BTC/USD
Bitcoin fell significantly during the trading session on Wednesday, as the $10,000 level came into sight. With the US dollar strengthening, that does make a bit of sense, but now I think we are testing whether there is significant support between the $8800 level and the $9000 level. I suspect we could get a bit of consolidation in this area, but if we were to break down below the $8800 level, the market probably goes looking towards the $8000 level next. I suspect it will take several attempts to break above the $10,000 level above. The market has been trying to go higher and has formed what could be looked at as a potential double bottom, but we still have a lot of things to sort out in the meantime, and therefore I think the volatility continues to be a major issue, so by all means start out slowly.
BTC/JPY
Bitcoin broke through the ¥1 million level during the day on Wednesday but has started to show signs of life again towards the end of the session. I think that the market is likely to continue to go back and forth, and grind sideways overall. I think that we are trying to build up enough momentum to go higher, perhaps reaching towards the ¥1.25 million level, but it’s going to take a while. This is a market that has been shaken to its core over the last several months, so it’s going to take a certain amount of confidence building to reach to higher levels. If we were to roll over and break down through the ¥900,000 level, then I think we could go as low as the ¥700,000 level underneath. Expect volatility, but it looks as if the buyers are probably going to continue to hunt for value.
