BTC/USD
Bitcoin traders sold off yet again during the trading session on Friday, as we continue to see massive selling. Having said that, we did bounce a significant amount, and therefore it didn’t end up as bad as it could. The $8000 level underneath should offer support, and if we break down below there it would get rather ugly in short order. If we do rally from here, I suspect that there is going to be a significant amount of resistance at the $10,000 level, and that a lot of people will be more than willing to sell at that point to get out of the market a little closer to breakeven. Ultimately, if we can break above that level on a high-volume, then we may have something going. However, it’s unlikely that it’s going to be quite that easy. I think if we break down below the $8000 level, this market will fall to $6000 beyond that, perhaps even lower.
BTC/JPY
Bitcoin markets fell to ¥800,000 but bounce significantly to form a massive hammer. This is a good sign, but I’m not interested into we break above the ¥1.125 million level on volume. I believe that most retail traders have gotten crushed, and that will continue to plague this market going forward. I think that the market should continue to be very volatile, so I believe that a lot of people will stay out. If we break down below the ¥800,000 level, the market then goes down to the ¥600,000 level. The market participants have seen the market rallied just high enough to start selling off again more than once, so I believe that the underlying sentiment in this market is horrible. I believe that there are several areas above where people will be trying to get out with a breakeven trade.
