BTC/USD
Bitcoin exploded to the upside during the trading session on Tuesday, breaking above the initial resistance barrier that I’d spoke about yesterday in the form of the $6800 level. Now that we have done that, we clearly have a lot of upward momentum. With a 9% gain, obviously a lot of the upward momentum has already been expressed during the day, but I would also point out that we do have a target just above at $7700, and then again at $8000. I would anticipate a significant amount of resistance and that area, especially as the 200 EMA is right around that $8000 level. I believe that it’s only a matter time before we see some exhaustion near the $8000 level, but in the short term I think that obviously there’s a lot of “FOMO” going forward, as retail will chase this type of move.
BTC/JPY
Bitcoin also exploded to the upside during the trading session on Tuesday against the Japanese yen, reaching towards the ¥850,000 level. The ¥850,000 level has been the scene of significant selling pressure previously, so I wonder whether we can continue to go higher? Certainly there will be another attempt, but I think if we break above the 200 day EMA, pictured in blue on the chart, that’s a very good sign and could change things. However, we have a significant amount of support at the ¥700,000 level as well, so I think we could get a short-term amount of bullish pressure, but ultimately there are still a lot of problems with adoption going forward. This has been a very nice turn around again, but as you can see, we had a very similar move back in April, only to turn around and break down again.
