Bitcoin tried to rally against the US dollar, but it was essentially flat by the end of the day. It looks as if the $6700 level continues to offer support and should extend down to the $6000 handle. The alternate scenario is that we break above the $7500 level, which could send this market towards the $8000 level after that. I still think that it’s only a matter of time before sellers return to this market, at least until we manage to break above the $10,000 level, something that doesn’t look very likely anytime soon. If we break down below the $6000 level, I think that this market unwinds quite rapidly, with the first target be in the $5000 level, and then $4000 below there. I don’t have any interest in buying this market in the near term, there’s just been too much in the way of disappointment for the buyers.
Bitcoin markets also went sideways against the Japanese yen during the trading on Thursday, sitting just above the ¥700,000 level. I think that the support extends down to the ¥600,000 level, and if we were to break down below there, it would make this market unwinds rather significantly, perhaps with a target of ¥400,000 after that. A break above the ¥800,000 level could send this market towards the ¥1 million level above. There is more than enough reason to believe that rallies will continue to be sold, so at the first hit of exhaustion I am more than willing to short this market. Keep in mind that 40% of Bitcoin trading is done in Japan, and if the crypto currency can rally against the yen, it’s not going to rally against much else.