BTC/USD and BTC/JPY Forecast - 23 May 2018

BTC/USD

Bitcoin fell again against the US dollar, losing over 2% during trading on Tuesday. This is a simple continuation of the falling asset value that we had been seen over the last couple of weeks, and it looks as if my prediction of $8000 will be true will rather soon. If we break down below the $7900 level, the market will more than likely unwind even further, perhaps looking to $7000 initially, followed by $6000. At this point, all upward momentum is all but gone in this market, as the crypto currency markets are starting to go out-of-favor again. Ultimately, I think that if you are a longer-term investor, there are going to be better pricing points available in the future. If we do bounce from here, and $8000 definitely could cause that bounce, I believe that $9000 will be very difficult to break above, and that the $8500 level will probably become the new short-term ceiling.

BTCUSD

BTC/JPY

It’s kind of ironic that for the longest time those whoever traded Gold had to listen to Bitcoin traders talk about how gold only moves a few percent, and that Bitcoin was able to move 20% every couple of days. The reason it’s ironic is that Bitcoin is starting to do the exact same thing. Nowhere is this as obvious as it is in the BTC/JPY pair, as we have a well-defined range now. It looks as if we are going to test the ¥900,000 level, which of course breaking down below there opens up the door to the ¥700,000 level, an area that the market has tested previously. However, what I would stress is that the return trip higher from the lows this time hasn’t made it to the top. It’s normally assigned that we will break down eventually. I moved below the ¥700,000 level could be coming, but it’s obviously not going to be coming in today. In the short term, I believe that ¥1 million continues offer psychological resistance.

BTCJPY

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.