BTC/USD
Bitcoin initially tried to rally during the trading session on Friday but rolled over at the $6400 level again. This is a market that simply cannot pick up any momentum, and as we roll into the weekend it’s likely we may get some bot trading, but beyond that I think there are a lot of people concerned about their cryptocurrencies right now. The $6000 level is a major support level and has been broken a couple of times recently. Even if we were to rally from here, I suspect it’s only a matter of time before the sellers get involved, and they move below the lows will of course send this market much lower. The market simply cannot pick its feet up. I believe that $8000 above is a massive barrier that will be overcome without some type of serious fundamental change.
BTC/JPY
Bitcoin continues to struggle against the Japanese yen as well, as we hover just above the ¥700,000 level, an area that has been support. The ¥750,000 level has offered resistance, in the 50 EMA on the daily chart is just above. I think that if we can break below the ¥650,000 level, we will simply continue to unwind. I believe that this market continues to be a “sell the rallies” type of situation, and as a result I am more than willing to do so on signs of exhaustion, using shorter-term charts. We don’t know what is going to turn bitcoin around at this point, as most retail traders at the very least are losing money. Institutions are probably in the same boat, unless of course they have been shorting.
