BTC/USD
The Bitcoin markets have fallen slightly at the open on Monday, as we continue to see negativity just above at the $6800 level. The 50 EMA above continues offer dynamic resistance, and I think that it would make sense that we pull back a little bit from here. However, if we were to break above the $7000 level, I think that the bitcoin markets will probably continue to rally in the short term. I think overall though, it makes more sense to see a bit of consolidation in this area, meaning that we probably need to pull back. The volatility in bitcoin is all but gone, at least in comparison to what we used to see, so I think at this point you will need to be patient regardless of which position you choose to take. If we do drop from here, $6400 would be the next target.
BTC/JPY
Bitcoin has done very little against the Japanese yen at the open on Monday as well, with the 50 day EMA just above offering resistance, and it’s likely that we will probably see a bit of selling in the short term. However, if we were to break above the 775,000 young level, we could then go to the ¥850,000 level. Otherwise, we will continue to bounce around and consolidate around the ¥700,000 level, an area that has been important more than once. I don’t see anything that tells me the market has anything going for it other than a short-term bounce, so at this point I suspect that the sellers will return at the first signs of trouble. That being said, if we were to somehow break above the ¥850,000 level, then I think ¥1 million would be the next target. Otherwise, I expect to see exhaustion sold..
