Bitcoin pulls back to start the week

Updated : Apr 17, 2018, 05:59 UTC•1min read

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Bitcoin markets pulled back to start the week on Monday, showing the $8400 level as being too expensive. By doing so, it looks likely that we will continue to see a bit of a struggle just above. We have pulled back several hundred dollars, and it looks likely that we

BTC/USD

Bitcoin found the $8400 level to be too expensive and pulled back rather significantly to open trading on Monday. Beyond that, we break down below the $8000 level, which of course is a large, round, psychologically significant number. It now looks as if we will probably go to the $7600 level, an area that was previous resistance. I suspect that this market will attract buyers on dips, and therefore value hunters will continue to be a part of this market. However, Bitcoin has been obliterated over the last several months, so confidence is something that is sorely lacking.

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BTC/JPY

Bitcoin fell against the Japanese yen as well, as the ¥900,000 level offered a significant amount of resistance. Because of this, the market rolled over to the ¥850,000 level, an area that has a certain amount a short-term support built into it. If we break down below there, the market is likely to go looking towards the ¥800,000 level below, which was significant resistance in the past. I like the idea of buying dips in this market, but I recognize that you will need to be able to ride out the volatility, and this means keeping a small position. You can add to your position if the market moves in your favor, but until then I would be cautious about building up a larger position. I believe that the ¥700,000 level being broken to the downside would change everything and unwind this market yet again.