BTC/USD

Bitcoin rallied slightly during the trading session on Friday, only to turn around and form a shooting star for the day. This is a market that cannot seem to pick up its feet, and I think it’s only a matter of time before we break down towards the $7000 level. If we break down below the $7000 level, I think we will eventually go looking towards the $6000 level underneath. I recognize that rallies at this point are still to be sold, as the $8000 level above offers significant resistance. When you look at the chart, it’s easy to see that we continue to make lower highs, and that, of course, is a very negative sign. Someday, we could break down below the $6000 level, and that should send this market to the $5000 level after that. If we can break above the $8000 level, we could go as high as the $9000 level, but that seems to be very unlikely.

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BTC/JPY

Bitcoin also tried to rally against Japanese yen but turned around to show signs of exhaustion as we ended up forming a shooting star. I think the market will continue to go much lower, perhaps reaching down to the ¥700,000 level. That’s the bottom of the overall consolidation area, and as you can see this market looks very much like the BTC/USD pair. If we can break down below the ¥700,000 level, that should send the market much lower, perhaps reaching down to the ¥600,000 level. Rallies at this point are to be sold, as we continue to struggle in general when it comes to the cryptocurrency markets. The ¥1 million level above is a major resistance barrier that I do not think this market will be able to break anytime soon.

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