BTC/USD
Bitcoin markets fell initially during the trading session on Friday, but then turned around to form a bit of a hammer. The question now is whether we can break out to the upside. I think that the $11,000 level is crucial, and if we clear that it is a bullish sign. However, with think that I am concerned about is that volume isn’t exactly strong. I think that there are a lot of concerns above because there are lot of people out there that will be looking to get out of this market when they finally get to breakeven. However, there is a lot of different places where you will see large pockets of these orders. Ultimately, the market will be very noisy to the upside, and I think that it’s possible that it will be easier to sell, but we would need to break down below the bottom of the candlestick for the day. I think in general, we are going to see a lot of choppiness.
BTC/JPY
The Bitcoin markets initially fell against the Japanese yen but found enough support above the ¥1 million level to turn around and form a hammer. The Bitcoin markets are stuck between 2 major levels against the Japanese yen, the obvious ¥1 million level, but I also see a lot of resistance near the ¥1.2 million level. Because of this, I’m not interested in buying this pair, but I would be convinced if we can break above the ¥1.2 million level, especially of volume picks up. Alternately, if we break down below the ¥900,000 level, the market could break down significantly. After the recent bounce from the lows, we are testing the first significant resistance barrier, and a lot will be decided over the next couple of days.
