BTC/USD
Bitcoin markets fell slightly during the session on Friday, losing a little bit over 1%. The market seems to have plenty of support underneath though, somewhere near the $9000 handle. If we break down below there, then the market probably grinds down to the $8000 level. If we continue to bounce around from here, the market will have a bit of a ceiling at the $10,000 level. That is a large, round, psychologically significant number, and break above there could send this market to the $12,000 level after that. If we break down below the $8000 level, we will unwind to the $6000 level. This is a market that has been very tight over the last several sessions, and I think it’s difficult to jump into this market with both feet, as the volatility could be a problem. Ultimately, if we can break out to the upside, the market should be a nice investment again, but that’s not until we clear the $12,000 level. I expect a lot of noise until then.
BTC/JPY
Bitcoin markets tried to rally against the Japanese yen but gave back the gains and broke below the ¥1 million level on Friday. The market looks as if it has support below at the ¥900,000 level, just as we have resistance at the ¥1.1 million level. If we can break above the ¥1.1 million level, then the market probably goes to the ¥1.25 million level. If we break down below the ¥900,000 level, the market could unwind down to the ¥700,000 level again. I think Bitcoin continues to be very noisy, so I think you need to trade this with a small position, and then add if the market goes in your way. Overall, this is a range bound market but if we can finally break above the ¥1.25 million level, the market should go higher.
