. Although, the cryptocurrency market is not dead yet. So, let’s see how it evolves in the coming days.
$10,000 has finally been broken
Is the Reverse Underway for USD/JPY after Failing at 110 for the Second Time?
USD/JPY has been the leader during the latest attack on the USD. The Buck has lost about 300 pips against the JPY in the last several days.
On Monday, the sellers took us down to 110.30. The price retraced higher that day, but yesterday the sellers returned and took us closer to 110. But, the support survived again and now we are back up, near 111.
I highlighted the 110 level a few days ago as a big round number that everyone was looking at. Well, it seems as this level might be the turning point for USD/JPY. The daily chart is oversold and the 100 SMA is providing support down there on the weekly chart.
Yesterday’s candlestick is another bullish signal. It closed as a doji which is a reversing signal after a downtrend. The downtrend of the last several days has run its course on this chart, so the next move should be up towards the top of the range.
Anyone going long from here?
The risk/reward ratio totally justifies this trade. Although I would have liked to see the 110 lows again in order to have a smaller stop loss.
The chart setup looks bullish
Bitcoin is trying to climb today but the moving averages loom above
Trades in Sight
- The high is getting lower
- The USD is reversing in most pairs
- The doji candlestick
- Stochastic nearly overbought
The 50 SMA is holding
Yesterday we were bullish on GBP/USD, today we are reversing that trade. The USD is starting to reverse higher in most major pairs so GBP/USD shouldn’t be different. Stochastic is almost overbought and the previous candlestick closed as a doji, which is another reversing signal. We might open a sell forex signal at any time now.
We will follow the crypto market closely. You know, these huge declines have always proved to be great opportunities to buy. Although, we must be very cautious because the spreads are bcoming huge, just like the recent moves.