Bitcoin struggles for direction on Monday

It’s been a positive start to the day for Bitcoin, holding on to Thursday’s gains, though it’s going to need to make a move sooner rather than later, a relatively range bound morning never good with investors itchy to sell. · FX Empire

Christopher Lewis

Updated Mon, May 21, 2018, 10:06 PM

BTC/USD

Bitcoin has gone back and forth during the trading session on Monday as we continue to struggle for direction. We did rally a bit over the weekend, but I don’t put much faith in those moves as they typically are only done by small retail traders, and of course the volume would be much lower. Because of this, I think that you can almost forget about the weekends in general. It seems as if the weekends are almost always slightly bullish, but once the volume comes back into the marketplace, a lot of times we will see the markets roll right back over. I believe that the $9000 level above will continue to be resistive, and it based upon the price action during the day, I think we may drop a bit from here.

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BTC/JPY

Bitcoin get a little bit better against the Japanese yen, with a slight upward tilt to it. I think that the ¥950,000 level will be a short-term barrier, but ultimately the biggest resistance barrier is near the ¥1 million level, which of course has a lot of psychological significance, and of course is structural resistance as well based upon previous action. I believe that the market break above there would be a good sign, but right now it does not show the proclivity to take out to the upside. I anticipate that we will continue to see a slight grind lower, with rallies offering selling opportunities. I would look for exhaustion to take advantage of above, but ultimately these are going to be micro moves more than anything else.