Bitcoin fell a bit during the trading session on Thursday, as we are starting to roll over at the 20 SMA against the US dollar. On the Bollinger Bands indicator, you can see that we are decisively in a downtrend and touching that moving average area seems to be causing some selling. At this point, it looks as if we could drift a bit lower, but I think that the $8000 level will attract some supportive buying. Below there, the next target would be $7000, an area where we had bounced from rather significantly in February. This market continues to struggle overall, and I think volume is starting to become an issue again. Headlines crossed the wires almost daily about new forms of regulation, and this has Bitcoin traders a bit spooked. If we managed to break above $10,000, then we could go to $12,000, albeit unlikely at this point.
Bitcoin tried to test the ¥1 million level during training on Wednesday but rolled over to form a shooting star. Since then, we have drifted a little bit lower and it looks as if we may unwind back towards the ¥800,000 level which was support a couple of sessions ago. If we do break above the ¥1 million level, it’s not until we break above ¥1.1 million that I’m comfortable buying. I think that the market will continue to be a bit lackluster, as a lot of the retail buying has dried up after the big move lower. Unfortunately, there far too many retail traders out there with their accounts underwater to start throwing money at it again.