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.
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.
This article provided by NewsEdge.