Bitcoin rallied slightly against the US dollar on Monday but continues to be very soft in general. We are hovering above a major support level in the form of the $6500 level, but at this point, I think the best thing we can hope for is a bit of stability. If we break down below the $6000 level, the market then should unwind rather drastically. From everything that I see in this chart, a rally will more than likely offer yet another shorting opportunity as this market cannot pick up enough momentum to rally for any length of time. $4000 makes a decent target but picking up a bit of momentum would be a nice opportunity, in the form of a rally of course. I’ve been bearish of Bitcoin for several months now, and although I think we will eventually turn around, typically these types of meltdowns need massive consolidation before people are comfortable enough to start trading to the upside again.
Bitcoin tried to rally during the day on Monday against the Japanese yen, but gave back most of the gains, as the ¥775,000 level offer too much in the way of resistance. It now is below the ¥750,000 level, and I think that if we break down below the bottom of the range for the weekend, we will probably go looking towards the ¥650,000 level, possibly even the ¥500,000 level given enough time. If we were to break above the top of the range for Monday, that would be a bullish sign, but I think that the resistance near the ¥1 million level will be far too difficult for the market to overcome, and therefore I believe that we will see sellers in this market sooner rather than later.