BTC/USD
Bitcoin traders initially tried to rally during the trading session on Wednesday but failed yet again. As I record this, we are approaching the $8000 level and it looks as if we are going to finish the day with a loss of at least 11%. Ultimately, this is a market that should continue to start selling, especially considering that we are pressing the very bottom of the range for the day. I believe that the market is going to make a return to the $7000 level again, perhaps even lower than that. If we were to break down below the $7000 level, I think that the market goes looking towards the $5000 level of eventually. This is a market that continues to be a “sell the rallies” situation. At this point, I would need to see a break above the $10,000 level to be interested, but quite frankly that looks very unlikely at this point.
BTC/JPY
Bitcoin initially tried to rally against the Japanese yen during the trading session on Wednesday, reaching towards the ¥1 million level, but found enough resistance to roll over and break below the ¥900,000 level. We have broken a support region, and it looks like we are going to continue to go lower. Currently, I expect this market to go to ¥750,000, and perhaps even lower than that. Crypto currency simply cannot get out of its own way, and I think at this point the bubble is all but exploded. I’d be a seller on any rallies at this point, and I think that the market will probably wipe out most, if not all the gains that traders enjoyed during the mania. At this point, I simply cannot find a reason to buy these markets.
