Bitcoin traders initially bought the crypto currency during the trading session on Thursday, breaking to the upside, but then turning around to break down below the $10,000 level. By doing so, the market looks very susceptible to selling pressure, and if we can break down below the bottom of the trading session during the Thursday session, I think that we will continue to go much lower, perhaps the $9000 level, perhaps even the $8000 level after that. This is an area that has been noise in the past, so it looks as if the market is failing a bit after running into the very first amount of significant resistance. I think that we will at the very least pull back from here, to build some type of momentum. If we break down below the $8000 level, the market could go down to the $7000 level or perhaps even lower than that.
The Bitcoin markets also tried to rally against the Japanese yen during the trading session on Thursday but rolled over and broke down rather significantly. The ¥1.2 million level has been so resistive that we have fallen significantly from there. The loss of over 7% is not a good sign, but I also recognize that the ¥1 million level underneath should be supportive. If we can break down below there, and perhaps even more importantly the €900,000 level, the market could breakdown rather significantly towards the ¥800,000 level. The alternate scenario is that if we can break above the ¥1.3 million level, then I think the buyers would take control of market and send Bitcoin much higher. Right now, it looks very unlikely that we are going to continue to move in one direction or the other rather easily, I think we are looking at consolidation.