BTC/USD
Bitcoin rallied again during the trading session on Wednesday, breaking towards the $7500 level. There is a certain amount of supply in this area, so if we are going to turn around, it’s probably going to be between here and $8000 above. I think there is more than enough reason to believe that we could pull back, because we had seen such a massive amount of positivity over the last couple of days. In fact, Tuesday was a 10% gain, which of course is a bit overdone. When you look at the chart, we have done this more than once, rally significantly, only to turn around and roll over. I think that the combination of the $8000 level and the 200 EMA in the same vicinity will probably send this market lower. If we could break above the $8000 level, then I believe that the market could continue to go higher. Obviously, $6000 has asserted itself as a very bullish demand level.
BTC/JPY
Bitcoin of course rallied against the Japanese yen as well, struggling at the ¥850,000 level though. This is an area that offered a significant amount of resistance in the past, and I think that now the we have rallied so significantly, we probably don’t have the momentum to break out quite yet. The candle stick for the trading session on Wednesday looks a bit like a shooting star, so I think we are going to see a pullback here as well. However, if we were to break above the 200 EMA, I think that the market could rally rather significantly. This has been an excellent bounce, but it has been a bit overdone. Remember, we have seen this happen before, only to get turned around right away. The question now is whether or not we can keep up the upward grind?
