Bitcoin markets have rallied a bit over the last several hours as I record this, but there is still plenty of resistance to be found above. I think that rallies will continue to be selling opportunities, especially near the $8000 level. Ultimately, I think that the $8000 level should offer a bit of a ceiling, as it was massive support previously. Ultimately, I would be surprised if we even got to that level, but if we do I think that the bearish pressure will be far too much to get past. We have broken down through significant barriers repeatedly, so it’s very unlikely that confidence will be easy to come by. I’m more than willing to sell on signs of exhaustion.
Bitcoin has rallied against the Japanese yen as well, something that is completely vital for this market to finally turn around overall. We are finding resistance at the ¥800,000 level, which isn’t much of a surprise as it is massive support from the past. That should offer resistance now, and although we have had a nice bounced during the day, and are up over 3% as I record this, I suspect that holders are waiting above to get out of the market with smaller losses than they have seen. In other words, they are looking to get as close to breakeven as I possibly can. This is a market that is completely broken, and at this point I would need to see a clearance of the 1 million you level to be convinced that buying is possible.