BTC/USD
Bitcoin markets did very little during the day on Monday, as we tread water after selling off drastically over the weekend. The $6600 level underneath has offered support in the short term, but I think it’s only a matter of time before we go down to the $6000 level which is much more supportive than the area that we are at right now. I think that rallies will find resistance at $6800, and then the $7200 level after that. The first signs of exhaustion should be an opportunity to start selling, as the momentum has decidedly shifted to the negative side.
BTC/JPY
Bitcoin has gone sideways against the Japanese yen on Monday after being brutalized over the weekend. We are near the ¥740,000 level again, and I think that it’s only a matter of time before we fall towards the ¥700,000 level underneath which is a major support level on the longer-term consolidation. If we can break down below there, the market unwinds rather drastically. I think that short-term rallies are selling opportunities, and I believe that the Japanese yen will continue to strengthen against Bitcoin, as crypto currency markets continue to look very difficult and challenging, and therefore I think it’s only a matter time before the sellers come back in. I have no interest whatsoever in trying to pick the bottom here, because quite frankly I don’t think we’ve seen it. When you look at the longer-term charts, there’s no reason to think that ¥700,000 will hold up as support over the longer-term.