BTC/USD
Bitcoin fell again during the session on Friday as we continue to see weakness in the crypto currency markets. The Bitcoin market seems to be running out of steam, and it now looks as if we are going to test the most recent bottom of overall trading. Against the US dollar, I expect to see this market test the $7000 level rather quickly, and then perhaps the $6500 level. Below there, the $6000 level is a major barrier, and if we were to break down below there it’s hard to tell where this market would stop falling. I expect $6000 to put up a significant fight, and I look at rallies at this point as an opportunity to continue to sell a market that clearly has no momentum. The highs continue to get lower, which by itself is a very negative sign.
BTC/JPY
Bitcoin also fell against the Japanese yen as you would expect, reaching towards the ¥800,000 level. I think that the market is probably going to go looking towards the ¥700,000 level underneath which is the bottom of the longer-term consolidation. It rallies at this point are to be sold and I don’t have an argument for buying this market right now. I think that longer-term investors may be looking to hold on, but quite frankly the Bitcoin markets have been decimated over the last couple of months. It surprises me that I still get a lot of questions about these markets, but if you are planning on profiting from owning Bitcoin, you need to be able to wait quite some time to collect your profits because I think we are still in the process of trying to find the bottom. Currently, it appears that ¥700,000 might be that bottom, but if it falls below there, look out below.
