BTC/USD
Bitcoin continues to be very noisy overall, and during the day on Wednesday as it hung around the $6750 level. The market has an obvious support level underneath at the $6000 level, so if we were to turn around and break down through that level, it would be very negative indeed. However, I think at this point it’s likely that we will continue to see a little bit of support in this area, so I think what we will probably see over the next couple of days is an attempt to push this market to the upside. However, I think any rally at this point will be short-lived, and I would be more than willing to start selling the first signs of exhaustion after any rally. I believe that the $8000 level above is the “ceiling” in the market currently, so I would be very surprised if we could rally above there anytime soon.
BTC/JPY
Bitcoin initially fell against the Japanese yen but turned around to form a slight hammer for the session on Wednesday. Bitcoin continues to mire around the bottom of the overall consolidation area, with the ¥700,000 level being the floor. I think if we were to break down below that level, the market could unwind to the ¥600,000 level, but it seems very unlikely to happen in the short term. I think that the ¥800,000 level above will probably be resistance, and I look at the ¥850,000 level as the “ceiling.”
Ultimately, this is a market that continues to see a lot of noise, but I think if you are patient enough, you should have a selling opportunity on signs of exhaustion. The market continues to favor the Japanese and overall, and I do think that eventually we will break down through that floor.
