BTC/USD
Bitcoin initially rallied during the day on Friday but started to run into resistance at the $7600 level again. By the end of the day we ended up forming a shooting star, and it now looks as if the supply near the $7600 level is going to continue to offer a lot of bearish pressure. I think at this point, even if we do rally longer term, at the very least we need to pull back towards the $6800 level look for more demand. Ultimately, even under the best of scenarios, we need to form some type of basing pattern to turn the negativity around. The 200-day exponential moving average is just above as well, so I think at this point it makes sense that we drift a little bit lower. We are most certainly closing out the week with a lot of softness.
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BTC/JPY
The Bitcoin markets tried to break above the ¥850,000 level, but then turned around to fall in a very similar manner. At this point, we are at a major supply level and I think that demand is to be found at lower levels. I think that even if we are to go higher at this point, at the very least we need to pullback to find enough buyers. The 200-day moving average, pictured in blue on my chart, is just above as well, so I think at this point it will makes sense that certain algorithmic traders will come in and push the market lower. The question now is whether or not the ¥750,000 level can hold as support? It probably does, but over the next couple of sessions, I would expect to see a little bit softness in this market.
(Click on image to enlarge)
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