Bitcoin markets did very little during the day on Monday, as we tread water after selling off drastically over the weekend. The $6600 level underneath has offered support in the short term, but I think it’s only a matter of time before we go down to the $6000 level which is much more supportive than the area that we are at right now. I think that rallies will find resistance at $6800, and then the $7200 level after that. The first signs of exhaustion should be an opportunity to start selling, as the momentum has decidedly shifted to the negative side.
Bitcoin has gone sideways against the Japanese yen on Monday after being brutalized over the weekend. We are near the ¥740,000 level again, and I think that it’s only a matter of time before we fall towards the ¥700,000 level underneath which is a major support level on the longer-term consolidation. If we can break down below there, the market unwinds rather drastically. I think that short-term rallies are selling opportunities, and I believe that the Japanese yen will continue to strengthen against Bitcoin, as crypto currency markets continue to look very difficult and challenging, and therefore I think it’s only a matter time before the sellers come back in. I have no interest whatsoever in trying to pick the bottom here, because quite frankly I don’t think we’ve seen it. When you look at the longer-term charts, there’s no reason to think that ¥700,000 will hold up as support over the longer-term.