The Bitcoin markets initially tried to rally during the week but turned around to form a negative looking candle. The market continues to be very noisy, as is typical with crypto currencies, but I clearly see some negativity coming.
Bitcoin markets initially tried to rally during the week, but then fell rather significantly to form a shooting star. The shooting star is a very negative candle, and I think that if we can break down below the bottom of that shooting star, the market is probably going to drop to the $8000 level. That’s an area that should be supportive, an area that is highlighted by not only the 61.8% Fibonacci retracement level, and of course the hammer that sits there as well should offer a bit of psychological support. I think if we break down below the $8000 level though, we probably go down to the $6000 level. A breakdown below that level would be catastrophic.
Bitcoin markets also tried to rally against the Japanese yen, but by the time that we closed down, we had formed a shooting star which is a negative sign. The ¥1 million level is between the hammer and the shooting star over the last couple of weeks. I think that we are going to at the very least go sideways, perhaps even break down. If we were to break down below the ¥700,000 level, the market will break down towards the 500,000 level, and then possibly the ¥400,000 level. Alternately, if we were to break above the shooting star for the week, then I think that the market can continue to go towards the ¥1.5 million level, perhaps even higher than that. This is 40% of the trading volume in the Bitcoin market, so pay attention to this market.
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.