Bitcoin markets did very little during the day on Tuesday, as we continue to meander around in low-level trading. The $6000 level underneath should be massively supportive, just as the $7000 level should be massive resistance. I believe that the 50 day EMA, pictured in red just above, will come into play as well, so I think it’s only a matter time before the sellers get involved. I believe that Bitcoin will continue to struggle overall, and I think that the attitude of the market will remain very cautious. I believe that we will see lower pricing eventually, and at this point am waiting for some type of exhaustive candle to start selling. If we managed to break above the $8000 level, then I might be convinced to start buying.
Bitcoin has also fallen against the Japanese yen albeit slightly. The downtrend line is just above, just as the 50 EMA is. I believe that the market will continue to struggle as the FSA has considered changing cryptocurrency regulations in Japan, which can only spell trouble for Bitcoin in that country as Japan was one of the least restrictive markets. Beyond that, the RBI has also forced local banks in India to C cell cryptocurrency activity in two days. In other words, there is a lot of trouble in this part of the world and it makes sense that Bitcoin will continue to struggle. Technically things look negative as far structure is concerned anyway, so selling is the only thing I have any interest in doing until we were to not only break above the downtrend line, but perhaps even clear the ¥850,000 level, something that I don’t think’s going to happen anytime soon.
This article provided by NewsEdge.