BTC/USD
Bitcoin fell again during the week, reaching down towards the $8000 level, an area that is massive support, not only from a psychological standpoint, but from a previous structural level. The uptrend line underneath is still massive support as well, and I think that the market will probably continue to respect that line. However, if we were to break down below that I think that bitcoin would unwind will drastically, probably reaching down to the $6000 level at the very least. If we break down below there, then the market could go much lower. I think the next candle for the weekly chart will be crucial.
BTC/JPY
Bitcoin fell again against the Japanese yen as well, reaching towards the ¥900,000 level. The uptrend line underneath could offer support line though, so we could see some type of buying pressure. If we break through the uptrend line, I think the market then tests the ¥700,000 level below which is the bottom of the overall consolidation that we have seen as of late, and of course we have seen structural support at that level. I believe that if we break down below there, the market goes much lower, probably unwinding significantly. Otherwise, if we bounce from the uptrend line, it could be a longer-term buying opportunity but the most recent high that we have seen on the weekly chart hasn’t exactly instilled a lot of confidence just yet. This uptrend line must hold for confidence to remain in the market.