BTC/USD
Bitcoin fell significantly during trading again on Tuesday, as the $6800 level has offered significant resistance. I think that losing over 4% again shows just how fragile this market is, and I believe that we are starting to see more institutional money come in and punish bitcoin traders. Volume in the futures market has risen, so that shows that larger funds may be getting involved. Ultimately, I believe that the market goes looking for the $6000 level underneath, which of course is a major round number, and will attract a lot of attention. We can make a fresh, new low, then I think that the market will go down to the $5500 level. If we turned around to break above the $6800 level, then we could go to the $7200 level, but right now it appears that the sellers are going to continue to be running this market.
BTC/JPY
Bitcoin also fell against the Japanese yen as you would expect, breaking down below the ¥725,000 level. I think that the market breaking below the ¥700,000 level would be a sign that we are going to the lows again, perhaps reaching down to the ¥650,000 level. The ¥750,000 level above continues offer resistance, and it now looks as if we will continue to see a lot of negativity, and therefore I believe that these rallies continue to be opportunities to start shorting again. This flies in the face of the Forex markets, which have seen the Japanese yen lose value, so if Bitcoin can gain against one of the weaker currencies that I follow, it shows just how soft this market is. I would anticipate fresh, new lows in this market over the next couple of weeks.
