The Bitcoin markets have struggled a bit during the trading session again on Wednesday, as the sellers have come back. Volume is anemic, so I don’t think there’s much in the way a position building in the form of accumulation near the $10,000 level, and I believe that traders are starting to become a little bit concerned. I certainly know that the retail trader has withstood the worst of the selloff, as large institutions shorted the futures market, giving us an opportunity to see the market pull back finally. We are currently at the 50% Fibonacci retracement level, so there is the possibility of a bounce, but until volume picks up on a move to the upside, rallies are to be sold.
Bitcoin markets fell during the trading session on Wednesday after initially trying to rally, breaking down below the ¥1.1 million level as well. There is a huge zone of support down to the ¥1 million level, but I think it’s likely that we will test that area. If we break down below that level, the market falls apart and reaches towards the ¥800,000 level next. 40% of trading in Bitcoin is done in Japan, and that of course has an effect on this pair, meaning that this pair needs to be watched. If we cannot rally over here, we certainly won’t rally in Bitcoin against almost anything else. This is a market that continues to be negative, and I think will continue to fall.