Bitcoin traders initially tried to rally during the trading session on Wednesday but failed yet again. As I record this, we are approaching the $8000 level and it looks as if we are going to finish the day with a loss of at least 11%. Ultimately, this is a market that should continue to start selling, especially considering that we are pressing the very bottom of the range for the day. I believe that the market is going to make a return to the $7000 level again, perhaps even lower than that. If we were to break down below the $7000 level, I think that the market goes looking towards the $5000 level of eventually. This is a market that continues to be a “sell the rallies” situation. At this point, I would need to see a break above the $10,000 level to be interested, but quite frankly that looks very unlikely at this point.
Bitcoin initially tried to rally against the Japanese yen during the trading session on Wednesday, reaching towards the ¥1 million level, but found enough resistance to roll over and break below the ¥900,000 level. We have broken a support region, and it looks like we are going to continue to go lower. Currently, I expect this market to go to ¥750,000, and perhaps even lower than that. Crypto currency simply cannot get out of its own way, and I think at this point the bubble is all but exploded. I’d be a seller on any rallies at this point, and I think that the market will probably wipe out most, if not all the gains that traders enjoyed during the mania. At this point, I simply cannot find a reason to buy these markets.