Bitcoin markets lost 10% during the trading session on Friday, reaching down towards the $6000 level, an area that I have been talking about for some time. I think at this point, it’s become obvious that the market will eventually break down below that level, the question now is whether or not it’s going to happen right away or is it going to take some type of pullback to start shorting. Ultimately, I think that the market breaking below the $6000 level opens the door to the $5000 level next. Rallies at this point continue to be selling opportunities, as the Bitcoin markets are looking very soft. Ironically, the US dollar loss quite a bit of value in the Forex world at the same time, which may have been one of the main reasons we did break down below the $6000 level. I believe we have much further to go.
Bitcoin broke down below the ¥700,000 level against the Japanese yen during the day as well, enclosed towards the very bottom of the candle. This is a very negative sign, and I suspect the Bitcoin is going to continue to fall from here against not only the Yen, but against any other currency you can measure it against. Now that we are below the ¥700,000 level, it opens up the door to ¥600,000, perhaps even lower than that. I believe rallies are to be sold over here as well, and I think bitcoin is in serious trouble after making this latest low.
Even if we did rally, I suspect that the ¥800,000 level will be the “ceiling” of this market. Honestly though, I would be very surprised to see that rally happen, and at this point I think it’s very unlikely that buyers can pick this market up anytime soon.