Bitcoin markets fell during the trading session on Wednesday again, and we are now well below the $8000 level. We have found a bit of support at the $7800 level, but ultimately I think it’s only a matter time before you break down through there. I would anticipate that the $8000 level above would be massive resistance, so I think that any type of exhaustion and that area is a nice selling opportunity. If we do break above there, it looks as if there is a significant amount of resistance extending towards the $8500 level. On the downside, I anticipate that the market will reach towards the $7500 level, and then the $7000 level.
Bitcoin has broken down against the Japanese yen as well, as we are solidly below the ¥900,000 level. The ¥850,000 level underneath should continue to be a target, just as the ¥800,000 level will be. The ¥800,000 level would of course be significant from a large, round, psychologically significant figure. Ultimately, the market is likely to fall even further, perhaps reaching down to the ¥700,000 level, an area that has been the bottom of longer-term consolidation. I believe that we will see a significant fight in that area, but overall it looks as if the market will continue to see volatility. I think that the overall attitude of this market is difficult, and therefore it’s easier to short this market on signs of exhaustion. I have no interest in buying this pair right now.