Bitcoin struggles again on Friday

BTC/USD

Bitcoin markets broke down significantly during the trading session on Friday, losing over 4% as they simply cannot find any type of footing. Short-term rallies will need to deal with the $7200 level above which is resistance, and I think that any signs of weakness in that area will be sold. If we were to break above the $7200 level, it’s possible that we could go as high as $7800, but I think that the overall downtrend suggests that selling is all you can do, and that you should be waiting for signs of exhaustion to sell rather than trying to pick up Little bounces here and there. There is a lot of noise in the market, so I believe that eventually we will get a knee-jerk reaction to the upside, take advantage of it.

BTC/JPY

Bitcoin markets rallied initially during the session on Friday, but then ran into trouble at the ¥775,000 level again. We rolled over from there and broke down significantly. I think that we are going to go looking towards the ¥650,000 level, which was the recent low. If we break down below there, then the market goes to the ¥600,000 level, followed by the ¥500,000 level, and possibly even lower. I think that this is a market that needs to rally significantly for the rest of the crypto currencies out there to pick up any type of strength. I believe that the ¥850,000 level above continues to act as a bit of a ceiling in this market has Bitcoin struggles, and then on top of that the Japanese yen remains elevated in the Forex markets.

BTC/USD Video Video 02.04.18