Bitcoin initially tried to rally during the day on Tuesday but struggled again as it looks likely to continue lower. We are pressing the $10,000 level, an area that of course has attracted a lot of attention. However, it’s likely that we will break down below there considering the tenacity of the selling pressure, and the lack of positive volume. Because of this, I anticipate that we are going to continue to go lower, perhaps down to the $8000 level next.
Bitcoin also fell against the Japanese yen and is now below the ¥1.2 million level. It’s likely that we are going to go testing the ¥1 million level in the short term, so I believe that based upon the price action in the most recent candles, that we are going to continue to fall from here. A breakdown below the ¥1 million level would be very negative, sending the market much lower.