BTC/USD
Bitcoin markets fell during the trading session on Wednesday, reaching down towards the $6000 level. The $6000 level of course has been supportive in the past, so a slight bounce from there makes sense. However, I think that every time we rally you need to be looking for the first signs of exhaustion that you can start selling. If we can break down below the $6000 level, the Bitcoin markets will more than likely reach down to the $5000 level. Ultimately, I think that it would take a move above the $8000 level to start buying. I believe that the Bitcoin markets are starting to show potential capitulation, but we still have some distance to go before it’s all said and done. Selling should continue to be the best way to deal with this market, but patients might be needed to get the best trade possible.
BTC/JPY
Bitcoin also fell against the Japanese yen, reaching down to the ¥700,000 level. In fact, at one point we break down below that level, but bounced back above it by the time I recorded this. The market looks likely to respect this level as support, but if we break down to a fresh, new low, this market will certainly drift down to the ¥600,000 level, perhaps even lower than that. I believe that every time this market rallies, it should be a nice opportunity to start shorting this market, as the Japanese yen continues to punish the Bitcoin market. I believe that the ¥850,000 level will offer a bit of a “ceiling” and I think that the overall attitude of this market certainly looks as if it’s going to extend lower. Once we do break down, I think that we could see an impulsive move lower.
