BTC/USD
The Bitcoin market initially fell during training on Friday, finding the $8000 level to be supportive enough to turn things around and rallied. In fact, it now looks like the last 2 days have suggested that we are ready to rally. I think if we can break above the top of the range for the trading session on Friday, the market will probably go looking towards the $9000 level, then perhaps even a size $10,000. However, I believe that it is only a matter of time before the sellers return, but I will say that if we do bounce from here, it could be the beginning of some type of bottoming pattern. A break above the $10,000 level would be very strong, and send this market looking towards the $12,000 level next.
BTC/JPY
Bitcoin markets initially fell against the Japanese yen as well, but just as it did against the US dollar, we found buyers and it shot higher. We closed above the ¥900,000 level, and it looks as if we are ready to go to the ¥1 million level. If we can break above the ¥1.1 million level, that would be a very strong sign, perhaps reaching towards the ¥1.3 million level. Ultimately, I think that the market will try to find some type of stability here, but if we were to turn around a breakdown below the ¥800,000 level, that would be catastrophic. I think we are going to continue to be very choppy, and I believe that it is difficult to hang onto a trade for a significant length of time, but I believe that we will eventually find some type of clarity. What happens this weekend could be very crucial, so if we are bullish over the weekend, we probably will see some follow-through on Monday.
