Bitcoin fell yet again during Monday, as the little bit of a lift that occurred over the weekend was dashed as soon as larger traders came back on board. Again, this remains a “sell the rallies” type of situation.
Bitcoin initially trying to reach towards the $7200 level, but you can see very clearly that the area has rejected price. Ultimately, the market continues to find trouble every time buyers enter. The $7200 level of course is a large, round, psychologically significant figure, and as a result it makes sense that there is a lot of noise in these areas. Ultimately, the market has even more resistance at the $7500 level, and with the selling as soon as large money came on board for the Monday session, the reality of the situation dictates that the sellers are still running the show. Although it looks as if we could bounce in this general vicinity, that should only offer a nice selling opportunity going forward.
Bitcoin fell against the Japanese yen as well, as the ¥770,000 level offered far too much in the realm of resistance in that area. This shows just how soft Bitcoin is, as it can’t rally against the Japanese yen on the same day that the yen struggled in the Forex markets. Because of this, it shows just how soft Bitcoin continues to be, and therefore can’t be trusted. Rallies are to be sold, and at this point I don’t have any scenario where I’m looking to buy this crypto currency. This continues to be one of the great trades, selling every time it rallies as it has been so reliable for several months. A breakdown below the ¥700,000 level should send this market much lower. Until something changes fundamentally, Bitcoin is toxic.