BTC/USD
Bitcoin markets broke down a bit during the trading session on Tuesday, reaching towards the $7400 level. The $7400 level of course is psychologically important and has been structurally important recently. However, I think that it’s only a matter time before the market breaks down, perhaps down to the $7100 level. I believe that the $75 level above will offer a bit of resistance, and while I believe that this market is going lower, I don’t necessarily think that it will be some type of meltdown. I believe it’s more likely to be more of a grind to the downside like we have seen for some time.
BTC/JPY
Bitcoin markets also fell against the Japanese yen, as we continue to see Bitcoin struggle a bit. I think that breaking below the uptrend line of the ascending wedge, and it’s likely that we will continue to go to the ¥800,000 level, perhaps even lower than that. I think that rallies at this point are to be sold, and even though I am very skeptical of this market, I don’t think that the market is going to break down rapidly. I believe that a slow and gentle grind to the downside continues to be what we can expect in this market, perhaps breaking to a fresh, new low and aiming towards the ¥700,000 level below which has been the bottom of the overall consolidation for months. I don’t know if we break down below there, but I think that testing that area makes a lot of sense.