The Bitcoin market initially tried to rally on Friday, but then rolled over to break down below the $6600 level. A breakdown below the 6600 level should send this market down to the $6000 level, the scene of the lows in February. Quite frankly, I think this market is going to continue to roll over, and break through that level. Even if we rally from here, I’m more than willing to start selling Bitcoin at the first signs of resistance and exhaustion, because anytime you try to pick up a bit of bullish pressure in this market, you get pummeled after a session or so of bullish pressure. I don’t really have any interest in buying this market, as there seems to be nothing going for Bitcoin recently, and I don’t see anything changing in the short term. In fact, I believe that the $10,000 level is the “ceiling” in the market.
Bitcoin has pulled back yet again during the day on Friday, as we reached towards the ¥710,000 level on Friday. The market looks as if it is ready to go down to the ¥600,000 level, an area of major support. A breakdown below there could send this market down to the ¥500,000 level, and then perhaps to the ¥400,000 level. Rallies at this point will be nice selling opportunities near the ¥800,000 level, and the ¥1 million level. I don’t have any interest in trying to pick up Bitcoin against the Japanese yen, and with a couple of exchanges being closed in Japan, that of course adds even more pressure on this market. It’s going to be very difficult to imagine a scenario in which you should be buying, as the Japanese yen has been falling in the FX markets, and Bitcoin still can’t pick up against it.