BTC/USD
The bitcoin market rallied against the US dollar initially but found enough resistance at the 20 SMA on the Bollinger Band indicator to attract algorithmic trading to the downside. We are most certainly negative in this market, and you can see that we can’t keep rallies going. If you been following me here at Daly Forex, you know I’m very bearish to this market. Quite frankly, when you look at the longer-term charts, it’s very clear that there is a major support level closer to the $6000 level, and I think that the market is trying to get there. Currently, I believe that selling rallies continues to be the best way going forward and it looks like we are rolling over a little bit during the day. So far, we have not managed to return to the $8000 level, which of course would be very bearish in and of itself.
BTC/JPY
Bitcoin of course fell against the Japanese yen as well, failing at the same 20 SMA. I think that the market is going to struggle with the ¥850,000 level, the ¥900,000 level above there, and most certainly the ¥1 million level. The ¥700,000 level underneath has been major support more than once, and I think that the market is trying to work its way back down there. I would point out that the last attempt to reach the top of the consolidation area failed at the ¥1.1 million level, not reaching the top quite often will signify that the market is running out of upward momentum. I fully anticipate that it’s only a matter time before we break down below the ¥700,000 level, and make a fresh, new lows. I have no interest in buying bitcoin against either the US dollar or the Japanese yen.
