Bitcoin Falls again on Tuesday

Bitcoin flat at the start of the week, with the bulls needing to hold on to $8,500 levels to support a run at $8,700, the bulls’ next target to continue reversing the bearish trend formed in early May. · FX Empire

Christopher Lewis

Updated Tue, May 8, 2018, 10:00 PM

BTC/USD

Bitcoin fell against the US dollar, finding the $9400 level to be a bit too resistive. By doing so, we reached closer to the $9000 level underneath, which of course has more of a psychological importance than the previous support level at the $9200 level. I think that the market will probably find buyers in this general vicinity, extending down to the $8800 handle. It’s not until we break down below there that I would be concerned. It is possible that we are trying to build up the necessary momentum to break above the $10,000 level, an area that is massive in both its psychological and structural resistance.

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BTC/JPY

Bitcoin fell against the Japanese yen, slicing through the ¥1 million level during trading on Tuesday. We should see support down to the ¥950,000 level, so at this point I’m not ready to start selling, but I think that if we can break above the highs from the Monday session, we will probably continue to go higher, perhaps reaching towards the ¥1.1 million level, and then breaking towards the ¥1.25 million level. Short-term pullbacks continue to be buying opportunities until we break down below the support underneath, but right now I think the one thing that you can probably count on is a lot of volatility and noise in the Bitcoin markets, as it looks like we are continuing to try to build up the necessary momentum to go higher but have failed so far against the yen.