BTC/USD
Bitcoin did very little during the trading session on Tuesday, hanging about the $6750 level. The market has significant support at the $6500 level, so if we were to break down below there we should then go to the $6000 level which is support on the longer-term charts. A breakdown below that level would be very negative, perhaps unwinding this market down to the $5000 level rather quickly. Any rally at this point will more than likely find resistance near the $7200 level, an area that turned the market around yesterday. I believe volatility is here to stay in general, but it looks as if the market is trying to find its next catalyst.
BTC/JPY
Bitcoin went sideways during the trading session on Tuesday, showing signs of very little in the way of confidence. However, there is significant support below at the ¥700,000 level, so it’s possible that buyers could come back at that point. If we did breakdown below the ¥700,000 level, the market should then go down to the ¥600,000 level. Ultimately, if we rally, I think that the ¥800,000 level will offer significant resistance. Looking at the chart, it appears that we are in short-term consolidation, and that will probably continue to be the way forward. However, as soon as we can break out of this area, it gives us an opportunity to place a more significant position, but until then I would employ a range bound system with small trading size as the volatility could spike or fall apart rather quickly. Once we break out of this range, you can then become a bit more aggressive.