During the session on Tuesday, there was very little in the way of movement in the Bitcoin markets. As such, it looks like the market is trying to find the next catalyst as to which direction to go.
Bitcoin markets did very little during trading on Tuesday, hanging about the $8100 level. It looks currently as if there is a significant amount of support at the $7800 level underneath, so I think that short-term pullbacks will probably be short-term buying opportunities. However, there is a significant amount of resistance near the $8400 level above, so it will take a significant amount of bullish pressure to send the market above that level and reaching towards the $9000 handle. If we were to turn around a breakdown below the 7800 level, it’s likely that we would go looking towards the 7500 level below. At the moment it looks as if the market is trying to bide its time.
Bitcoin was also quite against the Japanese yen as you would expect. It looks as if the ¥840,000 level will be support, while the ¥900,000 level above will offer resistance. I anticipate that this market will probably bang around until we get some type of fundamental catalyst to move pricing. Right now, I don’t see what that is, so I think that you will need to wait for some type of impulsive move to put money to work. Looking at the one-hour chart zoomed out from a long-term perspective, it seems as if we are trying to catch our breath after seeing such a massive move to the upside. If we break down below the ¥840,000 level, I anticipate that the market will go looking towards the ¥800,000 level after that. Otherwise, a break above the ¥900,000 level would have this market looking for the ¥925,000 level.