BTC/USD
Bitcoin has been very bullish during the day, as traders came back from the weekend to start buying again. The $6000 level course has offered a lot of interest as one would expect, and I think this bounce makes a significant amount of sense based upon a certain amount around number theory. However, we are still very bearish overall, and I think that the bounce that we are seeing is probably a short-term rally at best. I see plenty of resistance above at the 6800 level. At the first signs of exhaustion, I would start selling again as I think that as we have recently made a fresh, new low, it’s time to start getting short again. I don’t have any interest in buying Bitcoin, because quite frankly we have not had a long enough range of stability for people to be comfortable. The first signs of trouble will probably have a lot of people scared to death to own this market.
BTC/JPY
Bitcoin markets were erratic to say the least during the trading session on Monday, breaking above the ¥700,000 level, but have turned around since then. It looks as if we are trying to break above that level, which of course would be very bullish, but for the short term only. The fact that we have broken down below the ¥700,000 level suggests that we are going to continue to go lower. Ultimately, the market probably goes back down towards the ¥650,000 level, but we may rally a bit between now and then. Selling the first signs of resistance continues to be the way I get involved in this market, and I believe that buying is all but impossible until we get a longer-term range of stability in the crypto markets overall.
