BTC/USD
Bitcoin tried to rally against the US dollar, but it was essentially flat by the end of the day. It looks as if the $6700 level continues to offer support and should extend down to the $6000 handle. The alternate scenario is that we break above the $7500 level, which could send this market towards the $8000 level after that. I still think that it’s only a matter of time before sellers return to this market, at least until we manage to break above the $10,000 level, something that doesn’t look very likely anytime soon. If we break down below the $6000 level, I think that this market unwinds quite rapidly, with the first target be in the $5000 level, and then $4000 below there. I don’t have any interest in buying this market in the near term, there’s just been too much in the way of disappointment for the buyers.
BTC/JPY
Bitcoin markets also went sideways against the Japanese yen during the trading on Thursday, sitting just above the ¥700,000 level. I think that the support extends down to the ¥600,000 level, and if we were to break down below there, it would make this market unwinds rather significantly, perhaps with a target of ¥400,000 after that. A break above the ¥800,000 level could send this market towards the ¥1 million level above. There is more than enough reason to believe that rallies will continue to be sold, so at the first hit of exhaustion I am more than willing to short this market. Keep in mind that 40% of Bitcoin trading is done in Japan, and if the crypto currency can rally against the yen, it’s not going to rally against much else.
