BTC/USD
Bitcoin markets fell significantly during the trading session on Tuesday, reaching down towards the $8150 level before showing signs of slowing down. I think that the market will continue to go even lower though, reaching down to the $808,000 level. That’s an area that should be rather supportive, and I think that there will be a lot of buying interest in that area. However, if we were to drop below the $7950 level, that could unwind this market rather drastically, perhaps sending it down to $7000 in the short term. Rallies at this point I think will be short-term trading opportunities at best. The $9000 level has now become the “ceiling” of the overall market.
BTC/JPY
Bitcoin markets fell during the trading session on Tuesday, reaching below the ¥920,000 level. The market has a significant amount of support at the ¥900,000 level, but the larger consolidation area has a much more important support level closer to the ¥700,000 level. Market participants continue to be a bit jittery as well, but it looks as if the overall attitude of Bitcoin is to go to the downside more than anything else. Ultimately, this is a market that I think will struggle to get above the ¥1 million level, as it is a large come around, psychologically significant figure, and of course structural resistance now as we have failed here more than once. This is probably the most important level on the longer-term charts as well. Expect volatility, with the downward slant in general.