BTC/USD
Bitcoin fell during the day on Monday, reaching down towards the $8300 level before bouncing slightly. While not some type of major meltdown, this shows just how soft the market is currently, as only the weekend retail traders could lift this market initially, and as soon as institutional money came back in, we started selling drastically. I believe that the market breaking down to a fresh, new low probably sends bitcoin to test the $8000 level underneath, which has been important more than once. A breakdown below that level unwinds the market even further. Rallies at this point will be treated with suspicion until we can clear the $9000 level above.
BTC/JPY
Bitcoin also fell against the Japanese yen of course, reaching down towards the ¥920,000 level underneath, which of course is supported by the psychologically important ¥900,000 level. If we break down below that level, it’s likely that we unwind to the ¥800,000 level which has been important more than once. I believe that the ¥960,000 level above is massive resistance, and that it extends all the way to the ¥1 million level above. Ultimately, I think that we will continue to see selling pressure on rallies, and that we are likely to continue to see a lot of bearish pressure and bitcoin against fiat currencies in general. If we get a daily close above the ¥1 million level, then I think the buyers could be a little bit more encouraged. Until that happens, I’m a seller in general.