BTC/USD
Bitcoin fell during the trading session on Friday, reaching down towards the $7550 level. At this point, I would be suspicious of rallies, even though we have been going higher of the longer-term. If we break down below the $7500 level, then it will confirm that we have formed a bit of a double top, and that it’s likely that we will continue to go lower. The $7800 level above is significant resistance, so if we break above there then I think we could go looking towards the psychologically and structurally important $8000 level above.
BTC/JPY
Bitcoin also fell against the Japanese yen, as you would expect. The ¥850,000 level has offered significant resistance, and we have pulled back enough to test the ¥830,000 level, an area that is minor support and resistance, so I think it’s only a matter of time before we have to make a move. If we break down below the ¥830,000 level, then I think the market could go down to the ¥815,000 level, an area that we have bounced from recently. A break down below there opens the door to the ¥800,000 level, and perhaps the ¥700,000 level after that. That’s the bottom of the larger consolidation area, so it makes sense that we could have a real fight on our hands down there. At this point, although it has been slightly bullish over the last several days, I think we are starting to get a bit exhausted.