Bitcoin markets fell over 6% during the trading session again on Tuesday, as the shooting star that form just below the $12,000 level give us a heads up that we were ready to roll over. It looks likely that the market will go looking towards the $10,000 level underneath, and as we are closing towards the very bottom of the daily candle, that of course is a very negative sign as well. I think we will go to at least $10,000, where the buyers may return. Under there, we have support extending down to the $9400 level. If we were to break that level, we will then go back to the $7000 region, and perhaps even lower than that. I think that we will see a lot of volatility, but right now I’m not willing to buy this market as a continues to struggle.
Bitcoin has sold off against the Japanese yen as well, losing over 7%. As the market continues to wind down, I think we will go looking towards the ¥1 million level, an area that has been supportive in the past. A breakdown below that level sends this market down to the ¥750,000 level next. I have no interest in buying this pair, least not until we test the ¥1 million level for support again, or break above the ¥1.3 million level, neither of which are likely to happen today. Because of this, I think this is essentially “dead money.” In general, the market should continue to try to build up enough momentum to go one direction or the other but waiting to see where we go next is the only thing you can do at this point.