BTC/USD
The Bitcoin market broke down during the session on Friday again, reaching well below the $8800 level, but then bounced to close right around that range. The area just below is rather supportive, but I think at this point rallies are to be sold and not bought. The $12,000 level offered way too much in the way of resistance, and now I think the next resistance barrier is probably going to be found at the $10,000 level. It’s not until we break above there that I would consider buying this market. Ultimately, if we break down below the bottom of the candle for the session on Friday, that’s also reason enough to send this market even lower. $7000 would be the target at this point as it was the scene of the last significant bounce.
BTC/JPY
The Bitcoin markets were very volatile during the trading session on Friday, as we continue to bounce around the ¥1 million level. The market has reached towards the ¥1.1 million level above, but then turned around to find resistance. Ultimately, I think that the market will continue to break down from here and reach below the ¥1 million level and go much lower, perhaps the ¥800,000 level. The market has been extraordinarily negative, and I think at this point it looks as if we are ready to continue to break down towards the ¥750,000 level after that. I have no interest in buying this market, least not until we break above the ¥1.1 million level, and even then, I think there is a lot of resistance at the ¥1.3 million level that could be even worse. Overall, I think there continues to be a lot of volatility, and downward pressure.
