Bitcoin markets were very quiet on Tuesday as cryptocurrencies, in general, were flat. We are hanging about the same area that we have been in over the last several sessions.
Bitcoin tried to rally initially during the trading session on Tuesday but gave back almost all the gains to keep a very flat tone to the marketplace. The $8000 level looks to be a bit of a magnet, so I think that we will continue to go back and forth in a tight range, but it does look like we’re trying to find some type of base in this market to keep Bitcoin afloat. If we were to break down below the $6000 level, then I think the market could go much lower. Above current trading, the $10,000 level should be rather resistive. That is an area being broken to the upside that would signify that we could go higher. Signs of exhaustion between here and there could be selling opportunities as well. I think that Bitcoin continues to be very choppy in general, and that is going to be the overall attitude.
Bitcoin markets have been very noisy against the Japanese yen as well, showing signs of consolidation. The ¥700,000 level underneath is support, while the ¥1 million level above is resistance. I think that the market breaking above the ¥1 million level will allow the market to go to the ¥1.25 million level. However, I think that we will continue to have a lot of issues, and ultimately this volatility will lend itself to short-term back and forth range bound trading. Use some type of range bound system to get involved, perhaps using something along the lines of the stochastic oscillator.