BTC/USD
Bitcoin markets fell again during the day on Wednesday, reaching towards the $7500 level. There is a little cluster of support underneath, but if we break down through that, essentially the $7200 level, the market will unwind in continue to go towards the lows again. Quite frankly, bitcoin doesn’t look good right now, and it appears that the downtrend line has held. I would not be a buyer of Bitcoin until we break out above that downtrend line, something that we have yet to be able to do. While we have had a nice move higher initially, it looks as if it is starting to lose a little bit of its luster. The first hint would have been the BTC/JPY pair failing to rally when the Japanese yen got hammered in the Forex markets 24 hours ago. It now looks as if we may revisit the lows again, but again I would not be a seller until we break down below the $7200 level.
BTC/JPY
Bitcoin fell again during the trading session against the Japanese yen, slicing through the ¥850 level. There is support down to the ¥800,000 level, so I would wait until we got below there to start shorting again. However, keep in mind that the market breaking down below there will probably send the bitcoin value down to ¥700,000. There is significant support in that area, but I think if we revisit the low it’s only a matter time before we break down rather significantly. In general, it’s likely that we will continue to see this market struggle, especially if the softening Japanese yen can even give it a bit of a boost. Right now, bitcoin looks as if it is going to revisit the lows against most currencies, not just these two.
