Bitcoin rallies slightly during Wednesday session

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Updated: May 31, 2018, 04:21 UTC

Bitcoin rallied a bit against both the US dollar and the Japanese yen during the Wednesday session, gaining roughly 0.9% as I record this video. Gone are the days of the 15% gains in 24 hours, and I think part of what we are seeing is a readjustment of expectations. Now that the institutions have gotten involved in this market, the volatility will return to more normal expectations.

BTC/USD

Bitcoin rallied slightly against the US dollar during the trading session on Wednesday, reaching towards the $7500 level, and even breaking above there to test the $7600 region. If we can clear that area, it is possible that we could climb as high as $8000 over the next several sessions. However, we are still in a downtrend and that should not be forgotten. I’m looking for exhaustion to sell, as the move has been so stringent and obvious. John that, the US dollar is one of the strongest currencies in the world right now, so certainly I do not wish to bet against it.

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BTC/JPY

The bitcoin/yen market has rallied as well, reaching towards the ¥825,000 level as I record the video. The market looks to see whether it can break above the ¥850,000 level, and while it could I think that the ¥900,000 level will be a bit too much. While this has been a nice little rally, taken in context of the entirety of the market and the most recent move, it’s not much beyond that blip on the radar. I believe we are still going to go looking towards the bottom of the larger consolidation area, and that means that eventually we will visit the ¥700,000 level. At this point, I am waiting for an opportunity to take advantage of a cheap Japanese yen to start shorting.

BTC/USD Video 31.05.18

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About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.