BTC/USD

Bitcoin continues to lose value on Tuesday, reaching down below the $6700 level again. It looks as if we are going to make a move towards the $6000 level underneath, which has been massive support in the past. In fact, it has shown support going back to November 2010, and I think it’s only a matter of time before we break down below that level and go even lower. Rallies at this point are to be sold, and I think it’s a most impossible to imagine buying this market until we can at least make a “higher high”, raking above the $8000 level. I would be very concerned about buying this market until we get a longer-term buy signal, which we are nowhere near getting right now. I believe that with the US dollar strength in general, that should be a bit of a “double whammy” for this market.

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BTC/JPY

Bitcoin markets have fallen again during the day on Tuesday against the Japanese yen, as we are testing the ¥745,000 level. There is a significant amount of support underneath, down at the ¥700,000 level, which is a longer-term support level just like we see in the BTC/USD pair. I think that if we break down below there, and we probably will eventually, the market will probably go down to the ¥600,000 level after that. A breakdown below that level would be that market completely capitulating, and I think that we are in serious danger of that happening rather soon. In fact, it’s not until we break above the ¥900,000 level that I would consider buying Bitcoin against the Japanese yen, and quite frankly I think it would take a lot for that to convince me still.

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