BTC/USD
Bitcoin rallied against the US dollar on Tuesday, as Americans came back to work. We gained over 4%, which of course is a bullish sign. I believe that the market is going to try to break above $12,000 today, and that would be a milestone worth paying attention to. I also recognize that we may have gotten a bit overextended, so a pullback is possible. That pullbacks should be supported at the $10,000 level though, and I think that would probably be a nice buying opportunity in a market that seems to be recovering quite nicely. There are several areas above that are going to be resistive, so it’s going to take a significant amount of patience to collect your gains. At this point, Bitcoin has gotten quite a bit of momentum underneath it, but the volume isn’t surging yet. This tells me that the market isn’t as hyperbolic as it once was.
BTC/JPY
Bitcoin markets rallied a bit during the trading session on Tuesday, clearing the ¥1.2 million level. By doing so, the market looks as if it is ready to go towards the ¥1.4 million level next. We have seen a significant resurgence of Bitcoin in Asia, which is what it needed to gain any type of momentum around the world. I think that the market will eventually go looking towards the ¥1.5 million level, and then possibly higher than that. If we can stay above ¥1 million, I don’t see the reason the uptrend won’t continue, and that should continue to bring fresh money into this market. If we did breakdown below the ¥1 million level, I think that would be a very negative sign. In the meantime, it looks as if the rally continues, and that the recovery is in full “risk on” mode.
